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Research Project Starbucks Assignment

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Master of Professional Accounting


1. Introduction

Last few data and structure of corporate indicates the concept of social responsibility of corporate and its exponential growth. Large industries face huge issues of social responsibility as a key problem.  In the 21st century larger firms face a large number of changes and challenges including the corporate social responsibility as being one of the key problems. It is suggested to understand the importance of corporate social responsibility that could affect the financial performance of the company.

This report emphasises the impact of corporate social responsibility to the Australian companies. Five companies are undertaken in a report on the Australian stock exchange. Australia is a country which is developing and requires increasing in the literacy rate as well as in employment rate. Welfare role made by the government is not clearly revealed therefore organisations are emphasising increasing the role of welfare. It is done for increasing the reputation of an organisation and business growth.

2. Research objectives


  1. To identify the corporate social responsibility concept and its impact on financial performance with the help of regression and qualitative comparison.

  2. To identify the complexity of the new format of accounting and its impact on the future. It reviews the impact of CSR on a performance of a company by providing welfare to society.

  3. To critically reviews the existing challenges in the development of corporate social responsibility to improve the financial performance of company and society To recommend for improvement in Corporate sustainability by applying the improved methods to eliminate challenges regarding social responsibility.

  4. To evaluate the response of the organization and determine the Anova of performance.

  5. To reviews how the relation of total assets, debt ratio, and total liabilities in case of return on equity(ROE)

    3. Research Question


  1. What are the characteristics of corporate social responsibility enforces by a company for better financial performance?

  2. What is the impact of corporate social responsibility maintenance on firm and the society?

  3.  What are the challenges faced by the organisation in CSR development and its effect on the performance of the organisation?

  4. What steps are taken by an organisation to make improvement in CSR for gaining better financial performance and loyalty of society where the company is operating?

4. Literature review



The report aims at researching the relationship between the issues of society, a responsibility of corporate towards such issues and its impact on the financial performance of the company (Yawar & Seuring, 2017). According to Lord Holmes, the corporate social responsibility is a continuation of a business with a commitment by the company to contribute welfare to society. The organisation commits to change the lifestyle of society and brings economic development. The organisation is required to follow the triple bottom line related to economic, social and ecological factors for providing welfare to society. The three factors identify the need for triple bottom line structure for gaining profit and increase the ratio of sustainability (Tevel, Katz & Brock 2015).

Conceptual framework

It intends to bring improvement in a workforce of society, in a community as well as within family by creating employment. The organisation that contributes to society and the internal structure of a company, it enhances and motivates the surrounding and employees to work efficiently. Providing a healthy and friendly environment to employees motivate the existing employee to give their best to business. It also attracts new employees due to the characteristics of an environment within an organisation.

The financial performance of an organization could be calculated in monetary terms and by reviewing the past and present performance result of a company. It could be measured by analysing total assets, total liabilities and net profit. The social responsibility of the organisation toward society could be calculated by performing a regression calculation.

 A subjective and qualitative method is used to measure the usage of assets from a primary source of a company to provide welfare to society and brings development. Therefore changes or utilisation of company assets affect company’s financial performance. It is observed that financial performance and social responsibility is correlated. The statistics data and regression calculation would help in identifying the responsibility of the organisation and their contribution towards society. The above diagram mentioned how the calculation and analysis of corporate social responsibility could be recognised to determine the performance of an organisation and its contribution to the welfare of social, economic and ecological factors. It determines the impact of a stated component on performance and procedure of organisation by the management.

The concept of development in corporate social responsibility to attain better financial performance

In terms of responsibility by a company to society influence the notion of sustainability achieved by mankind (Qian, Hörisch & Schaltegger, 2018). The making or sustainability towards accounting and social practices works as a yardstick. As per the knowledge it is seen that the financial statement helps only in making a financial decision. In the case of Australian based company's, social responsibility to improve financial performance are analysed by retrieving the net profit, total assets, total liabilities and return on equity. The involvement of CSR has an ability to improve or develop the societal issues and business as well. The interest of corporate social responsibility is rising day to day due to changes in the global performance of an organisation. Corporate social responsibility identifies the reputation and performance of an organisation by creating good images among the member of society. Member is then forced to think good of the organisation as the company is rendering better welfare service to society. Good image of organisation creates value and increase sale which in return provides profitability to the company. Creation of bad image due to poor welfare performance brings down the reputation of an organisation and decrease sale.

After the research objective, it is observed that how the indicator of social, economic and ecological factors would determine the financial performance of an Australian company. The information on qualitative and quantitative is collected in the research to determine the work of the company towards economic and social. The qualitative measurement identifies the social pollution created by the organisation in society. The quantitative measurement helps in identifying the workforce made by the organisation toward environment to develop its efficiency. Keeping a record of organisational performance towards environment add up the financial value to the company performance. The recorded data could be utilised to measure the performance of an economy and attain better opportunity for improving financial performance. In the findings, it is observed that the performance of the economy could be improved by enhancing organisation sustainability. 



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