TOWARDS A SUSTAINABLE ECONOMY: THE CONTRIBUTION OF ASSURANCE

CSR or Corporate Social Resposibility is now an indispensable part of doing business. The Corporate world recognized their role in the sustainability and growth of the economy and as well as the improvement of lives of the people. Its goal is to take responsibility and be accountable for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Now corporations are no longer soulless entities concerned about the bottom line and accumulating wealth for themselves, but now aside from the primary goal of corporations which is to maximize the wealth of their stockholders they also take into consideration the interest of the public. According to the sociologys structural functionalist perspective each unit or structure in the society plays a role in the system, like the body organs that makes up a system, like animal species and living organisms that makes up an ecosystem, and as a part of the society corporations are establishing an advocacy towards sustainability or living for the future generations, sustaining their needs utilizing resources for the maximization of benefits while of course placing an importance in maintaining these resources for the future generations. The FEE or the Federation of the European accountants represents the European accountancy profession made up of more than 500,000 professional accountants. The FEE acknowledges that the urgent challenge of sustainability is becoming widely recognized and recognizes the role of assurance with regards to this endeavor. Regulations has increased in the area of sustainability and CSR. Over the years, demand for reports on environmental and social performance has also been increasing due to the importance placed on these types of information and thus requiring a more reliable and credible information coming from the management. FEE highlights the importance of practitioners and external auditors providing assurance that in effect increases the credibility and the quality of the information reported by the organization. The improved reliability of the reports benefits the company because it creates a positive image and therefore adds value on its name and improves its reputation. And being socially responsible helps improve the market standing of the company, their products and stocks are embraced by their consumer advocates and attracted investors. People care for those who care, a positive image will have a positive impact to the company allowing it to

attain its goal of maximizing shareholder wealth and at the same time keeping the public and the stakeholders happy while also taking care of the environment. The independent practitioner can review the sustainability systems, the processes and the internal controls whether it meets the appropriate criteria and also provide opinions that could propose long term benefits on the company. The practitioner can also help assess to see the weak points so that improvements and possible additions to the system can be done. Because of the advantages enumerated, the FEE encourages the standard making bodies to develop standards on sustainability assurance and sustainable reporting. For it helps reinforce trust and integrity on sustainable reporting. This field also provides opportunities for accountants and increases the value of the accountancy profession. Here in the Philippines, we have also adapted the Corporate Social Responsibility as it has become a global trend and countries around the world are recognizing their goal in the improvement of the lives of their countrymen. The importance of CSR is immense. Together with its mutual advantages to both donor and beneficiaries CSR is tied to ensure that despite the financial advancement brought about by numerous corporate investments, the welfare of the Philippines should not be of second priority: (CSR in the Philippines: Economic and Societal Investment) However, as of the date, sustainability standards are not yet established. But its applicability here in the Philippines cannot be questioned, personally I agree with the argument of the FEE because these information are as important as the reports concerning the financial statements. No money can quantify its importance and its possible impact to the societies around the world in the long run. Because in our own respect we are managers, we are stewards and the subject matter we are responsible of is the environment, the resources we have today. Live not just for ourselves but for the future as well.