Financial Accounting Theory for Westpac Banking- myassignmenthelp

Question: Discuss about theFinancial Accounting Theory for Westpac Banking. Answer: Introduction The present paper is developed for presenting an analysis of the sustainability performance of Westpac, an Australian bank recognized for providing innovative financials services to meet the personal, business and corporate needs of its customers. The bank is regarded to be one of the big four bank of Australia by carrying out its business in a sustainable manner. As such, this report illustrates the importance of sustainability in enhancing the bank performance. Implementation of Sustainability Performance in Westpac The Westpac Banking Corporation has integrated the economic, social and environmental dimensions into its business performance for ensuring its sustainable growth and development. The banking corporation has implemented the approach to sustainable business practices into its business strategy for supporting the economic, social and environmental development. It implemented the CSR (Corporate Social Responsibility) practices into its daily operational and decision-making activities. The concept of CSR aims to integrate social and environmental concerns associated with a business entity into its operational activities for promoting its sustainable growth. The sustainability approach is implemented by the banking corporation through regular engagement with the stakeholders. This helps to develop an in-depth understanding of the needs and expectations of the stakeholders and thus developing the business strategies for meeting their priorities and concerns (Westpac Group, 2012). The banking corporation has also adopted the Squashed Tomato Strategy for analyzing the impact of the bank operations on the internal processes and stakeholder relations. The strategy is focused on examining the impact of the Westpacs operations on its overall stakeholder group and to integrate its sustainability strategies into the organizational practices. The company has also introduced innovative environmental solutions for resolving the environmental problems such as introducing the new energy efficiency program and supporting the growth of clean tech environmental services sector. The banking corporation has also developed a Community Consultative Council (CCC) that meets annually consisting of its different stakeholder groups for analyzing the various aspects of its sustainability strategy. In addition to this, the banking corporation has also developed a Sustainable Supply Chain Management Process (SSCM) for introducing sustainable business practices into its supply chain (We stpacs Squashed Tomato strategy, 2010). Reasons for Westpac to Apply Sustainability Performance The four reasons for Westpac implementing sustainability performance can be stated as follows: Competitive Advantage: The Westpac banking corporation has introduced and implemented sustainable business practices into its daily operational activities for achieving competitive advantage by achieving product leadership and thus maximizing operational efficiency. This is possible by integrating the socially responsible practices into its each business area and thus supporting the development of environment, society and overall economy in which it operates. The Westpac sustainability strategy centered on active stakeholder engagement and minimizing the environmental damage would help it to promote its goodwill in the global marketplace and thus achieving higher brand recognition globally. This would provide the Westpac a global competitive image and thus ensuring its long-term growth and development (Kotler, Burton and Armstrong, 2015). Consumer Engagement: The sustainable practices undertaken by Westpac would help it to develop the trust of the customers through promoting its goodwill in the market. The sustainable business approach would help in developing a positive user experience in the mind of the customers. Therefore, the banking corporation can attain customer satisfaction and therefore increase its customer base thus driving its performance and growth. Developing long-term relations with suppliers: The use of sustainable business practices would help the banking corporation to develop long-term relationship with suppliers. The baking corporation has developed a sustainable supply chain management process that can help the banking corporation to maximize its operational efficiency through reducing the operational cost. Risk Management: The banking corporations are exposed to various types of operational risk such as financial scandals that can result in negatively impacting their goodwill in the marketplace. As such, it is very essential for the banking corporations to incorporate the use of proper risk management strategies for eliminating the chances of occurrence of various types of risks. The implementation of the sustainable practices by banking corporations such as Westpac would help in developing a positive relation with the stakeholders that would help it to meet the various type of situations involving risks effectively. This is because sustainable practices improve corporate transparency and therefore developing a good reputation in the mind of all its stakeholders (Robbins, Bergman and Coulter, 2014). Four Stakeholders in Westpac Sustainability Performance The major stakeholders in the Westpac are customers, communities, employees and suppliers. The customers are the major stakeholder group of the banking corporation as the bank operates for meeting the needs and demands of the customers. The banking corporation develops its product and services as per the customer requirements in order to achieve their loyalty and thus driving the bank growth and development. The communities in which the bank operates are the next prominent stakeholder group of Westpac. The banking corporation operates in co-operation with the nearby communities and therefore it is important for Westpac to ensure the long-term development of its communities (2016 Westpac Group Sustainability Performance Report, 2016). The employees are also an important stakeholder group of the Westpac as they plays an important role in driving its growth through meeting the customer needs and demands. The employees are largely impacted by the decision-making of the banking corporatio n as they are responsible for acting in certain ways to achieve its stated goals and objectives. At last, the suppliers are also an important stakeholder group of the banking corporation that influences the quality of products and services. The development of trust with the suppliers is highly important for the Westpac in order to provide high quality products and services to the customers (Westpac Group, 2012). Conclusion Thus, it can be said from the overall discussion held in the paper that Westpac has integrated sustainable approach and practices into its business strategy effectively. The sustainability practices of the bank are responsible for improving its performance and goodwill across the world. References 2016 Westpac Group Sustainability Performance Report. 2016. [Online]. Available at: https://2016annualreport.westpacgroup.com.au/assets/Westpac_Sustainability_Report_2016.pdf [Accessed on: 20 November 2017]. Kotler, P., Burton, S. and Armstrong, G. 2015. Marketing. Pearson Higher Education AU. Robbins, S., Bergman, R. and Coulter, M. 2014. Management. Pearson Australia. Westpac Group. 2012. Embracing the Corporate Journey into Sustainability. [Online]. Available at: https://www.westpac.com.au/docs/pdf/aw/sustainability-community/2012-SSCM-CaseStudiesBooklet.pdf [Accessed on: 20 November 2017]. Westpacs Squashed Tomato strategy. 2010. [Online]. Available at: https://www.cimaglobal.com/Documents/Thought_leadership_docs/Westpac_Squashed_Tomato_March31.pdf [Accessed on: 20 November 2017].