Archer, Maddie and Dillon became friends when they travelled together to Indonesia on a surfing trip organised by a local
Archer, Maddie and Dillon became friends when they travelled together to Indonesia on a surfing trip organised by a local travel company. At the time of the trip they were each taking a break before starting their university studies. Despite studying different courses and attending different universities, they have remained friends since their trip to Indonesia and enjoy surfing together regularly at their local surf beach.
They often talked about starting a business together and believed that, with their combined skills and passions, they had a real chance of success in establishing a surfing business that provided premium surfboards, wetsuits and apparel.
They decided to go ahead and start the business. They have named their surf label ‘Armadillo Surf Designs’ and have set up the business as a partnership. ASD have held their first promotional event – a beach clean-up – at some of the local surf beaches. The beach clean-up was a complete success, with ASD selling out of their ‘save our oceans’ range of merchandise and gaining 10 000 new social media followers. ASD employed Sam to assist them with the event and have since employed him on a permanent basis as their marketing assistant.
Following a review of the business structure, Archer, Maddie and Dillon decided to restructure the business from a partnership to a company. Each of them is a director of the company and they each own a one-third share in the company named Armadillo Surf Designs Pty Ltd. The business is going well and with your help as their accountant, ASD has implemented a business plan to guide their strategy and operations over the medium to long term.
It is now five years since you joined ASD as their accountant and in addition to surfboards, the business now stocks a full range of both men’s and women’s apparel including hoodies, tracksuit pants, swimwear and beach towels.
Archer, Maddie and Dillon enlist your help to collect the information you suggested above. It soon becomes clear that while the organisation has performed well in some areas, there have been some instances of poor social and environmental performance. As a result, Archer, Maddie and Dillon are now unsure about how they should proceed. They have asked for your opinion in relation to the following three options:
• Report on all the social and environmental information collected – both positive and negative
• Do not report any social and environmental performance – neither positive nor negative
• Report only the positive aspects of social and environmental performance and do not report on the negative aspects
Reflect upon, and discuss, how your own system of values, and how the personal social responsibilities you embrace within your own life, might influence the advice you provide to Archer, Maddie and Dillon.
This problem has been solved!
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