You are the chief financial officer of Superior Paint Company, a company that manufactures paint and paint products in a large township. Chemicals used in the production process are disposed off in compliance with environmental regulations but some of the components of the products such as solvents, monomers and softening agents still present serious ecological risks. The company provides regional employment. The chief executive officer has asked you to prepare a report on whether the company should engage in social and environmental reporting.

Write a report that covers the following:

1. Explain what social and environmental reporting is, why it is important, why it is different from traditional financial reporting and how the information is disseminated to the various stakeholders;
2. Identify and explain the potential costs and benefits for the company to produce a social and environmental report; and
3. Recommend to the chief executive officer whether Superior Paint Company should engage in social and environmental reporting and provide two supporting reasons with reference to the GRI Framework.