Sustainability accounting should include measures of economic, environmental and social impact. Consider the following metrics which were obtained from Toyota's 2014 corporate social responsibility (CSR) report and Sustainability website (www.toyota-global.com/sustainability/ report/sr/):

Required:
1. For each measure, indicate whether it is primarily measuring economic, environmental or social impact.
2. How would you evaluate Toyota's performance in the three areas of sustainability?
3. What actions could managers take to improve performance on each metric?
4. For any measure that you identify as environmental or social, explain whether and how it might ultimately impact economic performance.

Transcribed Image Text:

Frequency of Industrial Accidents (Frequency rate of lost workday cases: Japan) 2.0 1.58 1.5 1.0 2 0.94 0.5 0.18 0.06 0 2009 2010 2011 2012 2013 Tear All industries Automobile manufacturing industry Manufacturing industry Toyota Toyota Stock Price 2014-2015 E 8,500 a 8,000 ,500 7,000 6,500 6,000 9 5,500 Jan 2014 Apr 2014 Jul 2014Oct 2014 Jan 2015 Apr 2015 Month Percentage of Employees Who Smoke 35- a 30 29.7 2010 2011 2012 2013 Fiscal Year Use of Childcare and Nursing Care Leave Program 19 00Male 21 20 467 Female 5 5 24 12 320 304 354 E 300 6 200 253 E 100 0 2006 2007 2008 2009 2010 2011 2012 2013 Fiscal Year Total Waste Volume and Waste Volume Per Unit Produced at TMC o- Per unit produced (kg/unit) 35 30 25 20 15 8078.4 70 S 60 50 440 Landfill waste Incinerated waste Waste at cost 29.5 39.4 36.0 33.9 35.9 10 14.1 12.1 0 0 2001 2010 2011 2012 2013 Fiscal Year Percentage of Employees Satisfied with Job and Work Environment 80 70 E 60 69.2 66.7 64.4 60.3 2 a 50- 0 2007 2009 2011 2013 Year