Accounting: Nossal, Climate Change, Social Issues

Give a brief description of the Nossal Institute for Global Health (Nossal) Nossal Institute of Global Health was established in 2006. Nossal is “actively involved in research, education and improving health practices” (Grimard, C 2009) in developing areas such as Asia Pacific and Southern Africa. The major countries include India, Indonesia, Vietnam, Laos, Papua New Guinea and Mozambique (The Nossal Institute For Global Health, 2009). Mike Sewell was a general manager and secretary for Nossal. He significantly contributed to the company in 2011 when he became involved in a climate change course along with a group of others under the Australian Conservation Foundation’s Climate Project led by Nobel Prize winner Al Gore. Sewell believes that the lack of resources in a developing country increase strain on climate change, therefore presenting that climate change affects developing countries more than anyone else. Sewell also believes that small business do not address the issues of climate change because they are simply not aware of the effects (Grimard, C 2009).

Outline how climate change is likely to affect Nossal’s business operations in developing countries. “Communities have to be ready for higher temperature, less rainfall, more frequent severe droughts and more extreme storms” (Climate Change, 2009). These changes will affect Nossal’s business operations in developing countries because they will have little water supply, little ability to produce natural resources, lack of understanding for human health and insufficient buildings, roads and power supplies (Climate Change, 2009). These are all necessary components for Nossal in a developing country to help and make the area a more suitable place for living. These effects of climate change are further likely to impact on agriculture and biodiversity in the developing countries.

Climate change is also likely affect Nossal as some of these elements will affect the everyday decisions made by their business. Furthermore Nossal has become involved in how climate change affects children. The UNICEF study found that climate change affects children in developing countries ability to survive. Their health begins to diminish and become prone to malaria, dengue fever, heat stress and acute respiratory infections due to the extreme weather conditions. The water they are drinking is generally not sanitised or safe to consume resulting in water borne illnesses. The climate change effects ability to grow crops for food consumption preventing the children from absorbing the nutrients needed in their diet (UNICEF Pacific, 2010).

Evaluate the social issues likely to impact on a business operating in a developing country. “Corporate social responsibility is the entity’s obligation to society in general and to the environment” (Birt, J 2012). An individual’s socio-economic status impacts on a business in two ways. The first being the customers having little or more money to spend on what the business is promoting. In developing countries it is more likely that individuals do not have enough money to spend.

This impacts on a business because it would not gain the high amount of revenue desired. Secondly the socio- economic status of employees affects the business because people with a low socio economic status would not be able to run or work in the business rather than those individuals with a higher socio-economic status. Religion and culture is another social factor that plays an important part of a business in a developing county. Religious and cultural beliefs or values influence an individual’s attitude towards work. If a religion believes in hard work, building and business then it is more likely that the religious people in the business will work hard to maintain a high working standard. Finally Lifestyle may also affect a business in a developing country as the lifestyle of people living in certain areas determines how well their health and education may be. If an individual who has little education on how to run a business is involved in operating the business then it is likely to be unsuccessful.

Suggest ways that accountants can play in addressing climate change in a business environment The first step that an accountant must understand is what the carbon emissions trading scheme is about, who is operating it and how to ensure that the results come through (Grimard, C 2009). Ways in which accounts address the issues of climate change in a business environment may include: * Spending money on tools which measure the amount of electricity you are using and how much of that is necessary (Smith, D 2010) * Creating environmental committees in each business

* Focus on recycling, reduction in energy and water usage (Smith, D 2010)
* Be aware of all environmental issues and ensure it meets the customer legislation requirements (Smith, D 2010) * Become familiar with environmental policies and schemes * Clements Dune & Bell (CDB) Melbourne helps maintain climate change through the connection of Carbon Planet. Carbon Planet manages the risks and creates opportunities. It offers carbon assessments, advises on ways to overcome issues and plans an approach that will open new financial opportunities in regards to the legislative requirements (Callis, R 2011)

Reference List:

The Nossal Institution for Global Health 2009, About the Nossal Institution of Global Health, Melbourne School of Population and Global Health, The University of Melbourne, viewed 27 April 2013, <http://ni.unimelb.edu.au/about_us> .

Excerpts from Grimard, C 2009, ‘Turning the heat on’, In the Black, vol79, no11, p19.

2011, Climate change, viewed 28 April 2013,
<http://www.smallbiz.nsw.gov.au/run/enviro/climate/Pages/default.aspx>.

UNICEF Pacific 2010, Climate Change And Children In The Pacific Islands, Nossal Institute for Global Health, University of Melbourne, viewed 28 April 2013, <http://ni.unimelb.edu.au/__data/assets/pdf_file/0005/464702/Climate_Change_and_Children_in_Pacific_UNICEF_2010_.pdf>.

Smith, D 2010, Accounting for climate change, viewed 28 April 2013, <http://www.cimaglobal.com/Documents/Thought_leadership_docs/Sustainability%20and%20Climate%20Change/CIMA_Accounting%20for%20sustainability%20amended%20Feb%202010%20FINAL.pdf>.

Callis,R 2011, Climate change, viewed 28 April 2013,
<http://www.cdb.com.au/Services/climate-change.html>.