Accounting: Business Reporting for Decision Making 7th Edition by Jacqueline Birt Solution manual

 
One aspect of the debate surrounding the issue of regulation is the short- and long-term horizons. Most entities report on the short-term performance of the entity and most people consider their short-term wants and needs over the consideration of long-term outcomes. In the short-term, the cost of implementing work, health and safety policies and processes may cause a significant cost to the entity. Many entities may not have implemented some WH&S processes or equipment due to the immediate cost of doing so and have been forced to by legislation. Likewise, the regulation of minimum wages protects the community from entities willing to take advantage of those not in a position to negotiate their own payment.
 
 

 
1.28     Business sustainability
              ‘Human rights are rights inherent to all human beings, whatever our nationality,   place of residence, sex, national or ethnic origin, colour, religion, language, or any   other status. We are all equally entitled to our human rights without      discrimination. These rights are all interrelated, interdependent and indivisible’      (United Nations Human Rights Office of the High Commissioner 2018).
              Required
              Investigate the relationship of human rights to business sustainability. In your       answer, examine the relationship from various angles, such as:
     a. human beings are a resource to be used as a means to an end
     b. individual human beings should be able to negotiate their own pay without the need for industrial laws
     c. if some people have more than others, then they must have worked harder and deserved it; the system is based on opportunities and everyone has to look out for themselves.
      
The triple bottom line approach to sustainability includes three pillars: economic, environment and social. Human rights would fall under the social dimension. It is accepted that all human beings need to be treated with respect and dignity. It has also been argued that the world’s production should first ensure that every person has access to basic human needs. Once these needs are met then the surplus can be divided based on the success of individual opportunities taken. However, there is growing awareness that some people do not have their basic human rights covered while others live in luxury.
 
a. Are human beings a resource to be used as a means to an end?
 
We live in a global economy. For the most part, countries trade with each other, and businesses can operate where they want. However, certain economic decisions can violate human rights. For example, if a business decides to expand internationally and invest in projects that enforce child labour or utilise sweatshops with dangerous working conditions that do not pay workers a liveable wage, that business is responsible for the violation of human rights. This situation is not uncommon, and many corporations have come under scrutiny for supporting unjust, unsafe working environments. When the basic human needs and fundamental human rights of individuals are not met, the ability to participate in social, economic, and environmental systems that promote sustainability is compromised. While governments have the primary duty to protect and promote human rights, businesses have a distinct responsibility to respect human rights. Kant’s theory of morality, the categorical imperative, states that it is immoral to use another person merely as a means to an end and that people must — under all circumstances — be treated as ends in themselves. If human beings are used as a means it degrades them to the level of ‘resources’ or ‘commodities’ to be used and manipulated at will. It does not encourage respect or dignity.
 
b. Individual human beings should be able to negotiate their own pay without the need for industrial laws.
 
The capital versus labour debate is one of the longest in history. The capital providers (business owners) hire labour to help produce their goods and services. The union movement was born out of the inequality of wage rates and of the need for labourers to form groups to help negotiate better wages and conditions. Benefits to the capital providers would be happier staff and a minimisation of the costs to negotiate with one or a few parties compared to large numbers of individuals. Market rates of pay could be successful in a buoyant economy with minimally education job seekers. However, it is accepted that minimum rates of pay need to be regulated.