2.     Requirement 1: Description of Business (Sprout World)
A)    Sprout World Wholesale of Danish Manufacturing Corporation
B)    Sprout World’s Main Product/Services
C)    Sprout World’s approach to Corporate Social Responsibility & Sustainability
3.     Requirement 2: CSR Benefits for Stakeholder Group of Danish Manufacturing Corporation
A)    4 Specific Stakeholder Groups of Danish Manufacturing Corporation
B)    CSR Activities for Stakeholders of Danish Manufacturing Corporation
ii)                 How CSR Activities Create Value for Stakeholders of Danish Manufacturing Corporation
4.     Requirement 3: Are Activities providing Benefit as Intended?
A)    2 items of Management Accounting information
B)    How it will help Sprout World to take a decision
5.     Requirement 4: Benefits Sprout world gets from CSR & Sustainability
6.     Requirement 5: Product to the customers of Danish Manufacturing Corporation
A)    Price of product
B)    Costs associated with Manufacturing of Pencil
7.     Conclusion on Danish Manufacturing Corporation
8.     References of Danish Manufacturing Corporation
Available at: https://www.esmsolutions.com/what-is-sustainable-procurement-and-why-is-it-important-to-our-public-sector-economy/
Available at: https://sproutworld.com/category/sprout-stories/sprout-history/

The aim of this paper is to provide deep insights regarding CSR activities & sustainability activities. The accounting information is utilized to know how effectively the company’s CSR activities are benefiting the stakeholders. Sprout world is a Danish Manufacturing Corporation whose offices are located in the cities of Europe & USA. Sprout World is among the newest entrepreneurship Startups. In future, Sprout World has the potential to become the largest manufacturer of sustainable pencils. Sprout World is Manufacturing Corporation who provides pencil as main product to its customers.

Sprout world is a Danish Manufacturing Corporation whose offices are located in the cities of Europe & USA. Sprout World is among the newest entrepreneurship Startups. In future, Sprout World has the potential to become the largest manufacturer of sustainable pencils. Sprout World is a multinational organization which serves in many countries around the world which include USA, Canada, Australia, Iceland and Denmark. As of March 2019, the organization is operating in many locations. According to the statistics of 2018, the organization has employed a significant amount of employees. Sprout World over the years has experienced a significant amount of growth which results in a high amount of profits (Sprout World, 2019).

Sprout World is Manufacturing Corporation who provides pencil as main product to its customers. Sprout World provides pencils to its customers at low prices. However, the goods that are sold at Sprout World are sustainable. With the passage of time, the organization has the opportunity to increase its products/services. The services which Sprout World provide to its customers include customization services to those who want to purchase customize pencils. Sprout World request & price list is another service which Sprout World provides to its customers in the country of USA & Denmark.

The corporate social responsibility is a business approach in which the business is responsible to its stakeholders and the public. Through CSR activities the corporations try to provide maximum benefit to the economy, society and the environment. By initiating CSR activities, the organization try to improve the economy and society rather than contributing to any negative impact. Sprout World has implemented many CSR programs so that it can meet the interests of its stakeholders. Sprout World has a number of CSR initiatives for its employees, customers & investors. In short, the corporation has a special focus on strategic CSR activities (AnsKolk, 2016).

The following are the 4 specific stakeholder groups that take benefits from the CSR activities:

· Employees

· Customers/Consumers

· Investors

· Societies

The employees are the utmost priority of the Sprout World Corporation. The Sprout World give special attention to the employees because the employees are the one who increases the performance of the whole organization. The employees are the internal stakeholders of the organization. The customers are the next significant stakeholder of the corporation. The customers are external stakeholders. The investors are also important for the organization and our external stakeholders. The societies or communities are least significant for Sprout World and our external stakeholders.

The company recruits such employees who are capable of various skills. The company has a strong working environment that focuses on sustainability. Therefore the employees are the main stakeholders of the organization. For customers, the corporation provides quality, affordability & sustainability. The customers are not getting a good product but also getting awareness about environment protection. In the future, if the organization wants toexpand, then it would definitely need investors for funding. For investors, the organization has created a significant reputation which will help the business to grow in the future (Epstein, 2018).

Employee development policy is initiated by Sprout World for the development of its employees. For customers, the corporation maintains the quality & affordability of its products. Sprouts world is creating sustainable pencils which can be planted after usage. Therefore the corporation has differentiated itself from the rest of the pencil manufacturers and that’s how the corporation is providing a unique product to its customers. For investors, corporations focus on their profitability because profitability is the main concern of investors. The corporation is providing customize pencils as well which means the corporation will charge premium price from its customers. Due to the high prices, the company have the potential to generate a significant amount of profits. For societies/communities, the corporation helps in protecting the environment. It is evident that when the corporation is going to protect the environment than the corporation will contribute to increasing the standard of living of the people.

The employee development policy will increase the skills & knowledge of the employees which means that the performance of the employees will increase. When the corporation is going to provide a good quality product on low price the customer satisfaction will increase and money of the customers will be saved. When the organization is keeping on expanding & generating profits, then the investors will able to get high returns on their profits. For communities, the organization is providing environmental protection so that the standard of living of the people will increase. Overall the corporation’s CSR activities are creating value/benefit for the stakeholders (Haskin & Burke, 2016).

The company has a strong corporate culture which helps the employees to grow their skills. It means that the employees will get benefit from CSR practices of their business. Customers are getting a sustainable product which will create environmental awareness. In short, the customers are getting the benefit as well from the company. The investors are getting the assurance that in future the corporation has huge potential to generate sales which will ultimately increase the profitability of the firm. In simple words, the organization is providing benefit to investors through its CSR initiatives. For a community, the biggest benefitenvironment protection & awareness. Ultimately through environmental protection, their standard of living will increase.

The following are the 2items of management accounting information which will help the business to decide whether the activities have actually provided benefit to stakeholders or not:

· Break-even analysis

· Capital Budget

The corporation can perform break-even analysis to understand how much sales the corporation should perform daily for paying the number of its operating costs. Through breakeven even analysis the organization can know who much profit it has earned in the specific period of time. If the revenues of the organizations show sign of improvement, then it means that the employee’s performance has increased due to the CSR initiatives. Through the capital budget, the organization can know how much investors have invested in the organization. If investment increases than it is a sign that the CSR activities have met the interests of the investors.

Through break-evenanalysis, the effectiveness of the CSR activities can be evaluated. For instance, if the sales increases it means that the customers are satisfied with the product. In other words, the CSR initiative of the company for its customers is working successfully. Through the capital budget, the corporation can evaluate how much investment the business is getting if the higher investment comes after implanting the CSR initiative than it is a sign that their company‘s strategies are working effectively. If the reputation of the company increases then, it means that it has created awareness in the society (ESM Solutions, 2015).

Through breakeven analysis, sprout world can understand how much sales it will have to make to generate profit. If the sales of the sprout world are increasing, then it is a sign that the CSR & sustainability practices of the organization have provided benefit to its stakeholders. It means that the breakeven analysis will help the corporation in taking the decision regarding its sustainability & CSR initiatives. Through the capital budget, the corporation can know about its investors. If the investment has increased than it would be a sign that the corporations’ sustainability efforts are becoming successful. When the reputation of the organization increases the revenue of the organization also increases as a result.

It means that more customers will go to purchase the pencils which ultimately increase the profit of the business. With higher profitability, the investors will get attracted to the organization and the organizations aim to get investment will finally fulfil — the decisions of the corporation changes with an assessment of the strategies. The Current CSR strategies of the corporation are working successfully because the statistics have shown that the corporation has sold a significant amount of pencils. If the sales of the business are increasing it means that the business decision for the future would be to continue the current CSR practices so that the company can move toward the path of success. If the CSR practices remained unsuccessful, then the company sales might experience a decline. In other words, the company might be unable to create awareness in the society, and the profit of the business would be lower.

There are many benefits which the Sprouts world gets from the CSR activities. The first benefit is the increase in reputation & goodwill. When the customers know that the corporation is contributing toward the environment protection and spreading a positive message than the goodwill of the company increases. The next benefit the company is gaining from CSR activities is the promotion. The company utilize its sustainability approach in its marketing and advertisement strategies. The company tell itscustomers how much sustainable the organization is and how it is spreading a strong message in society (Sprout World, 2019).

Another benefit which the organization gets from the sustainable approach the financing needs. The investors today want to invest in such corporations who are not only generating profits but also have a huge focus on the protection of the environment. It means that the business will get investment easily than the other organizations. Due to its sustainable approach, the corporation will able to sale a huge amount of pencils. The increase in sale will help the business to increase its profit. Overall the CSR activities will increase the good, profit and revenue of the business.

The CSR activities also allow the business to utilize its resources more efficiently which means that the business cost will reduce. With the reduction in cost, the business will have more opportunities to expand the business. The organization efficiency will increase with the CSR activities. Through CSR & sustainability approaches the business performance will enhance which will be beneficial for the organization. The organizations today are implementing CSR initiatives so that their overall efficiency increases and they will able to provide maximum benefit to the society. In short, CSR activities are very beneficial for the organization because they have long term benefits.

The price of 8 graphite sprout pencils is round about $ 14.95. The product is available on shops and online websites such as Amazon.

Variable cost

· Seeds $0.20 per pencil

· Labor $0.10 per pencil

Fixed Cost

· Rent $5000

· Labor $10000

Direct Cost

· Seeds

· Labor

Indirect Cost

· Rent

· Packaging

The above are the costs incurred in the preparation of the pencils. The amount of each cost is based on assumptions (Camilleri, 2015).

If all the above discussion is summarized than it is evident that there are many benefits which the Sprouts world gets from the CSR activities. The first benefit is the increase in reputation & goodwill. When the customers know that the corporation is contributing toward the environment protection and spreading a positive message than the goodwill of the company increases. The next benefit the company is gaining from CSR activities is the promotion. The company utilize its sustainability approach in its marketing and advertisement strategies. Through breakeven analysis, sprout world can understand how much sales it will have to make to generate profit. If the sales of the sprout world are increasing, then it is a sign that the CSR & sustainability practices of the organization have provided benefit to its stakeholders. It means that the breakeven analysis will help the corporation in taking the decision regarding its sustainability & CSR initiatives

References of Accounting in Danish Manufacturing Corporation and Society

AnsKolk, 2016. The social responsibility of international business: From ethics and the environment to CSR and sustainable development. Volume 51, pp. 23-34.

Camilleri, M. A., 2015. Valuing Stakeholder Engagement and Sustainability Reporting. Volume 18, p. 210–222.

Epstein, M. J., 2018. Making sustainability work. Best practices in managing and measuring corporate social, environmental and economic impacts., p. 282.

ESM Solutions, 2015. What is sustainable procurement and why is it important to our public sector economy?. [Online]

Haskin, D. L. & Burke, M. M., 2016. Incorporating Sustainability Issues Into The Financial Accounting Curriculum. Volume 9, pp. 49-56.

Sprout World, 2019. Sprout History. [Online]