Lego Company Issue

Lego Company Issue


Professor’s name



Lego Company Issue and Possible Resolution


Over the last few decades, stakeholders have become increasingly invested in corporate social responsibility and sustainability. Sustainability has to do with businesses striking a balance between the production of goods and services with governance, impact on the environment and social and human capital. Without a doubt, cultural intelligence has a way of interfering with auditing and accounting in general. Sustainable accounting is becoming an issue for accounts as it presents a challenge in assessing how corporate activities create value and enhance the organization over time. This essay narrates Lego’s accounting and auditing issue in relation to sustainability and possible solutions for the problem.

Sustainability Issue Description at Lego Company

Lego is one of the most renowned toy making company. Following its pledge to help diminish its carbon impact, it has been recognized as the World Wildlife Fund Climate Savers Partner. As a renowned company across the world, Lego seeks not only to assist children to grow through creative play but also to contribute to a healthy planet. Lego is committed to sustainability and the commitment extends to its partners including stakeholders. By 2030, the toymaker company hopes only to employ environmentally friendly materials to produce all its core products and packaging. They have already taken the necessary steps in the right direction to attain the goal. Between 2013 and 2014, the company shrunk the box sizes by 14% hence saving about 7,000 tons of cardboard. Four years later, Lego introduced 150 botanical toys made from sugarcane that has been sourced sustainably. The sugarcane option is sustainable because it gives a break from the regular toys made from petroleum-based plastics used to produce the organization’s signature blocks. Additionally, Lego Company has recently shown its commitment to getting rid of all plastic packaging that can only be used once by 2025. Among other initiatives, Lego plans on investing 164 million dollars to the Sustainable Materials Center for researchers to conduct experiments on bio-based materials to be incorporated with the production process (Roos, and Bart, 327). Through the initiatives, Lego is in the process of handling pressing environmental issues in furtherance of its mission to assist people in building a more sustainable future. All these initiatives that have to do with achieving sustainability affect auditing and accounting in regard with accountability and transparency.

Possible Resolutions to the Accounting and Auditing Issues as a Result of Sustainability

One of the solutions that can be explored to boost accountability at Lego is performing on-the-ground measuring and monitoring. Accountants can do this by helping them keep track of the process to ensure that the toys are made from sustainable sources. The company can attain this by arranging for site visits with the organization’s stakeholders from time to time. This way, they can visit the factory and witness as sugarcane and other environmentally friendly materials are converted into non-petroleum based toys. This way, it becomes easy when it comes to explaining the high funds pumped into the project. Even in the signing of checks, the stakeholders will be approving activity cheques from an informed point of view. Another viable solution is assigning costs to all aspects that impact society and environment negatively. In this way, accountants will be helping the company evaluate the actual costs of corporate activities.


In closing, Lego remains in the frontline in ensuring they build a sustainable future by using environmentally friendly materials to produce and package the toys. The company does achieve sustainability by making toy prices from sustainably sourced sugarcane. To bring transparency, the accountants should consider assigning costs to all aspects that negatively affect the environment and society and bring stakeholders for site visits to show them that the toys are being manufactured and packaged using environmentally sustainable materials.

Works Cited

Roos, Johan, and Bart Victor. “How it all began: the origins of LEGO® serious Play®.” International Journal of Management and Applied Research 5.4 (2018): 326-343.