Corporate Social Responsibility Reporting
This is the next blog post in the Corporate Social Responsibility (CSR) Series.
CSR Reporting is also sometimes called Sustainability Reporting and is currently a hot topic for many organisations around the world. The so called CSR Report evolved out of the environmental reporting era in the 1980s. These CSR Reports now not only include the environmental performance of the organisation but also the most important organisational social issues and non-financial key performance indicators.
These activities can include issues such as community involvement, employee relations, customer information and environmental performance, progress against last year’s commitments and more. Here are some interesting resources on CSR reporting to get a better overview.
Wikipedia:
http://en.wikipedia.org/wiki/Sustainability_Reporting
Journal of Accountancy:
http://www.aicpa.org/pubs/jofa/dec2006/ballou.htm
But critics of CSR Reporting have always argued that this kind of reporting is only window dressing and does not really represent a fair and balanced view of the activities of the particular company.
And to be fair, they are right in many cases. There is a clear danger that these reports will be used a marketing tools and nothing more. But these reports could be so much more in my opinion.
Fortunately there are also other organisations which have given CSR reporting a whole new meaning in the last few years. Their reports show that an organisation can be as open and honest and to not use this report as marketing tool. These new reports have the aim to encourage the debate on CSR topics inside and outside of their organisation and to address as many stakeholders as possible.
Take a look at some of these reports and make up your own mind. I think they are really good and an example of how a company can be open and transparent and not use it as a marketing tool.
The Danish pharmaceutical company Novo Nordisk:
http://www.novonordisk.com/sustainability/reports/reports.asp
Vodafone’s Corporate Responsibility Report:
http://www.vodafone.com/start/responsibility/publications_faqs.html
BHP Billiton’s Sustainability Reporting:
http://www.bhpbilliton.com/bb/sustainableDevelopment.jsp
CSR reporting has really evolved over the last 5 years and now these companies like the ones above set the standard on how to communicate to your stakeholders and show that an organisation can be a responsible citizen of our society as well.
The key message we as stakeholders can get out of CSR reporting in my opinion is:
Beware of corporate spin in fancy and flashy reports and take a closer look at these reports that to you convey a feeling of simplicity and honesty. Nothing more and nothing less.
Our next blog post will be on the Global Reporting Initiative (GRI) Framework. The GRI provides guidance for organizations to use as the basis for disclosure about their sustainability performance, and also provides stakeholders a universally-applicable, comparable framework in which to understand disclosed information.
See you then.
Fabian
