Sustainability reporting, alternatively known as CSR reporting, is the annual process whereby companies - public, private; large and small - report on their sustainability performance. Reports typically cover social, environmental, economic and ethical performance and incorporate information on a company's environmental impact or carbon footprint, staff satisfaction, community investment etc. Sustainability reporting is becoming increasingly important as a tool companies can use to demonstrate accountability to their stakeholders. The value of the company is determined by the quality of the relationship with in its external as well as internal stakeholders. CSR report provides information to various stakeholders like government, investors, consumers, employees, analysts etc. The main purpose of CSR report is;
* to provide detailed information for very specific lobby groups on a range of environmental and social issues; * to provide a balanced view of the organization to consumers or other users of its services; * to articulate a broader view of the organization to prospective employees; * to demonstrate progress on issues on which government may be considering legislation; and * to update the market on leading non-financial indicators of performance and demonstrate understanding of sustainability risks and opportunities. The main objective of this report is to provide the insights of CSR reporting disclosure. It defines the term CSR reporting from different perspectives. The historical development of CSR report describes the evolution of CSR reporting from early Mesopotamia history to till today. Then it analysis the nexus between the two terms CSR and Triple Bottom line which has direct relationship with each other. In CSR reporting Global reporting initiatives (GRI) plays an important role in setting standards for CSR accounting in different countries. The report analysis the three important theories viz normative stakeholder theory, legitimacy theory and positive accounting theory in sustainability reporting practices .Along with this the seven best practices in CSR reporting By Perry Goldshein also discussed . Some countries have made CSR disclosure as compulsory and in some countries it is optional. Here you can see the various nations CSR reporting practices along with the Malaysian CSR reporting practice. Then it concluded with the most important recommendation of making compulsory disclosure of CSR practice in all over the world.
Table of contents:
1. DefinitionPages 6 - 7
2. Historical development of sustainability reportingPages 7-8 3. The Global Reporting initiatives (GRI)Pages 8 -10
3.1Criteria for preparing sustainability reportPage - 9
4. Assurance services in CSR reportingPages 10-11
5. CSR and TBLPage -12
6. Theories in sustainability reportingPages 12-14
7.1 Normative stakeholder theoryPage 12
7.2 Legitimacy theoryPage 12
7.3 Positive accounting theoryPage -13
7. Trends and best practices in CSR reportingPages 14-16 8. Whether it should be Voluntary or MandatoryPage -16
9. CSR reporting practice in MalaysiaPage -17
10. Conclusion and RecommendationPage - 18
In the current business environment, CSR has become not only the 'right thing to do', but it has also become the 'competitive' thing to do. The deliberate inclusion of CSR principles in the corporate decision-making processes ensures that companies are mindful of public interest particularly in respect to the triple bottom line: People, Planet, and Profit. Increasingly, stakeholders in the world's largest corporations are demanding that their companies become more socially responsible and expect them to understand and address the social and community issues that are relevant to them. These issues encompass not only the limited natural resources...