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HISTORY AND TRENDS  OF CESR Begisheva Lidiya
Contents <ul><li>History of CESR </li></ul><ul><li>Sorts of social accounting </li></ul><ul><li>Stakeholder model </li></u...
Social and environmental reporting “ t he process of communicating the social and environmental effects of   organisations...
History periods Antal, A. B.; Dierkes, M.; MacMillan, K. & Marz, L. (2002): &quot;Corporate Social Reporting Revisited&quo...
History periods <ul><li>The late 1950-s – late 1960s </li></ul><ul><li>Processes that promoted social accounting: </li></u...
History periods <ul><li>The late 1960-s – mid 1980s </li></ul><ul><ul><ul><li>Social accounting starts occupying an import...
History periods <ul><li>The mid 1980-s – late 1990s </li></ul><ul><ul><ul><li>Regression of social reporting and accountin...
History periods <ul><li>The late 1990-s – beginning of 2000s </li></ul><ul><ul><ul><li>Free-market strategies failed to so...
Strands in social accounting Social audits Silent social accounts New wave of social accounting Gray, R. (2001): &quot;Thi...
Social Audits Social audits - “those public analyses of accountable entities undertaken by bodies independent of the entit...
Social Audits The standard for social audits was set by Social Audit Ltd in 1970s. Gray, R. (2001): &quot;Thirty years of ...
<ul><li>Social audits are founded on: </li></ul><ul><li>Conflict </li></ul><ul><li>Power/information asymmetries </li></ul...
‘ Silent’ social accounts <ul><li>‘ Silent’ social accounts – data of officially required disclosures (employees, politica...
It has potential <ul><li>Active employment of the data provides a means to make organizational accountability a more activ...
The ‘new wave’ of social accounting <ul><li>Range of organizations (NGOs, valued-based organizations & companies) make sig...
Objectives <ul><li>The most crucial lesson –  clarity of objectives : </li></ul><ul><ul><li>to discharge accountability to...
Stakeholder model <ul><li>Stakeholder  – is anyone who can influence or is influenced by the organization </li></ul><ul><l...
Stakeholder model <ul><li>Identify a ll the broad groups of stakeholders </li></ul><ul><li>Break this groups down into con...
Stakeholder model <ul><li>For ea ch stakeholder provide the following layers of information: </li></ul><ul><ul><li>Essenti...
Stakeholder model <ul><li>Identify, report & discharge social accountability </li></ul><ul><li>It’s the job of the auditor...
Key Lessons to Learn <ul><li>Voluntary initiatives don’t produce widespread, consistent & systematic practice </li></ul><u...
Key Lessons to Learn <ul><li>Almost no social account can ever be entirely complete </li></ul><ul><li>Social accounting ch...
Trajectories of sustainability reporting <ul><li>Surveys published by accounting & consulting firms show best practices & ...
Reasons for reporting <ul><li>Enhanced ability to track progress against specific targets </li></ul><ul><li>Facilitating t...
Reasons for non-reporting <ul><li>Doubts about the advantages it would bring to the organization </li></ul><ul><li>Competi...
Trajectories of sustainability reporting <ul><li>Reasons for non-reporting : competition and implementation scored high; r...
Trajectories of sustainability reporting <ul><li>Moving from general trends to those at firm-level, various patterns are p...
Trajectories of sustainability reporting <ul><li>Consistent reporters  – firms consistently publishing reports  </li></ul>...
Trajectories of sustainability reporting <ul><li>The  consistent reporters  are leaders in sustainability reporting. </li>...
Trajectories of sustainability reporting Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journ...
Difficulties concerning reporting <ul><li>Implementation can be a clear barrier to start reporting </li></ul><ul><li>The l...
KPMG Survey <ul><li>The purpose of this survey was to track reporting trends in the world’slargest companies. The sample o...
KPMG Survey <ul><li>Principal global frameworks: </li></ul><ul><li>Global Reporting Initiative released the third iteratio...
KPMG Survey <ul><li>CSR reporting is building value for companies in many ways: </li></ul><ul><li>Differentiating the comp...
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam  Companies ...
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Drivers for...
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Companies w...
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Companies r...
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Management ...
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Stated purp...
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Means of en...
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Reporting s...
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Reporting f...
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Carbon foot...
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
KPMG Survey Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
KPMG Survey Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
Main Conclusions <ul><li>CSR reporting has gone mainstream – nearly 80% of the largest 250 companies worldwide issued repo...
Main Conclusions <ul><li>¾ of G250 companies have a CR strategy that includes defined objectives </li></ul><ul><li>More th...
Main Conclusions <ul><li>Although 92% of G250 disclose a code of conduct or ethics, only 59% report on non-compliance with...
Main Conclusions <ul><li>Major accountancy organizations are still leading the corporate responsibility reporting assuranc...
Further trends <ul><li>Reporting will become more common at the national level and in smaller companies in the near future...
Further trends <ul><li>In the next several years reporting by companies in the U.S., Spain, The Netherlands, Italy, Canada...
Questions <ul><li>With the growing percentage of companies releasing sustainability reports, do you think it is necessary ...
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  1. 1. HISTORY AND TRENDS OF CESR Begisheva Lidiya
  2. 2. Contents <ul><li>History of CESR </li></ul><ul><li>Sorts of social accounting </li></ul><ul><li>Stakeholder model </li></ul><ul><li>Trajectories of sustainability reporting </li></ul><ul><li>KPMG trends </li></ul><ul><li>Main conclusions </li></ul><ul><li>Further trends </li></ul>
  3. 3. Social and environmental reporting “ t he process of communicating the social and environmental effects of organisations’ economic actions to particular interest groups within society and to society at large. As such, it involves extending the accountability of organisations (particularly companies) beyond the traditional role of providing a financial account to the owners of capital, in particular shareholders. Such an extension is predicated upon the assumption that companies do have wider responsibilities than simply to make money for their shareholders ” Gray R.H., Owen D.L. and Maunders K.T. (1987) Corporate Social reporting: Accounting and Accountability
  4. 4. History periods Antal, A. B.; Dierkes, M.; MacMillan, K. & Marz, L. (2002): &quot;Corporate Social Reporting Revisited&quot;, Journal of General Management, 28 (2)
  5. 5. History periods <ul><li>The late 1950-s – late 1960s </li></ul><ul><li>Processes that promoted social accounting: </li></ul><ul><ul><ul><ul><li>Faith in government’s ability to offer solutions to social problems </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Criticism of Standard GDP </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Pressure for companies to include social aspects in their decision-making process </li></ul></ul></ul></ul><ul><ul><ul><ul><li>The emergence of generation of responsible managers </li></ul></ul></ul></ul>Antal, A. B.; Dierkes, M.; MacMillan, K. & Marz, L. (2002): &quot;Corporate Social Reporting Revisited&quot;, Journal of General Management, 28 (2)
  6. 6. History periods <ul><li>The late 1960-s – mid 1980s </li></ul><ul><ul><ul><li>Social accounting starts occupying an important place in business </li></ul></ul></ul><ul><ul><ul><li>The main question “Is It Time to Legislate?” </li></ul></ul></ul><ul><ul><ul><li>French law in 1977 required CS reporting </li></ul></ul></ul>Antal, A. B.; Dierkes, M.; MacMillan, K. & Marz, L. (2002): &quot;Corporate Social Reporting Revisited&quot;, Journal of General Management, 28 (2)
  7. 7. History periods <ul><li>The mid 1980-s – late 1990s </li></ul><ul><ul><ul><li>Regression of social reporting and accounting practices: </li></ul></ul></ul><ul><ul><ul><ul><li>Resistance of established groups </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Neo-liberal economic policies </li></ul></ul></ul></ul><ul><ul><ul><li>Some approaches and concepts of social reporting became part of everyday business practice </li></ul></ul></ul>Antal, A. B.; Dierkes, M.; MacMillan, K. & Marz, L. (2002): &quot;Corporate Social Reporting Revisited&quot;, Journal of General Management, 28 (2)
  8. 8. History periods <ul><li>The late 1990-s – beginning of 2000s </li></ul><ul><ul><ul><li>Free-market strategies failed to solve social problems (Enron scandal 2001) </li></ul></ul></ul><ul><ul><ul><li>Maximizing shareholder value doesn’t mean maximizing welfare of society </li></ul></ul></ul><ul><ul><ul><li>New approaches of social accointing (CSR) </li></ul></ul></ul><ul><ul><ul><li>Launching of Initiatives by international organizations (GRI in 1997, Global Compact in 1999 and Green Paper in 2001) </li></ul></ul></ul><ul><ul><ul><li>The presentation of triple-bottom line concept (social, economic and environmental performance) </li></ul></ul></ul><ul><ul><ul><li>Increasing risk if socially irresponsible behaviour </li></ul></ul></ul>Antal, A. B.; Dierkes, M.; MacMillan, K. & Marz, L. (2002): &quot;Corporate Social Reporting Revisited&quot;, Journal of General Management, 28 (2)
  9. 9. Strands in social accounting Social audits Silent social accounts New wave of social accounting Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics
  10. 10. Social Audits Social audits - “those public analyses of accountable entities undertaken by bodies independent of the entity, and typically without the approval of the entity concerned” Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics
  11. 11. Social Audits The standard for social audits was set by Social Audit Ltd in 1970s. Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics The message is if the companies fail to act appropriately and fail to discharge their account to society, the social audit may well appear and do the job for them
  12. 12. <ul><li>Social audits are founded on: </li></ul><ul><li>Conflict </li></ul><ul><li>Power/information asymmetries </li></ul><ul><li>Differing interests </li></ul>Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics
  13. 13. ‘ Silent’ social accounts <ul><li>‘ Silent’ social accounts – data of officially required disclosures (employees, political & charitable donations & governance) & voluntary disclosed data (environmental issues, consumers, product safety & interactions with the community) </li></ul>Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics
  14. 14. It has potential <ul><li>Active employment of the data provides a means to make organizational accountability a more active process </li></ul>Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics The collation of material to produce separately identified ‘social and environmental reports’ alongside the extant financial report will help o socially reconstruct the organization as more than simply an economic entity This hypothesis was right
  15. 15. The ‘new wave’ of social accounting <ul><li>Range of organizations (NGOs, valued-based organizations & companies) make significant attempts to produce systematic social accounts </li></ul><ul><li>A lack of theoretical rigour and the triumph of optimism and pragmatism over clarity of purpose are leading to a melange of stakeholder dialogue, sustainability reporting & community reporting </li></ul>Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics
  16. 16. Objectives <ul><li>The most crucial lesson – clarity of objectives : </li></ul><ul><ul><li>to discharge accountability to stakeholders </li></ul></ul><ul><ul><li>to control stakeholders </li></ul></ul><ul><ul><li>to move towards sustainability reporting </li></ul></ul><ul><ul><li>be an exercise in self-justification </li></ul></ul>Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics
  17. 17. Stakeholder model <ul><li>Stakeholder – is anyone who can influence or is influenced by the organization </li></ul><ul><li>Stakeholder rights to information: </li></ul><ul><ul><li>law </li></ul></ul><ul><ul><li>quasi-law (non-legal codes) </li></ul></ul><ul><ul><li>corporate values and mission statements </li></ul></ul><ul><ul><li>moral rights (over the environment) </li></ul></ul>Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics Responsibilities are determined by society, the company and the stakeholders
  18. 18. Stakeholder model <ul><li>Identify a ll the broad groups of stakeholders </li></ul><ul><li>Break this groups down into constituent parts (different categories of employees) </li></ul><ul><li>Prioritize the stakeholders , explain the process of prioritization </li></ul>Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics
  19. 19. Stakeholder model <ul><li>For ea ch stakeholder provide the following layers of information: </li></ul><ul><ul><li>Essential elements of s/h-organization relationship </li></ul></ul><ul><ul><li>Required to discharge responsibilities obtaining through law and quasi-law </li></ul></ul><ul><ul><li>Company-preferred information </li></ul></ul><ul><ul><li>Concerning the preferences and views of the stakeholders themselves </li></ul></ul>Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics
  20. 20. Stakeholder model <ul><li>Identify, report & discharge social accountability </li></ul><ul><li>It’s the job of the auditors to pronounce on the qualitative characteristics of a social report </li></ul><ul><li>Attestation </li></ul><ul><li>The auditor should be: </li></ul><ul><ul><li>Independent of organization </li></ul></ul><ul><ul><li>To be in position to exhibit the highest standards of ethical & professional integrity </li></ul></ul><ul><ul><li>To have had thorough training in the issues at stake </li></ul></ul>Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics The most important criteria - COMPLETENESS
  21. 21. Key Lessons to Learn <ul><li>Voluntary initiatives don’t produce widespread, consistent & systematic practice </li></ul><ul><li>Social & environmental information disclosed by companies could be made more for accountability purposes </li></ul><ul><li>Voluntary social reporting is a highly valuable exercise </li></ul><ul><li>Voluntary reporting must be in the interests of the organization undertaking it </li></ul><ul><li>General rule: if the organization doesn’t want to produce the info it is likely to benefit society </li></ul><ul><li>There are means to develop sensible, meaningful & systematic social accounts </li></ul>Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics
  22. 22. Key Lessons to Learn <ul><li>Almost no social account can ever be entirely complete </li></ul><ul><li>Social accounting changes over time </li></ul><ul><li>Attestation is crucial </li></ul><ul><li>Good social accounts characteristics: clarity of objectives, systematic approach, quality evidence, completeness, integrity and independence </li></ul>Gray, R. (2001): &quot;Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?&quot; Business Ethics
  23. 23. Trajectories of sustainability reporting <ul><li>Surveys published by accounting & consulting firms show best practices & areas for improvement, but don’t aim to map developments and disclosure strategies at the level of the firm </li></ul><ul><li>Cross-sectional analysis is dominant. </li></ul><ul><li>A basic consideration is that firms balance internal and external pressures from a variety of stakeholders, some more powerful than the others, to whom corporate information can be useful in their decision making & behavior vis-à-vis the firm. </li></ul><ul><li>Large firms, as opposed to small firms, are more likely to report </li></ul>Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  24. 24. Reasons for reporting <ul><li>Enhanced ability to track progress against specific targets </li></ul><ul><li>Facilitating the implementation of the environmental strategy </li></ul><ul><li>Greater awareness of broad environmental issues throughout the organization </li></ul><ul><li>Ability to clearly convey the corporate message internally and externally </li></ul><ul><li>Improved all-round credibility from greater transparency </li></ul><ul><li>Ability to communicate efforts & standards </li></ul><ul><li>License to operate and campaign </li></ul><ul><li>Reputational benefits, cost savings, increased efficiency, enhanced business development opportunities and enhanced staff morale </li></ul>Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  25. 25. Reasons for non-reporting <ul><li>Doubts about the advantages it would bring to the organization </li></ul><ul><li>Competitors are neither publishing reports </li></ul><ul><li>Customers are not interested in it, it won’t increase sales </li></ul><ul><li>The company already has a good reputation for its environmental performance </li></ul><ul><li>There are many other ways of communicating about environmental issues </li></ul><ul><li>It’s too expensive </li></ul><ul><li>It’s difficult to gather consistent data </li></ul><ul><li>It could damage the reputation of the company </li></ul>Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  26. 26. Trajectories of sustainability reporting <ul><li>Reasons for non-reporting : competition and implementation scored high; reputation was considered less important </li></ul><ul><li>1998-2005 – a crucial period in terms of the adoption of sustainability reporting by large MNCs </li></ul><ul><li>Industrial, more ‘polluting’ sectors have traditionally been most active in reporting, although the number of banks & insurance firms that publishes a sustainability report is increasing. </li></ul><ul><li>The trend in reports toward sustainability reporting . </li></ul>Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  27. 27. Trajectories of sustainability reporting <ul><li>Moving from general trends to those at firm-level, various patterns are possible: </li></ul>Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  28. 28. Trajectories of sustainability reporting <ul><li>Consistent reporters – firms consistently publishing reports </li></ul><ul><li>Late adopters – firms that started later </li></ul><ul><li>Laggards – didn’t publish a sustainability report on the first 2 data points (1999, 2002), but had one in 2005 </li></ul><ul><li>Inconsistent reporters – firms that don’t follow a clear pattern, publishing intermittently </li></ul><ul><li>Consistent non-reporters – firms that consistently don’t publish reports </li></ul>Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  29. 29. Trajectories of sustainability reporting <ul><li>The consistent reporters are leaders in sustainability reporting. </li></ul><ul><li>U.S. firms are relatively underrepresented in this group, and European (exc. France) and Japanese companies are overrepresented. ¾ of Dutch firms fall into this category. </li></ul><ul><li>The underrepresentation of banks and insurance firms stands out, as well as the overrepresentation of electronics & computers, chemicals & pharmaceuticals & automotive </li></ul><ul><li>In consistent non-reporters there hardly any European firm can be found, and U.S. firms are overrepresented, they account for almost 60% of non-reporters </li></ul><ul><li>There is a strong overrepresentation of banks & insurance, and trade & retail, while automotive, chemicals & pharmaceuticals, and electronics and computers are fully absent here. </li></ul>Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  30. 30. Trajectories of sustainability reporting Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  31. 31. Difficulties concerning reporting <ul><li>Implementation can be a clear barrier to start reporting </li></ul><ul><li>The long list of possible indicators may also put off smaller firms. </li></ul><ul><li>The number of choices to be made for reporting has also increased over the years in view of considerable diversity in types (environmental, social and sustainability reports), formats (stand-alone or part of the financial report; targeted at specific stakeholder groups or generally), means (electronic and /or on paper, one or multiple languages) and external involvement (from stakeholders, verification of data, and if so, by which party/parties). </li></ul><ul><li>Particularly verification also brings considerable costs. </li></ul><ul><li>‘ Paradox of information’: the more information firms supply, the higher the request for new data </li></ul>Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  32. 32. KPMG Survey <ul><li>The purpose of this survey was to track reporting trends in the world’slargest companies. The sample of over 2200 companies includes the Global Fortune 250 (G250) and the 100 largest companies by revenue(N100) in 22 countries. The survey presents historical data where possible, drawing from five previous surveys conducted by KPMG firms since 1993.Only information available in the public domain was used for this survey, such as company websites, corporate responsibility reports, and annual reports issued in 2007-2008. </li></ul>KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
  33. 33. KPMG Survey <ul><li>Principal global frameworks: </li></ul><ul><li>Global Reporting Initiative released the third iteration of its Sustainability Reporting Guidelines (G3 Guidelines) in 2006. </li></ul><ul><li>The International Organization of Standartization is developing ISO 26000 Guidance Standard on Social Responsibility </li></ul><ul><li>United Nations Global Compact marked nearly 1000 companies as inactive </li></ul><ul><li>Assurance standards continued to evolve (IAASB, ISAE3000) </li></ul>KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
  34. 34. KPMG Survey <ul><li>CSR reporting is building value for companies in many ways: </li></ul><ul><li>Differentiating the company in the market place </li></ul><ul><li>Maintaining a license to operate with the public or specific stakeholders </li></ul><ul><li>Attracting favorable financing conditions as financial markets wake up to ESG issues </li></ul><ul><li>Encouraging innovation </li></ul><ul><li>Attracting and retaining workers </li></ul><ul><li>Enhancing reputation </li></ul>KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
  35. 35. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
  36. 36. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
  37. 37. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Companies with stand-alone and integrated CSR reports
  38. 38. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
  39. 39. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Drivers for CSR reporting
  40. 40. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Companies with CR strategy, objectives, indicators and data
  41. 41. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Companies reporting on business opportunities of CR by country
  42. 42. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Management standards and guidelines used by companies
  43. 43. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Stated purpose for conducting stakeholder engagement
  44. 44. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Means of engaging stakeholders
  45. 45. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Reporting standards and guidelines used by companies
  46. 46. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
  47. 47. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Reporting format
  48. 48. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam Carbon footprint disclosure by country
  49. 49. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
  50. 50. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
  51. 51. KPMG Survey KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
  52. 52. KPMG Survey Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  53. 53. KPMG Survey Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  54. 54. Main Conclusions <ul><li>CSR reporting has gone mainstream – nearly 80% of the largest 250 companies worldwide issued reports, and an additional 4% integrated CR information into their annual reports </li></ul><ul><li>Integration of corporate responsibility information into annual reports is on the rise in France, Norway, Switzerland, Brazil, and South Africa </li></ul><ul><li>Ethical considerations and innovation increased as the most common reasons for reporting, while risk management fell </li></ul>Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  55. 55. Main Conclusions <ul><li>¾ of G250 companies have a CR strategy that includes defined objectives </li></ul><ul><li>More than half of G250 publicly disclose new business growth opportunities and/or the financial value of CR </li></ul><ul><li>63% of G250 use a structured approach to stakeholder dialogue, up from 33% in 2005 </li></ul><ul><li>More than ¾ of G250 apply the GRI guidelines for their reporting </li></ul><ul><li>60% of all companies surveyed consult with their stakeholders for determining the content of their reports </li></ul>Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  56. 56. Main Conclusions <ul><li>Although 92% of G250 disclose a code of conduct or ethics, only 59% report on non-compliance with the code </li></ul><ul><li>68% of G250 have a corporate governance section in their reports, up from 61% in 2005 </li></ul><ul><li>Over 90% of G250 have a supply chain code of conduct but only half disclose details of how it is implemented and monitored </li></ul><ul><li>Formal assurance increased from 30% to 40% in G250 </li></ul>Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  57. 57. Main Conclusions <ul><li>Major accountancy organizations are still leading the corporate responsibility reporting assurance field </li></ul><ul><li>Consistency and quality of assurance approach is demonstrated by an increase in the use of standards </li></ul>Kolk, A. (forthcoming): “Trajectories of sustainability reporting by MNCs”, Journal of World Business
  58. 58. Further trends <ul><li>Reporting will become more common at the national level and in smaller companies in the near future </li></ul><ul><li>Reporting is more likely to occur within the context of an overarching strategy and management system </li></ul><ul><li>Quantifying the business case for CSR will spread through countries and sectors to the smaller players </li></ul><ul><li>Combining comments from parties such as stakeholder panels with a systematic assurance process could provide the desired level of assurance about both the report quality and content. </li></ul><ul><li>Since more than 80% of the G250 now report on CR, this trend can be expected to roll out rapidly at the country and sector levels in the coming years </li></ul>KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
  59. 59. Further trends <ul><li>In the next several years reporting by companies in the U.S., Spain, The Netherlands, Italy, Canada, Sweden and Brazil can be expected toward a 100% mark </li></ul><ul><li>A greater demand and aptitude for environmental and social data by traditional financial report readers, such as the investor community </li></ul><ul><li>The trend is moving toward a maturing of management systems for corporate responsibility </li></ul><ul><li>More companies will disclose information on the corporate responsibility supplier audits </li></ul><ul><li>China released first reports with a third party assurance, so the development of this trend is to come </li></ul>KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
  60. 60. Questions <ul><li>With the growing percentage of companies releasing sustainability reports, do you think it is necessary to make the process of that reporting mandatory? Why? </li></ul><ul><li>The majority of companies select accountancy organizations for assurance. What is your attitude towards mandating GRI guidelines and creating a “uniform” system of report checking? </li></ul>KPMG (2008): KPMG International Survey of Corporate Responsibility Reporting 2008. KPMG, Amsterdam
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