CSER also commonly plays a central role in presenting a good picture of corporate accountability. For a long time now, CSER has been used as the best tool to encourage corporate strategies, policies and management decisions aimed at minimization of adverse environmental impacts of companies’ operations (UNEP, 1998). Since the development of the practices of corporate social environmental reporting in the early 1990s, the reporting has largely been accomplished through communications or disclosures within annual company reports. The disclosure provides information about the environmental (social) policies and practices and the impacts of the reporting company to the environment in which it operates. According to Deegan (2007), corporate social and environmental reporting has developed and become widespread over the past three decades, with these developments the disclosures by some companies have become more extensive to communicate and thus companies often publish the disclosures in a separate social and environmental report. Corporate social and environmental reporting has grown particularly because of two main factors. Both factors are borne out of the fact that businesses and companies operate within the physical environment and space that is owned by society. First, Companies produce CSER reports to enhance their corporate image as a marketing tool. The second factor that influences the growth of CSER reporting is the increasing legal requirement by governments across the world for such disclosures to be made for the good of the environment (Yip et al., 2011). This paper examines whether corporate social responsibility (CSR) reports provide shareholders and stakeholders with useful information on corporate social and environmental performance or are they merely a public relations tool to benefit the Companies. Evolution of Corporate Social Environmental Reporting (CSER) It is estimated that reporting on social and environmental issues has been done by Companies ever since financial reporting started. This is largely because environmental reporting has been required to meet regulatory obligations (Sutantoputra, 2009). Social and environmental issues, including material costs of regulatory compliance and probable losses due to litigation were disclosed since the early years of corporate annual reports for purposes of financial accountability. However, in the past three decades, there has been a significant increase in the public demand for social and environmental information from Companies. This has largely been driven by increasing public awareness, pressure from stakeholders, and social concern on environmental disasters and fair labor practices (Rahman et al., 2005). Although the demand for corporate social and environmental reporting has greatly increased in the past three decades, it is evident that public concerns about environmental issues related to production started as far back as the mid 1960s (Yip et al., 2011). At that time, claims that technological advances and rapid depletion of resources were adversely affecting the environment led to calls for increased accountability from the corporate community. It is at this time that activist groups and Non-Governmental Organizations such as Greenpeace came up to help in the public push towards more accountability by companies. In the early 1970s, companies began implementing social and environmental goals and making public their findings, CSR became introduced about this time. The two decades between 1970 and 1990 served as the first
Social and environmental reporting is also known as corporate social responsibility reporting.According to UNEPcorporate social responsibility reporting can also be defined as an environmental management strategy …
'Corporate social responsibility (CSR) reporting to stakeholders is based upon the assumption that companies have wider responsibilities than simply to make money for shareholders.' Discuss the information that might be included in a CSR report to stakeholders, giving illustrations and examples.
United Nations Global Compact and Global Reporting Initiative
Everyday, many people enjoy so many things offered by corporations. From goods, to services, food, among others, it affects the lives and livelihood of mostly the world’s population. However, many people denounce corporations for what they think they are: a “fictitious legal person or an artificial legal entity” distinct from its owners and officers, which seek perpetual existence (Hessen, 1979).
Browne and Milgram 2009 noted that as businesses operations become complex and competition stiffer day by day, many organisations have resorted to utilisation of CSR in order to develop and maintain competitive advantage. Nevertheless, in the process of developing competitive advantage, some organisations fail to grasp the real meaning of CSR.
Corporate Social Responsibility (CSR) refers to companies are require by law and regulations to take responsibility for their actions that have degrading effects on society and specifically on environment. CSR imply to the efforts made by corporations to protect environment such as constructing an eco-friendly setting in the production process and initiating some positive social welfare for people, employees and stakeholders (Maignan, et al., 1999).
Some of the companies prepare the reports to meet their stakeholders’ needs (Moir, 2001). Other key reasons behind the reporting are the legislative purposes, as well as, developing the brand names. For many years, companies observed environmental reporting for regulatory purposes, as well as, environmental and social issues i.e.
It is known to everyone that organizations are responsible for creating various social problems such as, pollution or resource depletion, which has a negative impact on society and environment (Moir, 2001). The increasing attention or concern of public in this sphere has resulted in mandating the performance of corporate social responsibility activities of organizations.
equipment donated, sponsorship given, or charitable donations. The monetary quantification of social benefits is much harder to measure and necessarily subjective. Owing to the concerns of consumers, investors, and other stakeholders, companies are increasingly obliged to be environmentally and socially conscious.
Social responsibility costs are the costs to the business of e.g. equipment donated, sponsorship given, or charitable donations. The monetary quantification of social benefits is much harder to measure and necessarily subjective.
The primary motivation of the corporate reporting is to enhance the image of the corporate, as well as its credibility with the stakeholders. Stakeholders include customers, employees, the society as a whole, the suppliers as well