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Do corporate social responsibility (CSR) reports provide shareholders and stakeholders with useful information on corporate soci
Finance & Accounting
Pages 5 (1255 words)
Do 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 vehicle? Answer this question by accounting theories. Contents Contents 2 Introduction 3 Discussion 3 Conclusion 7 References 8 Introduction Creating an environmentally sustainable business is a challenge in today’s world.
Sustainability disclosure was the province of a few community oriented or unusually green companies. Today, it is a best practice employed by companies worldwide. CSR reporting helps organisations to evaluate their social and environmental scenarios and improve the efficiency of operations and conserve natural resources which in turn are important factors for shareholders, employees, and stakeholder relations. Discussion Sustainability reporting helps a firm to evaluate firm’s financial risk and opportunity to perform well through ESG dimensions and establishing operating license. CSR disclosure can serve as a differentiating factor in competitive industries and increase investor confidence, trust and loyalty of employees. It is often considered by analysts that CSR reporting helps in assessment of management quality and efficiency, and may increase the credit worthiness of the firms. The major benefits are as follows. Improved Reputation: It was found out in a survey that reporting positive deeds and expanding transparency were the two most important factors that helped a business gain public trust. It also revealed that more than half of the companies issuing CSR reports had improved reputation (Belkaoui, 2000, p.15). ...
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