10 REASONS TO SOCIAL AND ENVIRONMENTAL REPORTING

While most entities tend to focus on reporting their financial position and performance, the non-financial aspects of corporations do have their role in the overall success of a business. Here are ten reasons why social and environmental reporting should not be overlooked:

   

1. Managing these responsibilities is a high level strategic issue for management that can help create long term sustainable performance in an increasingly competitive business environment.
2. Greater transparency in this area will benefit the organisations and their stakeholders.
3. The stakeholders will have an interest in knowing that the company is attempting to adopt best practice in this area.
4. Institutional investors will see value in the 'responsible ownership' principle adopted by the company.
5. It is believed that high performance is linked with high quality practice in such areas as recruitment, organisational culture, training and reduction of environmental risks and impact.
6. Companies that actively reduce environmental risks and promote social disclosure are potentially more sustainable, profitable, valuable and competitive.
7. Companies can build their reputation on the basis of social and environmental responsibility by proving that their activities do not exploit their workforce and other sections of the society.
8. Governments are encouraging disclosure by passing legislation, for example in the area of anti-discrimination.
9. External awards and endorsements, such as environmental league tables and employer awards encourage companies to adopt social and environmental responsibilities.
10. Local cultural and social pressures are causing greater demands for transparency of reporting.