Reporting standards in socially responsible enterprises

Economic Annals-ХХI: Volume 154, Issue 9-10, Pages: 56-59

Citation information:
Marakova, V., Lament, M., & Wolak-Tuzimek, A. (2015). Reporting standards in socially responsible enterprises. Economic Annals-XXI, 9-10, 56-59. https://ea21journal.world/index.php/ea-v154-13/

Vanda Marakova
PhD (Economics),
Associate Professor,
Matej Bel University
10 Tajovskeho Str., Banska Bystrica, 975 90, Slovak Republic
vanda.marakova@umb.sk

Marzanna Lament
PhD (Economics),
University of Technologies and Humanities in Radom
31 Chrobry Str., Radom 26600, Poland
marzannala@poczta.onet.pl

Anna Wolak-Tuzimek
PhD (Economics),
University of Technologies and Humanities in Radom
31 Chrobry Str., Radom 26600, Poland
aniawt@poczta.onet.pl

Reporting standards in socially responsible enterprises

Abstract. Corporate Social Responsibility (CSR) reports are compiled in line with a variety of principles and guidelines, which obstructs comparability across enterprises, fails to assure transparency and prevents evaluation of CSR performance. It should also be noted that reporting is perceived as a major source of information used in decision-making processes. Standardisation of non-financial reporting is therefore an important scientific issue from the viewpoint of enterprise management.

This paper aims to analyse and verify applicable rules of CSR reporting by enterprises with regard to standards in place on the basis of the authors’ research among a group of enterprises in Poland. The subject appears topical and requires solutions by indicating principles of CSR reporting that could become universal models of global applicability.

Both literature and empirical research have helped to verify the following hypotheses:

(H1) – CSR reports are important sources of information used in enterprise management. This is affirmed by queries into literature, where effect of non-financial disclosures on financial performance of enterprises is described, and the authors’ own research shows that approximately 60% (59% in 2015 and 62% in 2014) of enterprises have implemented the idea of the CSR, thus perceiving a need to improve their situation by disclosing non-financial information.

(H2) – Enterprises take advantage of international standards in their CSR reporting. This is affirmed by the authors’ research, which implies enterprises under examination compile their CSR reports based mainly on ISO standards, though primarily for the purposes of certification. Therefore, the absence of reporting duties causes non-financial disclosures to follow various standards and guidelines, which impedes comparability.

Keywords: Corporate Social Responsibility; Reporting; Management

JEL Classification: M14; M41

Acknowledgements. The research results are part of the carrying on of the project «VEGA 1/0810/13 Preconditions for concept application of the socially responsible behaviour in tourism in Slovak Republic» which is supported by the scientific grant agency of the Ministry of Education, Science, Research and Sport of the Slovak Republic.

References

1. Golob, U., & Bartlett, J. L. (2007). Communicating about corporate social responsibility: a comparative study of CSR reporting in Australia and Slovenia. Public Relations Reviev, 33(1), 1-9.
2. Report on Corporate Social Responsibility: promoting society’s interest and a route to sustainable and inclusive recovery (2012/2097/INI). (2013). Brussels: European Parliament, Committee on Employment and Social Affairs.
   Retrieved from http://www.europarl.europa.eu/sides/ getDoc.do?pubRef=-//EP//NONSGML+REPORT+A7-2013-0023+ 0+DOC+PDF+V0//EN
3. Report on Corporate Social Responsibility: accountable, transparent and responsible business behaviour and sustainable growth (2012/2098/INI). (2013). Brussels: European Parliament, Committee of Legal Affairs.
   Retrieved from http://www.europarl.europa.eu/sides/get Doc.do?pubRef=-//EP//NONSGML+REPORT+A7-2013-0017+ 0+DOC+PDF+ V0//EN
4. Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups. Official Journal of the European Union L 330/1.
5. Patten, M. D. (1990). The market reaction to social responsibility disclosures: The case of the Sullivan principles signings. Accounting, Organizations and Society, 15, 575-587.
6. Freedman, M., & Stagliano, A. J. (1991). Differences in social-cost disclosures: A market test of investor reactions. Accounting, Auditing and Accountability Journal, 4, 68-83.
7. Porter, M., & Kramer, M. R. (2006). Strategy & society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78-92.
8. Margolis, J. D., Elfenbein, H. A., & Walsh J. P. (2007). Does it pay to be good…and does it matter? A meta-analysis of the relationship between corporate social and financial performance.
9. Plumlee, M., Brown, D., Hayes, R. M., & Marshall, R. S. (2010). Voluntary environmental disclosure quality and firm value: further evidence. Working Paper, University of Utah and Portland State University.
   Retrieved from http://www2.busi ness.umt.edu/ seminar/draft_Montana.pdf
10. Chomvilailuk, R., & Butcher, K. (2010). Enhancing brand preference through corporate social responsibility initiatives in the Thai banking sector. Asia Pacific Journal of Marketing and Logistics, 22(3), 397-418.
11. Roszkowska, P. (2011). Rewolucja w Raportowaniu Biznesowym. Interesariusze. Konkurencyjnosc. Spoleczna Odpowiedzialnosc. Warszawa: Difin.
12. Hoffmann, C., & Fieseler, C. (2012). Non-financial factors and capital market image building. Corporate Communications: An International Journal, 17(2), 138-155.
13. Dimson, E., Karakas, O., & Li, X. (2012). Active ownership. Social Science Research Network.
    Retrieved from http://www.people.hbs.edu/kramanna/HBS_JAE_Conference/ Dimson_Karakas_Li.pdf
14. Lang, M., Lins, K. V., & Maffett, M. (2012). Transparency, liquidity and valuation: international evidence on when transparency matters most. Journal of Accounting Research, 50(3), 729-774.
15. Douglas, A., Doris, J., & Brian, J. (2004). Corporate social reporting in Irish financial institutions. The TQM Magazine, 16(6), 387-395.
16. Delbard, O. (2008). CSR legislation in France and the European regulatory paradox: an analysis of EU CSR policy and sustainability reporting practice. Corporate governance, 8(4), 397-405.
17. Juscius, V., Sneideriene, A., & Griauslyte, R. (2014). Assessment of the benefits of Corporate Social Responsibility reports as one of the marketing tools. Regional Formation and Development Studies, 3(11), 88-99.
18. GRI. Sustainability Disclosure Database.
    Retrieved from http://database.globalreporting.org
19. Lament, M. (2015). Trends in Corporate Social Responsibility (CSR) reporting. BASIQ 2015 International Conference «New trends in sustainable business and consumption». Bucharest: University of Economic Studies, 171-178.
20. GRI. (2006). G3.1 Sustainability Reporting Guidelines.
    Retrieved from https://www.globalreporting.org/resourcelibrary/3.1-guidelines-incl-technical-protocd
21. GRI. (2013). G4 Sustainability Reporting Guidelines.
    Retrieved from https://www.globalreporting.org/resourcelibrary/4-guidelines-incl-technicalprotocd
22. AA1000 Accountability Principles Standard. (2008).
    Retrieved from www.account ability.org/standards/aa1000aps.html
23. AA1000 Accountability Principles Standard. (2012).
    Retrieved from www.accountability.org/standards/aa1000ses/index.html
24. Carbon Disclosure Project tool and framework. (2000).
    Retrieved from www.cdpproject.net
25. International Integrated Reporting Council. (2013). Consultation draft of the international framework.
    Retrieved from http://www.theiirc.org/wpcontent/uploads/Consultation-Draft/Consultation-Draft-of-the-Internal
26. International Organization for Standardization (2010). ISO 26000.
    Retrieved from http://www.iso.org/iso/home/standards/management-standards/iso26000.html
27. OECD (2003). Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones.
    Retrieved from http://www.oecd.org
28. Sustainability Accounting Standards Board (2015). Sustainability Standards.
    Retrieved from http://www.sasb.org/sustainability-standards
29. United Nations Global Compact (1999). United Nations Global Compact Ten Principles.
    Retrieved from http://www.unglobalcompact.org
30. WBCSD and World Resources Institute (2015). The Greenhouse Gas Protocol.
    Retrieved from http://www.ghgprotocol.org/standards

Received 2.11.2015