Accounting for good: the global stakeholder report 2005

This report finds that Corporate Social Responsibility (CSR) reports consistently fail to meet with the expectations of stakeholders. Despite a slight increase in overall satisfaction, the results suggest significant client groups do not view CSR reporting as credible. As a result of this many companies are unable to reap the desired rewards of CSR reporting and build on corporate trust and reputation.

Examining the results of an online world wide survey the report reveals that CSR documents are rarely considered useful within the financial community. It considers a general misunderstanding surrounding the concept of CSR, frequently confused with philanthropic corporate giving.

The report further finds that:

• human rights and energy/eco- efficiency are the primary issues that stakeholders wish to see within CSR reports
• there is an overall low interest by stakeholders in company voluntary and social commitments
• stakeholders are particularly concerned with social and economic impacts and how a company is persuing a sustainable agenda. A conflict exists where CSR is not regarded as PR and yet CSR reports are
• economic arguments for corporate sustainability and social commitments have not been sufficiently put forward. This has led to the financial services being the sector to least benefit from CSR reports
• an information overload has led to many working professionals tiring of reading CSR reports and taking part in research for them
• a major weakness at present is that the reports are spread across too broad an audience

The report recommends:

• CSR be presented in a format relevant to each stakeholder
• improving performance in the private sector is essential for sustainability. Continued competition between private companies is an important element in achieving this goal
• external verification in all areas of CRS reporting and third party statements will increase credibility