trends in corporate social responsibility reporting arjan de draaijer kpmg global sustainability...
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Trends in Corporate Social Responsibility
Reporting
Arjan de Draaijer
KPMG Global Sustainability ServicesTM
2
Global Sustainability Services™
Contents
•The Main Elements of Corporate Social Responsibility
•Corporate Social Responsibility Reporting Trends
•External Drivers for CSR Reporting
•Internal benefits of CSR Reporting
•CSR Reporting in Practice
•Q&A
3
Global Sustainability Services™
Sustainable Development and Companies
“Sustainable development compriseseconomic and social
development that protect and enhance the natural environment and social equity”
Creating value by responding to society’s needs
Sustainable Development
Contribution of companies
Corporate Social Responsibility
4
Global Sustainability Services™
Corporate Social Responsibility: Main Elements
BusinessPrinciples
Economic Social
Environmental
AnnualCSR
Report
Stakeholders
Dialogue
TransparancyAccountability
Communication
Strategy & Management
Company
5
Global Sustainability Services™
Contents
•The Main Elements of Corporate Social Responsibility
•Corporate Social Responsibility Reporting Trends
•External Drivers for CSR Reporting
•Internal benefits of CSR Reporting
•CSR Reporting in Practice
•Q&A
6
Global Sustainability Services™
Companies with Annual CSR Reports
18% 10%
24%
17%
13%
0% 5% 10% 15% 20% 25% 30%
2002
1999
1996
1993
HSE Sustainability/Social
28%28%
4th KPMG International Survey on Corporate Sustainability Reporting (2002)
Top 100 companies in 19 countries (total 1900 companies)Top 100 companies in 19 countries (total 1900 companies)
CSR Report
Environment, Health & Safety Report
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Global Sustainability Services™
Source: KPMG International Survey on Corporate Sustainability Reporting 2002
CSR Reporting by Industry Sector
6%
9%
12%
15%
24%
25%
25%
33%
37%
38%
43%
45%
46%
50%
30%
0% 10% 20% 30% 40% 50% 60%
Other serviceConstruction & building materials
Finance, securities & insuranceTrade & retail
Metals, engineering & other manuafacturingFood & beverage
Electronics & computersAutomotive
PharmaceuticalsMining
TransportOil & gas
Forestry, pulp & paperChemicals & synthetics
Communications and mediaUtilities
28%
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Global Sustainability Services™
CSR Corporate Reporting Trends
•From environmental reports to integrated CSR reports (including social issues)10% of top 100 companies report on CSR
•Use of criteria and standardsGRIAA1000s(Global Compact)
•Stakeholder involvementIssue identificationStakeholder dialogueInterviews in the report
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Global Sustainability Services™
CSR Corporate Reporting Trends
•AssuranceExternal credibilityInternal performance improvement tool
•Other forms of reportingInternet basedSeparate specialist and general audience reportsLocal reports
•Regional differencesAsia: product focus, mainly environmentalUS: focus on philanthropy, corporate governanceEurope: stakeholder focus, integration in core
businessLatin America: mix, emerging
10
Global Sustainability Services™
Contents
•The Main Elements of Corporate Social Responsibility
•Corporate Social Responsibility Reporting Trends
•External Drivers for CSR Reporting
•Internal benefits of CSR Reporting
•CSR Reporting in Practice
•Q&A
11
Global Sustainability Services™
Growing Number of NGO’s and Consumer Organisations
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
1960 1970 1980 1990 2000
Source: Echo researchYear
Nr of NGO’s
……critically monitoring company behaviour
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Global Sustainability Services™
Brand / Reputation is at Stake
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Global Sustainability Services™
Transparancy : Response to Growing Distrust
Tru
st
Low
High
Transparency HighLow
“Show me”
“Tell me”
To obtain the trust of stakeholders,companies must become more transparent
“Prove it to me”
“Involve me”
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Global Sustainability Services™
External Drivers for CSR Reporting
•Business issueRisk managementSupply chain requirement
•Laws and RegulationsNumber of countries require mandatory reporting
•Financial Sector PressureSustainability Indexes (DJSI, FTSE)SRIMainstream investors (increasingly)
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Global Sustainability Services™
Contents
•The Main Elements of Corporate Social Responsibility
•Corporate Social Responsibility Reporting Trends
•External Drivers for CSR Reporting
•Internal benefits of CSR Reporting
•CSR Reporting in Practice
•Q&A
16
Global Sustainability Services™
CS
R I
ssu
es in
th
e
Rep
ort
Principles Policydefined
Policycommunicated
Policyimplemented
Bestpractices
Performancedata
‘Impactdata’
En
vir
on
men
tal
Socia
lEcon
om
ic
Maturity of CSR Issues
The CSR Report: Snapshot of the CSR Performance
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Global Sustainability Services™
Credibility towards stakeholders
Shows leadership of company
Information for financial sector
The External Benefits are only the Tip of the Iceberg
External benefits:
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Global Sustainability Services™
Internal Benefits of CSR Reporting
•Raises awareness
•Increases employee motivation
•Stimulates evaluating existing practicesContinuous improvement
•Identifies information for benchmarking purposes
•Provides (additional) management informationAlignment of vision and practices
•Contributes to achieving objectives/targets
•Provides starting point for strategy development
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Global Sustainability Services™
Contents
•The Main Elements of Corporate Social Responsibility
•Corporate Social Responsibility Reporting Trends
•External Drivers for CSR Reporting
•Internal benefits of CSR Reporting
•CSR Reporting in Practice
•Q&A
20
Global Sustainability Services™
CSR Reporting in Practice
Sustainability report
Accompanying Launching Plan
Internal Survey
Benchmark Competitors
Stakeholder Analysis
Study External Standards
Outside in
Data Collection
Writing Process
Develop Framework
Develop Sustainability Report
Verfication
Develop Launching plan
Inside out
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Global Sustainability Services™
Balanced Reporting: The Key to Succes
CSR Performance
CSR Communication
CSR leaders
Stakeholder’sview on
Company
low
Underappreciationhigh
balance
Overappreciation
high
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Global Sustainability Services™
Become a respected business partner…………….
……….through balanced CSR reporting
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Global Sustainability Services™
Contents
•The Main Elements of Corporate Social Responsibility
•Corporate Social Responsibility Reporting Trends
•External Drivers for CSR Reporting
•Internal benefits of CSR Reporting
•CSR Reporting in Practice
•Q&A
