trends in corporate social responsibility reporting

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


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


Corporate Social Responsibility: Main Elements

BusinessPrinciples

Economic Social

Environmental

AnnualCSR

Report

Stakeholders

Dialogue

TransparancyAccountability

Communication

Strategy & Management

Company

5


Contents






•Q&A

6


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

7


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%

8


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

9


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


Contents






•Q&A

11


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

12


Brand / Reputation is at Stake

13


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”

14


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)

15


Contents






•Q&A

16


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

17


Credibility towards stakeholders

Shows leadership of company

Information for financial sector

The External Benefits are only the Tip of the Iceberg

External benefits:

18


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

19


Contents






•Q&A

20


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

21


Balanced Reporting: The Key to Succes

CSR Performance

CSR Communication

CSR leaders

Stakeholder’sview on

Company

low

Underappreciationhigh

balance

Overappreciation

high

22


Become a respected business partner…………….

……….through balanced CSR reporting

23


Contents






•Q&A

KPMG’s Global Sustainability Services TM

Arjan de Draaijer

[email protected]

Questions?

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