Corporate Social Reporting

Are company reports on their social and environmental impact any use? The style and content of non-financial reports vary greatly. Some firms spend much time and effort giving out information of uncertain value.

The only tool standardising non-financial reports is the Global Reporting Initiative (GRI), a broadly supported checklist of dozens of questions to which almost all of the best reporting firms pay lip service. Rob Lake, head of socially responsible investment engagement and corporate governance at Henderson Global Investors, says “the GRI framework is a good one”. But firms can (and do) choose carefully which of its questions they answer.

One which particularly interests investors such as Mr Lake is the GRI's request for a geographical breakdown of taxes paid. (Whether most shareholders really want this made public, given the hostile publicity that low bills might attract, is debatable.)

While far from perfect, I think these practices are used and we need to continue to use them. At least that is my view as a local economic developmetn strategist.

More here.