Business Sustainability, Corporate Governance, and Organizational Ethics

CHAPTER 9Business Sustainability Performance Reporting and Assurance

1. Introduction

The past decade has witnessed wide attention on the accountability and social responsibilities of corporations. Many factors including a wave of global financial scandals at the turn of the twenty-first century led to the growing demand for corporate accountability on issues ranging from economic considerations to social responsibilities. The demand for more transparent corporate reporting reflecting economic, social, governance, ethical, and environmentally (ESGEE) sustainable performance is increasing in the context of sustainability reporting. Corporate sustainability reporting originally focused on environmental and corporate social responsibility (CSR) matters and evolved into presenting all multiple bottom line (MBL) issues. Business organizations play important roles in society by interacting with a variety of constituencies in creating shared value for all stakeholders. Proper communication of sustainability performance is important in disclosing commitments to create stakeholder values.

Corporate reporting is a process by which public companies disclose their mandatory financial economic performance and voluntary nonfinancial information on governance, social, ethical, and environmental (GSEE) activities to all stakeholders. Corporations report their economic activities and performance in compliance with regulatory requirements and contractual covenants to satisfy financial information ...