Curt Verschoor on Ethics

CHAPTER 10SUSTAINABILITY AND INTEGRATED REPORTING

Responsibility Reporting Is Getting More Attention

Following the lead of European-based companies, companies in the United States and around the world increasingly report nonfinancial information addressing their impact on the environment and key stakeholders such as customers, suppliers, employees, the community, and the general public. The titles of these reports often include phrases such as “corporate responsibility” (CR), “sustainability,” “environmental, social, and governance” (ESG), or “triple bottom line” (which includes economic, social, and environmental issues).

According to the KPMG International Survey of Corporate Responsibility Reporting 2011, corporate responsibility reporting has become a de facto standard for business, and it enhances the financial value of companies that do it. The KPMG survey analyzed the reports of more than 3,400 companies from 34 countries, including the 250 largest companies in the world (G250). Ninety-five percent of the G250 now report on their corporate responsibility activities, including almost 60% of China’s largest companies that already report using corporate responsibility metrics. Of the G250 companies that don’t report on corporate responsibility, two-thirds are based in the United States.

KPMG says, “With almost half of the largest companies already demonstrating financial gains from their CR initiatives, and with the increasing importance of innovation and learning as key ...