Integrated reporting is CSR reporting 2.0
October 19, 2012
Several leaders from the corporate world, the investment community, NGOs, and regulatory bodies have joined the International Integrated Reporting Council to further develop and promote Integrated Reporting.Derwall reacts positively to this development: “Integrated reporting is CSR reporting 2.0. It means companies not only report on financial performance, but also report on environmental and social performance in one integrated way.”
“It is a step forward especially for investors who want to understand the implications of sustainability for their investment decisions because it also tells you whether a company is actually structurally dedicated to sustainability concerns. It also signals that internally the company has the proper management and control systems in place.”
The website of the integrated reporting initiative provides important tools for companies and investors interested in Integrated Reporting. www.theiirc.org.
Derwall concludes that also academic research on reporting is important. This conclusion finds support in recent work by scholars Martin and Moser (2012, 2012) from the University of Pittsburg, who highlight that experimental research can uncover why managers may choose to disclose specific information about their company’s sustainability programs. Similar experimental designs may also help managers understand which forms of reporting and which types of sustainability information are appreciated by investors.
- Martin, Patrick, and Donald V. Moser. “Managers’ Green Investment and Related Disclosure Decisions.” SSRN eLibrary (March 16, 2012). http://ssrn.com/abstract=1911589.
- Martin, Patrick, and Donald V. Moser. “Accounting researchers should consider a broader perspective on CSR”, FSinsight, October 16, 2012.
Assistant Professor, Tilburg Sustainability Center