DISCLOSURES

and REPORTING
PRACTICES IN
CSR
Compiled By:
Harleen Paul (232006)
Juli Gupta (232009)

SUSTAINABLE REPORTING

The practice of measuring, disclosing, and being accountable to internal and

external stakeholders for organizational performance towards the goal of
sustainable development.
'Sustainability reporting' is a broad term considered synonymous with others used
to describe reporting on economic, environmental, and social impacts (e.g., triple
bottom line, corporate responsibility reporting, etc.).
A sustainability report should provide a balanced and reasonable representation of
the sustainability performance of a reporting organization including both positive
and negative contributions.
A sustainability report also presents the organization's values and governance
model, and demonstrates the link between its strategy and its commitment to a
sustainable global economy.
There has been an increase in the number of social reporting requirements driven
by regulatory bodies and stock exchanges around the world that have played a key
role in advancing the field of social reporting.

Sustainability reporting: past, present, and

trends for the future
The International Integrated Reporting Council (IIRC) has proposed a
revolutionary change in the way that corporations report activities to
stakeholders, essentially by replacing current financial statements with
integrated reports that contain financial information, operational data and
sustainability information.
1960s and 1970s was concerned about social issues women's rights,
racial equality and world peace which became a focus of corporate
reporting. Employee-relations and human-resource reporting evolved into
social reporting. The physical environment only assumed importance later
through some well-publicized environmental catastrophes and ensuing
regulations.
Most social reporting was disclosed in company financial statements rather
than in separate reports.
Much of corporate non-financial reporting originated as part of annual
financial statements and focused on human resources and employee
relations. For example, Hogner (1982) found that the US Steel
Corporation's early financial statements included topics such as worker
housing, community development, worker safety and mortgage assistance
for employees.

Need for Sustainability reporting

An ever-increasing number of companies and other organizations want to
make their operations sustainable. Moreover, expectations that longterm profitability should go hand-in-hand with social justice and
protecting the environment are gaining ground. These expectations are
only set to increase and intensify, as the need to move to a truly
sustainable economy is understood by companies and organizations
financiers, customers and other stakeholders.
Sustainability reporting helps organizations to set goals, measure
performance, and manage change in order to make their operations
more sustainable.
A sustainability report conveys disclosures on an organizations impacts
be they positive or negative on the environment, society and the
economy. In doing so, sustainability reporting makes abstract issues
tangible and concrete, thereby assisting in understanding and managing
the effects of sustainability developments on the organizations activities
and strategy.
Internationally agreed disclosures and metrics enable information
contained within sustainability reports to be made accessible and
comparable, providing stakeholders with enhanced information to inform
their decisions

DISCLOSURES

Disclosure efforts by Government

1986

Specified corporations shall submit an annual environmental

audit.

2008

The Companies Act states that board of directors reports shall

contain information on conservation of energy.

2009

Voluntary guidelines for CSR are issued.

2012

The Companies Bill 2012 makes it mandatory for companies with

net worth of more than Rs 500 crore, or turnover of Rs 1,000 crore
to adopt a CSR policy.

2013

Indian government is moving ahead with implementation of the

Companies Act that makes it mandatory for certain class of
profitable enterprises to spend money on social welfare activities.

2014

Indian regulator, The Securities and Exchange Board of India

(SEBI) mandate greater voting data transparency and at least one
female director on their board for listed firms.

Disclosure efforts by Stock Exchanges

2011

The Securities and Exchange Board of India mandates listed

companies report on Environmental, Social and Governance (ESG)
initiatives undertaken by them, according to the key principles
enunciated in the 'National Voluntary Guidelines on Social,
Environmental and Economic Responsibilities of Business.'

Benefits Of CSR/Sustainability Reporting

Governments, businesses and stakeholders all directly benefit
from it, and the positive impact on social, environmental and
human rights issues is evident. The availability of sustainability information can
be used by governments to assess the impact and contribution of businesses to
the economy and to understand which issues are being tackled by which players.

Improved financial performance. CSR reporting can help you profit

through: innovation, identifying inefficiencies and areas where you are losing
money, improving customer loyalty and attracting a new quality of
customer.
Adds to your credibility as an organization: Reporting enhances
companies accountability for their impacts and therefore, enhances trust,
facilitating the sharing of values on which to build a more cohesive society
Innovation/better quality: Through looking at the workflow chains and
organisational structure, the companys CSR report will identify possible
areas for new business ventures and innovation.
Enhanced brand image & reputation: A company considered socially
responsible can benefit both by its enhanced reputation with the public, as
well as within the business community, increasing a companys ability to
attract capital and trading partners.
Business focus and planning: It can help identify potential problem areas
to tackle and also highlight previously untapped growth areas.
Business opportunities: Many companies expect their stakeholders (like

BENEFITS contd..
Better efficiency: A well-produced CSR report can help you pinpoint the
areas within your company that can benefit from cost-cutting and increased
productivity e.g. less packaging, better logistics.
Increased ability to attract and retain employees: A proud employee,
who believes their company is working for good is more productive, has a
stronger sense of loyalty and a better commitment to the organization.
Reducing compliance costs: Comprehensive analysis of strengths and
weaknesses, and the engagement with stakeholders that is necessary for
sustainability reporting, can lead to more robust and wide-ranging
organizational visions and strategies.
Increased sales and customer loyalty: Customers stick with a brand
when they know their money is going towards ethical practices.
Long-term sustainability: Your CSR report will become something of a
blueprint for your future. Making commitments to becoming a more efficient,
cleaner and innovative company identifies your long-term goals as a
business and safeguards your longevity.

Challenges And Barriers

Regulators pushing for more disclosure

From one-time event to an ongoing communication with stakeholders
No supplier left behind
Improving data collection efficiencies.
Deciding who uses the information and how do they use it. What do people
want to know about? How can reporting support an organizational culture of
transparency and accountability, and enhance engagement with our
stakeholders? - Nancie-Lee Robinson, General Manager, Telstra
Developing the understanding within an organization that the report needs
to be a balanced and comprehensive account of sustainability impacts and
performance, not a promotional document for the companys good deeds Dr Leeora Black, Managing Director of (ACCSR)
Companies are still not sure how material the report itself is.
Ensure easy and timely access of information to investors, customers and
employees
Analyzing performance at both a macro and micro level.
While there is merit in frameworks like the Global Reporting Initiative (GRI)
and assurance standards, the end result of compliance with these can be
very long and inaccessible reports. Lack of compliance with so called best
practice standards though can result in claims of green washing or spin

Some mistakes in CSR Reporting

Weak goals:Sustainability reports built around weak organizational goals

are doomed to fail. Know what success looks like for your company and build
your CSR reporting around that.
Mismanaged data:Good data collection is essential to gaining meaningful
results from initiatives such as auditing or foot-printing. Assign data
collection responsibilities to trained people either inside or outside your
company and continuously check the numbers for accuracy.
Disordered priorities:Recognize that the pillars of the triple bottom line
are interconnected, and that long-term sustainability goes beyond
shareholder profits.
Discounting feedback:Reporting shouldnt be a one-way endeavor. Take
the advice of third parties such as auditors and stakeholder panels, who can

Mistakes in Reporting contd..

Framework Deviation:One of the most common mistakes companies
make when using CSR reports is to underutilize or neglect popular
reporting frameworks such as the Global Reporting Initiative (GRI) as a
necessary function for optimizing sustainability reports via report
standardization.
Tenuous comparisons:Companies are inclined to track their progress
internally. Accept that youre one fish in a large sea. Stakeholders will want
to know how sustainable you are compared to your industry peers, not
necessarily your own benchmarks.
Unreachable targets:Targets in CSR reporting should be linked to
corporate priorities. Make them relevant and aggressive but still
achievable.
Under-reporting:Dont limit communication of your sustainability
performance to the CSR report. Use a variety of media to communicate a
consistent message across, on your progress and challenges.
Inadvertently green-washing:While its important to convey your
environmental and social progress, its a mistake to focus solely on the
positives or on programs immaterial to your organization. Make reporting
meaningful by acknowledging the areas where you still have room for
improvement and tying your CSR goals back to your company mission.

Global CSR reporting frameworks

The Carbon
Disclosure
Project (CDP)
Measure and
disclose their
Greenhouse Gas
(GHG), water, and
supply chain
performance. The
primary focus of
CDP is climate
change mitigation
and protection of
natural resources

Global Reporting
Initiative (GRI)

GRI focuses on the

economic,
environmental, and
social impact of an
organization's material
activities on its
stakeholders

Availabili
ty

Publically
available

Publically available

Stakehol
ders

Investors

The primary
stakeholders of a GRI
report are determined
by the material issues
for the company and
typically include
shareholders,
employees, suppliers,

Focus
areas

Dow Jones Sustainability Index

(DJSI)
Based on an analysis of corporate
economic, environmental and social
performance, assessing issues such as
corporate governance, risk
management, branding, climate
change mitigation, supply chain
standards and labor practices. The
trend is to reject companies that do
not operate in a sustainable and
ethical manner. It includes general as
well as industry-specific sustainability
criteria for each of the 58 sectors
defined according to the Industry
Classification Benchmark (ICB)
Companies must be invited and the
results of the analysis are not
available in the public domain
Investors

National Voluntary Guidelines on Social,

Environment and Economic Responsibilities of
Business
India's NVGs were released by the Ministry of Corporate Affairs (MCA) in July 2011 by Mr.
Murli Deora, the former Honorable Minister for Corporate Affairs. The national framework
on Business Responsibility is essentially a set of nine principles that offer businesses an
Indian understanding and approach to inculcating responsible business conduct.

Indicators
Essential Indicators

Leadership Indicators

Commitment
of Top
Management
and
supportive
governance
structure

The top management has developed

an understanding of the principles and
core elements as well as the issues
involved therein and ensured its
deployment across the business
through appropriate action, regular
review and guidance.

There are specified Committees /Sub Committees in the

governance structure responsible for implementation of these
Guidelines. The issues related therein are regularly reviewed at
the governance level.

Policy
deployment
and Process
management

The business has established a policy

related to the Principles and has put
into place processes and process
owners for implementation.

The business has developed a Code of Conduct or has adopted

nationally or internationally recognized Standards/global best
practices with respect to the Principles and Core Elements. Based
on this, the business has an identified strategy along with the
relevant processes for implementation of the adopted
Codes/Standards/Practices.

Sensitization
and training

The business sensitizes its managers

and employees through awareness and
training so that they are able to
understand and work according to the
processes laid down above.

The business demonstrates its leadership by sensitizing (through

regular and systematic training and awareness) not only the
employees and managers but all the stakeholders including those
within its supply chain as well as outside, on various aspects of
corporate responsibility.

Stakeholder
engagement

The business identifies and engages

with its priority stakeholders for
implementing these Guidelines.

The business systematically identifies all its stakeholders

including within its supply chain and engages with them on
various aspects of these Guidelines.

Monitoring
and
Evaluation

The business undertakes selfassessment and review of its

performance on various principles and
core elements.

The business undertakes third party assessment, verification and

impact analysis of its performance on various principles and core
elements. Where applicable the codes/ standards/practices
adopted by the business would be regularly audited.

Analysis and
improvement

The business identifies and records

critical deviations from the laid down
processes and takes them up for
corrective actions.

All deviations from the laid down processes are recorded,

analyzed and taken up for process correction as well as
mitigation of any loss/damage to the enterprise and its
stakeholders.

Continuous
Innovation

The business engages in continuous

improvement keeping the growing
expectations of stakeholders in mind.

The business focuses on innovation in products, processes and

methods of stakeholders' engagement, so as to continuously
improve its performance on all business processes that impact

Global Reporting Initiative (GRI) Guidelines

The Global Reporting Initiative (GRI) is an independent institution whose
mission is to develop and disseminate globally applicable sustainability
reporting guidelines that help organizations to report on the economic,
environmental, and social dimensions of their activities, products, and
services. The aim of the GRI Guidelines is to assist reporting organizations
and their stakeholders in articulating and understanding contributions of the
organization to sustainable development through their reports.
There are four key elements in the framework:
1. Sustainability reporting guidelines
2. Indicator protocols
3. Sector supplements
4. Technical protocols
Who can use GRI Guidelines?
The GRI Guidelines are intended to be applicable to organizations of all sizes
and types operating in any sector. However, they were developed primarily
with the needs of larger businesses in mind. According to GRI, the reporting
framework being used by more than 1500 organizations, including many of
the worlds leading brands.

Principles For Defining Report

Content
- Stakeholder Inclusiveness
Principle: The organization should identify its stakeholders, and explain
how it has responded to their reasonable expectations and interests.

- Sustainability Context
Principle: The report should present the organizations performance in
the wider context of sustainability.

- Materiality
Principle: The report should cover Aspects that 1.Reflect the
organizations significant economic, environmental and social impacts;
or 2. Substantively influence the assessments and decisions of
stakeholders

- Completeness
Principle: The report should include coverage of material Aspects and
their Boundaries, sufficient to reflect significant economic,
environmental and social impacts, and to enable stakeholders to assess
the organizations performance in the reporting period.

Principles For Defining Report Quality

- Balance
Principle: The report should reflect positive and negative aspects of the
organizations performance to enable a reasoned assessment of overall
performance.
- Comparability
Principle: The organization should select, compile and report information
consistently. The reported information should be presented in a manner that
enables stakeholders to analyze changes in the organizations performance
over time, and that could support analysis relative to other organizations.
- Accuracy
Principle: The reported information should be sufficiently accurate and detailed
for stakeholders to assess the organizations performance.
- Timeliness
Principle: The organization should report on a regular schedule so that
information is available in time for stakeholders to make informed decisions.
- Clarity
Principle: The organization should make information available in a manner that
is understandable and accessible to stakeholders using the report.
- Reliability
Principle: The organization should gather, record, compile, analyze and
disclose information and processes used in the preparation of a report in a way
that they can be subject to examination and that establishes the quality and

GENERAL STANDARD
DISCLOSURES
Strategy and Analysis
Organizational Profile
Identified Material
Aspects and Boundaries
Stakeholder
Engagement
Report Profile
Governance
Ethics and Integrity

SPECIFIC
STANDARD
DISCLOSURES

ITC
ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata,
West Bengal. Its diversified business includes five segments: Fats Moving
Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri
Business & Information Technology.
It is ITC's policy:
To identify and engage with all its stakeholders in a consistent and
systematic manner ;
To understand the concerns of stakeholders including those who are
disadvantaged, vulnerable and marginalized and priorities their
concerns ;
To work towards addressing these concerns in an equitable and
transparent manner.

CSR Policy
To direct ITC's CSR Programs, inter alia, towards achieving one or more of the
following - enhancing environmental and natural capital; supporting rural
development; promoting education; providing preventive healthcare,
providing sanitation and drinking water; creating livelihoods for people,
especially those from disadvantaged sections of society, in rural and urban
India; preserving and promoting sports;
To develop the required capability and self-reliance of beneficiaries at the
grass roots, especially of women, in the belief that these are prerequisites for
social and economic development;
To engage in affirmative action interventions such as skill building and
vocational training, to enhance employability and generate livelihoods for
persons from disadvantaged sections of society;
To pursue CSR Programs primarily in areas that fall within the economic
vicinity of the Company's operations to enable close supervision and ensure
maximum development impact;
To carry out CSR Programs in relevant local areas to fulfill commitments
arising from requests by government/regulatory authorities and to earmark
amounts of monies towards "Enterprise Social Responsibility (ESR)" activities
and to spend such monies through ESR/CSR Cells of such administrative
bodies of the government and/or directly by way of developmental works in
the local areas around which the Company operates;
To provide equal opportunities to beneficiaries of the Company's CSR
Programs as vendors or employees on merit;

Some Awards and Recognitions

ITC is the first from India and among the first 10 companies in the world to
publish its Sustainability Report in compliance (at the highest A+ level) with
the latest G3 guidelines of the Netherlands-based Global Reporting Initiative
(GRI), a UN-backed, multi-stakeholder international initiative to develop and
disseminate globally applicable Sustainability Reporting Guidelines.

ITC is the first Corporate to receive the Annual FICCI Outstanding Vision
Corporate Triple Impact Award in 2007 for its invaluable contribution to the
triple bottom line benchmarks of building economic, social and natural
capital for the nation.

ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility
(Asia)' in 2007, the Award for 'CSR in Emerging Economies 2005' and
'Excellence in Corporate Governance' in the same year. These Awards have
been instituted by the Institute of Directors, New Delhi, in association with
the World Council for Corporate Governance and Centre for Corporate
Governance.

The Readers' Digest Pegasus Award for corporate social responsibility,

recognising outstanding work done by socially conscious companies.

The Best Corporate Social Responsibility Practice Award 2008 jointly

instituted by the Bombay Stock Exchange, Times Foundation and the

Sustainability Policies

Sustainability Reporting

Sustainability Reporting Contd.

Communication to the stakeholders

Cisco
Cisco Systems, Inc. is an American multinational corporation headquartered in San
Jose, California, that designs, manufactures, and sells networking equipment.

Focus Areas for CSR at Cisco

Some Awards and Recognitions

Environmental Sustainability
Climate Leadership Award for Excellence in Greenhouse Gas
Management (Goal Achievement), U.S Environmental Protection
Agency (February)
20 Companies Transforming the U.S. Power Sector, GreenTech
Media (April)
Best Global Green Brands 2014 (#33), Interband (June)
The A List : Climate Performance Leadership Index, CDP
(September)
Top Score of 100 for disclosure on CDP annual climate survey
(September)
General CSR Awards
Global 100 most Sustainable Corporations (#11), Corporate
Knights (January)
Worlds most admired companies, Fortune magazine (February)
Corporate Social Responsibility Distinctive, Mexican center for
Philanthropy and Alliance for CSR (February)
100 best Corporate Citizens (#16), CR Magazine (February)

Sustainability Reporting

Sustainability Reporting Contd.

Sustainability Reporting Contd.

References
Disclosure laws:
http://hausercenter.org/iri/about/global-csr-disclosure-requirements

Benefits:
http://one4allcsr.com/corporate-social-responsibility-consultants/benefits-of-csr/
https://www.globalreporting.org/resourcelibrary/The-benefits-of-sustainability-reporting.pdf
http://www.fbrh.eu/CSR-faq-what-are-the-benefits.php
http://www.mpasquali.com/blog/2011/08/22/csr-reporting-what-are-the-benefits/

Challenges:
http://www.triplepundit.com/2012/07/5-sustainability-reporting-issues-csr-executives-mind/
http://www.probonoaustralia.com.au/news/2013/02/sustainability-reporting-challenges-and-benefits#
http://info.greenstoneplus.com/blog/5-non-financial-reporting-challenges-that-csr-professionals-are-facing

Global Frameworks:
https://www.workiva.com/blog/understanding-csr-reporting-frameworks
http://www.proveandimprove.org/tools/griguidelines.php#SectionFootnote

NVG-SSE
http://www.mca.gov.in

GRI
https://www.globalreporting.org
ITC
http://www.itcportal.com
Cisco
http://csr.cisco.com

THANK YOU