Reasons for Omitting Sustainability Reporting

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Corporate Sustainability > Best Practices > Reasons for Omitting Sustainability Reporting

Reasons for Omitting Sustainability Reporting
Anneke Zwart, Student (University), Netherlands, Member
Higgins et al. (2012) have researched Sustainability Reporting (SR) in organizations. The authors elaborate on five reasons why companies do not report on their sustainability (social/environmental performance). The following reasons are mentioned: 1. External Stakeholder Pressure is missing; Although most of the companies included in the research were operating in industries in which social/environmental concerns have appeared, there is no pressure from stakeholders to report on sustainability. The value of reporting on sustainability may be increased if investors require the reports so as to assess the risk of investing. 2. Lack of Perceived Benefits: Although sustainability nowadays can create a competitive advantage, there are only few who see the value-added in voluntarily reporting on their sustainability. Rather it is more often seen as a waste of time and as an obstruction for making money. 3. Sustainability Reports are not Obligatory: There is no obligation to provide infor (...) Read more? Sign up for free

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Corporate Sustainability
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