Sustainability Reporting

Abstract

Sustainability reporting provides nonfinancial and financial indicators of an organization’s environmental, economic, and social dimensions of its operations. The globalization of corporations and widely publicized ­corporate misdeeds (e.g., Nike’s child labor problems) have increased ­public scrutiny of corporate behavior. As pressure grows from a variety of stakeholders (e.g., investors, creditors, customers, and NGOs) for corporate transparency, sustainability reports provide vital information to meet the demand for disclosures about environmental, economic, and social impacts. In addition to addressing stakeholders’ demands, this reporting enhances internal decision-making. Managers are better able to assess risks, monitor company ...