29 November 2006
New research released in the latest issue of Monash Business Review reveals which of Australia's biggest companies are leading the way on corporate social responsibility (CSR) reporting.
While CSR reporting is an important component of business strategy, reporting on CSR initiatives is still voluntary in many countries, including Australia. So how widespread is disclosure of CSR in some of Australia's biggest companies?
A new study undertaken by Dr Abdel Halabi, Dr Ashrah Kazi, Dr Martin Samy and Ms Vy Dang analysed ten major companies' annual report (2004), CSR report (if they produced one) and their website (2005), based on Global Reporting Initiative (GRI) guidelines. The companies included: News Corporation, BHP Billiton, National Australia Bank, Commonwealth Bank, ANZ, Westpac, Westfield Group, Rio Tinto, Telstra and Woodside Petroleum.
The study found:
- Companies largely disclosed 'positive' impacts they made in the community on their websites, including charities they worked with or contributed to, or achievements made, such as awards won.
- In terms of labor practices, on their websites most companies focused on providing employees with a safe and diverse workplace with equal opportunities. Only the banks (Commonwealth, ANZ and Westpac) provided information on product responsibility while the other companies made no mention of it.
- Those companies who did produce a separate CSR report were more likely to report 'negative' incidents not on websites. For example, companies in the mining sector (such as BHP Billiton and Rio Tinto) disclosed tragic accidents and deaths.
- CRS reports of the mining sector had greater emphasis on environmental impacts -- such as use of materials, energy, water, emissions and waste -- whereas the banking sector focussed more on social impacts such as customer and employee satisfaction rates and community involvement.
- Four of the ten annual reports made no mention at all of CSR, while six contained only limited information -- a few paragraphs or sentences.
Dr Halabi, Senior Lecturer in the Department of Accounting and Finance at Monash University said the study showed CSR reporting was widespread in Australia, with all 10 companies disclosing some information.
"Post-Enron there has been a dramatic increase in the production of CSR reports as corporate stakeholders demand organisations extend accountability beyond financial performance and profit-making," he said.
"Australia's top 10 companies obviously see value and importance in reporting CSR information as corporation stakeholders are demanding that organisations demonstrate greater transparency and accountability beyond the domains of financial performance and profit-making."
For more information on the above stories, or any others in the Monash Business Review, contact Ms Jacqui Golding, Faculty of Business and Economics, on +61 3 9903 2265.
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