Key Motivating Factors for CSR reporting Essay Example | Topics and Well Written Essays - 1250 words

Key Motivating Factors for CSR reporting - Essay Example This research tells that the role of sustainable business practices has become the key component of corporate governance that incorporates social aspect within the broader framework of business goals and objectives. GRI is the important institution that helps to develop the framework of sustainability reporting that has the major impact on people. The various imperatives and drivers of changes motivate business to develop corporate social responsibility and sustainability report an intrinsic part of business strategy. Jones and Jones state that CSR actions are initiatives of companies to ‘further some social good beyond its own interests’ that have the long-term impact on their performance. Globalization influenced business decisions. Sirgy asserts that globalization is ‘the diffusion of goods, services, capital, technology, and people (workers) across national borders’. This has resulted in more competition and require the good image of companies. To stop s candals like Enron and WorldCom, transparency in corporate governance is needed. Corporate governance emphasizes accountability, responsibility, and transparency through good practice in business. Turnbull Report also says that risk management, internal control etc. are extremely important issues as they reflect ‘sound business practices’. Nature has limited resources like air, water, land and mineral resources. The indiscriminate use of natural resources resulted in fast depletion and therefore businesses must use technology and processes that promote environmental conservation and preservation. In the current times, people have become more aware of the environment, social issues and about other brands. Companies need become more active in responding to social issues like environment, diversity and contribute towards the socio-economic development of the society which is helping them to do business.