A Review and analysis of CSR practices in Australian second tier private sector firms

The growing trend for companies to report on corporate social responsibility (CSR) initiatives in their annual reports and the emergence of standard reporting templates means it is now possible to more accurately measure companies against one another in relation to their claimed CSR activities. The measurement of inter-company rigour in CSR reporting is an important step in increasing the level of CSR accountability. This paper evaluates CSR practices in Australian companies by conducting a census of and analysing reporting levels for all 100 companies in the second tier of publicly listed companies on the Australian Securities Exchange (ASX 101-200) in early 2008. Reported practices were systematically categorized and measured using the Global Reporting Initiative’s template, version 3 (GRI3). Specifically the paper deals with three research questions concerning the level of reporting by company, by GRI indicator category and by industry sector. Results reveal that reporting levels are generally low, are highest for the economic indicator, and most rigorously and systematically reported in the materials and industrials sectors. This pattern of results suggests that despite the increasing popularity of CSR, most reporting is still concentrated in areas that are either mandatory or seen as important in establishing legitimacy for continued, profitable operations.