Corporate social responsibility in context: the case for compulsory sustainability disclosure for listed public companies in Australia?

The impact of globalisation - and a greater understanding of the effects of business activities on the environment, local communities, developing nations, employees, customers, suppliers and creditors - has given additional impetus to the corporate social responsibility movement. Key concepts associated with corporate social responsibility are principles of accountability and responsibility to all legitimate stakeholders, and a willingness to engage in appropriate disclosure to such stakeholders. Thus there has been greater attention focused on the extent of disclosure which listed public companies make about the environmental impacts of their business activities. This paper will discuss and analyse sustainability disclosure requirements for listed public companies in Australia in relation to environmental impacts, taking into account the findings of recent reviews into corporate social responsibility issues. Deficiencies associated with the existing regime of voluntary sustainability disclosure will be identified and discussed. The potential impact of mandatory sustainability reporting will then be addressed. This paper will conclude with a discussion of likely future developments.