How useful are CSR reports for investors? The problems of comparing environmental and social disclosures

James Hazelton, Stephanie Perkiss

Research output: Chapter in Book/Report/Conference proceedingChapterResearchpeer-review

Abstract

This chapter explores the usefulness of corporate sustainability reporting practices and standards for investment decision-making. Two key issues are considered – aggregation and comparability – in the context of four important sustainability issues – energy, water, human rights and corporate political donations. For each issue, current reporting practices and standards are problematic: for carbon, the existence of a global carbon ‘budget’ needs to be taken into account for meaningful firm-level reporting; for water, the localized impact of water withdrawals and discharges means that disaggregated and catchment-specific water information is required; for human rights, the very nature of what should be reported is unresolved, with current recommendations focusing on processes as opposed to outcomes; and for political donations, disaggregated and contextual information required to ascertain the likely impact (and hence appropriateness) of a given donation. Collectively, this analysis shows that mandatory reporting of current corporate social responsibility (CSR) standards will not meet investor needs. We therefore, call for far more contextual and comparable CSR information to be required by the next iteration of CSR reporting standards such as the GRI.
LanguageEnglish
Title of host publicationResearch handbook of finance and sustainability
EditorsSabri Boubaker, Douglas Cumming, Duc Khuong Nguyen
Place of PublicationCheltenham, UK ; Northampton, MA
PublisherEdward Elgar Publishing
Chapter5
Pages93-109
Number of pages17
ISBN (Electronic)9781786432636
ISBN (Print)9781786432629
DOIs
Publication statusPublished - 2018

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social responsibility
investor
donation
water
human rights
sustainability
aggregation
withdrawal
budget
firm
energy
decision making

Cite this

Hazelton, J., & Perkiss, S. (2018). How useful are CSR reports for investors? The problems of comparing environmental and social disclosures. In S. Boubaker, D. Cumming, & D. K. Nguyen (Eds.), Research handbook of finance and sustainability (pp. 93-109). Cheltenham, UK ; Northampton, MA: Edward Elgar Publishing. https://doi.org/10.4337/9781786432636.00012
Hazelton, James ; Perkiss, Stephanie. / How useful are CSR reports for investors? The problems of comparing environmental and social disclosures. Research handbook of finance and sustainability. editor / Sabri Boubaker ; Douglas Cumming ; Duc Khuong Nguyen. Cheltenham, UK ; Northampton, MA : Edward Elgar Publishing, 2018. pp. 93-109
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Hazelton, J & Perkiss, S 2018, How useful are CSR reports for investors? The problems of comparing environmental and social disclosures. in S Boubaker, D Cumming & DK Nguyen (eds), Research handbook of finance and sustainability. Edward Elgar Publishing, Cheltenham, UK ; Northampton, MA, pp. 93-109. https://doi.org/10.4337/9781786432636.00012

How useful are CSR reports for investors? The problems of comparing environmental and social disclosures. / Hazelton, James; Perkiss, Stephanie.

Research handbook of finance and sustainability. ed. / Sabri Boubaker; Douglas Cumming; Duc Khuong Nguyen. Cheltenham, UK ; Northampton, MA : Edward Elgar Publishing, 2018. p. 93-109.

Research output: Chapter in Book/Report/Conference proceedingChapterResearchpeer-review

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Hazelton J, Perkiss S. How useful are CSR reports for investors? The problems of comparing environmental and social disclosures. In Boubaker S, Cumming D, Nguyen DK, editors, Research handbook of finance and sustainability. Cheltenham, UK ; Northampton, MA: Edward Elgar Publishing. 2018. p. 93-109 https://doi.org/10.4337/9781786432636.00012