index, and that disclosure bore little relationship with actual environmental perform-
ance.^9 Results from more recent research still observe no association with measures
of disclosure levels and selected measures of performance.^10 What has however be-
come apparent is that the number of firms including some environmental disclosure
has increased, as well as the quantity of information provided^11 and the inclusion of
environmental performance data (see, for example, Exxon Mobil).
Prior research has, however, predominantly focused on the annual report as the
source of environmental reporting. But companies today use many alternate mediums
to communicate on environmental performance, from their Web site to stand-alone
environmental reports. A study^12 has shown that where companies have adopted al-
ternate reporting mediums such as an environmental report, there has been a subse-
quent decrease in the information disclosed within the annual report.
Current global environmental reporting trends with respect to the use of environ-
mental reports have been tracked by KPMG’s International Survey of Corporate Sus-
tainability. KPMG defines reportsas environmental, health and safety, social, com-
munity and sustainability reports, and a combination of these. The results of their
most recent survey^13 indicated a “significant change in the number, scope and qual-
ity of reports.” The survey of reporting practices focused upon the Global Fortune
Top 250 companies from the Global Fortune500, and the Top 100 companies in 19
countries, and found that 45% and 23%, respectively, produced a report. The major-
ity of these reports were classified as Environment, Health, and Safety Reports.
23.3 SOCIAL AND ETHICAL REPORTING
(a) Regulations. Very few countries have any regulations concerning reporting on
social and ethical issues other than with respect to employment conditions and pay.
Perhaps one of the most promising developments in terms of its potential to improve
corporate social responsibility and accountability is the European Commission’s
Green paper on Corporate Social Responsibility published in July 2001. The Green
Paper aimed to:
... launch a wide debate on how the European Union could promote corporate social
responsibility at both the European and international level, in particular how to make
the most of existing experiences, to encourage the development of innovative practices,
to bring greater transparency and to increase reliability of evaluation and validation. It
suggests an approach based on the deepening of partnerships in which all actors have
an active role to play. (para 7)
Particular concerns within the Green Paper are:- The role of stakeholders, particularly employees, in promoting socially respon-
sible practices - Integration of corporate responsibility issues into day-to-day management and
strategic planning
23.3 SOCIAL AND ETHICAL REPORTING 23 • 7(^9) Wiseman, 1982.
(^10) Fekrat, Inclan, and Petroni, 1996.
(^11) Gamble, Hsu, Kite, and Radtke, 1995; Gray, Kouhy, and Lavers, 1995.
(^12) Frost, 2001.
(^13) KPMG, 2002.