Sustainability Reporting: Be Answerable To Your Stakeholders
Companies have to give back what they take from society and environment and world at large and for this is, it is very important that companies take appropriate measures to make society a better place to live in. Main work of the companies is to provide benefits to its stakeholders and provide them with an opportunity to grow with the company. Companies cannot work without its stakeholders support. For that reason it is important to win the confidence of its stakeholders which includes the consumers, shareholders, employees and the society where it is operating.
For multinational companies, sustainability reporting is even more important. Since they operate from different countries, it is important to build a reputation with the local community so that they are easily acceptable in the society. It’s not easy to build trust in just a day. Thus, companies have to make continuous efforts to build a long term relationship with its stakeholders in countries where it is operating. By indulging in csr activities, companies have a chance to prove that they care for the society. However, companies should make ensure that they participate actively in csr activities and make it a core activity in their company than performing artificial social service.
Multinationals should customize their annual corporate sustainability report according to the country in which they are operating. The report design should have the feel of the community in which it is operating. If people are not attracted to the report, it may not be successful enough to attract the investors to invest in the company. The report should contain relevant data and information about the company’s performance. There should be clarity of thoughts and contain the main issues of the society that the company is addressing and what they are doing about it. It should talk of the impact that they have been able to create rather than talk about the activities they are indulging in.