Purpose Of Sustainable Reporting Practices Essay

809 Words Jul 2nd, 2016 4 Pages
3.2.1. Purpose of sustainable reporting
The reason for increase in sustainability reporting practices is, civil society’s and governmental pressure exerted on companies to improve their sustainability performance, the main purpose of reporting is to provide an breakdown of companies’ performance at a given point and on time to control perceptions and to legitimize its behaviour (Nummert, 2014). Therefore, sustainable reporting has become a priority among private organizations worldwide and has been one of the main objectives of sustainability assessment practices (Kolk, 2004).

3.2.2. Drivers of sustainable reporting

There are three main categories which have been identified to drive the decision by companies to reveal information about their sustainability performance.
01. External drivers ‘‘in terms of background factors embedding the respective companies thus constitutes the conditions under which the firms are operating’’.
02. The internal drivers ‘‘internal drivers originating from specific corporate characteristics’’
03. The internal drivers ‘‘ internal context arising from company internal processes’’
(Wilmshurst & Frost, 2000)
These classifications assist the contrast and location of drivers within the corporate context. The main external drivers can be identified as legislation and shareholder pressure. The ensuing need for legitimacy has led to the demonstration of legal compliance and engagement in shareholder dialogues through sustainability reporting.…

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