Effective CSR Reporting

According to the Centre for Excellence in CSR, reporting on community investment and corporate social responsibility programs is essential to establishing trust amongst various stakeholders and potential investors. The way a company reports on its CSR activities (in terms of the kind of information provided and the accessibility of such reports) can influence whether or not a company is perceived as transparent and effective in achieving its objectives.

Companies should aim to report their CSR efforts in ways that evoke credibility and appeal to the informational needs of stakeholders. For example, in the Oxford Handbook of Corporate Social Responsibility, Orlitzky (2008) suggests that CSR activities of a company may influence consumer purchase preference based on:

• The degree of concern for an issue/issues
• The relevance of an issue/issues to an organization
• How a company communicates its actions and performance in addressing an issue/issues
• Whether or not the company is perceived as effective in addressing an issue/issues (i.e. direct impact of company actions)
• Whether or not consumers feel like they are contributing to helping solve an issue/issues (i.e. direct impact of consumer actions)

The Centre for Excellence in CSR mentions that companies can make CSR information more available by dedicating sections of their websites to the reporting of sustainable practices. These sections should generally include environmental, health and safety and community information (depending on applicability and relevance to the company). Stand alone reports, if available, should also be published online in addition to information on sustainability goals and progress. 

Based on these suggested “best practices”, a good example of CSR reporting is CIBC’s 2015 Corporate Responsibility Report. This report is not only displayed in an easy-to-read format, but it addresses several investor and consumer concerns. For example, CIBC demonstrates its stakeholder engagement initiatives in the form of a table, displaying information on the company's focus of activities, engagement methods and key results (see below). The report also provides details on the company's public accountability and governance practices, as well as its environmental responsibility initiatives and risk management policies and procedures. CIBC’s economic contributions (including its community investments and small business/debt-financing programs) are broken down in a transparent manner and contrasted with the economic contributions of previous years. Additionally, a variety CIBC’s community investment approaches and priorities are highlighted within the report and include videos (as well as other visuals) of sponsored events such as the Canadian Breast Cancer Foundation CIBC Run for the Cure, the CIBC 401 Bike Challenge and the CIBC Children’s Miracle Day.

- Olivia Blundell