Corporate social responsibility reporting in Europe

Abstract

This chapter sheds light on the European Union’s (EU) latest strategies, guidelines and principles for Corporate Social Responsibility (CSR), corporate governance and sustainability reporting. It reports on several EU governments’ regulatory roles as their societal governance is based on interdependent relationships with stakeholders. As a matter of fact, there are some of the EU countries who have already introduced intelligent substantive and reflexive regulations for their environmental, social and governance (ESG) reporting. Of course, there are different actors and drivers who are shaping CSR communications and policies in relational frameworks with the civil society and corporate businesses. This chapter reports on national CSR policies that are related to the disclosures of non-financial performance of organisations. It transpires that very often, governments, NGOs and corporate businesses resort to non-governmental organisations’ regulatory instruments such as process and performance-oriented tools that help them to structure their ESG reports. These instruments usually focus on issues such as labour standards, human rights, health and safety, environmental protection, corporate governance and the like. Therefore, this contribution makes reference to some of the most relevant EU recommendations for the disclosure of integrated reporting. It posits that the way forward is to have more proactive EU governments that raise the profile of CSR. This chapter indicates that any compulsory reinforcement of the regulatory measures may possibly result in efficiencies and operational cost savings for businesses, in the long term. In this light, more effective communication and dialogue between stakeholder groups will help to raise awareness of the public policy case as well as the business case for CSR. Notwithstanding, it is in the businesses’ self-interest to anticipate regulatory pressures for ESG initiatives. Ultimately, when businesses implement corporate sustainability and responsibility they forge fruitful relationships with key stakeholders, including the regulatory ones. In doing so, they will also address societal, environmental, governance and economic deficits.