Are linking non-financial reports to financial reports to provide transparent and reliable information on business activities and how corporation creates value on short, mid and long-term. It follows trend that companies should expand their reporting system beyond the stewardship of financial capital, and include all the resources they use as inputs to their business processes.
Published in Chapter:
Leadership for Sustainability: Connecting Corporate Responsibility Reporting and Strategy
Nikolina Markota Vukić (RRIF d.o.o., Croatia), Mislav Ante Omazić (Faculty of Economics and Business, University of Zagreb, Croatia), Mirjana Pejic-Bach (Faculty of Economics and Business, University of Zagreb, Croatia), Ana Aleksić (Faculty of Economics and Business, University of Zagreb, Croatia), and Jovana Zoroja (Faculty of Economics and Business, University of Zagreb, Croatia)
Copyright: © 2020
|Pages: 29
DOI: 10.4018/978-1-7998-1108-4.ch003
Abstract
This chapter describes how and why normative justification for corporate responsibility has been replaced with business case thinking. Modern organizations do link their non-financial reports to strategy because corporate responsibility is seen as a source of competitive advantage, growth, motivation, and innovation. Non-financial reporting potentiates companies to understand, learn, and redefine their social and environmental impacts and its cost; how to minimize both impact and cost; and how to capitalize on challenges that management face on a daily basis. The connection between CR strategy and non-financial reporting is described along with how it is relevant for the successful business of modern organizations. By improving CR strategies and developing unique non-financial reporting, organizations can be more effective and efficient in the local community, which will positively reflect on their business model and in achieving higher sustainability levels.