Chapter 15 – International Corporate Social Reporting
Answers to Questions:
1. CSR is providing information by companies about both social and environmental
2. A number of theories have been used to explain CSR practices by firms, such as
3. The conceptual basis of CSR is the organizational societal responsibility. This in turn is
based on the notion of stewardship, defined as the accountability of management of
4. Companies are motivated to engage in CSR practices by many factors, including the
5. As the Stern Report (2007) in the United Kingdom states, human actions over the
coming few decades related to climate change could create risks of major disruptions
6. The key terms used in assessing the impact of climate change on a firm include the
following:
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7. CSR practices of companies in many countries are conducted on a voluntary basis.
However, significant shortcomings, including doubts about the reliability of such
8. The mechanisms for regulating CSR practices at the international level include the
following:
9. The problems of regulation through legislation include the following:
10. The items often mentioned in CSR reports include the following:
Economic, environment, and social performance based on metrics from the GRI.
Steps taken to quantify, report, and reduce greenhouse gas emissions from
operations.
11. The Kyoto Protocol, created in early 2005 under the United Nations Framework
Convention on Climate Change (UNFCCC), is a combination of country-specific
greenhouse gas emissions reduction targets and emissions trading mechanisms.
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Chapter 15 – International Corporate Social Reporting
12. Global Reporting Initiative was formed in 1997 by U.S.-based nonprofits Ceres
(formerly the Coalition for Environmentally Responsible Economies) and Tellus
G4 ,GRI’s fourth generation guidelines issued in 2013, represents a standardized approach to
reporting, encouraging the degree of transparency and consistency that is required to make
G4 offers two options for an organization to prepare its sustainability report ‘in accordance’ with
the Guidelines. The two options are Core and Comprehensive. Both options can apply for an
organization of any type, size, sector or location. Organizations that have prepared a
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Chapter 15 – International Corporate Social Reporting
Solutions to Exercises and Problems:
1. In providing solution, visit the Corporate Responsibility Report 2010 of Coca-Cola
2. In providing solution, identify a 2010 audit report for a U.S. company, which refers
3. In providing solution, discuss the motivations for a company in any industry (other
4. In providing solution, identify a company (other than Toyota), which has stated
Case 15.1: Modco Inc
This case highlights the dilemma in regard to the implementation of CSR. In many countries including
the United States, CSR reporting is self-regulated. Accordingly, many companies develop their own
codes of conduct, and prepare sustainability reports voluntarily. For this purpose, they claim to use
GRI guidelines which address issues related to, among other things, environmental and social
conduct of companies. On that basis companies also claim that they are being socially responsible.
Modco is a large, profitable US MNC which has subsidiaries in many countries. With regard to CSR
reporting, the company seems to follow the general practice among companies. For example, the
company’s CEO, ‘setting the tone at the top’, emphasizes that the company is genuinely concerned
about the social and environmental dimensions of its activities. This may be because since the GFC in
2008 the global trend towards CSR and sustainability has influenced MNCs worldwide.
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It is vitally important that companies such as Modco should be genuine and act according to the spirit
of the concept of accountability, not simply try to show that it has followed the rules.
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