Is Sustainability Reporting Part of Corporate Social Responsibility?
In the last few years, companies have started giving a lot of importance to sustainability. Statistics indicate that a large percentage of companies are prioritizing sustainability to mitigate costs and enhance operational efficiency.
Moreover, companies are also investing in corporate citizenship best practices for positive publicity and attracting more customers.
Since words like ‘corporate social responsibility (CSR)’ and sustainability reporting are now being used on a regular basis, a lot of people want to know the meanings of these words.
The goal of this post is to help you understand these terms and determine whether sustainability reporting is a part of CSR.
Is Sustainability Reporting Mandatory?
Since 2016, all publicly listed companies in Malaysia have been required to perform sustainability reporting and disclose CSR in their annual reports.
Hence, it is compulsory for companies to disclose non-financial information, like how the company is operating and managing its social and environmental implications.
Companies are recommended to use professional accounting services in Malaysia to disclose all of the important information in sustainability reporting and disclose how the organization is taking care of the environmental, social, and personnel concerns.
As a result, the company will meet the legal requirements of CSR, as well as reveal relevant information to the public to win their confidence.
Takeaways
Sustainability reporting is an integral part of corporate social responsibility (CSR), so companies should utilize all of the available resources like accounting firms in Malaysia to get the best results from sustainability reporting.
CSR reports provide a unique opportunity for organizations to communicate their mission and sustainability practices to the stakeholders and the public.
Therefore, every company should focus on this important process and provide fair and transparent reports as part of sustainability reporting.
