Differentiate Global Reporting Initiative and Sustainability Reporting.
Global Reporting Initiative Sustainability Reporting
Definition HYPERLINK "https://www.globalreporting.org/Pages/default.aspx"Global Reporting Initiative (GRI) is an independent non-profit institution that promotes sustainability in economic, environmental and social. It was set up in 1997 in term of partnership with United Nations’ Environment Programme (UNEP). GRI provides guidelines that strive to enhance the transparency and accountability of economic, environmental, as well as social performance and provides all firms and organizations with a comprehensive sustainability reporting framework that is widely used. It is also known as corporate responsibility report, environmental report, corporate citizenship report, accountability report, and social report. It is a report established by a firm or an organization on the environment, economic and social factors caused by its day-to-day financial activities. Normally, it presents the firms’ values and their governance model, and demonstrates its strategy and its commitment to sustain in macro economy.
In September 2006, Bursa Malaysia makes it mandatory for listed companies to provide a description of the corporate responsibility activities or practices undertaken by them in Sustainability Report. Discuss advantages and disadvantages of Sustainability Report in relation to the disclosures for the stakeholders and companies.
Transparency. Company makes a sustainability report to show their performance in open manner, which can help to reduce their reputational risks, open up with stakeholders such as customers, communities and investors, and develop leadership, openness and accountability. Disruptive technologies in an abundance and new social platforms has massively increased expectations for what, how, and when companies report. Hence, accountant have to be up to date regularly by attending training and seminar.
Progress vision and strategy. Sustainability report shows comprehensive analysis of strength and weakness, and the engagement with stakeholders that is necessary for sustainability reporting, which can lead to more stronger and wide-ranging visions. Essentially, companies can make sustainability an integral part of their strategies. The strengthening of expertise on a wide-ranging sustainability areas—from climate change and human rights to privacy and labor standards—has significantly increased expectations for the level of detail and sophistication provided by companies in their reports. It is a difficult and requires lots of organisational commitment and effort to compile the report.
Avoid legal costs. Reporting helps us to keep track of our sustainability performance and helps to keep us accountable. By measuring sustainability performance, firms are able to meet their regulatory requirements effectively, obey the rule and avoid costly breaches, and gather necessary data in a more efficient and effective way. Sustainability reporting may seem like a complex, unstructured problem to many, and its resource requirements should not be underestimated. Thus, accessing data of one’s organization can be a difficulty for them, especially for multinationals and complex operating in different industries. Even though sustainability reporting offer much-needed structure and promote comparability, they may lack of flexibility needed to capture the circumstances and issues confronting individual firms.