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Companies falling down on corporate responsibility reporting

Only 6 per cent of companies fully integrate corporate responsibility (CR) content into their annual report, according to a new report.

Corporate reporting agency Black Sun’s latest research on annual reports has found that, although almost all companies report on CR, only a tiny minority demonstrate a link between CR and business strategy, operations and performance throughout their reports.

Just 39 per cent of FTSE 100 companies link CR to their overall business strategy in their annual report, and only 12 per cent included CR as a strategic business objective or priority for their business – despite 52 per cent of companies making a commitment to CR in their management statements.

Many companies display what Black Sun calls a ‘disconnected’ approach, insisting that CR is an integral part of their business or strategy, but containing all reporting within a separate standalone section, often at the very end of the report.

‘In the future, operating in an environmentally, socially and economical way will be an essential component of a successful business strategy and critical to building and maintaining trust and a company’s credibility,’ says Sallie Pilot, Director of Research and Strategy at Black Sun.

The full report, Walking the Walk and Talking the Talk, can be requested by e-mailing cwaters@blacksunplc.com.