Are CSR Reports Helpful?
Through colorful and infographic-filled sustainability reports, we see a specific corporation's positive impact on society. It is helpful to see what companies are doing in CSR, but let us remember that it is not in the company's best interest to share what they are not doing.
When reviewing a corporate sustainability report, ask yourself these questions:
What are common ethical dilemmas that arise within the corporation's industry? How has the company mitigated these issues to support an ethical environment?
Has the company been reported on recently in the news? Was the story favorable or problematic? If problematic, are these issues addressed?
While it is cynical to believe corporations are distracting investors and customers with only their positive work, realistically, of course, they are. We need to take a step back and devote time to thinking about the stories not being told within these documents.
The corporate sustainability report I reviewed was from Amazon, published in June 2020. Find it here: https://sustainability.aboutamazon.com/pdfBuilderDownload?name=sustainability-all-in-june-2020
The 83-page published report shared insights into Amazon's commitment to the Environment, People, and Governance. They have each aspect of ESG covered, right? What stuck out to me was that under the "People" section of the document, only 6-pages are dedicated to "Employees and Partners." Many images, large-font headlines, and infographics are visible in this sub-section. What did they leave out? Any information about working conditions for their employees. If we fast-forward less than two years later, Amazon employees have begun unionizing for the first time in their company's history. This is in response to unsafe work conditions the company has subjected its warehouse employees to during the COVID-19 pandemic.
So while we review the great work companies share within their corporate sustainability reports, remember to ask yourself a few questions before determining whether their reporting is helpful or not.
Submitted 4/29/22