This chapter describes how and why normative justification for corporate responsibility has been replaced with business case thinking. Modern organizations do link their non-financial reports to strategy because corporate responsibility is seen as a source of competitive advantage, growth, motivation, and innovation. Non-financial reporting potentiates companies to understand, learn, and redefine their social and environmental impacts and its cost; how to minimize both impact and cost; and how to capitalize on challenges that management face on a daily basis. The connection between CR strategy and non-financial reporting is described along with how it is relevant for the successful business of modern organizations. By improving CR strategies and developing unique non-financial reporting, organizations can be more effective and efficient in the local community, which will positively reflect on their business model and in achieving higher sustainability levels.

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Background: Greater transparency has become a relevant topic for companies around the world. Information and communication technologies revolution (ICT revolution) has forced companies to become more transparent. With the intention of increasing companies’ transparency, the European Union (hereinafter: the EU) has presented a new Accounting Directive 2013/34/EU which makes Corporate Social Reporting (hereinafter: CSR reporting) mandatory for certain companies. Objectives: EU Directives should be the same for all Member States; however, some authors have concluded that CSR reporting is different in companies of different sizes, industries or from different countries. The main objective of this paper is to research into differences of CSR reporting among selected EU countries. Methods/Approach: The Global Reporting Initiative (hereinafter: GRI) has shaped a reporting framework for CSR reporting. In this research the GRI will be used for comparison of CSR reports of different countries. Results: Results of this research revealed that the difference in CSR reporting is statistically significant among selected EU countries. Conclusions: As CSR reporting in the EU will become mandatory for certain companies, it will be a challenge for Member States to harmonize their national legislation to a degree which will increase companies’ transparency and at the same time protect local resources and interests of stakeholders.

This chapter describes how and why normative justification for corporate responsibility has been replaced with business case thinking. Modern organizations do link their non-financial reports to strategy because corporate responsibility is seen as a source of competitive advantage, growth, motivation, and innovation. Non-financial reporting potentiates companies to understand, learn, and redefine their social and environmental impacts and its cost; how to minimize both impact and cost; and how to capitalize on challenges that management face on a daily basis. The connection between CR strategy and non-financial reporting is described along with how it is relevant for the successful business of modern organizations. By improving CR strategies and developing unique non-financial reporting, organizations can be more effective and efficient in the local community, which will positively reflect on their business model and in achieving higher sustainability levels.