Sustainability reports as simulacra? A counter-account of A and A+ GRI reports

Abstract

Purpose-The purpose of this paper is to examine the extent to which sustainability reporting can be viewed as a simulacrum used to camouflage real sustainable-development problems and project an idealized view of the firms' situations. Design/methodology/approach-The method was based on the content analysis and counter accounting of 23 sustainability reports from firms in the energy and mining sectors which had received application levels of A or A+ from the Global Reporting Initiative (GRI). The information disclosed in some 2,700 pages of reports was structured around 92 GRI indicators and compared with 116 significant news events that clearly addressed the responsibility of these firms in sustainable development problems. Moreover, the 1,258 pictures included in sustainability reports were categorized into recurring themes from an inductive perspective. Findings-A total of 90 per cent of the significant negative events were not reported, contrary to the principles of balance, completeness and transparency of GRI reports. Moreover, the pictures included in these reports showcase various simulacra clearly disconnected with the impact of business activities. Originality/value-The paper shows the relevance of the counter accounting approach in assessing the quality of sustainability reports and question the reliability of the GRI's A or A+ application levels. It contributes to debates concerning the transparency of sustainability reports in light of Debord's and Baudrillard's critical perspective. The paper reveals the underexplored role of images in the emergence of several types of simulacra.

Marking Their Own Homework: The Pragmatic and Moral Legitimacy of Industry Self-Regulation

“…Managers use ISR to maintain control over the rhetoric around social issues through generating and maintaining symbols such as certifications, logos, social reports and partnerships. Boiral (2013), for example, theorized sustainability reports certified to the Global Reporting Initiative (GRI) A or A? standard as ''signs and images employed to control social representations'' (p. 1037).…”

Does the Institutional Environment Affect CSR Disclosure? The Role of Governance

“…However, the credibility and quality of CSR reports have been challenged (Boiral, 2013;Amran et al, 2014). Consequently, companies have started to implement some more complex CSR disclosure practices in order to make their reports more credible.…”

“…Thus, companies can decide to report according to international standards (GRI guidelines) in order to enable the comparison and harmonization of CSR information between companies (Adams, 2002;Boiral, 2013). Later, these reports can get a specific "application level", which reflects to what extent each company's report follows the GRI guidelines.…”

“…We used an index intended to reflect CSR reporting practices; we considered also the actions taken to increase the credibility and quality of such disclosures (Amran, Lee, & Devi, 2014;Boiral, 2013); the extent to which the disclosed information followed the Global Reporting Initiatives (GRI) guidelines; whether such adequacy was subject to external checking; and, finally, whether the information had been assured. With regard to CG mechanisms, we focused on the ones indicated by the literature as having an influence on CSR reporting practices: Board Size, Board Independence, Board Activity, CSR Committee, and Reference Shareholder.…”

“…However, the credibility and quality of CSR reports have been challenged (Boiral, 2013;Amran et al, 2014). Consequently, companies have started to implement some more complex CSR disclosure practices in order to make their reports more credible.Thus, companies can decide to report according to international standards (GRI guidelines) in order to enable the comparison and harmonization of CSR information between companies (Adams, 2002;Boiral, 2013). Later, these reports can get a specific "application level", which reflects to what extent each company's report follows the GRI guidelines.…”