Page 191 - Performance Leadership

180 • Part III Principles from the Values and Social Dimensions

reporting on social and environmental issues is only done to comply
with legislation or to give the appearance that the organization cares,
it will be minimal and done as cheaply as possible. Data quality and
process controls don’t really matter that much. However, if the organ-
ization embraces the concept, reporting can have a real impact on per-
formance management. Measurement drives behavior. Having every
business unit report on sustainability shows that senior management
takes the subject seriously, and it will drive performance. Definitions,
data quality, and process controls become very important. The GRI
framework provides definitions, controls, and many best practices for
implementing SR. The GRI lists numerous benefits of using the frame-
work for reporting on corporate social responsibility:

• In today’s “always-on” world where information is everywhere, a
proactive approach to reporting is needed.
• The complex environment of all stakeholders that a company
needs to mind requires a continuous “dialogue.”
• Transparency builds trust.
• Sustainability reporting links all the parts of the business and
challenges an insular approach.
• Reporting helps management in evaluating potential risks and
in acting preventively.
• Sustainability reporting helps managers to create a more
complete long-term overall picture of the business.
• Fuller and more regular disclosure of nonfinancial information
can add stability to a company’s financial condition by avoiding
major swings in investors’ behavior.

The sustainability reporting framework extensively describes a num-
ber of standardized performance indicators that help in understanding
CSR benefits. There are core indicators that the GRI determined are
relevant to most organizations and stakeholders, and additional indi-
cators that represent a particular leading practice or are of interest for
a specific stakeholder. Following these standards allows organizations
to state that they are compliant with the framework, but perhaps even
more important, to be able to benchmark the results against other
companies, trying to become best in class. Table 10.2 provides an
overview of the sustainability reporting framework.