Current Issues in Corporate Social Responsibility by Samuel O. Idowu Catalina Sitnikov Dalia Simion & Claudiu George Bocean

Author:Samuel O. Idowu, Catalina Sitnikov, Dalia Simion & Claudiu George Bocean
Language: eng
Format: epub
Publisher: Springer International Publishing, Cham

6 Conclusion and Future Research Directions

In the current chapter, we aim at achieving a thorough analysis of the problems linked to internal control and corporate social responsibility regarding companies, as the subject matter at hand is quite vast, and during the course of our research endeavour we have uncovered new facets of these issues.

In the current chapter, we have not devised a good practice model in the field on CSR, but we have strived to point out and capture certain ideas which we believe may contribute towards projecting such a model that could lead to an increase in the quality of information regarding CSR reporting including increasing social responsibility.

As we have decided on publicly communicating our research theme, examining corporate reporting and their subsequent social responsibilities, we have observed that an important component regarding internal control is quite poorly represented.

Contextualising this, we have asked ourselves the question if a rigorous internal control would also be sufficiently adequate in terms of social responsibility and how to properly handle the problem of boundaries between business confidentiality and transparency.

In general, we believe that there is too much talk and very little action when it comes to social responsibility, sometimes without even knowing too much about the subject. Some individuals do things without reference to actual procedures. Consequently, we align ourselves with the thesis according to which not only is it necessary to ensure good reporting, but also genuine transparency.

By analysing the specialised research in the field and the G4 implementation manual, as well as the CSR reports, we have identified aspects associated to internal control. Within this contextual framework, we have performed an analysis of reporting standards and performance indicators.

We believe that these elements can develop and consequently increase the social/public responsibility of internal control.

A study performed by Schwindenhammer (2013) shows that five German companies (BASF, Bayer, Daimler, RWE and Volkswagen) fully complied with GRI regulations, with the compliance being evaluated by audit service providers. The study makes reference to an analysis performed in 2010, by the Institute for Ecological Economy Research which indicates the fact that the companies which comply with GRI regulations occupy the best spots in the ranking of companies which accurately report sustainability . Nevertheless, the Volkswagen scandal shows that beyond the reports which would aim to portray a certain image of the company, the reality can be significantly different, and even worse in blatant contradiction with these reports, a fact which warrants future research on the methods to bring company reports closer to reality.

Within the operating framework of CSR, internal control can provide a contribution through the methodology of reporting the issue based on which it operates, but also by including it within the framework of CSR reporting or in the integrated reporting of elements which are rather tributary to the process of control or risk management (to an extent which is more detailed or supplementary revised in the report encompassing the requirements of the GRI reporting framework). Certainly, all these shall have an impact on increasing stakeholder trust, as well as the responsibility of those reporting.

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