Datos técnicos de las funciones de protección

It is a matter of fact that Corporate Social Responsibility actions became central in every type of firm in every country. Since the attention of investors and more generally of the stakeholders is nowadays even more concentrated on this topic, the development of governmental instruments for the adoption of uniformed rules has increased recently. Nevertheless, exists regional and country differences between its development. Principally, the main factor that

Martinuzzi and Margula (2011) argue that the most powerful stakeholder in CSR action is the government, which act principally through five policy instruments:

• Legal: law, directives and regulations • Financial: taxes and treasury actions

• Informational: government-sponsored campaigns, guidelines, training and websites

• Partnering: public-private partnership, negotiated agreements or stakeholders’ forum

• Hybrid: combination of two or more instruments mentioned above

These public policies about CSR might belonging to four class of action:

The first has the scope to raise awareness, build capacities and put them into action. The second aims to improve disclosure and transparency of the firms.

The third regards the incentive of increasing Socially Responsible Investment (SRI).

The last is about the governmental capacity of promulgating public sustainable actions that enable and incentive corporations to act responsibly.

An example of a governmental promulgation on CSR is the guidelines provided by Germany called German Corporate Governance Code.

Regardless cross-countries differences existing on the adoption of CSR rules, the principal lack in this field remains the absence of international standards in matter of CSR reporting which enables the comparison among different reports published by company located in different nations and allow harmonization.

International Integrated Reporting Council

In order to respond to the deficiency of the world system, in 2010 was created the International Integrated Reporting Council (IIRC). Its mandate is to develop a framework for integrated reporting and to promote its use. “The purpose of the Framework is to establish Guiding

Principles and Content Elements that govern the overall content of an integrated report, and to explain the fundamental concepts that underpin them” (International Integrated Reporting

website, 2018). IIRC Framework, issued on December 2014, is principles-based document that does not specify particular disclosure requirements or provide a standard format for integrated reports (Barth, 2017). It sets out seven guiding principles and eight content elements.

IIRC Guiding Principles

Strategic focus and future orientation

An integrated report should provide insight into the organization’s strategy, and how it relates to the organization’s ability to create value in the short, medium and long term,

and to its use of and effects on the capitals

Connectivity of information

An integrated report should show a holistic picture of the combination, interrelatedness and dependencies between the factors that affect the organization’s ability to create

value over time

Stakeholder relationships

An integrated report should provide insight into the nature and quality of the organization’s relationships with its key stakeholders, including how and to what extent

the organization understands, takes into account and responds to their legitimate needs and interests

Materiality

An integrated report should disclose information about matters that substantively affect the organization’s ability to create value over the short, medium and long term

Conciseness

An integrated report should be concise

Reliability and completeness

An integrated report should include all material matters, both positive and negative, in a balanced way and without material error

Consistency and comparability

The information in an integrated report should be presented: (a) on a basis that is consistent over time; and (b) in a way that enables comparison with other organizations

to the extent it is material to the organization’s own ability to create value over time. Figure 16. IIRC Guiding principles. Source: personal elaboration.

IIRC Content Elements

Organizational overview and external environment

What does the organization do and what are the circumstances under which it operates?

Governance How does the organization’s governance structure support its ability to create value in the short, medium and long term?

Business model What is the organization’s business model?

Risks and opportunities

What are the specific risks and opportunities that affect the organization’s ability to create value over the short, medium and long term, and how is the organization dealing

with them?

Strategy and resource allocation

Where does the organization want to go and how does it intend to get there?

Performance To what extent has the organization achieved its strategic objectives for the period and what are its outcomes in terms of effects on the capitals?

Outlook What challenges and uncertainties is the organization likely to encounter in pursuing its strategy, and what are the potential implications for its business model and future

performance?

Basis of presentation How does the organization determine what matters to include in the integrated report and how are such matters quantified or evaluated?

Figure 17. IIRC Content Elements. Source: personal elaboration.

“Integrated report should show a holistic picture of the combination, interrelatedness and

dependencies between the factors that affect the organization’s ability to create value over time”

(IIRC website, 2018). Thus, IIRC Framework purpose is to guarantee the achievement of two objectives: improving information for external users and improving internal decision making.

United Nations Global Compact

Another relevant action made for supporting CSR development is United Nations initiative called United Nations Global Compact (UNGC). This initiative is a principle-based framework for business born to encourage corporations to adopt sustainable and socially responsible policies (Rath, 2016). The framework is founded on ten principles covering 4 different areas: human rights, labor, environment and anti-corruption.

UNGC 10 Principles Areas of action

1. Businesses should support and respect the protection of

internationally proclaimed human rights Human Rights

2. Make sure that they are not complicit in human rights abuses 3. Businesses should uphold the freedom of association

and the effective recognition of the right to collective bargaining

Labour 4. The elimination of all forms of forced and compulsory labour

5. The effective abolition of child labour

6. The elimination of discrimination in respect of employment and occupation

7. Businesses should support a precautionary approach to environmental challenges

8. Undertake initiatives to promote greater environmental responsibility Environment 9. Encourage the development and diffusion of

10. Businesses should work against corruption in all its forms, including extortion and bribery

Anticorruption Figure 18. UNGC principles. Source: personal elaboration.

Global Reporting Initiatives

Global Reporting Initiatives (GRI) established in 1997, is an independent international organization that now represents the leader in sustainability reporting. GRI Sustainability Reporting Standards are developed with true multi-stakeholder contributions and rooted in the public interest (Global Reporting Initiatives website, 2018). The latest version of GRI guidelines issued in 2013, is called G4 and, according to Aktas, Kayalidere, & Kargin (2013), represents the widely applied guideline for sustainability reporting.

GRI is actually working on four areas:

• Creation of standards and guidance to advance sustainable development • Harmonization of the sustainability landscape

• Leading efficient and effective sustainability reporting

• Driving effectively the use of sustainability information to improve performance

Organization for Economic Cooperation and Development

Organization for Economic Cooperation and Development (OECD) is an organization that have the aims of helping government to foster prosperity and fighting poverty through economic growth and financial stability. It provides guidelines useful to ensure the application of requirements useful to environmental and social developments (OECD website, 2018). Today it counts on 35 members distributed all over the world, and it works in contact also with the countries analysed in this thesis. In 2010 OECD issued new guidelines for multinational enterprises in matter of CSR. The recommendations are made by the adhering governments and, although not binding, they imply the commitments to promote their observance. The themes in which the 2010 guidelines are founded are focused on three areas: supply chain, human rights and climate change. The respect of this guidelines ensures responsible business conduct.

ISO 26000

Introduced in 2010, ISO means International Organization for Standardization, and it is an independent, non-governmental international organization with a membership of 162 national standards bodies. ISO 26000 “provides guidance on how businesses and organizations can operate in a socially responsible way” (ISO 26000 website, 2018). The function of this

instrument is hence to be a guidance rather than requirements. It helps business organization to translate social and environmental principles into actions and shared best practices related to CSR.

Principles of the King Report on Governance for South Africa 2009 (King III)

After march 2010, listed company on Johannesburg Stock Exchange were required to have integrated reporting following the introduction of the Principles of the King Report on Governance for South Africa 2009 (King III). In order to create a guidance useful to create integrated reporting, on 25 January 2011, Integrated Reporting Council issued the world’s first Discussion Paper on a framework for integrated reporting report. Released by the IIRC in December 2013, in March 2014 IRC endorsed the International IR Framework (Integrated Reporting Committee of South Africa website, 2018).

South Africa hence represents the pioneer country in mandatory integrated reporting and in the adoption of CSR actions.