By measuring activities related to Corporate Social Responsibility I think companies can do just that, validate reputations. As companies try to prove that they are reputable, sustainability measures may be the answer. The Global Reporting Index has several measures, which could be used to measure corporate impact and performance in other ways than just financial reporting. The following measures may help to determine corporate reputations:
- Coverage of the organization’s defined benefit plan obligations
- Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement
- Actions taken in response to incidents of corruption
- Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship
These examples demonstrate a measurable impact of corporate activities beyond the typically reported financial measures.
An example of a corporation that seriously reflects on these types of measures is United Parcel Service, UPS. Not only do they report on these measures, UPS chooses to have its sustainability numbers validated through a third party. This validation is also known as assurance. Typically, a third party auditor who is skilled at evaluating and validating the reporting and methodology behind the reporting does this. While this adds costs and time to the process, many organizations believe that it is critical to validate numbers when reputations are at stake. Take a look at UPS’s sustainability report to better see how this is done, http://www.responsibility.ups.com/Sustainability.
Organizations like The Global Reporting Index identify reports that have been assured through their plus sign after the reporting category. For example an A+ rating means that the ratings have been assured by GRI and meet their standards.
To many reviewing organizations, this assurance level demonstrates authenticity and enhances reputations. This transparency demonstrates a commitment by the reporting organization that they want to be transparent with these measures and are doing everything they can as an organization to verify and validate these claims. Often readers believe the data is more trust worthy if it is assured. In conclusion one can see that through sustainability reporting and assurances, companies are able to demonstrate that they are good as they say they are in essence validating their reputation.
