What Are The Advantages And Disadvantages Of Stoid Reporting?
1116 Words5 Pages
II. The crucial determination of GRI** is to encourage environmental, economic, and social sustainability, and arrange standardized approach for all organizations with a complete sustainability reporting guidelines. These guidelines deliver advantages to companies to issue reports with content of valuable information on imperative sustainability issues to track reporting through comparable approach and identify areas for improvement.
Among the advantages of extensive GRI reporting norms are increased transparency to build trust with stakeholders, stimulation of markets to operate more resourcefully and adjust to the needs of the economy and leverage development of organizations for sustainability and profitability. Companies can…show more content… However "report or explain" approach (GRI 2011) shall make the things easier for reporting especially for multinational such as BP and Statoil. For some companies collecting the data can be expensive process and although information technology is growing and spreading fast the best of it may not be available to all organizations. In this regard BP and Statoil are well positioned with access to advance technology and this is not the case for such enormous organizations. Another disadvantage is Sustainability reporting can be beyond access on funding, for example supply chain assessments can be burdensome to conduct, as frequently with thousands of suppliers it requires to have the advanced ERP* system, which may cost millions to set up (Parr and Shanks 2000). Again BP and Statoil have all required resources to afford the latest and best technology for the reasons beyond but including the needs to meet sustainability essentials. Some companies also consider that disclosing information can cost them if competitors are not aligned with GRI guidelines and can benefit from standardized approach if not used by contenders. This may be applicable to small organizations but for large players on the market disclosure of sustainability performance shall bring positive results delivering more benefits to stakeholders by being conscious on creating value for the