21 june 2016

The dominant business model -until recently- has always been the enterprise’s necessity of generating products and profits for their shareholders without paying attention to other judgements, or doing it because the law established so. However, this model is now out-dated since the society is more and more demanding.

This way, a new business management model based on respect to people, ethical values, community and environment is imposed. Above all, this business model guarantees a future sustainability. This explains the importance of Corporate Social Responsibility (CSR), a new way of focusing business activity, which more enterprises accept, being aware of the importance of this in order to outlast.

A new business management model based on respect to people, ethical values, community and environment is imposed

In this regard, according to Cerem’s professional business group, it is necessary to make clear that this is not an ethical washing, since that could bounce back against the entity. The new model is characterised by a real raising awareness of new social necessities. Likewise, the company accepts and understands this is not only a “looking for economical benefit” issue, now the company must assume “an “ecosystem” integration of which they are a part”, as Cerem points out.

As a result of company’s commitment with its corporate social responsibility a new document is born. This document collects the new measures and, besides, it is useful to inform on this. This document takes shape in the so called sustainability reports.

As a result of company’s commitment with its corporate social responsibility a new document is born: sustainability reports

This reports are further more than public exposure of the enterprise’s sustainable action, “it is a way of measuring the effectiveness of sustainability challenges”, Cerem explains. Thus, in the sustainability report appears negative and positive impacts, information that improves strategy and the productive activity. Henceforth, this document constitutes a way of information about the consequences of entrepreneurial activity, but it is also a plan for the future.

G4 GRI:

When it comes to develop this reports -which represent the company’s commitment to corporate social responsibility- the most successful model is the one developed by Global Reporting Iniciative (GRI).

It is an independent international body, created by Ceres organization and United Nations Environment Programme. Its main aim is to motivate the creation of sustainability reports in every kind of organizations and governments. So that it focus its work in communicating the impact of their economic activity in the environment, human rights, corruption, among others.

Its main aim is to motivate the creation of sustainability reports in every kind of organizations and governments

For that, the so called “GRI framework” (which is formed by guides in order the enterprise to measure the effectiveness of their social responsability) contributes with Sector Supplements and technical protocols. Moreover, this production method links the validation by an independent third party, which increases the credibility.

The latest sustainability report modification carried out by this body was in 2013 with the creation of GRI G4. The changes are:

• More relevance in concept of materiality.
• There is no longer a distinction between core and additional indicators.
• Mandatory reporting about sector indicators is abolished.
• Only material indicators will be reported.
• The process the enterprise has follow in order to identify material aspects and their scope must be informed.

To disseminate these sustainabilty reports the use of visual, flashy and direct means are more frequent. They are focused on general public, not only the company and its stakeholder groups. All of this without losing quality information.

For further information check out Cerem web page.