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Gains Momentum?
Hi John, given that it's been pretty stagnant for nearly 25 years I guess any movement could be seen as momentum.
So yet another acronym "CRD" unfortunate they couldn't have come up with one that doesn't immediately makes you think of Criminal Records.
All in all though what's the point? Scientific views and the environmental industry change the goal posts so often what chance (or will) is there to come up with standards that everyone can sign up to and integrating this with the CSR stuff merely makes it all so much more complicated and prone to stagnation.
It's now merely tinkering or just fashion following, with only a tiny number of businesses like Coke & M&S actually "living" it.
If anyone's interested here's the last piece along similar lines nearly 4 years ago, and my observations.
Profit; Cash and Liquidity Strategy yes: The rest - Why?
Quite what companies should be expected to report on "social" and "environmental" issues is unclear; they are after all charged with a duty to operate within the law on such matters. As for "strategic" analysis, the most common practical examples of this for SMEs in practice arise when banks ask for profit and cash flow forecasts. Perhaps brief headline results of such forecasts should also be included by way of a statement attached to accounts. With the arrival of sites such as figurewizard.com that would not be difficult to do or costly and would not only be beneficial to creditors and investors but very likely to the principals of the business and their advisors too.
redboam
Hi - The whole thrust of integrated reporting has been towards the largest companies, so there is no question that this should also apply to SMEs. The hope was that this would have a trickle down effect and that SMEs would follow in an unregulated way, ie by pressure from their larger suppliers & customers, but, in my view, this is not going to happen, SMEs (and their advisors) don't get it.
Having said that I would be the first to applaud any company which takes the whole CSR/Environmetal impact issue seriously and which does something about it. My complaint has always been that putting the emphasis on reporting is coming at it from the wrong end, the emphasis should be on enabling companies to understand what they could be doing to recognise the issues and do something about them, and then to report. In reality, what tends to happen is that those companies that do see the benefits of becoming more aware of their impact and responsibilities and doing something "report" via their marketing.
Finally, on the legal front, it's worth reminding people, including clients, that directors have a legal duty, under the Companies Act to have regard for the impact of their company's operations on the community and environment. Not much but maybe the Companies Act 2106 will take it further.
PS: As to "Why" any organisation that looks further than the spreadsheet of it's bookkeeping and cashflow will soon realise that making itself more environmentally efficient and in recognising the importance of people other than shareholders will soon see profits rise. This has been the case for all the major companies who have got onboard.