Contact: Melinda Loew
Deloitte
Media & Communications Manager
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‘Corporate enlightened self interest’ may not be enough to provide reliable Corporate Social Responsibility (CSR) practices and reporting, Deloitte CSR Director, David Newhouse said.

Responding to the Parliamentary Joint Committee on Corporations and Financial Services report on corporate responsibility, Mr Newhouse said while more regulation and red tape is not needed and CSR reports should not be mandatory for all, there is definitely a need for more guidance to resolve the quality and content debate.

"CSR in Australia and globally is still developing and there are a number of steps to be taken for CSR to become entrenched and reliable.

"The report is the first step on a journey for Australian business to improve CSR, and non-financial risk reporting generally. Ultimately, standardised industry based reporting guidelines will be needed.

"The committee is leaving it to the Australian Stock Exchange (ASX) to provide guidance, but what happens if the company is not listed and how will it be enforced?

"Investors and stakeholders have been left on their own to lobby corporations to manage and provide sustainable reports on corporate responsibility.

"The Committee recommendations do nothing to resolve the quality and content debate about CSR reports.

"Corporations will still be able to put whatever they want in their CSR report, if they chose to do one, making it very difficult for investors and the community to compare ‘apples with apples’.

"At present reports greatly vary from company to company because there is a myriad of standards for frameworks which leaves companies little guidance about how to obtain more value from their CSR activities.

"At this stage the best tip for corporates is ‘you know where the direction of reporting of risks is heading globally so take a common-sense approach like we do at Deloitte and get ahead of the pack’.

"Stakeholder and customer expectations are also very different from industry to industry as to what the CSR report needs to include. For instance standards for environmental matters in the heavy manufacturing or mining are very different to that required for retailers.

"Promoting sustainable reporting practices within the Commonwealth Government agencies and departments is a valid recommendation by the committee which may result in the establishment of guidance for the broader corporate community.

"Similarly, the establishment of the Australian Corporate Responsibility Network and research into the benefits of Corporate Responsibility and sustainable reporting recommendations are also welcomed," Mr Newhouse said.