The Sound Green

Corporate Responsibility:  Communicating Environmental Values, Vision, and Performance through Annual Reporting

The concept of sustainable development has continued to shape public opinion as well as to motivate corporations to adopt practices benefitting, or causing less harm to, the environment and society. The importance of sustainability performance disclosure through reporting has been noted by many, "If a firm’s performance in these areas is improved from the past conditions, or if it is better than that of its competitors, then publicizing the fact has the potential to differentiate the firm’s products, to put pressure on its competitors to do likewise at an additional cost of doing business, and to increase positive reactions from stakeholders including employees and investors as well as customers” (Morhardt, 2002). It is obvious that annual corporate sustainability reports are necessary of all public companies. However, many companies fail to publish these voluntary environmental reports, while others have taken honorable strides toward communicating their achievements. Looking at these reporting differences has revealed communication techniques for the most effective reports, and the effects of reporting on the public.