CSR Guidelines for the Financial Sector - page 68

55
Neither
25%
We prepare internal
documentation
We report on our CSR
investments publicly
50%
25%
While there is no universally accepted definition of CSR reporting, the term broadly describes an organization’s
reporting on its economic, environmental and social impact.
There aremany guidelines uponwhich organizations can prepare their report. However, themost internationally
recognised guideline that is of great value is that of theGlobal Reporting Initaitive (“GRI”). GRI defines it as “… the
practice of measuring, disclosing and being accountable to internal and external stakeholders for organizational
performance towards the goal of sustainable development.”
Benefits of CSRReporting
While the benefits of CSR reports to an organization are numerous, some of the key advantages include:
• Creation of aRoadmap
When an organization commits toCSR reporting it has to evaluate its current CSR status and develop a clear
roadmapwith action plans to improve alignedwith the organization’s vision and objectives.
• Establishment of a Basis for Comparison
The organization’s CSR report serves as a basis for comparison, not simply to evaluate year-on-year progress, but
also to compare performance against other organizations and global best practices.
• Improved Stakeholder Relationships
CSR reports respond to growing stakeholder interest and concern in an organization’s environmental, social and
economic impact, thereby improving relationships by demonstrating commitment to long-term growth, transparency
and accountability.
• ImprovedRiskMitigation
All too often organizations focus on short-term gains and as a result consider only short-term risks; becauseCSR
reports focus on the organization’s long-term success, the reporting process helps identify long-term risks which
places the organization in a stronger position to take actions that mitigate those risks.
• Improved Image of theOrganization
Internal and external stakeholder perceptions of the impact an organization has on the environment and society are
becoming increasingly important as they reflect the image of the organization; these perceptions can be improved
through transparent and accurateCSR reports which can lead to increased loyalty and commitment.
In considering the status of CSR reports in the financial sector in theMENA region, we have asked financial
institutions if they prepare any form of internal or external reports on their CSR activities, the responsewas:
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