Economic Analysis of Widespread Adoption of CSR and Sustainability Reporting Standards

Abstract

This report provides an economic analysis for a widespread adoption of corporate social responsibility (or sustainability) disclosure and reporting standards in the United States. It is based on an extensive review of the academic literature in accounting, economics, finance, and management. We discuss possible economic consequences, including capital-market effects, real effects in firm behavior, and implementation issues related to the adoption of CSR standards. The report focuses on the economic effects of standards for disclosure and reporting, not on the economic effects of CSR activities and policies themselves. Our analysis yields a number of insights that are relevant to the current debate on CSR and sustainability reporting standards.