Impact of Corporate Social Responsibility (CSR) reporting on pro-ecological actions of tanneries

Abstract

Reasons for Corporate Social Responsibility (CSR) reporting by tanning enterprises must primarily be sought in the specific nature of the industry, where leather is a material from renewable sources, yet manufactured as part of processes that pose one of the gravest environmental hazards in the world. The tanning industry appears, therefore, as a sector compiling CSR reports expected to confirm its environment-friendly actions. It should be noted, however, CSR reporting is not obligatory and absence of a report does not necessarily mean an enterprise fails to undertake pro-ecological measures. This study attempts to define impact of CSR reporting on pro-ecological actions of large and small tanneries. The subject appears current and important as it has been little explored and hazards associated with tanning are significant –Top Ten Toxic Industries. Evaluation of CSR reporting by tanneries was the principal objective of this study. Establishing interrelations between CSR reporting and environment-friendly actions by tanneries in Poland and worldwide has been a specific goal. The research addressed large tanneries believed to be the most friendly to the environment, selected from a list prepared by Leather Working Group (LWG), and small family tanneries. The considerable variability of technological standards, product ranges and volumes of leather manufactured, legal regulations and degrees of their enforcement have forced certain simplifications of our methods. Evaluation of factors affecting pro-ecological activities was of importance. Pro-ecological actions of tanneries are not direct results of CSR reporting, but of legal regulations prevailing in a given country. In large enterprises, CSR has a substantial effect on pro-ecological actions in place. Small businesses tend not to prepare CSR reports, which does not mean they undertake no pro-ecological actions. Both large and small enterprises examined carry out socially responsible actions, though to varying levels and extents. Pro-ecological actions of tanneries are determined by business format, headcount, and time in business. In general, joint-stock companies employing more than 51 people and operated for more than 20 years, that is, large and medium-size tanneries, are the most active. Small businesses are less active, largely due to financial constraints. CSR reporting has no direct impact on pro-ecological actions of tanneries. The voluntary nature of the reporting is significant in this connection. In view of the environmental and social hazards associated with tanning, either obligatory CSR reporting of specific standards would need to be introduced or tanneries would need to be subject to a formalised system of environmental monitoring.