Importance and Perception Towards Sustainability Reporting – A Study Through Literature Overview

Abstract

In recent years there is a paradigm shift in the nature of corporate reporting as nowadays they are not confined only with the reporting of economic performance but also they will include the natural environment and society in their reporting. Apart from publishing the annual report of their so called financial performance which they publish regularly they will also include their environmental and social performance as an integral part to their main report. When the companies report this way the system of reporting is called Sustainability Reporting. Triple Bottom Line defines sustainability in terms of three separate perspectives economic, environmental and social scope of operations. Triple Bottom Line is one method of reporting on sustainable business activity. Disclosure (Reporting) is an important aspect of doing sustainable business and acts as a business card to the informed stakeholders. So to present a strong business case globally a strong business card is required as the companies are exposed to a critical mass and needs to come out from the economic dimensions to a broader perspective. The stakeholders are demanding the information on environment and social front also. The highlights of the paper will throw an insight into the development of the system of Sustainability reporting and some of their methodological approach and will throw a light on good and effective sustainability reporting.