Has sustainability reporting improved the culture of organizations?
Perhaps slowly. Some have argued that the rhetoric of reporting is not matched by tangible outcomes.
However, gradual improvements in organizational culture and awareness appear to percolate up
through organizations that engage in environmental management systems and reporting. Reporting
encourages a more positive, proactive orientation among business, government and community
organization in general. Just as EIAs increased awareness of the negative impacts of development,
environmental reporting has expanded our appreciation of potential efficiencies. Businesses and
government agencies that undertake reporting for compliance and public relations reasons later
realize that reporting can help to improve their ‘bottom line’. Many firms have achieved significant
costs savings through eco-efficiencies and organizational improvements, which can also result in
greater worker productivity or health. There is now growing support from business and industry
for legislative action to enforce corporate reporting. This could ensure a more level planning field
among firms.
3
To move beyond compliance and public relations activity to proactive improvement,
however, reporting might need to encourage organizations to influence change across industries.
For example, reports might include a section on collaborative initiatives with community groups and
other industries: horizontally (same industries), vertically (the supply chain), and diagonally (other
industries and community).
Has reporting improved public sector accountability and performance?
Public reporting is less straightforward than corporate reporting, as government bodies are responsible
for more than eco-efficiencies.
4
Private firms can focus on doing what they do best, while government
agencies do not always know what they should be doing. Therefore they tend to report on general
trends. USIs are sometimes a compilation of broad principles or rubbery value statements that cannot
easily be tracked.
5
The problem with charting trends is that it is difficult to determine if changes
in the environment are actually due to government policies. There are myriad intervening factors,
unpredictable variables and exogenous forces acting in an open urban system. When environmental
reporting focuses on symptoms or downstream impacts in the environment, this tends to reflect
more on the resilience and adaptability of the environment (ie nature’s ability to cope) than on the
organization’s management performance.
6
Theoretically, measuring and monitoring changes in the
environment should help determine what actions to take. However, there is little evidence that ESD
reporting shapes public policy, increases human accountability or builds design capacity. When ESD
reporting was introduced, it generally meant more accounting activity, rather than direct actions to
enhance sustainability. In the public sector, then, management should be measured by ‘affirmative
actions’: steps the agencies have taken to
improve
environmental conditions. Direct actions and
their effects would be easier to assess than exogenous changes in the environment. By reporting on
positive and direct actions themselves, accountability would also be more transparent. Urban issues
also need to be reported in their regional context. ESD reporting has also been weak at linkages
between urban agencies and regions.
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Sustainability Reporting
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