Hi Marc,

Good question, and there has been research on this. For example, on the effects 
of the Global Reporting Initiative, seen as the most comprehensive corporate 
sustainability reporting effort to date. Much to praise about the GRI in one 
sense, it has amassed a huge number of followers and developed elaborate 
reporting guidelines in vast multistakeholder consultation processes. But 
what's become of all that disclosed information? Is any one using it and for 
what purpose? What it is intended to do, and what does it do? 

Important questions, some of which we addressed in looking at the effects of 
transparency and information disclosure more broadly in global environmental 
governance for a special issue of GEP (2010), including an article on the GRI 
by Klaus Dingwerth and Margot Eichinger. 

One can think of whether corporate sustainability reporting "achieves anything" 
in terms of environmental improvements, but also in terms of empowering 
recipients to hold disclosers to account for their (non)-performance. It seems 
that while some improved sustainability performance may directly flow from 
disclosure requirements (this is still up for grabs), the 
empowerment/accountability effects appear to be less apparent. 

Klaus and Margot show, for example, that if disclosed information is not 
comparable across companies, its value is reduced, because comparability is key 
if one wants to know who is doing more or better. 
Here's the link to the article, which takes quite a novel look at the topic of 
sustainability reporting:
http://www.mitpressjournals.org/toc/glep/10/3

Hope this helps, and good luck with your endeavours on the committee. See you 
on Facebook :-)

Regards
Aarti 
____________________
Dr. Aarti Gupta
Universitair Docent (Assistant Professor, tenured)
Environmental Policy Group (175)
Wageningen University
Hollandseweg 1
6706 KN Wageningen, Netherlands
 
Phone: +31-(0)317-482496 / 484452
Fax:     +31(0)317-483990
Mobile: +31-(0)628729382
Email:  [email protected]
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________________________________________
From: [email protected] [[email protected]] On Behalf Of Marc Levy 
[[email protected]]
Sent: Tuesday, April 05, 2011 11:31 PM
To: [email protected]
Subject: [gep-ed] Does Corporate Sustainability Reporting achieve anything

I've recently joined Columbia's socially responsible investment
committee (become a friend on facebook and help us crack the 38-friend
barrier!).  This is shareholder resolution season.  Many resolutions
seek mandated sustainability reporting.  Columbia in general has voted
in favor of these.  But I'm curious -- is there any evidence that such
reports make any difference?  Do they impel firms to reveal secrets
they would otherwise have been able to keep hidden?  Do they spur
innovation that otherwise would have remained dormant?  There must be
some research on this.

Thanks,

Marc

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