The introduction of non-financial and integrated reporting in the corporate social responsibility strategy

Abstract

Issues of globalization, climate change, over-consumption of scarce resources lead to serious transformation of economic models. So for organizations is becoming increasingly important to understand which factors will influence their effective functioning and success in the short, medium and long term, given with the rational interaction with stakeholders. Corporate social responsibility (CSR) is the instrument to solution this problem. This is the process in which the company operates and develops not only for profit, but also demonstrates its commitment to the relationship with the stakeholders for the common good and in line with the business process and strategy. This process would effective if the environmental and social factors will be integrated in the business' reporting and management. This reporting reflects the fundamental link between strategic direction, financial performance and business' sustainability. Information transparency enterprise reflects both the overall business environment, and the level of corporate governance. Structural changes in the domestic economy, the rising expectations of the various stakeholders, as well as access to IPO companies are contribute to the growth of quality management processes, to increase transparency of enterprises, to development of procedures and tools that provide these processes. Among these instruments, which are increasingly used in corporate practice, acts non-financial reporting. Sustainability's reporting is beyond the financial factors and allows interested parties to make a more informed assessment about the company's ability to create and maintain their value, as well as common values. This process is not one-off act of preparation. In addition, this practice allows management to identify and evaluate changes in both the inner and the external environment and to respond to them. After the study of the practice of Ukrainian companies on this issue we have determined that for the disclosure of the potential, and for the introduction and spread of non-financial reporting required theoretical frameworks. These theoretical frameworks should be focused on the national characteristics of the business processes according to international standards and recommendations.