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In 2007 Booz Allen Hamilton set out to help small nonprofits in the Washington, D.C. area gain access to expert advice and guidance on management and fundraising that was otherwise unattainable for them due to cost. In the four years since, the Booz Allen Hamilton Nonprofit Development Conference Series has grown exponentially and now successfully serves more than 400 unique nonprofit organizations with top tier guest speakers from around the metropolitan area who provide the sorely needed advice and guidance.
2010 Conference: Beyond Reporting
This breakout session focused, as the title suggests, on the corporate social report which has become a routine task of the CSR departments. Companies recognize these reports as an essential management tool to communicate and track key performance indicators. Analysts use these reports to evaluate how the environmental, social and governance dimensions are affecting the financial health of the company.
So what? That is the question put to the two panelists, Elaine Salewske, Senior Manager, Corporate Communications, Baxter International Inc and Eric Fernald, Head of Research, Risk Metrics Group.
In order to ensure a comprehensive approach, it’s important to consider two perspectives of reporting: that of the writer as well as that of the reader. Baxter is a long-term reporter and believes in the need to prioritize content rather than the production of the report. In deciding what to include into a report, Baxter uses GRI standards as well as requests for information from the numerous stakeholders. On the other hand, Risk Metrics Group looks at many sustainability reports – as many as 500 annually – and rates companies based on a multitude of metrics relevant to socially-responsible investors and other stakeholders. RMG provided a perspective on how that content is weighed and analyzed externally.
The conversation focused on the following main ideas:
- Materiality is a key consideration for a corporate sustainability report. Given that it will never be possible to satisfy all demands for information, the company focuses on the areas that matter most for its business.
- By creating a repository of all types of sustainability-related information, the reporting processes help a company establish performance goals and mobilize necessary resources to achieve them in due time. Reporting has a ‘plant the flag in the ground’ effect on the entire company.
- Socially responsible investors are primarily interested in a company’s key performance indicators (KPI) – or the areas where the company has the greatest impact. CSR reports need to incorporate these metrics to achieve materiality and relevance.
- Meaningful reporting that drives sustainability performance and achievement in a company is resources intensive because it considers a wide spectrum of values and issues and spans across regions and countries.
