Credibility of CSR reports studied

A growing number of oil companies issue Corporate Social Responsibility (CSR) reports, which sometimes are called sustainability reports. These reports provide a company's stakeholders with nonfinancial information about corporate risk mitigation on social and environmental issues.

All types of industries file CSR reports, most of which are not independently verified. CSR reports worldwide disclose a wide range of information that varies widely between companies and also between countries. Naturally, this begs the question of whether any particular report can be believed.

Of oil and gas companies that publish CSR reports, 35% have their reports externally assured for accuracy, said a new study entitled Assure View. The study used CSR report archives from CorporateRegister.com Ltd., an online directory of CSR reports.

The study was sponsored by firms that conduct these external assurances. Study sponsors are SGS, KPMG, LRQA, and The Reassurance Network.

The study notes a relatively new approach is for a company to invite various individuals or organizations to form an independent advisory board or panel. Royal Dutch Shell PLC was among the 11 companies that issued panel reports last year.