Trying to show they care
In a year when a raft of scandals has further lowered the public's estimation of the ethics of Corporate America, some companies are trying to show they care. How? In addition to annual or semiannual reports, they're putting out so-called corporate responsibility reports chronicling data that show they're sensitive to social or environmental concerns. In 2001, 45% of the 250 largest global companies published such reports, up from 35% three years ago, according to a triennial study by KPMG. Says Eric Israel, a partner at the firm, which tracks such reporting: "It's a trend that's here to stay."
That's the good news. The bad news is that no common standards govern the statistics or assertions in these reports, leading to what some fear is a mishmash of incomplete and possibly misleading information. "Quality is a mixed bag," says Arvind Ganesan, director of business and human rights at Human Rights Watch, an activist group.
...Beginning this year, French companies that want to be listed on their country's stock exchanges must provide information on their social and environmental performance. In 1999, just 4 of France's 100 largest outfits put out such reports. Last year, that number had risen to 21, and the new rules are expected to see almost every major company comply by yearend. In contrast, no such requirements or guidelines exist in the U.S., and only 36 of the 100 biggest U.S. companies provide corporate responsibility reports.