A Survey of Corporate Social Responsibility Reporting Practices of Australian and U.S. Financial Services Firms

Abstract

Current concern over a variety of environmental and social issues such as global warming, treatment of labor around the world, and the depletion of natural resources has caused stakeholders of firms to renew their interest in corporate social responsibility (CSR) reporting. This study examines the extent of CSR reporting used by firms in the financial services sector listed in the US S&P 500 and the Australian ASX 200. The CSR reporting by 25 Australian and 79 US firms was compared to the supplemental environmental and social performance indicators for the financial services sector established by the Global Reporting Initiative (GRI). The results of the study indicate discrete reports produced by a firm provided the greatest amount of information on CSR issues relative to coverage provided in annual reports. Although firms in both countries were found to report their codes of conduct in their corporate governance documents, the level of disclosure of a large number of environmental and social performance indicators by the largest firms in the financial services sector fell well short of meeting the GRI guidelines.