Main motivation for corporate social and environmental reporting Essay

Main motivation for corporate social and environmental reporting - Essay Example Those businesses that are responsible for their operations and other actions are at the heart of the community. The Organizations that understand their various links with society members they work with and their effects on the environment are likely to flourish in the end. Gilbert et al. (2011) noted that reporting on the environmental performance of the business benefits them in many ways such as motivating internal and external citizens to invest in the business. This essay is going to discuss the main motivation for corporate social and environmental reporting. The essay will begin by briefly explaining corporate social report, corporate image, corporate credibility, and the stakeholder theory that will enable us to understand the reasons why corporate social and environmental reporting is important. Delmas and Toffel (2011) defined corporate social responsibility (CSR) as a process whereby enterprises take initiative to evaluate and accept responsibilities for the business consequences on the surrounding environment and the results on the social welfare of the citizens in their locality. Corporate social reporting may incur short-term costs that may not provide financial profits to the business immediately but rather enhances a positive environmental and social change for the organization. Dilling (2009) observed that many large enterprises have devoted their money and real time to social welfare initiatives, environmental sustainability programs, and alternative energy sources in order to benefit and motivate more customers, employees and the society. Delmas and Montes-Sancho (2011) defined corporate image as the overall representation of a firm in the diverse minds of the public such as investors, customers and the employees. The mental picture comes up when the business name is mentioned because of certain activities they do in their Company. Deegan (2002) noted corporate