4 PRACTICAL ISSUES: WHEN SHOULD AN How can
non-financial
performance be
measured when
there are no
specific
standards?
Can this type
of approach
be stopped?
THE BUSINESS WORLD HAS CHANGED
Standards are being developed through a range of often voluntary initiatives.
For example:
- the guidelines of the GRI (IIRC member),
- SASB (Sustainability Accounting Standards Board) standards,
- ISO 26000.
Some companies have started sharing their internal model (e.g., http://
www.kering.com/en/sustainability/methodology).
→ Encourages financial and non-financial reporting standard setters to engage
in dialogue.
→ Gives companies leeway as they are not bound by regulatory requirements.
→ Enables companies to focus on more relevant industry issues.
THE BUSINESS WORLD HAS CHANGED
It is no longer a question of whether or not to begin, so companies may
as well get ahead of the game and go about it in a way that suits their
own commitments.
→ Is not compulsory.
→ Is designed to support the company s business model. Stopping it would
end the internal value creation (integrated thinking) dynamic, of which the
report itself is simply a reflection.
→ Enables companies to set tolerance thresholds and commitment levels
through corporate governance and risk management.