CREDIBILITY OF SOCIAL RESPONSIBILITY REPORTS IN THE CONTEXT OF INVESTOR RELATIONS

Abstract

The new role of a company in a global economy contributed to the incorporation of corporate social responsibility aspects in companies’ management systems. The mission and strategy of a successful company must have not only economic, but also social and environmental scope. While financial statements remain the primary source of information on financial performance and profits, corporate social responsibility reports show how responsibly a company is operating. In this manner, such reports have become an non-obligatory part of today’s business reporting, and investor relations’ mechanisms. Reports differ in their content and quality, so they are not equally useful for investors. To provide credibility, reports should be prepared in accordance with international standards and guidelines for sustainability reporting, and they should be verified by an external assurance provider.