CSR - Can we trust CSR claims or is it greenwash?

The AQA BUSS4 examiners will reward good use of research-based evidence and here is some data which I can see being used very effectively in an essay focused on aspects of CSR reporting.

This article in Business Green describes how a relatively small proportion of major firms that produce CSR reports have not had the data & statements in those reports verified independently.

We touched on the issue of social reporting during our CSR teacher briefing days and the BUSS4 student workshops. An increasing number of large (often quoted) firms now include an annual review of their CSR activities and performance (though many still do not!). These reports vary enormously in terms of their style and detail. Some focus exclusively on the positive achievements of CSR during the previous year; others take a more balanced view of the benefits and costs of CSR.

However, a key evaluation issue for students to use in their essays on this topic is whether the CSR claims made in those reports can be believed. What assurance is there that a claim for some CSR benefits (e.g. a reduction in carbon emissions) is accurate or true? Do shareholders and other stakeholders rely on the information provided? Surely that is not too reasonable an expectation?

Students should be aware that the financial statements those firms have to pass some stringent tests of accuracy and reasonableness. The financial statements are audited independently. However, there is no legal requirement for a CSR report or website section to be audited.

By contrast, assurance of sustainability reporting is a discipline in the early stages of development. As sustainability reporting matures, driven by government regulation, public demand and company values, the need for reliability in reported information becomes very important.

But currently, many firms seem to think that the costs of independent verification of CSR reports outweighs the potential benefits.