Comparison of Regulatory CSR reporting and GRI based/UN Global compact based

sustainability Reporting

A. Regulatory CSR Reporting

1. It incorporates the relationship of firms with all the stakeholders such as its internal
employees, customers from the market, and government for the environmental concerns
2. Investment in human capital, environment, and all other stakeholder’s relationships
equally important as the expectation to abide by the law for a company

B. GRI based Reporting

1. It is one of the most widely reported standards which is used extensively by companies
for reporting of their initiatives in sustainability.
2. GRI standards create common language for organisations of all size to report on its
sustainability impacts in credible way
3. A framework that is recognized internationally and benchmarks the companies
4. It has mostly 3 levels of reporting: Most comprehensive version: A, then B and in last C
which is the least
5. The value creation and the damages incurred are clearly stated, such as in the cement
industry value created would be in terms of total cement sold in tonnes and the damage
will be in terms of Co2/ tonne
6. Indicators of society such as poverty elimination and human resources investment done
via charitable events are also clearly stated.

Drawbacks of GRI
1. Companies use sustainability reporting a way to have a good public image by merely
following the GRI guidelines of report rather than have a serious effort at actually
improving and measuring the performance
2. In the name of achieving sustainability targets, companies often shift their focus from the
quality targets of products.
3. GRI allows companies to implement a framework incrementally giving them options to
omit the indicators altogether. This is done in order to attract companies who do not
want to disclose all their activities.

C. UN Global Compact based Reporting

1. It comprises a network of companies that have acceded to abide by 10 principles
covering labor standards, human rights, anti-corruption issues, and environmental
concerns
2. The CSR progress of various companies are publicized and promoted by it
3. But on the contrary part, there are no measures to hold companies accountable who
haven’t contributed to taking these CSR initiatives.