Voluntary corporate social responsibility reporting and assurance practices among United Nations Global Compact member companies

Abstract

Objective: The research aimed to identify practices applied by European companies regarding corporate social responsibility reporting and their relationship with the membership of companies in the United Nations Global Compact (UNGC) international organization. Research Design & Methods: In total, the research sample consisted of 935 companies from 34 European countries. To evaluate the statistical significance of the relationship between the selected variables, we used quantitative methods, including the Pearson chi-square test. Findings: On a large research sample, our research confirmed the impact of membership in the UNGC on non-financial reporting practices, such as: preparing integrated reports, reporting on sustainable development goals (SDGs), using the Organisation for Economic Cooperation and Development (OECD) guidelines for multinational enterprises, International Organization for Standardization (ISO) 26000 corporate social responsibility guidelines, and decisions on external assurance of sustainability reporting. Implications & Recommendations: Conducted research has practical implications. Because the UNGC is an important factor in regard to social change towards corporate social responsibility (CSR) reporting practices, it requires further promotion in European Union (EU) member states. New company membership in UNGC can contribute to the development of CSR reporting. Contribution & Value Added: The article contributes to the literature on sustainability reporting because it provides new insights into the CSR reporting practices by public interest entities located in the EU countries.

Keywords

• non-financial reporting
• sustainability reporting
• corporate social responsibility
• assurance
• Global Reporting Initiative