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Funding a business
key performance indicators on CSR
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[QUOTE="Yakub02, post: 306322, member: 94426"] The review should also include: analysis using financial key performance indicators; and where appropriate, analysis using other key performance indicators, including information relating to environmental matters and employee matters. In the UK, for example, the government has issued guidance on key environmental performance indicators, including quantifiable performance measures relating to emissions into the air, emissions into the water, emissions into the earth and the use of non-renewable resources Since the business review is a part of the annual directors’ report, the external auditors are required to give an opinion on whether the information in the report is consistent with the financial statements. However, this requirement for a business review applies only in the EU, not internationally. Voluntary CSR reporting Because of the potential importance of CSR issues for their reputation and public image, many large companies voluntarily publish an annual CSR report. This is often called an Environmental Report, or a Social and Environmental Report. The intended users of social and environmental reports, or environmental, social and governance (ESG) reports, include other stakeholders in addition to shareholders. The IASB is happy for companies to present such information, but does not prescribe the content or the format of reports. As a result, the length and style of such reports differs significantly between companies, and the content can vary substantially for companies in different industries. Some companies include their report on social and environmental issues as part of their financial statements (normally in the directors’ report), whereas other companies publish a report as a separate document. Preparing the information as a separate document helps to distinguish between the readers; the annual report is designed for the shareholders, whereas the corporate social responsibility report is prepared for the other stakeholders in addition to the shareholders [/QUOTE]
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