Lack of 3rd party verification in CSR reporting leads to doubtful consumers

An increasing number of companies issue annual CSR reports to promote their green credentials, satisfy consumer demand, and meet regulatory standards. In 2008, three thousand companies are expected to publish CSR reports - but only 750 will seek third-party verification, or assurance, on their report's credibility and completeness.

Concurrently, a growing number of consumers consider a company's environmental record before making a purchasing decision. According to a recent survey, 90% of American consumers feel that acting in an environmentally-responsible way is important, while 53% weigh a company’s environmental and social stewardship into purchasing decisions. Nearly half of survey respondents use the claims on a product’s packaging to assess a company’s environmental and social commitments – but product packaging is often a clever marketing ploy, rather than evidence of a company’s environmental stewardship

Many companies skip 3rd party assurance on CSR reports, creating consumer doubt. It is the responsibility of companies to provide consumers with real evidence of their environmental efforts. For the many consumers who look beyond packaging to evaluate a company’s claims, a lack of independent report verification bodes poorly for consumer confidence – and, it follows, the bottom line.

For the full articles from Environmental Leader, go here & here.