The report seeks to analyze the Corporate Social Responsibility (CSR) reporting requirement in the Statutory Order No. 17 (BPEN) section 135 for financial institutions. The report will take an economic and legislative perspective, examining how Nordea Bank Denmark A/S (NBD) has to follow BPEN section 135, and if there is a business case. The report will finally discuss Nordea‟s CSR work according to the owners of Nordea. The report is divided into five main chapters. Chapter one defines the methods and theories to be used. Chapter two describes the group Nordea, where NBD is the start point for the report and viewpoint. Chapter three investigates the objective of the CSR reporting in BPEN section 135, and how NBD has to act in order to comply with BPEN section 135. The objectives for BPEN section 135 is, that Denmark will become famous for responsible growth, and that companies will achieve better business opportunities by working with CSR. NBD is found obligated to submit an annual report about CSR, but as a subsidiary their obligation is fulfilled by their parent company, and therefore the CSR report for Nordea is the statutory report for NBD in Denmark. It is found, that the reporting provision in section 135 does not define CSR and provides an open understanding of CSR. BPEN section 135 only states a reporting requirement for CSR, which is defined as hard law, and a company needs to fulfill this requirement by using soft law initiatives. Chapter four investigates, if Nordea‟s CSR work has an influence on ROE in Nordea and by that, if there is a business case for CSR. It is found, that CSR is not measurable and there is no business case, because it is not measurable in ROE. It is found, that there is a business case for other values for CSR, because it can contribute to Nordea‟s brand, reputation, legitimacy and risk minimization. It is found, that in order to achieve the business case in both manner, Nordea could prioritize their CSR work according to which area that contribute with most values according to financial performance, other values and their core business. Since CSR is not measurable in ROE, it is in chapter five discussed, if there is a conflict of interest between the shareholders and the managers in Nordea. It is therefore considered, if CSR in Nordea is in conflict with the interests of the shareholders. It is found, that the interest of the owners can focus on profit maximization and on investing in a responsible company. If CSR was measurable, it would be easier for Nordea to show, how CSR positive contributes to ROE. The report conclude, that the primary interest of the shareholders is profit maximization, and CSR is therefore not in the primary interest of the owners in Nordea.
|Uddannelser||Cand.merc.aud Regnskab og Revision, (Kandidatuddannelse) Afsluttende afhandling|