Global reporting initiative: En analyse af Cheminovas bæredygtighedsrapport

Susanne Mika

Student thesis: Master thesis

Abstract

This paper analyses the possibilities for Cheminova to improve the company’s corporate social responsibility (CSR) report for 2008, when using Global Reporting Initiative GRI. Part one of this paper describes GRI and the advantages and disadvantages when using GRI. In addition to this it describes Cheminova’s CSR report for 2008 and it analyses the opportunities and the chal-lenges of the report. This leads to a conclusion on which topics Cheminova can strengthen ac-cording to GRI. These topics are discussed in part two of this paper. It will be described why these topics are important, which challenges are linked to them and how Cheminova can report on these topics. To give examples on how to report on these topics it will be analyzed if Chemi-nova can be inspired by another chemical company DSM. DSM is chosen, because the company reports according to the highest level of GRI. When writing this paper Cheminova published the companies CSR report fra 2009. For that reason this report is included in the analyses of part two. The first part concludes that a CSR report and the use of GRI can strengthen the company’s legi-timacy. This can help the company to access resources like employees and capital. GRI is the most acknowledged reporting standard and it is possible to combine the standard with other initi-atives for instance the ACCA series. The challenges when reporting on CSR includes that there can be a difference between the reported topics and the demand from stakeholders. The use of GRI can lead to that the company reports on too many topics. Stakeholder involvement should minimize that criticism, but stakeholder involvement can be difficult as well. This is further dis-cussed in part two. Other challenges include that GRI is not as detailed as other standards and that there are differences in culture and technology in the companies’ location. This can make it difficult to compare companies. The last challenge when using GRI is that there is no sector sup-plement for the chemistry sector, but companies can be inspired by the guidelines of The Euro-pean Chemical Industrys Association. Cheminovas CSR report for 2008 has three main challenges. First of all to respond to the possi-bility of wasting recourses it is important for Cheminova to include significant stakeholders and to report on this involvement. Secondly it is important to report on all bottom lines. Cheminovas CSR report for 2008 has less focus on the economic bottom line compared to the social and environmental bottom lines. Finally the CSR report can increase the legitimacy of the company, but to do so, the CSR strategy has to be a part of the companies’ decision making process. Stakeholder involvement is important because it can ensure that the company reports on all the important topics. This leads to a complete and credible report. To indentify significant stake-holders Cheminova can get inspiration from the AA1000 Stakeholder Engagement Standard. There are challenges related to stakeholder involvement. These include that stakeholders do not have the possibility or desire to be involved and that there can be contradictory interests. Cheminova can strengthen the company’s CSR report for 2008 if the company elaborates the description of stakeholder involvement. To do this Cheminova can be inspired by the description of how DSM includes stakeholders and how they analyze the material stakeholders. Cheminovas 2009 report clarifies the description of stakeholder involvement, but this paper concludes that the description still can be strengthened. The company’s economic achievement is the fundament of a company and results are recorded in the annual report. The economic bottom line is expanded to include the company’s influence of the local, regional and global economy. In relation to the economic bottom line the paper concludes that Cheminovas CSR report for 2008 can get inspiration from DSM according to EC6, EC7 and EC8. In 2009 Cheminova has increased the focus of the economic bottom line and the company reports on tree indicators com-pared to only one in 2008. Unfortunately the company only refers to extern documents and two of the indicators are described insufficiently. Therefore it is still possible to strengthen the eco-nomic bottom line. Cheminova can strengthen the CSR report if the reader of the report is convinced that the com-pany’s decision making process is based on the CSR strategy. This increases the credibility of the report. The challenge is that it can be difficult to change the decision making process and therefore it is important for the management to have a strategy to implement the change. Studies show that a master approach is more likely to succeed that a top down approach. For a more practical approach for change the company can use Peter Haisler and Anders Holbech model, where change is based on policies, organizational change, reporting and training of employees. Cheminovas report for 2008 can get inspiration from DSM according to organizational change and training of employees. The 2009 report elaborates the organizational changes, but this paper concludes that Cheminova still can strengthen the report on organizational change. For training of employees the 2009 report is assessed to be thorough. All things considered the paper concludes that Cheminova can strengthen their CSR rapport by increasing the focus on stakeholder involvement, the economic bottom line and incorporating the CSR strategy. The paper also concludes that Cheminova profitably can get inspiration from DSM’s CSR rapport.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2010
Number of pages93