Non-Financial Reporting, CSR Frameworks and Groups of Undertakings – Application and Consequences
29 Pages Posted: 3 May 2016 Last revised: 19 Sep 2016
Date Written: September 19, 2016
The recently adopted Directive on non-financial reporting (Directive 2014/95/EU) and several CSR frameworks are based on the assumption that groups of undertaking adopt, report and implement one group policy. This is a very important but also rather unique approach to groups. This paper first shows how the Directive as well as a few CSR frameworks intend to be implemented in groups and next it discusses potential barriers to do so. Even though company law does not always facilitate the adoption, communication and implementation of a group CSR policy, it may not in practice be a problem to do so. However, it is shown that doing so may have unforeseen consequences for the parent undertaking. To avoid these, it is recommended to make adjustments to the implementation of the group policy.
Keywords: CSR, Non-Financial Reporting in Groups
JEL Classification: K22
Suggested Citation: Suggested Citation