Non-Financial Reporting, CSR Frameworks and Groups of Undertakings – Application and Consequences

29 Pages Posted: 3 May 2016 Last revised: 19 Sep 2016

See all articles by Dániel Gergely Szabó

Dániel Gergely Szabó

Independent

Karsten Engsig Sørensen

Aarhus University – Aarhus BSS, Department of Law

Date Written: September 19, 2016

Abstract

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

Szabó, Dániel Gergely and Sørensen, Karsten Engsig, Non-Financial Reporting, CSR Frameworks and Groups of Undertakings – Application and Consequences (September 19, 2016). Nordic & European Company Law Working Paper No. 16-01, Available at SSRN: https://ssrn.com/abstract=2774170 or http://dx.doi.org/10.2139/ssrn.2774170

Dániel Gergely Szabó

Independent ( email )

Karsten Engsig Sørensen (Contact Author)

Aarhus University – Aarhus BSS, Department of Law ( email )

Bartholins Allé 16, Building 1410, Room 246
DK-8000 Aarhus C
Denmark

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