Pub. 3 2021 Issue 3

M A Y / J U N E 2 0 2 1 22 nebraska cpas SUSTAINABILITY REPORTING GAINING TRACTION BY ROBERT BLOOM, PHD, AND MARK J. MYRING, PHD Sustainability reporting, or social accountability as it is sometimes called, is receiving increased attention. It has been defined as encouraging companies to go beyond their legal responsibilities to invest in and improve their human capital, physical environment, and relations with diverse stakeholders. 1 In this column, we look at the importance of social accountability in the minds of corporate leaders, review the research that investigates the performance of companies that embrace sustainability reporting, and discuss disclosure frameworks. Corporate Leaders In August 2019, Business Roundtable, an association of CEOs of leading U.S. companies, revised its Statement of the Purpose of a Corporation to assert that companies should serve not only their shareholders, but also deliver value to their customers, invest in employees, and deal fairly with suppliers as well as support the communities in which they operate. 2 The statement was signed by nearly 200 CEOs. On the list were the leaders of the four largest accounting firms: Carmine Di Sibio (EY), Bob Moritz (PwC), Punit Renjen (Deloitte), and Bill Thomas (KPMG). KPMG’s 2020 CEO outlook survey, 3 which included responses from 1,300 CEOs, with a follow-up survey of 315 CEOs, pointed to a greater emphasis on social accountability. For example, 79% of CEOs reported they have reevaluated their overall organizational goals as a result of the COVID-19 crisis. Further, 65% of CEOs surveyed observed that the public expects them to help fill the void on societal challenges. Microsoft is a leader in sustainability reporting. Its sustainability report documented significant expenditures: • $1.9 billion in donated or discounted products and services to help 243,000 nonprof its global ly bet ter serve their communities.