19 Jul 2011
Research by a London Business School academic has found that enforced corporate reporting increases the social responsibility of business leaders.
The School's Ioannis Ioannou, Assistant Professor of Strategic and International Management, together with George Serafeim of Harvard Business School, produced a report entitled The Consequences of Mandatory Corporate Sustainability Reporting after studying the effect of sustainability reporting on management practices in 58 countries.
Overall, it found that after mandatory reporting laws were introduced, the social responsibility among bosses increases, with sustainable development and staff training both becoming a higher priority.
The study authors also found that more ethical practices were adopted to fight bribery and corruption, particularly in countries where law enforcement is strong.
The Global Reporting Initiative's deputy chief executive Teresa Fogelberg has welcomed the report.