Accountants are sounding an alarm bell by chiming in on the debate about corporate social responsibility -- up till now a clarion call by stakeholders, demanding transparency on corporate performance in managing the social, economic, and environmental impacts of their activities. The accounting industry calls for new regulations requiring companies to publish information about their environmental and social impacts.

Already, accountants are pro-actively helping business with capitalizing on opportunities. Witness the considerable momentum to adopt clean technologies, product innovation, and alternative fuels. But there’s a new call for a preventative strategy that goes beyond capitalization towards reducing risks, applying governance and regulatory requirements.

This equally important opportunity that is now experiencing strong support from the International Accounting Standards Board (IASB), which has oversight for accounting standards. But not, we’re told at a globally accepted level on the sustainability front. Because there is no definitive standard up till now, there is a lack of consistency in content, scope, and methodology.

New accounting standards and rules could force businesses to disclose environmental impacts. Meaning, business will have to publish details of their environmental and social impacts alongside their financial accounts. As an example, financial reporting would include ecosystem pricing, carbon emissions and performance data on the balance sheet.

All the pressure growing for regulation in the wake of the BP Oil Spill shows that too many companies are adopting a fingers crossed approach to their corporate social responsibility. If accountants get their way, with new financial disclosure rules in place, the very low cap on BP's legal liability in the US for the Gulf of Mexico oil spill will soon become outlawed.

With enforced accounting standards, businesses would increasingly have to take heed of the threats because they understood them better, and because of likely regulation. Possible impacts on an organization's approach to new standards for financial reporting are the inclusion of social, environmental, and reputation/ethical issues, fulfilling emerging social responsibilities with a third bottom line, that is regulated, putting an end to voluntary disclosure.

It’s a good indication when accountants take a leadership role. In shaping the corporate social responsibility debate, it’s clear that accountants add value to the highly complex and multi- faceted aspects of the sustainability question. This is one solution that will assist in providing comparable information to decision makers (management accounting) and should contribute to the reporting efforts of the organization (sustainability reporting).

It's about time. By NOT managing risks many companies are exposing shareholders to substantial losses through their neglect or ignorance of environmental impacts.

BP has broken faith on self-regulation. We need tougher enforcement of CSR to uphold Global Compact principles. This voice of reason in the emotional fallout from the BP oil spill from David Scheffer of the Financial Times, as he speaks to a need to rethink self-regulation. Scheffer, places the onus on compliance and governance while denigrating PR departments, saying, “Manipulation of objectives by PR departments has to stop.”

Having come under intense scrutiny from customers, stakeholders, investors and media – all parties are influencing and shaping the debate. Now is the urgent need for the voice of CSR regulation to get involved in shaping the debate by "Create[ing] professionally staffed divisions to uphold Global Compact principles and core duties set forth in more enlightened codes of conduct", says Scheffer.

This is good news for CSR and sustainability practitioners who are pivotal in helping organizations proactively navigate the codes of conduct, regulatory and compliance principles of CSR and sustainability reporting.

There’s already an indication of increased confidence in sustainability reporting. According to CorporateRegister.com, an impressive two-thirds of global Fortune 250 firms reported on their sustainability performance, and organizations of all types — not just corporations — producing nearly 2,300 sustainability reports, almost tripling the number in just six years.

Which brings us back to BP. We create from what we know. The indictment of BP’s shocking neglect towards its sustainability duty, necessitates we do better a job of making sustainability reporting subject to public and regulatory oversight.

What separates PR from CSR and sustainability professionals is the knowledge that responsible conduct goes beyond reputation management and business continuity messaging. BP has provided another justification for the existence of frameworks, codes of conduct and ISO standards for CSR and sustainability reporting. These measures provide indispensible integrity; setting standards and an ethical framework that businesses use to benchmark performance in their reporting on CSR and Sustainability.

By undermining the confidence of the public, regulators and investors, the BP oil spill may become the catalyst for change. When the mess is cleaned up, the mea culpa ended, are we looking at a greater investment by C Level management into enforcing CSR? This is a boost to credibility. CSR and sustainability professionals may well reap the benefits.

Frances Roberts is author of IABC/Toronto Green Guide for Communicators. The green guide provides the right tools to help get the job of greening communications, sustainability and CSR reporting done to the professional standards of excellence benchmarked by International Association of Business Communicators (IABC).

Download a free copy.

The International Association of Business Communicators (IABC) World Conference featured a line-up of the best communicators and thought leaders in Social Responsibility (SR) from around the world.

Topping the bill was Bob Willard, author and notable speaker on sustainability, who is committed to pushing the green and sustainability agenda by making the business case to corporations. Bob has single-handedly built the business case for sustainability, publishing books and online guide for communicators to use to increase "the ripple effect."

Also on the podium, Lynn Patterson, Director, Corporate Responsibility Strategy and Communications at RBC who’s an in-demand speaker because she provides perspectives and tactics straight from the SR trenches.  Her successful modular, multi stakeholder communications planning earns Lynn the reputation as one of the best champions on SR in Canada, if not, the world.  We were fortunate to have Lynn share her “hands-on” experience with us. 

How to be a green communications champion

Like Lynn, Bob also guides executives and managers in how to be a sustainability champion in an organization.  He made it clear that communicators have an essential role in guiding and pushing the SR agenda in business.  

His message hit home where it really mattered.  Speaking to IABC members, those of us who guide and counsel leading corporations, government and non-profits in furthering social responsibility goals and benefits in business communications.  Many communicators, like myself can often find that we are unwittingly put into the role as synthesizes and interpreters of the corporate culture and zeitgeist. 

Bob’s groundbreaking work is particularly useful for SR communicators. For many reasons, we become cross-functional holders of the holistic perspective on SR. He’s the expert guide as we build consensus towards an SR strategy, getting buy-in, moving across the business and up to C Level.  He’s a good man to have onside.

Bob even walks his talk, owning not one but two hybrid cars and preferring to present his talks using video conferencing to air travel.

You can check out his roster of publications on his sustainability web site.

Communicating your message in a sustainable way has never been easier. IABC/Toronto has just released their Green Guide for Communicators.  Written by Frances Roberts, SR Consultant and Writer with Push Communications, this FREE downloadable PDF is an impressive and comprehensive new resource for those looking for advice about how to 'go green'.

Within its 32 pages, you will find green communication strategies, a complete directory listing of environmentally friendly resources, and a how-to guide for greening your marketing communication materials, as well as green trends, PR and social media resources. For more information about greening your communications, visit Push Communications.