Corporate Social Responsibility

Last updated: 16 June 2026 21:56
Created: 23 March 2020 16:02
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This articlthis article touch the CSR reporting ...

Sustainability is not only linked to the overall debt recorded in the balance sheet under liabilities, but, as is already widely discussed internationally, the company will have to be assessed according to environmental sustainability with Corporate Social Responsibility (CSR) reporting, which has led to go beyond the mere "accounting principles" and accounting standards that are however still very important and necessary for the preparation of a company's economic and financial situation (Financial Statements) and disclosures.

In Europe, the EU Directive 95/2014 transposed by domestic Law among different members sates, it has implied that certain companies shall draw-up a non-financial sustainability statement, as disclosure so that giving a brief description of the company's business model, a description of the policies applied with regard to environmental and social impacts including due diligence procedures applied by supervisory bodies and above all, to provide transparent and non-subjective information on the risks related to these aspects of the company's activities also with reference to its products, commercial services, and relationships that may have negative repercussions, the fundamental indicators of a non-financial nature (but also financial if attributable to them) these obligations fall on companies that have more than 500 employees, to have exceeded at least one of the following size limits: assets exceeding 20 million Euros and/or revenues exceeding 40 million Euros.

Many European countries in the last few years have already given for sure that environmental sustainability starts from the economic-financial sustainability of a country.

The current trend coming up from the United Nations on the "greendeal", shall be more focused on highlighting the fundamental importance of environmental sustainability because financial sustainability is the "of which" of environmental sustainability.

In the light of the recent pantdemic COVID-19, should it be the right moment for Authorityes to provide a more compelling disclosure for companies who have interests/participation in the sectors of pharmaceutical and biotechnology ?

At the state of the art, the concept of sustainability is therefore still broad and general and not very well focused sector by sector even though the process of convergency coming from the "greendeal".

In fact it is undeniable true that financial sustainability of the debt or indebtnesses (although this concept can be seen in different ways from stakeholders due the level of indebteness taken out by a company and/or a group of companies) might have direct and/or indirect implications and impact on environmental sustainability in a more broad sense, hence the greater and clearer fundamental importance of Corporate Social Responsibility (CSR) reporting shall delivery a common standard to be adopted at global scale.

Currently, the Integrated Reporting Framework 1.0 of the International Integrated Reporting (IIRF) and the Sustainability Reporting Guidelines document of the Global Reporting Initiative (GRI) provide the two different approaches to Corporate Social Responsibility.

In short we can see that the standard setting that was suggested in the Integrated Reporting Framework 1.0 provides an illustration of a numerous of information on the relationship between the elements that make up the company and its ability to create value as it is the closest to retracing concepts and corporate finance techniques that are inherent in the concept of capital.

The International Integrated Reporting (IIRF) approach adopts different capital configurations that are periodically increased, reduced or transformed through entrepreneurial activity and the normal course of business. Well, according to this approach- (guideline), the company called to this fulfillment will have to consider in the reporting the following sub-configurations of the total capital-value, and then go to describe in detail the following points:
financial capital: which is composed of all the resources in the form of risk capital and debt capital that can be obtained through the method of reclassifying the balance sheet with the operating criterion; productive capital: which represents the total of fixed or long-term investments, that is, specified by type of capital equipment and multi-year utility (tangible fixed assets);

intangible capital: which is expressed by intangible assets (intangible assets) owned and developed by the company and fundamental for the creation of value;
human capital: which represents the set of skills and knowledge and experiences of the staff who collaborate with the company;
social capital: which represents the complex of relationships developed by the company with stakeholders (stakeholders);
natural capital: which represents the set of all processes, renewable and non-renewable resources that supply the goods used by the company.

In conclusion, the recent developments on issues of******** importance related to environmental sustainability and on the issues of Environmental Social Governance (ESG) that are discussed, a declaration of sustainability as set up may certainly not be sufficient anymore.
Since these issues are hot and important for the balance of the entire global financial system and for Insurance and Banks, also in light of the social emergencies deriving from suspected and dramatic biotechnological wars in progress, the impacts of which at the time of writing are not knowable and not even estimable, it could certainly be the right time to include other types of Indicators in the Company's Financial Reporting that are and will certainly be usable by the ecosystem of Companies and Authorities for risk monitoring, not only credit risks and financial, but also indicators capable of measuring social and environmental risks.

UNIGIRO - MONITORING ENTERPRISE CREDIT RISK