(First Group PLC, 2014).
Benefits and Issues of Application of Guidelines.
GRI aims to provide every company with a standardized set of performance indicators that will allow them to measure their CSR issues. (Reynolds and Yuthas, 2008). This will allow every company to follow the same guidelines and then comparing results with similar companies will be meaningful and easier to do. Companies that have so far used the GRI guidelines for sustainability have noticed more useful information being developed and processed to their stakeholders. (Willis, 2003). A benefit of the GRI guidelines are that they can be applied to every company therefore it will be possible in the future for a standardized set of guidelines to exist. (Sutantoputra, 2009). .
An issue with applying guidelines to reports of CSR is that social performances are difficult to measure in comparison with environmental performances, GRI have tried to simplify this by selecting a few useful measures. These areas include labour performances, human rights and issues affecting consumers, community and stakeholders. (GRI, 2002). This is useful that every company is measuring their social performance in the same areas because comparisons will be made easy and therefore when reporting to the stakeholders the information will be meaningful.
A social disclosures rating system is available for companies to use and to measure their social performance in accordance with the GRI 2002 Guidelines. (Sutantoputra, 2009). This is a great benefit for the stakeholders as it makes it easy to see how committed the company is towards CSR and reporting about it. It also allows them to compare the companies’ reports with their actual performance, allowing them to judge whether or not the company see CSR as a big issue. (Sutantoputra, 2009). Another benefit that arises from the social disclosure rating is that it is very noticeable to stakeholders if they have been lied to within the CSR reports and this can lead to trouble with the law.
