Why Does Report to Stakeholders Matter

Stakeholders and not just shareholders are interested in the Corporate social responsibility activities of companies because of the impact it can make in areas of consumer attitude toward the business and even at the cost level as some environmental efforts can strain operating budgets. Therefore, from not just the accounting viewpoint, reporting social responsibility efforts is of major benefit to the business.Why reporting?
Marathon, a major petroleum company operating in diverse international markets, has developed a form of reporting which involves “using quantitative metrics and qualitative descriptions of policies, programs and practices to provide relevant and meaningful information about the company’s operations and non-financial performance” (marathon.com, 2008, p.1). Marathon operates in an environment where profitability is high, therefore society, at all levels and demographics, demand more responsible business behavior. Marathon devotes a considerable amount of time and labor investment to produce corporate social responsibility reporting documents, which shows that the external consumer strongly influences how businesses are guided at the social level. In this large industry, reporting the efforts of the company give citizens information about the positive efforts of these companies to remind them that they are not only in business to achieve high financial profit. Therefore, Marathon and many of its other petroleum competitors have put dedicated corporate social responsibility reporting on their regular reporting activities. Blended with routine financial reporting in traditional accounting format, Marathon recognizes that to keep a good image on its markets, it must include information about environmental, social and infrastructure improvements paid for by the industry.