Why is a Corporate Responsibility Report Important?
Do you know what a Corporate Responsibility report is, and why it's important to a company and its employees and stakeholders? Read on to find out.
What does 'Corporate Responsibility' mean?
'Corporate Responsibility' acknowledges that a company's mission and existence has an impact on the world, and with it, an opportunity to create lasting value for all its stakeholders. This opportunity goes beyond the traditional understanding of sustainability as protecting our earth, and now manifests as intentional changes in how we work – such as integrating sustainable business practices into our operations – to be a positive influence in the world. At Baxter, we are committed to being a responsible corporate citizen and strive to make a meaningful difference for our people and in the communities where we live and work.
What is a Corporate Responsibility (CR) report?
A CR report is a company's opportunity to share how it works to create value for all stakeholders – not just benefit for the company, but total and long-lasting value for patients, customers, employees, communities, investors and more.
It's a transparent way to discuss what a company stands for and what actions it’s taking to advance those areas. This is all done by setting CR goals and reporting progress. At Baxter, we are focused on working to protect our planet through environmental stewardship, empowering our patients by helping tackle barriers to safe and quality care, and championing our people and communities by working to create a best place to work for employees and striving to make a meaningful difference in communities around the world.
Why is a CR report important?
It builds trust and accountability. In voicing a company’s values through setting CR priorities and goals, and providing detailed data and updates on the actions being taken to achieve them, a CR report helps earn stakeholder trust.
How has CR reporting evolved?
Transparent reporting on topics that matter to a company and its stakeholders is a key component of any CR strategy. At Baxter, we aim to thoughtfully broaden and enhance our reporting, while demonstrating the strong connection between our CR initiatives and business priorities. Our reporting includes the Global Reporting Initiative (GRI), aligning with Sustainability Accounting Standards Board (SASB) Medical Equipment & Supplies Sustainability Accounting Standard, and reporting against the framework established by the Task Force on Climate-related Financial Disclosures (TCFD), which was recently incorporated into the International Sustainability Standards Board (ISSB).
The global CR reporting landscape continues to evolve, with many countries introducing new reporting requirements. It is critical that companies adjust their CR strategy and approach in light of these changes to help address these requirements and aim to provide relevant information to stakeholders. Baxter conducts materiality assessments from time to time to inform our CR strategy, determine priority topics for our stakeholders and guide development of our CR goals.
A CR report is a company's opportunity to share how it works to create value for all stakeholders – not just benefit for the company, but total and long-lasting value for patients, customers, employees, communities, investors and more.
Who reads these reports? What information are they looking for?
A wide range of audiences look to CR reports for information, including customers and purchasing groups, current and prospective employees, environmental groups and the investor community.
Information in a report can influence customer buying decisions. Many potential customers ask companies to complete questionnaires on sustainability, which play a critical role in their evaluation of a company.
Additionally, showcasing efforts to foster a best place to work helps attract and retain top talent. Besides the positive contributions a corporate responsibility strategy has on the world, being “socially accountable” as a company has become an expectation amongst employees. Research shows that 71% of employees strongly expect their companies to have a societal impact and/or won’t consider working for companies that don’t.1
In recent years, the investor community has increasingly focused on environmental, social and governance criteria in evaluating companies for investment. At Baxter, our CR reports include valuable metrics for investors, such as patient safety and quality, healthcare access and affordability, ethics and compliance, supply chain sustainability and management, board composition and community impact.