Management Approach

Financial Report Sustainability Report

This section is similar to the MD&A in a financial report in which management discusses the approach to its business operations, namely:

  • its strategy
  • manner of doing business

The Management Approach is similar to that of financial annual reports. This section helps in several ways:

  • interprets the context in which the organization defines sustainability;
  • indicates the organization’s future objectives and targets; and
  • supplements the information in the Letter from Top Management.

What Happens in Practice?

Note how Intel, the world leader in silicon innovation and processor technologies based in the United States, provides considerable detail on its management approach under the section entitled: “Our Approach to Corporate Responsibility.”

In the first section on the right titled “An Integrated Strategic Approach,” management explains Intel’s values and commitments:

  • UN Millennium Development Goals;
  • UN Global Compact;
  • Intel’s Human Rights Principles; and
  • Its own strategy.

Click here to view.

Fast Facts

Which industries are mostly likely to report economic business opportunities associated with corporate responsibility?

Based on the world’s 100 top revenue-producing companies, the percentage of companies in the industry reporting economic business value from corporate responsibility ranges from 15 percent to 53 percent. The top five industries follow:

  • 53 percent of forestry, pulp and paper;
  • 50 percent of electronics and computers;
  • 44 percent of utilities;
  • 41 percent of oil and gas; and
  • 41 percent of chemicals and synthetics.

– Source: KPMG International Survey of Corporate Responsibility Reporting 2008

What Companies Say…about Management Approach

“We integrate the environmental and social policies into our strategy, bring them into our governance process, and really make sure that they receive a level of professionalism.”

“When we are doing our sustainability reports we look at anywhere from 10-100 reports [inside and outside the industry]. We look at other reports because it is a great source of learning…we want to learn how other companies are approaching sustainability issues. We are all learning this together.”

– Quotes from Reporting Companies

Takeaway

The management approach develops the context in which sustainability fits within the organization. From this section, the reader can get a sense of the importance that management places on sustainability within the organization.

(See the Credibility and Assurance modules for more detail.)