Beyond Sustainability Reporting: Integrated Reporting is Practiced, Required & More Would Be Better

33 Pages Posted: 19 Jun 2014

See all articles by Adam J. Sulkowski

Adam J. Sulkowski

Babson College

Sandra Waddock

Boston College - Carroll School of Management

Date Written: June 18, 2014


Ninety-five percent of the Global Fortune 250, along with thousands of other companies worldwide, voluntarily report on their environmental, societal, and economic impacts. The practice is variously known as sustainability reporting, corporate responsibility (CR) reporting, corporate social responsibility (CSR) reporting, citizenship reporting, environmental, societal, and governance (ESG) reporting, or triple bottom line (TBL) reporting. A growing number of countries now mandate or provide guidance related to this practice to some extent. For example, in the United States, the Dodd-Frank Wall Street Reform and Consumer Protection Act explicitly requires publicly traded companies to disclose data related to their supply chains of certain minerals.

Should greater disclosures be explicitly and specifically required? Should companies begin greater disclosures for their own benefit? Do the basic principles of existing laws already require a greater amount of disclosure in our current context? If so, what would be gained from greater and more explicit guidance from legislators or regulators such as the SEC? We seek to answer these questions.

This article summarizes the history, current state, and motivations and impacts of sustainability reporting and regulation-by-disclosure, along with data on the present needs of investors and recent market trends. It also reviews the definition of materiality under U.S. securities laws and regulations – the key to understanding what data a company must publicly disclose for the benefit of investors. Based on our review of recent history, the current needs of investors, and the definition of materiality, it is clear that existing laws and related rules already require greater disclosure of data on environmental and societal impacts than commonly understood. The article concludes with recommendations for managers, their attorneys, accountants, and policymakers, and provokes further questions for constructive scholarship in the fields of business and law.

Keywords: Integrated Reporting, Sustainability Reporting, Materiality, Securities Regulation, CSR, Sustainability, Corporate Responsibility Reporting

JEL Classification: K22, K10

Suggested Citation

Sulkowski, Adam J. and Waddock, Sandra, Beyond Sustainability Reporting: Integrated Reporting is Practiced, Required & More Would Be Better (June 18, 2014). Available at SSRN: or

Adam J. Sulkowski (Contact Author)

Babson College ( email )

231 Forest St.
Babson Park, MA 02457-0310
United States


Sandra Waddock

Boston College - Carroll School of Management ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

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