Evaluating extra-financial
reporting
The case of the German ranking of
sustainability reports
Jana Gebauer and Esther Hoffmann
Institute for Ecological Economy Research (IO
¨
W), Berlin, Germany
Abstract
Purpose – The purpose of this paper is to introduce a long-time report evaluation project of the
Institute for Ecological Economy Research (IO
¨
W) and the business network “future – verantwortung
unternehmen”.
Design/methodology/approach – On a regular basis, the IO
¨
W/future-Ranking evaluates the
content and communicative quality of sustainability and CR reports of Germany’s 150 largest
companies. The project provides a platform where stakeholder expectations concerning corporate
responsibility and transparency are synthesised into a comprehensive catalogue of reporting
requirements. These criteria have to be met by the companies to reliably show sustainability
commitment.
Findings – The evaluation of the reports not only makes the sustainability reporting practice of
companies comparable and transparent to the public. The set of criteria itself also serves as a reporting
framework for companies and thus enhances directional certainty about corporate contributions to
sustainable development. It is itself subject to a periodic evaluation and adaptation by means of
dialogue and feedback processes with representatives from industry, politics and NGOs.
Practical implications – The paper discusses the process of ranking and the possibilities for future
developments in this.
Originality/value – The process described has had little academic exposure and so the paper
provides an original insight into a practical subject which has academic interest.
Keywords Corporate image, Social responsibility, Sustainable development, Business ethics, Germany
Paper type Conceptual paper
Introduction
In 1994, the Institute for Ecological Economy Research (IO
¨
W) and the business
network “future” carried out the world’s first ranking of corporate environmental
reports[1]. The aim of the Ranking was to recognise and uncover the emerging
environmental communication of companies and, above all, to make this comparable.
By establishing an independent set of evaluation criteria the ranking furthermore
intended to contribute to the improvement of reporting practice. Last but not least, the
transparent presentation of the evaluation was meant to empower stakeholders to
critically assess corporate activities.
In 2009 the biennial Ranking was carried out for the seventh time – for the third
time with the broad focus on sustainability reporting. Embedded in the debate on
corporate responsibility and sustainable corporate management the ranking shall
continue to further substantiate the understanding of organisational responsibility and
to specify sustainability requirements. For the evaluation of corporate reporting this
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0967-5426.htm
JAAR
10,3
224
Journal of Applied Accounting
Research
Vol. 10 No. 3, 2009
pp. 224-234
q Emerald Group Publishing Limited
0967-5426
DOI 10.1108/09675420911006424