So far, Corporate Social Responsibility has largely been regulated by a number of international and national soft and hard laws. While many companies around the world choose to follow Corporate Responsibility standards, oftentimes due to consumer pressure, large companies in the EU are now being forced by law to reveal their social and environmental impacts. We believe that this is just the beginning of what will soon be happening on a global scale.
From 2018 onwards, large companies in the EU are required to publish regular reports on their non-financial and diversity information as required under Directive 2014/95/EU.
Large companies are defined as large public-interest companies with more than 500 employees. This includes approximately 6,000 companies and groups across the EU.
This helps investors, consumers, policy makers and other stakeholders to evaluate the non-financial performance of large companies and encourages these companies to develop a responsible approach to business.
Under the EU Directive, large companies have to publish reports on the policies they implement in relation to:
- environmental protection
- social responsibility and treatment of employees
- respect for human rights
- anti-corruption and bribery
- diversity on company boards (in terms of age, gender, educational and professional background)