In the past, both large and small and medium-sized enterprises have often ignored environmental issues and their footprint. In recent years, sustainability reporting has received increasing attention and plays a crucial role in the SME sector, thereby contributing to sustainable development by applying innovative practices to create original products and services. Companies are ready to go "greener" as many investors place a high value on environmental responsibility. What needs to be known about sustainability reporting is that many of a company's costs can be significantly reduced, or even eliminated, as a result of various business decisions, ranging from operational changes and investments to new technologies leading to more innovative processes and services.
Sustainability reporting can lead to financial benefits as it provides various opportunities to reduce company costs. For example, the financial position of an organization can be improved and operating costs can be reduced by replacing old and unsustainable practices through regular monitoring of the organization's work process. Also, there are many other opportunities that sustainability reporting can lead to. The overall implementation of sustainable practices can also give access to new customers and contribute to greater recognition of the company, which helps to attract new investors.
Generating benefits from sustainability reporting is not an easy task, but once such practices are adopted, they can bring long-term prosperity to the organization. It should be clear that engaging in corporate social responsibility (CSR) and producing a sustainability report do not yield immediate results, so when an organization decides to invest in its sustainability reporting it must be aware that the benefits will be -visible over time. Although the implementation of CSR can be seen as a challenge for most SMEs, it is very important to note that in the end it all comes down to the reputation of the organization and the image that is created in society. Sustainability reporting adds value to the company by completely changing the corporate culture and motivating people to act more responsibly in their daily work. Thus, with an appropriate amount of investment in people and their knowledge, the organization can gain a competitive advantage, giving the company a chance to become one of the key players in the market.
The article was created as part of the Report-ASAP: Adoption of Sustainable Accounting Practices for Reporting project. If you are interested in corporate social responsibility, you can visit project page, where you can get more information.