Involvement Of Accounting Profession In Quality Of Non-Financial Reporting

This paper presents issues related to non-financial reporting, focusing on sustainability reports. In recent years, corporate social responsibility (CSR) has been asserted as a new form of business governance, CSR being recognized in a global context. Companies have a significant impact on social development in the areas where they operate. Therefore, these companies have a responsibility that extends beyond a simple algorithm that refers to profit. There are a multitude of companies that are profitable in financial terms but have activities that harm their own employees and the community. There are major differences in CSR approach; these differences appear in the literature, where authors perceive differently the responsibilities of a company towards society, but also the way EU member countries implement the Directive 2014/95/EU of the European Parliament and the Council in the national legislation. CSR reporting shows how companies choose to behave in relationships with suppliers, employees, customers, investments, the environment, the company, and people who influence their financial results. Non-financial reporting is related to corporate social responsibility policy, but also to management of the risk and business strategy. By reporting CSR, investors, customers, employees and the company can make a pertinent comparison between companies performance. Approximately half of the EU countries have chosen to include the provisions of the Directive in the accounting legislation and the other countries have chosen to include provisions in other categories of legislation, which shows that not all EU countries attach great importance to the accounting profession in terms of reporting responsibility kind. Most EU countries choose to submit CSR information in a management report or a separate non-financial report, but there are a few countries that choose to report CSR activities in the annual report.