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Table 3: Traditional versus sophisticated reporting approach (Isenmann 2007)
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Isenmann cites DiPiazza and Eccles stating that ‘corporate information, in all its
growing quantity and complexity can be – and in reality must be – communicated
more effectively with the use of new technology” (Isenmann 2007). CSR reporting
that would meet the stakeholder involvement strategy as outlined by Morsing and
Schultz and the interactive approach outlined by Isenmann would be a dialogic
process between a company and its stakeholders aiming for a collective contribution
to sustainable development. As Gao and Zhang put it, “it is no longer sufficient to
simply promote and propound the development of triple-bottom line performances
[and reporting], at least not without a clear understanding of how stakeholders can be
engaged (Gao and Zhang 2006).
Stakeholder-based approach to CSR– stakeholder dialogue
Levels and forms of stakeholder participation
The principle of participation is nowadays common in a variety of contexts: ‘public
participation’ in the field of public policy research, ‘community involvement’ in the
field of development research, `participatory evaluation’ in the field of evaluation
research, and ‘stakeholder management/engagement/involvement’ in the field of
management research. Despite different terminologies being developed in the
different contexts, certain similarities can be found, e.g. in regards of the level of
participation. Common point of reference in this regards is Arnstein with her “ladder
of citizen participation” (Arnstein 1969). Based on her model a basic graduation
starting at a level of information, via consultation to decisional was developed by
several authors in different contexts. With regards to stakeholder participation in the
CSR context Green, Hunton-Clarke defined the following three levels (Green and
Hunton-Clarke 2003):
Informative participation is a one-way communication approach of companies where
stakeholders are passive actors receiving information, not intended to feed back. The
company has complete control of which information is disseminated and how this is
done. Stakeholders’ understanding of company related issues and CSR, values and
attitudes are not explored. Bluntly said, stakeholders are supposed to listen gratefully.