Abstract - Quest for Global Competitiveness - Universidad de Puerto ...

due to instances such as Enron, Arthur Anderson and WorldCom. These financialscandals visibly shook confidence of the investors and general public. The ease withwhich executives and, in some instances, audit companies deceived shareholders andthe government, cast serious doubts on the credibility of existing systems.These actions initiated a renewed emphasis on business ethics, corporate socialresponsibility and accountability. Corporate Governance was introduced into theconduct and ethics code of Certified Accountants around the world and increasinglytaught to accountancy students worldwide. The need for a new-reporting format thatalso took into account other factors besides financial reporting was introduced. Thiscame to be known as the Social Reporting Framework.Need for CSR Reporting, It's Worth.CSR reporting broadly reflects the extent to which an organization is dedicated tothe cause of CSR and tries to exercise the same spirit when interacting with keystakeholders. The CSR reports are also graded and awarded on the basis ofpresentation and outstanding performance. Moreover, these activities are a chance forthe company to market its brand and promote itself with key stakeholders. Furthermore,the diverse nature of CSR activities allows almost all firms to exercise their passion forthe cause. The extent of activities ranges from charity events, recitals, donations,philanthropic efforts, development programs to scholarships and other fundingprograms. This is a way for organizations to payback the environment for contributing tothe company‟s growth, which in turn also results in the customers gaining a favorableimage of the company (Burke and Logsdon, 1996).Professor Patricia Debuljuh from Center of Advanced Studies, UADE inArgentina explains why companies feel the need for CSR and the current role ofGovernment in the following words:In one way or another, companies are more and more aware of the closerelationship they have with society. Governmental paternalism has failed, and thebusiness sector plays a central role in the expectations of civil society, which hasstarted to demand greater participation and social commitment from companies.The company is no longer a closed system preoccupied only with generating4