GRI Reporting -A study of Listed Companies' GRI Reporting on Corruption

Abstract: Background and Problem: Earlier studies have indicated discrepancies regarding companies’ ability to report in line with the GRI guidelines. Also, corruption has become a prominent managerial issue to handle, thus it is of interest to investigate whether a company’s context regarding media exposure, company’s locations of operations, and business industry, is reflected in the corruption disclosures. Purpose: The aim is to assess whether large companies listed on Nasdaq OMX Stockholm meet the guidelines of reporting in accordance with the GRI G3.1 guidelines regarding corruption. The outcome of the evaluation is compared with the findings of media exposure and put in relation to companies’ locations of operations and business industry. Methodology: Ten large companies listed on Nasdaq OMX Stockholm were selected in order to assess the disclosures on corruption according to the G3.1 guidelines. This was accomplished by constructing two evaluation systems. Two indices made by Transparency International were used in order to identify high‐risk countries and high‐risk industries. News articles concerning media exposure were collected through databases of national and international press. Analysis and Conclusions: The thesis found that there is a lack of completeness of disclosures on corruption amongst the investigated companies, and that several companies embellish their own assessment of fulfilment of GRI’s indicators. The included companies meet the guidelines to varied extent, which indicates there is room for more detailed and expanded corruption reporting amongst some companies. Issues of materiality or external pressure, such as media and stakeholders, explain the observed differences in reporting of corruption.