Sustainability Information (SI)
Bayer AG is committed to disclosing both financial and non-financial reports to all its relevant stakeholders, especially its potential investors and the government. The company discloses its sustainability information as part of its annual non-financial statements in line with the CSR Directive Implementation Act (Bayer Global, 2020a). It has also aligned its SI reporting to the Global Reporting Initiatives and principles provided by the United Nations Global Compact (UNGC) (Bayer Global, 2020a). These frameworks and standards used by the company are meant to ensure that both local and international investors and other interested stakeholders, such as potential strategic partners, can understand the information presented. For instance, the UNGC standards are applied by many companies around the world, creating a concept of standardization in providing the SI reports, just as is always the case with international accounting standards. The information is readily available in the company’s websites and its annual financial statements that are always released to the shareholders.
Integrated Reporting
The integrated reporting approach that Bayer AG has embraced has various benefits. One of its advantages is that it enables investors to have access to as much information as they may require about the firm from a central depository. It eliminates cases where an investor or a partner has to struggle to get access to information they require to make an important decision. It also creates a feeling that the company is transparent in its reporting, which will make it attractive to investors. The main problem with this approach of reporting is that it takes time to prepare the reports. The company has to hire experts to develop SI reports as the financial department prepares accounting reports. The guiding principle at the company is transparency and accountability. Using integrated reporting approach enables the company to be accountable to its current shareholders and transparent to external stakeholders who need the company’s detailed financial and non-financial reports to make various decisions. Content elements in the company’s integrated reports include the standard annual financial statement and sustainability information showing the progress it has made and challenges it faces.
Possible Forms of Corporate Giving
Bayer AG has been keen on engaging in various corporate social responsibilities as a way of giving back to the society. One of the ways in which it is involved in corporate giving is its involvement in empowering women around the world (Bayer Global, 2020b). Information from its website shows that it has been working with various women groups, especially in developing countries to address some of the challenges they face such as female genital mutilation, fistula, and limited space for economic development. The company has also been spending a significant portion of its profits in initiatives meant to fight climate change and environmental degradation. It has sponsored various conservation groups in their efforts to plant more trees and to fight massive pollution caused by plastic wastes, industrial effluents, and emission of greenhouse gases.
References
Bayer Global. (2020a). Sustainability reports. Web.
Bayer Global. (2020b). Our commitment to: Sustainability.