Daan Elffers EMG Interview by Thompson Reuters, December 2015
“CSR Islamic Reporting Initiative for voluntary use by organizations reporting on people, planet and profit according to Islamic values and principles. While the IRI seeks to make CSR reporting standard practice for organizations across all sectors to advance economic opportunity responsibly in the Islamic world, the underlying vision is quite unique. The IRI seeks to achieve the above with a methodology that is culturally relevant and impact-oriented.”
“We see that organizations with an integrated CSR program are engaged in a circular sustainability process, whereby initiatives may serve to strengthen a community and environment, which in turn safeguards business opportunities in the middle to long-term future.
For example, CSR initiatives which encourage investment in society, whether that be in healthcare, youth engagement, education or environmental management, are widely applied and can generate a community that is healthier, better educated, and actively contributing to and benefiting from the local economy. Financial Institutions that have already started to apply this behaviour to the core of their strategy (triple bottom line reporting: people, planet, profit) have demonstrated an exciting capacity to excel among their peers, and achieve sustainable value creation.”
Daan Elffers, EXCLUSIVE INTERVIEW,
ISLAMIC FINANCE DEVELOPMENT REPORT 2015
Governments can encourage a shift towards the implementation of CSR and CSR reporting through awareness raising, and voluntary and mandatory programs.The shift in the financial markets towards sustainable investment is indicative of the significance of sustainable business practices, and it is important that governments encourage and facilitate the progress of business in achieving such goals.
The standardization of disclosure mechanisms for CSR funds may be limiting and complex due to the integrated nature of good CSR and business practice. Disclosing CSR as a silo investment negates the effort of a company to integrate CSR into their business operations, as intended by
the concept of triple bottom line. While standardization may provide a benchmark for organizations seeking to invest in CSR, driving the agenda forward, the separation of CSR from wider business practices may result in missed opportunities.