Quiet a revolution has taken place in the recent years in sustainability reporting. Now days most of the management teams of respective organization acknowledge the importance of collection and reporting of non financial data but varies in a way of how they deploy this information as an effective tool for strategic growth.
Non- financial reporting is essential to the public stakeholders in order to understand how well the companies are performing in the areas of companies’ social, economic and environmental performance. This instills accountability in firms, to find ways of sustainability improvement which would contribute to the development of better corporate practices. Establishing standards for non financial reporting represents the responsible behavior of the firms which would be helpful to ensure long term sustainability, create recognition for the brand and win the confidence of the stakeholders .Non financial reporting, examples of which are sustainability reporting and corporate social responsibility are recent trends which has form a part of the financial report of an organization. The thrust for non financial information is very real and external pressure from shareholders, consumers , media and most importantly regulators tend the companies to focus on ways to collect and make use of non financial data in the best interest of the community in which these information which plan to continue doing business. For the communities and citizens who are affected by the activities of the organization, non financial disclosures help them to assert their rights and restore their confidence in the business entity. For investors and stakeholders, non financial reporting is also a way to reinforce the stability and predict the future performance of the organization in the financial markets. (Business.un.org, 2015)