Value‐added reporting as a tool for sustainability: a Latin American experience

Abstract

Purpose

The purpose of this paper is to present a collection of ongoing experiences with a value‐added reporting model in Latin America, positing its pertinence with regards to CSR accountability.

Design/methodology/approach

The paper utilises a qualitative methodology in which a series of semi‐structured telephone interviews and/or e‐mail questionnaires with managers from six reporting companies in Latin America (Chile, Colombia, Uruguay) was conducted. The fact that one of the authors of this paper created the reporting model facilitated easier access to company managers and a deeper understanding of each situation. A literature review from European, US and Latin American sources provides a framework for discussion.

Findings

The paper illustrates how value‐added statements (which are based on conventional financial accounting) can provide relevant information for CSR accountability. The variety of experiences shown (different industries and diverse company ownership in separate countries) may suggest the wide potential of this reporting model.

Research limitations/implications

As the paper deals with a recent, ongoing experience (this model has been in use for the last six years only), the results have to be treated with caution. Even though many firms are interested in adopting this value‐added model, there are currently fewer than 20 reporting firms using it.

Social implications

The paper aims to position value distribution and its accountability as relevant issues in CSR, particularly for developing countries. In addition, such an intuitive model might more easily reach the general public, something that rarely happens with conventional CSR reporting models.

Originality/value

This is the first academic paper that demonstrates the application of this reporting model (though the authors already published a practitioner‐oriented article in Spanish). Furthermore, there are few documented cases of value‐added reporting experiences in emerging markets, particularly in Latin America.

Citation

Perera Aldama, L. and Zicari, A. (2012), "Value‐added reporting as a tool for sustainability: a Latin American experience", Corporate Governance, Vol. 12 No. 4, pp. 485-498. https://doi.org/10.1108/14720701211267829