MQI Basics

As an information carrier and medium, a Corporate Social Responsibility (CSR) report[1] mainly conveys information about a company’s CSR management and practices, and serves as a bridge for communication between the companies and stakeholders. In a CSR report, quantitative information like energy consumption, employee injury rate and product qualification rate, etc. is significantly indicative of the company’s CSR performance and even the overall corporate operation situation.

Our research has found that with the ever-increasing number of CSR reports, the overall quality is also improving, as mainly reflected in a growing number of reports written with reference to international or domestic general reporting guidelines, the introduction of a third party assurance, and so on. However, some problems in CSR reports are still widespread, such as the lack of disclosure of quantitative information, strong arbitrariness in quantitative information disclosure, non-standard disclosure, etc. These problems have posed an obstacle in further improvement of the reports and therefore, need to be addressed urgently. It is not the case, of course, that the more quantitative information disclosure the better. The reporting entity should disclose information on the most important topics. Too much disclosure of quantitative information in the report is not only a burden upon the reporting entity itself, but also a source of interference for readers due to information overload.

Therefore, through more in-depth and comprehensive work, we hope to focus on the most material CSR issues in different sectors and set up corresponding Material and Quantitative Indicators (MQI) systems, so that the quality of CSR reports can be further enhanced.

[1] Throughout this report the term “CSR report” (corporate social responsibility report) is shorthand for a wide range of non-financial reports including environment, community, sustainability, EHS, corporate citizen and integrated reports.

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