A Report Card You'll Want to Post on the Fridge

Stiglitz's notion of an increased need for corporate social responsibility (CSR), is echoed by many authors within the IPE realm. The concept of CSR has existed for quite a while, yet not until recently has the topic received the attention it deserves. Stiglitz states that although some changes have been made, more regulation and higher standards should be adopted.

One of the recent undertakings of many companies has been what some call a "social report card", a "scorecard", or a "corporate responsibility report". Stiglitz refers to these innovations when he mentions "accounting frameworks...that track contributions to the community and environmental impact". As Stiglitz notes, these documents help companies, investors, and the public understand the true impacts of the corporation on a broader scale.

An example of this type of disclosure is found on GM's website. Within their CSR report, GM issues a scorecard which outlines a variety of environmental and social indicators and tracks their movement. In the GM report, indicators such as "waste" and "water use" are tracked along with "community donations" and "the percentage of hourly female employees". A similar scorecard from Exxon is also available. While this is not the ultimate solution to CSR, knowledge is an essential foundation and serves as an early step.