The Forum on Environmental Reporting is also promoted in a manner that the government or industry is also a code of conduct. There are many examples of public administration initiatives as well as self-regulatory industry standards which can showcase environmental reporting information. The concept of CSR is also very important as it provides advantages with great importance since it allows corporate action with social performance is also relevant in order to measure the economic impact. The philosophical literature also lies on the responsibility and purpose of how multi-relational concepts are normative on these grounds. The first element is what has been the major purpose of responsibility and people have adjudged this as the most important norms and values in a given society (Broomhill, 2007)
Investors and all the stakeholders of an organization want transparency in the books of accounts of the entity in which they have invested. The potential advantages of voluntary environmental disclosure may be as follows:
• The reports can be biased. Since it is not based on any particular format, the firm can concentrate more on the positive effect and ignore the negative ones
• Positive impacts which will e highlighted in the report will improve the share prices of the company.
• The investors will have confidence in the company. Thus, they will be attracted towards investing more in the business.
• The company may appear on preferred supplier list as supplier and customer both would like to deal with firms that disclose such disclosure.
• Environmental disclosure increases creditability and tends to reduce the apprehensions of risk by the investors.
By voluntary disclosing environmental information in the financial statements the firms try to trade off the cost of disclosing potentially damaging information with the help of potential advantages of a detailed disclosure.