Secondary users

Definition

Secondary users are individuals or groups who indirectly use a company’s sustainability reports to make decisions. They rely on this information to assess the company's environmental and social impact rather than focusing solely on financial performance.

5 Must Know Facts For Your Next Test

1. Secondary users include stakeholders such as communities, non-governmental organizations (NGOs), and academic researchers.
2. These users often evaluate how well a company adheres to environmental laws, ethical standards, and social responsibilities.
3. Sustainability reporting serves as a key tool for secondary users to hold companies accountable for their impact on society and the environment.
4. Secondary users may influence public opinion and regulatory policies based on the information disclosed in sustainability reports.
5. Their feedback can lead to significant changes in a company’s sustainability practices and overall corporate strategy.

Review Questions

• Who are considered secondary users in the context of sustainability reporting?
• Why is sustainability reporting important for secondary users?
• How can secondary users impact a company's sustainability practices?

Related terms

Primary Users: Individuals or groups directly using financial statements for decision-making, such as investors or creditors.

Stakeholders: All parties with an interest in a company's activities, including employees, customers, investors, and communities.

Corporate Social Responsibility (CSR): A self-regulating business model that ensures a company is socially accountable to itself, its stakeholders, and the public.