ICAS launches new corporate reporting discussion paper
ICAS calls for debate amongst investors on the future of corporate reporting.
A new discussion paper ‘Restoring Trust and Relevance for the Future of Corporate Reporting’, proposes a ‘strawman’ vision of a new reporting model for debate by investors and other corporate reporting experts.
The new reporting model is intended to ensure that corporate reporting remains relevant and capable of adapting to respond to the key challenges facing business today:
- Technological innovation
- Low levels of public trust in business and its role in society
- The need for long-term sustainable business and investment models
- The need to demonstrate value creation to wider stakeholder groups.
The proposed structure consists of a ‘strategy’ report, which provides a concise and coherent summary of key information about the company, its business model, values and long-term strategy. More frequent ‘performance’ reports provide more detailed updates about how the company has performed against its planned strategy and longer-term objectives. This will have the benefits of setting more meaningful and comprehensive benchmarks against which the stewardship of directors can be assessed, as well as enabling accountability for a broader range of impacts and outcomes.
The model will be more flexible to suit the changing demands of stakeholders and the future opportunities that evolving technology will offer for corporate communication.
ICAS believes that, in the interests of sustainable corporate and market stewardship, the community of longer-term investors must draw towards a consensus on an improved model for corporate reporting which better responds to their information needs. Only by building such a consensus are we likely to get the improvements needed.
The discussion paper was developed by a working group of investors and other corporate reporting stakeholders – ICAS now hopes to engage with the wider investment community to build consensus around the proposed model. A series of investor roundtable events is planned for autumn 2018.
Share your views
Please help inform our work on corporate reporting and let us know your views on the questions raised in the paper