corporate disclosure: the changing meaning of transparency

of 18 /18
The Changing Meaning of Transparency

Author: disclosurenet

Post on 04-Nov-2014



Investor Relations

4 download

Embed Size (px)


The view on transparency in corporate reporting has shifted and defined the CSR movement – this is why it matters to your organization.


  • 1. The Changing Meaning of Transparency

2. Topic:How the view on transparencyin corporate reporting hasshifted and defined the CSRmovement and why itmatters to your organization.2 3. Transparency: A DefinitionTransparency is the opposite of secrecy. Secrecy meansdeliberately hiding your actions; transparency meansdeliberately revealing themTransparency is a choice,encouraged by changing attitudes about what constitutesappropriate behavior.11 "Rivet Software - XBRL Solutions." Rivet Software - XBRL Solutions. N.p., 2010. Web. 22 Aug. 2012.3 . 4. TransparencyOld View vs. New View 5. Old View Twenty years ago, transparency in corporate reporting wasviewed negatively and sustainable practices were not abusiness priority; most companies didnt report on socialand environmental practices Transparency was too risky because it exposed businessesto unwanted scrutiny from all stakeholders Organizations shied away from transparency for 2 reasons:1. Bad press could arise after disclosing the environmental orsocial impact of the business2. Revealing too much could make businesses vulnerable tocompetition5 6. FactIn 1999, only 600 companiesin the world submittedCorporate Responsibility (CR)Reports. 22 "CRRA CRReporting Awards 10." Corporate Register. Corporate Register, Apr. 2010. Web. 22 Aug. 2012.6 . 7. New View Over the last 10 years, businesses have realized thattransparency is necessary to build trust with stakeholders Transparency is not equivalent to compromising intellectualproperty, but is being honest about what you do and howyou do it this forces companies to adopt better, moresustainable practices The key to transparency is voluntarily disclosinginformation. This is usually done through annual reports,conferences and/or online tools like websites and socialmedia7 8. FactIn 2009, 3,800 companies inthe world submitted CRreports. This is a 533% increasefrom a decade earlier.22 "CRRA CRReporting Awards 10." Corporate Register. Corporate Register, Apr. 2010. Web. 22 Aug. 2012.8 . 9. What Changed?The people have spoken and now organizations respond 10. An Educated PublicPeople have become more educated about the environmental and social impact corporations have around the worldMillions of individuals are proactively reducing their carbon footprint and making contributions for social changeThey now hold corporations to the same standard, and are paying attention to ethics and supply chain sustainability10 11. FactBetween 2005 and 2009, therewas an 84% increase incompanies producing CSRreports for the first-time.3 3 "CRRA CRReporting Awards 10." Corporate Register. Corporate Register, Apr. 2010. Web. 22 Aug. 2012.11>. 12. The ResultSmart companies are becoming more transparent and producing corporate social responsibility reports detailing their efforts toward becoming more sustainableConsumers are increasingly making purchase decisions based on this informationPeople are plugged in all the time and want information on demand, so its essential that companies not only put a sustainable plan in place, but then make it easily accessible (and digestible!) for the public12 13. FactIn PwCs 2010 CSR TrendsReport, 81% of all companiessurveyed had CSR informationon their websites.4 4 PwC, and Craib Design and Communications. CSR Trends 2010. Rep. PwC, 2011. Web. 23 Aug. 2012.13 . 14. Why Transparency Matters toYOUR BusinessAnd what you can do about it 15. A Necessary GoodThis new form of transparency has brought an opennesss among corporations that is subject to both criticism and praiseWith so many corporations being transparent in their CSR strategies, organizations are competing to be the most sustainable and produce the best reports. This is raising the bar for other companies practicing CSRThe Global Reporting Initiative (GRI) Guidelines have helped standardize reporting so collaboration and global benchmarking are possible15 16. FactIn PwCs 2010 CSR TrendsReport, 83% of those surveyedused the GRI Guidelines5 5 PwC, and Craib Design and Communications. CSR Trends 2010. Rep. PwC, 2011. Web. 23 Aug. 2012.16 . 17. Join the ConversationIf your organization doesnt already have a CSR program, its time to start developing one to stay competitive and make a positive impactThe best place to start is to research competitor CSR reports to determine best practicesOnce your plan is in place, you can continue to analyze competitor reports to assist with benchmarking and to keep on top of industry trendsTransparency in corporate responsibility will help you retain a competitive edge in the marketplace and will earn trust and good-will from consumers, eventually affecting your bottom line17 18. Truth never damages a cause that is just. -Mahatma Ghandi18