Creating Transparency

In today’s world, information is an invaluable form of currency. People have become inherently more social, utilising multiple devices to consume media, access a wealth of global information and stay up to date with current affairs and changing trends.

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This has not escaped the corporate world either, with new social platforms and legislation introduced to increase the knowledge of the average investor. Stockr and Seeking Alpha provide people with the opportunity to discuss and share opinions with peers, while the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 and the proposed Integrated Reporting framework both focus on providing investors with more insightful information.

The global economic crisis highlighted the need for long-term engagement from companies and investors. The Kay Review, working groups, consultations and legislations have since been put in place to ensure that this continues long into the future.

The most recent developments in transparency have been to highlight social, diversity and environmental factors that affect the company and their effect on society. Sustainability, CSR reports and Corporate Governance sections have usually housed such information but formal requirements have since changed the format of Annual Reports to make sure narrative information is given priority.

In order for companies to truly engage with their stakeholders a level of transparency is now expected. The Transparency Directive and the listing and disclosure rules are in place for a reason - to ensure that companies are providing adequate information so that investors can make informed long-term decisions.

To find out more, why not talk to Jones and Palmer?