There are Sound Business Reasons Why Companies are Reporting

Effective corporate reporting can play an important role in attracting investment and protecting markets. In the current era of highly mobile capital, companies are using sustainability reports to help secure investor confidence. Such reports can demonstrate the company is managing all relevant risks and positioning itself to address emerging opportunities. Reporters are responding to increased demands for transparency and to the benefits of disclosure. They are realizing that reputation, as a key corporate asset, can be affected by performance in a range of environmental, social, and economic areas (Table 6.15). Investors are starting to learn that companies that manage environmental, social, and economic issues effectively tend to be better managed overall and represent less risky and higher value investments. Reporting companies are also benefiting from improved relationships with employees and communities.

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