VISION AND LEADERSHIP CONTINUED the handful of companies explaining in their opening statements how the business is contributing to solving some of the global sustainability challenges such as climate change, and it is clear that addressing CR as a business issue is continuing to move up the corporate agenda. Leading reporters understand that greater transparency in uncertain times is valued by investors, particularly in terms of forward-looking information. Reporting in this area seems to be helped by the improving economic climate as the quality and extent of outlook statements provided by Chairmen and CEOs improves. More companies are making at least some reference as to what the future holds for the business and, in most cases, one can get a good indication of the direction of travel for a company by reading both of the opening addresses. Figure 1.5 To what extent does the CEO outline future prospects for the company? 6% 35% 18% 25% 19% 37% Detailed outlook provided and specific contextual detail Some detail on the outlook for the company 36% 39% 35% General overview of the outlook for the company 23% ’08 12% 18% 51% 18% ’09 8% 20% 54% 9% ’10 No future prospects discussed Figure 1.6 How are companies discussing governance in the opening statements? Board changes and detailed commitment to governance Board changes and general commitment to governance Board changes only are discussed Few personal commitments to governance The preface to the UK Corporate Governance Code made specific reference to ‘attacking the fungus of boilerplate’ within corporate reporting. Personal reporting by Chairmen on the role and effectiveness of the Board was cited as one way to achieve this although disappointingly we have seen little improvement on last year, with most Chairman’s statements discussing little more than Board changes. However, as the Governance section of this research report indicates, many companies have addressed this aspect of the new Code by including an introduction to their governance report instead. In the future companies will have to work harder to evidence that good governance is integral to the way in which their business is run and further development will likely be seen as companies continue to adjust to new governance provisions. 19% ’09 18% ’10 No governance discussion 8 © Black Sun Plc 2011 www.blacksunplc.com
