VISION AND LEADERSHIP GOVERNANCE In terms of assurance, there remain very few companies which state that the CR content of their Annual Report is externally assured. There has been much discussion and debate on the role of auditors and assurance and as non-financial information becomes more integral to reporting, this will be an area which more companies will have to address. Figure 7.5 Companies providing external assurance for non-financial information in the Annual Report: Figure 7.3 7% up from 4% in 2009 What is the nature of the description of CR governance? 27% 38% 38% Specific discussion Corporate responsibility performance This year has seen a slight improvement in the number of company’s providing CR performance data within the Annual Report. The key to this area of reporting is to only identify material issues and report according to them. This gives the reader an insight into the issues which the company faces and the policies in place to tackle these. The Annual Report is the document through which to report the key material issues and performance, with supporting information provided in standalone reports and online. Figure 7.6 52% 41% 43% Basic discussion 21% ’08 34% ’06 21% ’09 39% ’07 19% ’10 No discussion The extent of this reporting is, as in previous years, varied. Some companies have a structured and comprehensive approach to reporting on CR issues, identifying what the issue is, the policies which are in place and the performance which has resulted from their implementation. In other cases, the focus is just on reviewing performance without outlining policy or indeed stating policy without reviewing performance. We are seeing gradual increases in the number of businesses following a more logical approach to reporting, though the improvement is still far from universal. Coupled with this, quantified data is often lacking, making comparability extremely difficult between companies. The challenge for companies moving forward will be to identify the importance of specific CR issues to the business; demonstrating how they are integral to the overall group strategy, and how they can create and sustain value now and in the future. MARKET TRENDS AND OUTLOOK BUSINESS DESCRIPTION STRATEGY RISK CORPORATE RESPONSIBILITY Figure 7.4 How many companies have a Board level CR committee? How are CR issues reported? 2009 77% 76% 39% 46% 40% 78% 84% 66% 73% 65% 81% 78% 81% 2010 87% PERFORMANCE 74% APPROACH TO REPORTING 5% ’08 ’09 ’10 Environmental Performance identified Issues and policies identified Social and community Performance identified Issues and policies identified People www.blacksunplc.com © Black Sun Plc 2011 Performance identified Issues and policies identified 27
