Currently, the pressure for greater transparency is combined with the need to set common, objective, and applicable standards for non-financial information. A common way of disclosing non-financial reporting as is done with the accounting standards (GAAP) applicable to financial information should be agreed.
For interested parties, the control of financial information is a given. But the same need exists for equally important non-financial information. Five issues should be considered by CEOs and senior executives for a more transparent future.
1. Participation of the Board of Directors
Transparency is now a matter for the Board of Directors due to increasing investor pressure. Ensuring the accuracy of the data and the fact that their use improves performance are critical elements in maintaining the confidence of stakeholders. Trust is achieved when stakeholders are convinced that the commitment to creating sustainable value is sincere.
2. Strategy
In a complex information environment, the right products should be used, because indicators and disclosures should be important for stakeholders to ensure that compliance has value.
3. Emphasis on systems
Companies should be able to effectively collect and disclose their non-financial information. Therefore, emphasis should be placed on corporate systems.
4. Strictness
Non-financial items can be just as important as financial data. Non-financial data should be disclosed as rigorously as their financial data and this is the approach that should be adopted for other non-financial information.
5. Digitisation
Transparency is achieved by providing data in flexible digital formats that third parties can process and use. Companies that will not succeed in this area will have an impact on their commercial results.
Those who act first and correctly in transparency and non-financial information will gain confidence, diversification and optimize their results.
