Public companies in the U.S. are, by law, required to disclose financial results only. Then why are a majority of annual reports increasingly addressing social responsibility, sustainable practices and corporate giving? Though integrated reports may eventually replace annual reports, 52 percent of Fortune 100 Companies included statements of Corporate Social Responsibility in their 2010 annual reports and 10-K. What’s behind this push for non-financial reporting? A combination of the current economic environment, public demand for transparency, the rise of social media and third-party verification. Consequently, however, a lack of reporting standards ensures that companies pick and choose if and how they share their charitable works, community involvement, commitment to diversity or environmental stewardship in their annual report.
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30 Second MBA: Which ideas do you kill and which ones do you keep?
