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Link between disclosure, accountability, transparency and trust - Coggle…
Link between disclosure, accountability, transparency and trust
Trust can only be accomplished if stakeholders, be they investors, employees, suppliers or customers believe what they are told by companies and at least within the context of their contract with the omapny, understand and if not necessarily agree with, the reasons behind any particular decision that affects them
Transparency refers to the extent to which an organisations inner workings are observably by an independent third part observer
Transparency relies on a combination of information disclosure, the clarity of communication and the accruacy of the information
Information disclosure can be in accordance with a regulatory obligation or the voluntary provision of information
Disclosure alone is not transparency, the motivation behind any specific information dislcosure, the communication of the information needs to be clear and free from jargon
Companies need to be aware of the audience any communication is being issued to while not losing sight of other audiences that may also receive that communication, whether directly or indirectly
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Good quality informative communications to each of these groups on a consistent basis will provide long term benefits for all
Provided the financial performance meets an investors criteria, good quality informative communication may well persuade investors to invest in any future share issues in addition to holding on to their shares in the long term
A well informed workforce is more likely to have a positive attitude towards their employer and this would be expected to increase productivity and decrease employee turnover
Disclosure is the tool of choice for regulators in their attempt to improve transparency, after all if we know the facts, we know we are not being misled, a key component in establishing and maintaining trust
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The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulation 2013 substituted new disclosure requirements, a key component of which is the single figure table for the remuneration of each director and which includes a value placed on share based payments and pension benefits using calculations prescribed in the legilsation. This use of a common calculation makes comparisons across companies more meaningful
Investors expectations can have a significant effect on the quality of corporate communications, investors that are disengaged are not going to bring pressure on company boards to make better information and coherent disclsoures. By comparison, engaged investors, actively seeking engagement will bring about fuller disclosures
There has been a shift in sentiment among companies and investors concerning a company's involvement with and reporting of, social and environmental engagement more usually now referred to as substainability reporting on social and environmental activities, particuarly where that activity can be shown to be integrated with and delivering part of the companys corporate strategy is an increasingly important aspect of reporting the value drivers within companies
As core engines of coproate growth, employees should not be overlooked or taken for granted. At the same time, employees are perhaps the directors and senior managers fiercest critics and sometimes the most challenging stakeholders to convince that a change of strategy or operational practice is a positive move
There are many benefits of transparency in the workplace and a happy motivated workforce is a key goal of all managers
Job satisfaction does not only flow from job security and being well informed about the direction and strategy that the employer is following. There are other factors including the organisations environmental policy and philosophy, its charitable works, training schemes and how employees are treated all combine to create the company personality
Transparency is equally important for customers but from a very different perspective. Customers will be naturally attracted to companies demonstrating the same environmental and social ethos that they themselves have
Customers also require clear truthful and understandable information about the items they are purchasing