Businesses and their regulators are starting to respond to this demand for transparency in their corporate reporting – because it is key to telling their value-creation story to investors and providing the information they are increasingly asking for. Critically, it is also key to earning the trust of a wider group of other stakeholders, including society.
Yet despite this, many companies are yet to identify what they should be measuring, and lack the systems and processes to do so.
What does this mean for you?
Companies need to better identify, measure and report on intangibles such as culture, innovation and environmental impact, which form the foundation to rebuilding trust with this wider stakeholder group; only if reporting comes together in a cohesive story will trust be built and value fully recognised.
The challenge is that many businesses haven’t identified what non-financial aspects they need to track and report against. They are not measuring what needs to be measured: all the non-financial measures which help stakeholders get a good picture of the value they add.
The question business leaders should ask is: What can you do in your organisation to rebuild stakeholder trust?