Corporate governance and subsequent reporting is not an easy exercise to get right, and it’s not a static issue. This is not least due to the different guidelines and standards that apply depending on the type and size of your business. What is clear however, is that having effective and responsible governance practices and accurate reporting is key in attracting and keeping investors and customers alike.
So where do you start with ESG governance and reporting?
Across industries and markets, organisations have to comply with mandatory regulations, such as the UK Corporate Government Act and the requirement for businesses to report on their gender pay gap. With the media ready to shine a glaring spotlight on those businesses whose figures are questionable, and can be challenged, organisations need to look at the bigger governance picture.
If we consider the need for some organisations to make specific disclosures in their annual accounts – and we’re certainly seeing more of this – then having the mechanisms and data available to do so, is vital. To this point, more businesses are choosing to voluntarily report their governance data, with statistics such as ethnicity pay gap reporting.
Good corporate governance should go beyond just meeting the minimum requirements. It should be a well-considered strategic decision that demonstrates to investors and other stakeholders you are a sustainable and ethical option, the board are held accountable for their actions, and that your employees have genuine reason to feel happy working with you.
When thinking about your businesses governance and reporting you should consider the core principles of social responsibility:
Want to find out more?
Our experts are well placed to talk through where your business currently sits on its ESG journey, and the next steps that you should take.
Contact Richard Smith, Head of Risk Assurance, to discuss your challenges.