An annual report can generate more value if viewed as a communications opportunity rather than a compliance obligation. Companies need to provide the evidence that they have good governance systems in place to build confidence and deliver value over the longer term.
Excellence in reporting encourages better governance. It increases levels of trust and confidence in the governance arrangements between companies and their shareholders and other stakeholders. It also encourages good quality investor engagement and enables stakeholders to benefit from increased levels of transparency and accountability. In return companies can benefit from greater commitment, loyalty and support from their stakeholders.