In our latest research piece, we identify emerging best-practice and showcase some of the best examples available.
Three big takeaways from our research:
1. Reporters have risen to the occasion.
We’re pleased to say that there are many truly insightful, thoughtfully-written s172(1) statements out there. While both the recent Viability Statement and Non-Financial Information Statement regulations provoked reporting that felt a little reluctant and compliance-focused, this was a completely different story – a clear majority of PLCs have taken the opportunity to add real value to their reports.
2. Decisions make the difference.
The FRC’s key recommendation to reporters is to ensure that the s172(1) statement covers critical Board decisions in the year, and that’s something we support 100%. It might be uncomfortable territory for many, but the clear majority of firms have accepted this key point, and their reports are all the better for it.
3. A few challenges remain.
Reporters tend to find talking about two areas particularly tricky – relationships with suppliers, and the impact they have on the environment, although there is still some good stuff out there. We think it’s also difficult for these statements to feel truly credible without any discussion around the necessary trade-offs to be made between different stakeholder interests.
If you’d like to see a copy of our full research, including several new best-practice examples, just drop us a line at hello@friendstudio.com.