FRC Lab publishes report on reporting on stakeholders, decisions and S172

News types: Corporate Reports

Published: 19 July 2021

The Financial Reporting Lab (the Lab) has today published its latest report on reporting on stakeholders, decisions and Section 172 . The report highlights that information on stakeholders and on decisions can help investors understand how a company is progressing in fulfilling its purpose and achieving long-term success. Section 172 statements can then be a helpful bridge between the two types of information.

This report outlines what investors want to see reported in these areas and provides examples from current reporting practice that reflect possible helpful ways of addressing these needs. The report builds on the tips on Section 172 statements published in October 2020.

Alongside the report, the Lab has published a summary of the questions for companies to consider in determining what information to report on stakeholders and decisions which meets investors’ needs.

Phil Fitz-Gerald, Director of the Lab, said:

“There are increasing calls for better information on how companies are having regard for their stakeholders and how key decisions take their perspectives into account. Our discussions with investors highlighted the importance of providing information that reflects a two-way consideration of stakeholders, especially in respect of decisions and their outcomes for both the company and its stakeholders.”

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