@Risk

New research from PwC reveals some disturbing details which suggest that most companies aren’t necessarily providing investors with a complete view of the strategic opportunities and threats to the business.

Even though there’s considerable uncertainty in global markets these days, PwC’s new study showed that less than half (45 percent) of the 350 largest listed UK companies clearly explain the potential impact of the risks they have identified or how they intend to buffer their effects.

What’s more:

• Only 16 percent of the FTSE 350 clearly based their reporting on their strategy throughout their accounts,
• Just 35 percent clearly align their key performance indicators with strategic priorities and
• Two-thirds are failing to clearly define their business models in their annual reports.

Although these statistics may seem concerning, the study also uncovered a bright side: In many ways, reporting has improved from last year. For instance, back then, a mere 18 percent of the companies studied were clear about the impact of their risks.

In other positive developments: (more…)

The Sportlifestyle company Puma recently issued its fifth sustainability report, in which the firm revealed numerous issues of “non-compliance” in its supply chain.

Puma is refreshingly candid in discussing the compliance challenges it faces throughout  its global supplier network. (The report even walks the reader step-by-step through  Puma’s extensive auditing protocol.) Clearly, progress has been achieved in many areas, and yet, as Puma readily admits, significant compliance problems remain.

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