In the post-Enron world, reporting transparency is critical. A growing body of evidence indicates that companies that fall short of the transparency benchmark risk significant damage to management credibility. In the worst case, companies face an erosion of shareholder confidence that can, in turn, do damage to market capitalization, credit, and liquidity. But along with negative pressures, there are also positive reasons for going transparent. Your company’s brands, market share, customer retention levels, and intellectual capital are of intense interest to investors. Companies that report more comprehensively on these important non-financial assets can often improve their valuation in the capital markets.
But, they also want your company to have a positive impact on society while minimizing any negative effect on the environment. This so-called “triple bottom-line” approach to business --- which balances economic interests against social and environmental concerns --- goes by the name of sustainability. Over the past decade, sustainability has moved from the fringes of the business world to the top of shareholders’ agenda --- and those of your employees, regulators, and customers, too. Consequently, any miscalculation on sustainability-related issues can now have serious repercussions on how the world judges your company and values its shares.
How PricewaterhouseCoopers can help you
PricewaterhouseCoopers can assist metals companies that need to ensure the quality and credibility of internal management information and external disclosures and, in particular, non-financial indicators. Our professional leadership on issues related to non-financial performance reporting, has not been limited to advocacy. Instead, PricewaterhouseCoopers helped pioneer the concept and practice of non-financial performance reporting with the development of ValueReporting --- the most comprehensive and robust approach to reporting transparency available in the marketplace. For metals companies looking to improve business performance and create long-term shareholder value, PricewaterhouseCoopers can help develop a corporate responsibility/sustainability strategy that focuses on key issues for your business and enhances relationships with key stakeholder groups.
