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Social and environmental issues

5.3 Benefits and drawbacks of social and environmental reporting

Benefits Drawbacks

Increasingly important to investors in Additional cost of reporting systems
investment decision

Reporting makes companies aware of Ambiguity of measures used
potential risk to reputation

Employees use this detail in choosing
employers

Influences customer buying decision

Pre-empts potential regulatory
intervention

Promotes attention to good corporate
governance

Positive impact on share price

Transparency of information

NB benefits outweigh the drawbacks

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