Page 148 - SBL Integrated Workbook STUDENT 2018
P. 148
Chapter 12
7.3 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
Note: Benefits outweigh the drawbacks.
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