Engaging Stakeholders in the UK in Corporate Decision-Making Through Strategic Reporting: An Empirical Study
60 Pages Posted: 9 Oct 2017 Last revised: 19 Nov 2017
Date Written: October 7, 2017
This project empirically analyses the practical implications and relevance of the production of a strategic report for shareholders and especially other stakeholders (e.g. employees, customers, suppliers, environmental agencies, social, community and human rights bodies), in the context of s. 172 CA 2006. The strategic reports of the FTSE 100 companies from 2015 and 2016 are scrutinised, using a methodology involving compliance coding. This study is especially significant, as the practical implications and relevance of the production of a strategic report, in the context of non-financial issues, by company directors, have not been discussed in depth in prior literature. This paper fills this gap and first, provide concrete evidence on compliance with the provisions of a strategic report, especially the extent to which environmental, social and governance issues are considered by the companies. This first systematic review of strategic reporting in the UK carries international implications due to the high international shareholder base in FTSE 100 companies. Secondly, the type and quality of information transferred from the company to stakeholders, based on the strategic report, are evaluated here.
Keywords: Companies Act 2006, section 172, compliance, strategic report, stakeholders
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