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FTSE100 falls short of ethics performance details

Companies in the FTSE100 are doing too little when it comes to providing shareholders with sufficient ethics information, says the Chartered Institute of Internal Auditors.

The Institute conducted a study which revealed that among the FTSE100, only 22% accounted for ethical performance statistics in their annual reports for 2017 – a decrease of 1% from 2016.

While the study indicated that firms are aware of just how important ethical issues are (demonstrated by 94% of reports from the FTSE100 referring to ethical values), the information they provided offered little by way of detail.

As a result, the Institute suggested that target setting for ethics performance could be a way to solve the problem, as it would enable annual tracking of progress in the form of statistics.

Dr. Ian Peters, chief executive of the Institute, said:

“Calls for greater transparency on large corporates’ ethical performance are only going to get louder. Major corporates, particularly those with multinational interests and global supply chains, need to be seen to be taking the lead and mitigating risks, as issues such as working conditions, modern slavery, corruption, fair trade and environmental concerns continue to loom large.”

While ethical performances may largely apply to FTSE100, all firms in the UK need to ensure that they provide sufficient details to keep HMRC happy. Without those details, they could find themselves subject to investigation. The best way to avoid this is to employ the services of an accountant in the Wirral who is experienced in knowing just how much detail is necessary. It could save their clients much headache in the long term.

Posted by Louise
May 24, 2017
Research & Statistics

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