Yes, my fellow judges and I have deliberated, and our verdict on the best corporate reporting websites has just gone live in this month’s IR Magazine, a leading investor relations publication.
Given a cross section of international reports, our job was to assess how effectively they told their investment story. Imagine my excitement! This of all years was the time, surely, when their understanding of how the world around them affects the bottom line would really shine through. We know that irresponsible lending, dodgy accounting and weak regulation brought the financial system to near collapse. We think that unprecedented government intervention in banking, insurance, automotive and other sectors has stabilised the melt-down. But it also rewrote the accepted boundaries of responsibility between private and public sectors and hasn’t stopped a global economic downturn.
How would companies report this? After all, investors have a right to expect their companies’ managers to understand the social and environmental issues that impact the business, and to have a plan to address them both in the short term and through long term corporate strategy.
Well, the overall winner (you’ve been wondering) is WPP, the global communications group. Certainly a strong web site from an IR viewpoint. But IMHO the best for integrated CSR was the overall runner-up, Cadbury’s.
Prominent on its website, in corporate reporting and in a separate responsible and sustainable business micro-site are its responsible consumption and supply initiatives, neatly linking security of quality raw materials with the consumer proposition. With a clear values base and strong historic culture, the company’s commitments extend to employees – seen here as an asset to be developed, not a cost to be cut – and environmental issues under the ‘purple goes green’ strap line (where cost cutting actually does makes sense for company and wider world through reduced energy and water consumption).
Well worth a good look. Especially as the rest actually weren’t much to shout about. One or two in the chosen crop are embracing the language of sustainability – Procter & Gamble and Barclays for example – a refreshing change from the investor perspective, as it implies a move away from the appearance of good behaviour to what makes a successful business now and in future years too.
But too many still present a pedestrian account of good works, usually placed well away from where an investor might find them. Hmmm. Those that want to survive and prosper the next few years will have to up their game.
And one to watch for the future is Unilever – not covered in the survey this time round. Its 2008 annual report has successfully integrated social and environmental risks and opportunities with its strategy for brands and growth.