Answer to Question #52906 in Other for Angie Ooi Kheng Tin

Question #52906
The Fourth Company Law Directive requires companies to include where appropriate
information (key performance indicators – KPIs) relating to environmental and
employee matters in their annual report to the extent necessary for an understanding of
the company’s development, performance and position.
Based on the above statement, critically discuss and evaluate how the inclusion of the
environmental and employee information will be relevant to the current conceptual and
regulatory framework.
Expert's answer
Inclusion of the environmental and employee information in an organization’s annual report is of great relevance since the information will be used in the regulatory framework of the organization. A regulatory framework provides important information to help in making decisions concerning the economic state of an organization. The regulatory framework helps to know the extent a company has discharged its duties of accountability to stakeholders. Disclosure of this type of information helps companies to gain credibility and acceptance in the key markets. In places with a large number of multinational enterprises, disclosure of this type of information is seen as an important means of business drive.

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