Six (6) advantages that companies can derive from disclosing social and environmental information in annual report.

Benefits that companies derive from disclosure of social and environmental information in annual reports:

  • Top Management/Board of Directors: top Management needs the disclosure to respond to press criticisms, answer shareholders‟ questions and ensure that company policies are followed. 
  • Board of Directors, because of their growing legal liability, needs to know in some details what social programmes the company undertakes. 
  • Environmentalist and other stakeholders:Management can disclose social and environmental information to satisfy the above groups. 
  • Social and environmental disclosures influence some investors decisions.
  • Disclosures also differentiate a company from its competitors. 
  • It can confer on the firm, some level of acceptability within the local environment. 
  • It may indicate the ability to manage key resources, risks and relationship

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