Watchdog’s ire provoked by ‘vague’ purpose statements
Research by the FRC finds 62% of companies cannot articulate connections between their purpose, values and strategy.
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Regulators are a little disappointed. While the world is calling on companies to better define their purpose, it’s not going as well as it should.
A review of governance statements from 100 UK companies has revealed that companies have either failed to publish statements on their purpose or struggle to understand or fulfil their reporting requirement in any depth.
The Financial Reporting Council (FRC) found that while 86% of companies made purpose statements, 11% were little more than a “marketing slogan”; and 22% offered only a “vague” statement that “did not specifically articulate why the company existed, the market segme
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