Abstract
The article examines issues relating to disclosures of social aspects in companies’ reports. The conducted study has analyzed financial and corporate reports (integrated, on social responsibility, on sustainable development) of leading Russian metallurgical companies, which consider social impacts as the most significant. The practical part of the research is based on analysis of 42 financial and 37 non-financial reports (including 23 SDR, 12 IR and 2 CSR) of Russian metallurgical companies over 2017-2019 period. In addition, we analyzed the interim financial statements of these companies for 2020. The study of social disclosures was structured into two types of reporting - financial and non-financial. Based on conducted statistical and qualitative analyses, the study offers recommendations on improving logical alignment and quality of disclosures on the social-related aspects. Suggested recommendations aim on increasing validity of investment decisions and making financial market more transparent.
Highlights
The recent years have been showing the trend of investors’ increased attention to the social responsibility of business as a factor in its long-term sustainability and, to social reporting
The article examines issues relating to disclosures of social aspects in companies’ reports
The study of social disclosures was structured into two types of reporting - financial and non-financial
Summary
The recent years have been showing the trend of investors’ increased attention to the social responsibility of business as a factor in its long-term sustainability and, to social reporting. The emergence of social reporting and its development is associated with the demand on both the investor and the society levels This trend has acquired particular importance in the context of a pandemic. Every consequence of negative changes in the planet’s ecological and biological systems has an adverse effect on the physical and psychological-emotional health of the population It results in the constant risk of social instability and social upheaval, which in turn has serious financial consequences. The topics of social and human capital are highlighted as significant along with financial capital, in the financial and non-financial statements of companies It is associated with the high importance of this information for strategic decisions including decisions in the investment area
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