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Title: Caux Round Table Approach Echoed in New Initiative to Revise Company Reporting
Date: 01-Sep-2010
Category: Announcements
Source/Author: CRT
Description: Since its inception in 1986 and expressly with its ground-breaking 1994 ethical Principles for Business, the Caux Round Table has seen the need for an integrated approach to enterprise risk management - material financial and non-financial considerations both need to be managed to maximize enterprise value. Reporting, therefore, both internally and externally, needs to integrate all stakeholder aspects of the company's business model and its consequences. To accomplish this, the CRT has developed the Arcturus risk assessment and reporting framework.

Since its inception in 1986 and expressly with its ground-breaking 1994 ethical Principles for Business, the Caux Round Table has seen the need for an integrated approach to enterprise risk management - material financial and non-financial considerations both need to be managed to maximize enterprise value. Reporting, therefore, both internally and externally, needs to integrate all stakeholder aspects of the company's business model and its consequences. To accomplish this, the CRT has developed the Arcturus risk assessment and reporting framework.

On Monday of this week, a coalition of businesses, regulators, accountants, securities exchanges and not-for-profit groups launched an initiative intended to overhaul international company reporting in the wake of the financial crisis.

Participants in the initiative include Nestlé, Aviva, EDF, HSBC, Tata and the Big Four auditors: PricewaterhouseCoopers, Deloitte, Ernst & Young and KPMG. The UK’s 100 top finance directors, business schools, including Harvard Business School, and influential not-for-profit groups, such as the Global Reporting Initiative and the Accounting for Sustainability Initiative, are also involved.

Crucially, the initiative also has the backing of the International Accounting Standards Board and the U.S. Financial Accounting Standards Board, which set the rules for financial reporting, and the International Organization of Securities Commissions, which develops and promotes international standards of regulation across financial markets.

The committee intends to publish a framework this year for a global integrated reporting model that would make annual reports comparable across borders. It would be presented to the G20 in 2011.

The G20 already backs the formation of a single set of reporting standards and G20 support for broader rules is considered crucial to their introduction.

The Caux Round Table welcomes these significant businesses and regulators to the common cause of improving the outcomes of global capitalism through better understanding of what makes for sustainable business value.



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