Insider trading & industrial action being hidden from annual reports

A third of FTSE 100 companies are concealing relevant information from their annual reports and painting an inaccurate picture of opportunity and risk, a new report has found.

The Valuing Your Talent partnership unites the CIMA, CIPD and CMI. It’s calling on companies to measure and disclose how they measure human capital so stakeholders can make informed decisions based on an accurate picture of opportunities and risk.

The research found that two in five firms have scaled back the amount of information they report on. However, quality and quantity of reporting on human capital issues is on the rise; ethics (up by 22%), diversity (up by 39%) and human rights (up by 127%).

A discrepancy between media and company reports was also found. One example is trade union action. There were three instances of trade union action at FTSE 100 companies in the media, but only two of those organisations mentioned these industrial disputes in their annual report.