SIO calls on Prime Minister to implement mandatory corporate reporting

The Social Investment Organization has challenged Prime Minister Chretien to do more than just appeal to corporations to voluntarily report on their social and environmental issues.

In a speech to business leaders at the United Nation's World Summit on Sustainable Development in Johannesburg, the Prime Minister encouraged companies to report on their social and environmental impacts. But the Prime Minister fell short of calling for mandatory social and environmental reporting either through the Canada Business Corporations Act or through provincial corporate.

"While voluntary reporting is helpful, only through mandatory social and environmental disclosure will investors obtain important information on all publicly-listed companies," said SIO Executive Director Eugene Ellmen. "This is essential information that investors need to assess risks and opportunities related to the environment, employee relations, international communities and other critical non-financial issues."

"Recent accounting scandals have shed light on other corporate abuses, which have had human and ecological consequences as well as financial impacts. Investors need information related to these risks to properly assess the long-term prospects of companies listed on our stock exchanges. We urge the Prime Minister to move forward on legislation or regulations to make such reporting a requirement for publicly-listed companies."

For more information, visit Prime Minister’s remarks to business leaders.

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