A new report released by Transparency International has assessed the disclosure practices of 100 emerging multinational corporations, active within 185 countries. Broken down into three assessable categories, the report assesses:
- reporting of anti-corruption programs;
- disclosure of company structures; and
- financial disclosure on a state-by-state basis.
The results are not promising, to say the least. On average, companies scored 3.4 out of a possible 10; 10 awarded for high standards of transparency. Alarmingly, there has been little or no improvement when compared with similar studies conducted in 2013. This is perhaps more alarming in light of the attention given to the issue following the Panama Paper leaks earlier this year.
Anti-Corruption Programs
A strong majority of the assessed multinationals publicly declare their commitment to legal standards, including those relating to corruption prevention. However, the study found only 10 of the 100 companies assessed actually provide training on their respective anti-corruption policies to board members and employees. Overall, publicly listed companies scored much higher than state and privately-owned entities.
Company Structures and Financial Disclosure
These results seem to correspond with states and state policies, for example, Indian companies scored much higher in these categories as they are required to comply with the Indian Companies Act, requiring disclosure of financial information, including that of subsidiaries, regardless of where they are located. The report finds where there is greater regulation, there is also greater transparency.
READ REPORT HERE:Â http://www.transparency.org/whatwedo/publication/transparency_in_corporate_reporting_assessing_emerging_market_multinat