Media Release

22 June 2006

CFOs Support Move for a Simpler Regulatory System Cost/Benefit Analysis should be Considered for any Changes

The G100, which represents the CFOs of Australia’s leading enterprises, today welcomed the recommendations of the Parliamentary Joint Committee on Corporations and Financial Services on corporate social responsibility issues.

Tom Honan, National President, said that: “The G100 strongly supports measures which create an environment in which experimentation with CSR reporting is able to flourish in what is still very much an evolving area.

“Reporting on non-financial and sustainability issues is in its infancy and improvements will occur as a result of experimentation by different types of companies. The Committee’s decision to adopt a flexible approach rather than the imposition of mandatory black letter law will encourage boards to continue to take interests other than just financial into account.

“Flexibility is important as approaches to CSR will vary depending on the nature of a company, its culture and the relationships it has with the communities in which it operates.

“In a competitive environment the practices of leading companies and how they report will serve to encourage improved reporting by other companies as they respond to changes in community expectations – an approach unlikely to occur under a mandatory regime imposing a ‘one size fits all’ approach”.

“For instance, Westpac issued a sustainability report two years ago and in 2005, one of its competitors, the ANZ Banking Group, issued its first CSR report. Both reports use different formats and presentation approaches but this does not diminish their role or usefulness.

“That companies will not be subject to mandatory changes and further regulation is also a welcome sign that the Committee has taken seriously the need to simplify business regulation rather than introduce further layers of it.

Mr Honan commented that the G100 publication ‘Sustainability: A Guide to Triple Bottom Reporting’ provides guidance for members and others who are assessing the approaches to reporting on CSR related activities and emphasises that the approach adopted should be one which best suits the activities and culture of a company.

Released by:
The Group of 100
Melbourne
Tel: 03-9617.3700

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