Posted 4th December 2014
The SROI Network, soon to be Social Value UK, has just released a report calling for a change in legislation to demand more assurance of social and environmental impact information.
The report, entitled How Do Companies Act, outlines an argument for extending statutory audit requirements of Annual Reports. It includes a discussion of gaps and limitations in current legislation in Companies Act that prevent investors from truly understanding social and environmental impact information that may inform their investment decisions.
Whilst this area does not always make headlines, the profession of accounting and auditing acts as the gatekeeper for large capital flows, and is fundamental to the way we choose to allocate resources. If long-lasting systemic change is to be effected, it is necessary to address this crucial link in the capital chain. This report is a step in this direction.
Jeremy Nicholls, CEO of the SROI Network, says ‘we have argued that whilst there is an increase in demand for information on the social and environmental impacts of a company’s activities, the current auditing requirement means that it is difficult for investors to know that this information is complete and accurate.’
‘We believe that strengthening this legislation will give investors a more accurate idea of where they are investing their money and, if in the investors’ interests, mean that investment will shift to businesses which on balance have less of a negative social and environmental impact.’
The report How Do Companies Act is available for download from the SROI Network’s website here. The report is a key part of the SROI Network’s wider campaign to change the way the world accounts for value, to increase the accountability of businesses to their stakeholders and the environment.
-ENDS-
Press contact
Helen Campbell, Communications and Membership Coordinator, The SROI Network
T: +44 (0)151 703 9229
Notes to editors
About the SROI Network | www.thesroinetwork.org
Social Return on Investment (SROI) is a framework for measuring and accounting for the value created or destroyed by our activities – where the concept of value is much broader than that which can be captured by market prices. SROI seeks to reduce inequality and environmental degradation and improve wellbeing by taking account of this broader value.
The SROI Network, soon to be Social Value UK, is an international membership organisation with members in over 40 countries. It exists to support the vision of SROI through the formation of a collaborative network of individuals and organisations dedicated to the practice and support of SROI.
The membership comprises business advisors, academics, funders and individuals representing organisations across all sectors. All members want to influence change through their work; practicing SROI, creating national networks, developing the methodology and gathering examples of SROI and how it is being used.