Transparency in corporate reporting: Assessing the world's largest companies

Page 34

Companies often argue that country-by-country reporting can be hindered by local legal, regulatory or even informal requirements. This argument is most often put forward in the context of developing countries. Kazakhstan, Nigeria and Russia were examined to assess the validity of this argument. It was found that even in these challenging environments, some companies were able to disclose information, even if the majority did not. In the diagram below the three countries are compared. Thirty-six companies from our sample operate in Kazakhstan, of which 30 disclose no data on their Kazakh operations. Among the six companies that disclose some data on their operations in Kazakhstan, results range from 10 per cent to 40 per cent. Among the 33 companies operating in Nigeria, 24 report no data and the remaining nine achieve results between 10 per cent and 50 per cent. Among the 71 companies operating in Russia, only 11 produce any country-level reporting and they received results of between 10 per cent and 50 per cent. Such observations demonstrate that local conditions are not an excuse for poor country-by-country reporting. Companies that make the effort can disclose countryby-country information even in challenging environments.

Diagram 8 Country Level Reporting Examples Where 100% means a company fully reports on its operations in the specified country

DIFFERENT LEVELS OF DISCLOSURE ON OPERATIONS IN THE SAME COUNTRY NIGERIA

KAZAKHSTAN 40%

ENI ONGC

RUSSIA 50%

Statoil

50%

Gazprom

ONGC

30%

Statoil

Allianz

20%

Shell

30%

BP

Arcelor

20%

Chevron

20%

ONGC

Chevron

20%

CNOOC

20%

Allianz

20%

Total

20%

Arcelor

20% 20% 20%

SAP

30%

10%

30 other 0% companies

BAT

10%

Conoco

GlaxoSK

10%

ENEL

SAP

10%

NestlĂŠ

24 other 0% companies

50% 40% 30%

20%

BAT

10%

SAP

10%

60 other 0% companies

32

Transparency International


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