Disclosure of Non-financial Information in Corporate Social Reporting as a Strategy for Improving Management Effectiveness
With the economic relationships being, as evolved, as they are today, the need for further development of the concept of intellectual capital is gaining particular relevance as it is the key factor that determines the difference between companies' market and book values, and corporate social responsibility levels. The objective of the research is to find the key gaps and shortcomings in the existing approach to intellectual capital accounting and reporting, and to propose appropriate solutions relevant to fully meet the information needs of stakeholders regarding the capitalization of costs associated with the creation of internally generated intangible assets, maintaining records of personnel-related costs. The authors propose a technique for data completeness analysis, which allows evaluating the quality of non-financial report (on the scale from 1 to 268, were the 268 is the most informative report) by taking in consideration the contents of information provided in the companies' reports under each of 32 disclosure items grouped into eight content elements. Disclosure items developed are based on the assessment of possible information which can be provided in non-financial reports. Ten Ukrainian businesses operating across different sectors of the economy which published their corporate social responsibility reports have been evaluated by using the proposed technique and the received total rate is from 24 to 150 points. (original abstract)
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