From disclosure to discourse

Burdened by complex regulations, many companies prioritise boilerplate compliance over authentic storytelling. However, the cost of failing to tell your story may ultimately impact your business more than the cost of compliance itself.

This year represents a turning point with the Financial Reporting Council updating the Strategic Report Guidance and the new UK Corporate Governance Code coming into effect. While these introduce fresh elements and reduce some “red tape,” certain opportunities to move from “ticking a box” to establishing genuine discourse are frequently overlooked.

Strategic Report Guidance: Are companies missing the point?

The updated guidance is now more concise, organised by theme, and consolidates various pieces of legislation into one document. Despite this clarity, companies often neglect two vital topics within the guidance: materiality and communication principles.

• Materiality: Companies often equate complexity with importance, resulting in impenetrable reports. True materiality requires asking whether audiences need specific information and why. Focusing on what is essential signals authority and a deep understanding of the business.
• Communication Principles: Many fixate on subtopics like comparability or linkage, forgetting that the report must primarily serve as an “effective medium of communication”. For example, there is little value in presenting a strategy that is fair and balanced, well-linked, and company-specific if it is discussed so nebulously that it fails as a piece of communication. Ultimately, it is better to say a little well than a lot badly.

UK Corporate Governance Code 2024: New topics, same old solution?

Many companies skip directly to the Code’s provisions, ignoring the introductory guidance that clearly discourages boilerplate reporting. The FRC wants companies to “tell their story, their way,”. particularly regarding culture and outcomes of board activities and decisions.

Early reports, in large, have continued to “bolt on” these requirements in tables or boxes. Best-practice reporting, however, connects these disclosures, for instance, by framing outcomes within the broader strategy or presenting culture in a logical structure that flows from ambition to results.

The solution? Embrace your difference and Super Connect

Some people describe what we have discussed as capturing the ‘spirit’ of regulation. It is more than that. These expectations are written into the guidance itself. But how do you deliver against it? The answer is twofold.

• Embrace Your Difference: Identify the “golden thread” that differentiates your business from competitors and focus on the material details to craft a clear and concise story.
• Super Connect: Embed this story consistently across all your communications. This creates a seamless experience for human audiences and helps AI deliver your narrative more reliably to end users.

By doing these two things you can move away from basic disclosure and set the tone for a more meaningful discourse with your audiences.

Get in touch

If you’d like to discuss this, or any other subject, please get in touch with Richard Costa, Consultancy Director, at richardc@gather.london

We’d love to know what you think.