The demand for social information by individual investors is supported
by the survey reported in this study. Based on the results of the 1991
survey on the usefulness of annual reports to corporate shareholders,
there appears to be a strong demand for information about product safety
and quality, and about the company′s environmental activities.
Furthermore, a majority of the shareholders surveyed also want the
company to report on corporate ethics, employee relations and community
involvement. Since there appears to be a strong demand for social
information by shareholders, serious consideration should be given to
requiring certain social disclosures in annual reports. Furthermore, a
large minority of those surveyed would like these disclosures to be
audited. It may be in the interest of the auditing profession actively
to support those areas of social disclosure that it feels comfortable
auditing and to develop the skills to provide such audits. If not, the
profession may find itself in the position of being required to attest
to something for which it has no expertise.
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