"The US is lagging behind the rest of the world on corporate diversity and inclusion
disclosure based on a new analysis of financial reporting, by risk analytics company
Datamaran. The company used a natural language processing algorithm to gauge how
companies are prioritising the issue."
These findings should be a “red flag” for investors, said Datamaran’s chief executive
Marjella Lecourt-Alma. “Transparency, or lack thereof, on important issues like
diversity and inclusion reflects a company’s corporate governance approach, culture
and risk mindset,” she said.
How Materiality Impacts Reputation
Several global companies have been shocked by scandals and crises in recent years.
These crises raise questions about why various governance, environmental and safety risks hadn’t been foreseen.
The analysis shows that Boeing, Nissan and Volkswagen had failed to report material information in the years leading up to the scandals. Failing to identify key material issues can also lead to adverse publicity, the withdrawal of investors and a drop in share prices.
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