The second model presented in the ICAEW report (2002), addresses the problems of long time value delivering process by the companies and the return maximisation on capital. The Hermes principal find the open communication with shareholders a key issue in order to help them assess the present situation of business and the future performance. Balance scorecard: It is considered as the strongest ideas in the last 15 years covers all the aspects from customer to business process and learning and growth. The model is a response to the dissatisfaction with the external reporting models. Jenkins Report:

The model emphasis the importance of the relevance of the information provided to the shareholders financial statements in order to effect their decisions. With changing and innovative business environment the information provided should also be changed in order to effectively fulfil the needs of the users. The model put greater emphasis on the needs of those who value equity securities. Tomorrow’s Company: The model puts more emphasis on stakeholders’ relationship rather than on financial measures. • Heavy reliance on financial measures has damaged most of the company’s reputation.

The financial performance does not represent the overall performance of the business. The position of the company in the market and the performance cannot be judge by only addressing the financial measures. The model recommends that the role of the intangible assets is growing in determining the future performance of a company. The 21st Century Annual Report: The model emphasises the need of disclosing a wider range of financial information. The model takes into consideration how the business report can effectively address the needs of the changing information demands of the users.

The model is a step forward from the above proposed models it assets that a successful business report should not only address the leading financial indicator and stake holder value but should also make use of IT and Internet to provide the information on easy to reach and cheap basis. The Inevitable Change: • The inevitable change also requires the business reporting to be done by using technology in order to cater the need of versatile, fast and frequent provision of information for today’s broad business environment and increasing kinds of the stakeholders.

It is found that the business reporting is more effected by the will of producer’s rather than users. Inside Out: The model demands an increase in disclosure about the strategic indicators and performance of the business. Most of the companies often report only about the past performance. In order to attract the attention of the shareholders it is important provide information about the potential of the company in order to gain the strategic goals and achievements. In order to create customer value it is important answer all the suspicions of the shareholders regarding the strategic direction, implementation and achievement of the goals.

Companies often cannot keep up the pace with the information requirements of the users. GRI: It is a reporting template for the businesses, which takes into consideration social, economic and environmental performance of a company. The GRI model suggests that the following elements should be included in the business reports. • Vision and strategy. • Profile. • Governance of the company. • Performance indicator. • Guidelines related to economic, social and environmental performance indicators. Unseen Wealth:

The model offers importance to the value chain of intangibles, and suggests that the assets should be disclosed to a certain level. The Companies should keep on discovering, developing and commercialising the stages of the value chain for intangibles. It is also suggested that the reporting of the intangibles should be done with great care since poor reporting of intangibles leads to under valuation of, and increased cost of capital for knowledge intense companies. ValueReporting: 1. The model put forward the suggestion that the proper reporting can lead to cost reduction and the value improvement of a company.

Dallas (2006) states that in order to make the organisation work effectively the Investors and stakeholders should: • Recognise that governance is a risk. • Governance-related risks need to be better understood by shareholders, creditors, D&O (directors and officers) insurers and non-financial stakeholders; • Understand that there are limits to governance-related laws, regulations and codes: governance risks will not be eliminated by compliance, and even with compliance there is scope for differentiation at the company level;

• Institute case-by-case company analysis as standard practice. • One size does not fit all. Governance assessment should be guided by principles, not rules. • Be alert for both underachievers and overachievers. Companies and directors should: • View governance as a dimension of enterprise risk management and as a source of sustainable competitive advantage; • Regularly assess governance structures and practices – especially listed companies wishing to maintain access to public capital markets;

• Continually improve transparency and disclosure standards, particularly with regard to non-financial risks and how these are communicated to different stakeholder groups. Companies can use disclosure to signal their commitment to corporate governance specifically and to the management of non-financial risks more generally. Today, there are many number of codes of governance around the world but they are all based on the three principles I have already mentioned – those of transparency, integrity and accountability.

In order to avoid scandals like Enron the Government should introduce the codes of financial ethics in order to improve sense of responsibility in the corporate employees and Management. A fair accountability should be undertaken so that the main responsible should pay the price of the fraud. With the changing business environment and increased awareness of the shareholders and investors the information needs for assessing risk has also been changed. Risk assessment plays an important role in the decision making of the investors.

Researchers and business bodies have increased their concentration on the area of risk disclosure in order to respond to the needs of the shareholders and investors. Risk plays an important role in the investment decisions by the shareholders. The improvement in public scrutiny and controlled market discipline is largely dependent upon the meaningful and accurate disclosure of information. This not only helps the shareholders but also helps the organisation to conduct business in a safe and efficient manner by achieving their targets through improving their risk management processes.