The trust of the general public in the capital markets — which is recog- nized as the foundation of value creation all over the world — has been shaken. The straw that broke the camel’s back was the Enron scandal — the largest market cap company to declare bankruptcy. But the signs of serious flaws in the capital markets were already present — from well-publicized business failures to the collapse of the Internet bubble to the decline and volatility of the equity markets.
Enron and other scandals have focused the public’s attention on the institutions and people responsible for the information on which investors (as well as lenders, trading partners, customers and employees) depend. Public trust must be restored in this information — and in the purveyors of that information.
This summary offers a model of corporate reporting aimed at restoring that public trust and confidence. The goal of this model is to ensure a spirit of transparency, a culture of accountability and the participation of people of integrity in the corporate reporting process.