2012 Reports

The Business Case For Transparency

Toledano, Perrine

We present a two-part study, the purpose of which is to highlight that new disclosure initiatives such as oil and mineral tax payment disclosure as mandated under the Transparency Amendment and as about to be mandated by the European Union, have a place in the investment world and an impact on investment decisions. The study identifies the listed companies that integrate the
principle of disclosure of tax payments on a country-by-country basis into their reporting activity and measures their financial performance as well as their performance with respect to human and environmental protection rights of the communities where they interact. This second type of performance is important from the investors’ point of view since it is intimately related to political
risk and the ‘social license to operate’.