Chancellor Gordon Brownís controversial announcement to abolish the mandatory Operating and Financial Review (OFR), ostensibly to reduce the red tape burden on businesses, has left many organisations somewhat irritated at the amount of work that has gone into the preparation ñ much of which may now seem like a waste of time.
However, according to a snapshot survey by specialist finance recruiter, Nigel Lynn, it seems that companies are accepting that going ahead with the OFR on a voluntary basis will reap benefits in the long term. The survey, which questioned 124 investor relations departments on their plans, found that almost two thirds (65%) would be incorporating some form of OFR into their annual report. ìFor one thing, weíve done most of the groundwork anyway so it would be a pity to waste itî said one respondent. Another commented: ìStakeholders, whether they are shareholders, customers or employees, are far more interested in whatís behind the numbers these days ñ itís no bad thing to keep it in as best practice.î
Additionally, in a war for talent scenario, it seems that corporate social responsibility (CSR), an integral part of the OFR, is high up on many applicantsí agendas. In a recent survey carried out by three leading business schools - Manchester in the UK, Instituto de Empresa in Spain and Tuck in the USA, final year MBA students from 25 countries around the world were asked what factors would influence their choice of job. Respondents rated corporate values and ethics third, just after job satisfaction and work/life balance ñ and well ahead of money and professional status.
ìItís not always enough to be an employer who is successful, profitable and offers good career developmentî, says Steve Carter, Managing Director of Nigel Lynn ìnow your organisation must also be a good corporate citizen. The corporate debacles of recent years have brought the issue of ethics right to the very top of the business agenda.î
ìAdditionally, the new OFR would have had a requirement for human capital reporting ñ covering elements such as motivation, reward, retention, leadership and succession planning ñ all issues which companies could use to clearly differentiate themselves from competitors in the market. No longer are topics such as CSR and Human Capital Management seen as just a PR exercise ñ today they have to be an integral part of business planning and, in the war for talent, they might just be the difference between winning and losing.î
Keeping the OFR could be a winner in the war for talent
Corporate Social Responsibility can be major factor says finance recruiter
