This question tested their knowledge of intended reporting but more importantly requisite them to apply their knowledge and consider the impact from the investors' perspective.

The only approach essential was to make sure that all comments were made to specifically answer the question - the focus of the question parts were in bold to assist candidates.

(a) Social aspects

WRT operates in many dissimilar communities and so investors will be eager to know how the entity interacts with all the various communities. It will be important for the mortal to have clearly stated policies recitation to social responsibility and processes in place to ensure that all the divisions are stick on to entity guidelines and complying with employment laws, which could be different across the divisions if they are located in various countries. Failure to fulfil with local laws could lead to penalties and damage to the entity's reputation.

Investors will be anxious about the health and safety measures adopted by the entity, showing a obligation to good social responsibility and once again adhering to local laws and avoiding consequences. Investors will also want information on reasonable pay and a clear clue that the entity is not exploiting staff or communities as a whole with any of its activities. Investors are likely to be mainly concerned about operations in countries that are not known for having rigorous employment laws or efficient monitoring procedures. It will be important that WRT makes it clear that it is committed to a policy of reasonable pay and that its' monitoring of foreign operations make sure this is adhered to

Environmental issues

WRT's investors will be interested in the level of emanations created by the manufacturing plants to make sure that they are within legal limits as any breach could result in future losses.
They will also be keen to see that the entity's policies are proposed to minimise the environmental damage to the local communities in which it exertion. This should ensure that the eminence of WRT remains high.

(b) Limitations

The absence of official guidance on the content and structure of voluntary disclosures does reduce the level of comparability among entities, for the reason that diverse definitions and measurement bases will be used. In addition, reporting entities are open to choose the information they wish to report which often results in the intended disclosures being more of a PR exercise whereby entities only report the positive aspects.

Voluntary information is not likely to be reviewed and therefore may not be reliable. This reduces the usefulness of the information. The insertion of voluntary disclosures will incur additional costs of preparation and therefore reduces the future income available to shareholders.