The rising concerns of the stakeholders (particularly investors) on transparency and accountability has increased the focus on the role of the Board as well as its effectiveness in executing its responsibilities. Providing high quality financial information is important because it will positively influence capital providers and other stakeholders in making investment, credit, and similar resource allocation decisions enhancing overall market efficiency.
Excellence in reporting is an integral part of good governance. It increases levels of trust and confidence between companies and their shareholders and other stakeholders. It also increases levels of transparency and accountability. Disclosure becomes an essential process for building confidence that the company will deliver value over the longer term and, at the same time, manage its risks and its reputation. Disclosure changes behavior and improvements in disclosure can become a driver of improved governance. This, in turn, increases the pressure on a company to maintain and improve its operational performance.
ICAP is committed to promoting transparency and accountability in Pakistan's corporate sector. With due adherence to professional ethics, professionalism and discipline, the profession has brought about a marked improvement in corporate governance and high quality reporting in Pakistan.
ICAP has been playing a key role in developing the profession at the national as well as at regional and international level in bodies like SAFA, CAPA and IFAC, through its ongoing contribution to enhancing the quality of disclosure and transparency aspects of Corporate Governance. ICAP has taken steps to enhance the reliability of the financial statements prepared by the companies through the adoption of international standards on auditing and ensuring their full compliance through a robust system of quality control enforced by an independent Quality Assurance Board.
The aim of the Best Corporate Report Awards is to encourage and give recognition to excellence in annual corporate reporting. Awards seek to promote corporate accountability and transparency through the publication of timely, informative, factual and reader friendly annual reports. I am pleased to note that over the period, this competition has brought tremendous improvement in the annual reports of the companies in Pakistan and provide relevant and valuable information to variety of stakeholders for decision making purposes. I congratulate the Joint Committee of ICAP and ICMA Pakistan for this excellent work.