ABSTRACT
A host of initiatives are actively contributing to this process of redefining materiality in practice and policy including AccountAbility and the World Economic Forum's initiative 'Mainstreaming Responsible Investment'. Understanding what material is core to many aspects of corporate governance and accountability, notably the basis on which boards of directors, investors and other interested stakeholders make decisions that drive business performance and outcomes. Crucially, the proposals offer a careful balance by extending the interpretation of materiality, while also offering a framework for application that guides company directors and assurance providers more effectively than many existing approaches. Viewed through the eyes of company directors, their concern is often that of the likelihood of litigation over disclosure that is seen to misrepresent the truth. The Operating and Financial Review of the proposed UK Company Law, similarly, frames non-financial disclosure firmly within a 'business performance' model, while allowing considerable latitude in interpreting what this can, and cannot, cover.
