The flow of information from firms is a matter of demand and supply. Society requires companies to disclose information. But, equally, the smart organisation is eager to supply it. It wants to communicate to the various constituencies with which it interacts; it wants to tell its story.
Today, the information flow has become demand driven, as firms grapple with the Sarbanes Oxley Act, Basel II, money laundering rules and the implementation of International Financial Reporting Standards. The spirit of these regulations often appears suspicious and punitive, with many companies suffering from compliance anxiety. They feel increasingly defensive rather than communicative.