Disclosure of Financial Information to Employees

Abstract

It has long been recognised that one of the rights of owning shares in a company is to receive a written annual report on the current state of health of the company and its performance over the preceding 12 months. Should this same right extend to employees? Many would argue that it should because the employee unlike the shareholder is normally dependent entirely on one company's ability to survive and pay, amongst other items, wages and salaries. Also, in many cases, an employee has invested many years of his working life with one company and therefore has a substantial vested interest in the performance and future survival of the company.

Citation

Hancock, P.J. (1979), "Disclosure of Financial Information to Employees", Employee Relations, Vol. 1 No. 2, pp. 19-21. https://doi.org/10.1108/eb054930