Welcome to the TISCreport corporate transparency FAQ! If you want to find out more about the transparency data we report on corporate profile pages, you're in the right place. Corporate transparency is a fundamental value for any ethical organisation and is the foundation for our platform. We believe that if we get the data infrastructure right, corporate transparency can and will become the new "business as usual" and bring with it a safer, fairer world.
What is corporate transparency?
Corporate transparency refers to the level of openness and honesty that companies have in their business operations and activities. This includes providing accurate and transparent information about their finances, operations, and decision-making processes. Corporate transparency is important because it helps to build trust and credibility with customers, employees, investors, and other stakeholders. It also allows for greater accountability and responsibility, which can help prevent unethical or illegal behavior within the company. Additionally, corporate transparency can help companies to identify potential risks and opportunities, and to make more informed decisions. This can ultimately lead to improved financial performance and a positive reputation for the company.
What is supply chain transparency?
What is a transparency report?
TISCreport transparency reports are intended to provide a snapshot of contextual ESG data that is publicly available in relation to specific organisations/corporate bodies. The aim is to aggregate key indicators of corporate behaviour that enables the public and external organisations (buyers, suppliers, regulators, governments etc) to be able to assess self-reported information in the context of compliance and accreditation related behaviours. The information is aggregated to enable our users to make their own judgements and check facts against other trusted third party sources. There are many conflicting data sets across multiple authority websites. We hope our work in bringing it all together will help us establish a baseline of truth in relation to corporate actions on human rights and climate change. The greater the transparency of an organisation. the more trustworthy it can be deemed to be in its dealings with regards to our planet and the people on it.
Where does TISCreport get data from?
In order to achieve our corporate transparency mission, our bots act as the "outsiders", gathering publicly available data shared by corporate entities in multiple public repositories and registers.
Our TISCbots trawl many places, from the corporate websites we have on record for those organisations to government registers and third party registers. We also fold in information provided by both buyers and suppliers, and rely on human input to train our bots to improve the quality of data they find. Companies House in the UK is fantastic, along with Open Corporates, which enables us to be a global platform. We attribute all public data sources with links to enable a human "outsider" to create their own context. Our "Internet of Connected Entities" is overlaid ontop of available compliance, accreditation and classification data in order to create contextual ESG data within a supply chain transparency framework.
How are you classifying company/organisation sizes?
We use the definitions detailed in the UK Companies Act 2006. Large companies are classified as meeting two out of the three following thresholds:
- £36 million annual turnover
- 250 employees
- £18 million Balance Sheet Total
Medium sized enterprises are classified as such if meeting two out of three of the following thresholds:
- Less than £36 Million turnover
- Not more than £18 million balance sheet total
- Not more than 250 employees
Small companies are classified as such if they meet two or more of the following requirements:
- Less than £10.2 Million turnover
- Not more than £5.1 million balance sheet total
- Not more than 50 employees
The thresholds for medium-sized parent companies are as follows:
- Aggregate turnover: Not more than £36 million net (or £43.2 million gross)
- Aggregate balance sheet total: Not more than £18 million net (or £21.6 million gross)
- Aggregate number of employees: Not more than 250
What is ESG and what is ESG data?
What is Contextual ESG data and how is it different to ESG data?
ESG data has come under extreme scrutiny in terms of whether or not it is fit for purpose in assessing an organisation's sustainability and ethical practices. Many use financial measures or annually produced reports but this is insufficient for all but skin-deep assessments. TISCreport TISCreport connects silos of data across the world with an open data infrastructure based on our unique Internet of Connected Entities (buyers, suppliers, regulators, director connections, stakeholders, funders etc). With it our users can better judge an organisation's actual ESG actions against those reported in the context of its interactions with those connected entities.
What is non-financial risk and how does it relate to transparency?
how does non-financial risk relate to financial risk?
What are the characteristics of an ethical company?
How do insurers use non-financial risk data?
Insurers use non-financial risk data to assess the likelihood of an insured event occurring and to determine the appropriate premiums to charge for insurance coverage. Non-financial risk data may include information about the insured's location, occupation, driving record, health history, and other factors that can impact the risk of a claim being made. By analyzing this data, insurers can better understand the risks associated with insuring a particular individual or group and can tailor their coverage and premiums accordingly. Non-financial risk data is also used to identify trends and patterns that may be indicative of higher or lower risk, which can help insurers develop more effective risk management strategies.
How can companies combat greenwash?
- Be transparent about their environmental practices and policies. Companies should clearly communicate their environmental impact and the measures they are taking to reduce it.
- Obtain third-party certifications or recognition, such as LEED (Leadership in Energy and Environmental Design), Real Living Wage Employer Accredtation, or Social Enterprise/B Corporation certification, to verify their environmental claims.
- Participate in industry-specific sustainability initiatives, such as the Consumer Goods Forum's (CGF) Sustainable Development Goals (SDGs).
- Engage with stakeholders, including customers, employees, and environmental groups, to get feedback and input on their environmental practices.
- Develop a comprehensive environmental strategy that goes beyond just marketing efforts and includes genuine efforts to reduce their environmental impact.
- Use metrics and data to track and report on their progress in reducing their environmental impact.
- Be proactive in addressing any false or misleading claims made about their environmental practices.
How can corporate transparency combat greenwash?
Corporate transparency can combat greenwash by allowing consumers and clients to access accurate and comprehensive information about a company's environmental practices. When a company is transparent about its environmental impacts, consumers/buyers can make more informed decisions about their purchases and support businesses that are truly committed to sustainability. Additionally, corporate transparency can help to hold companies accountable for their environmental claims and actions, as it allows stakeholders to track the company's progress towards sustainability goals and identify any discrepancies or inconsistencies in their environmental messaging. By promoting transparency and honesty, companies can demonstrate their genuine commitment to sustainability and reduce the likelihood of being accused of greenwashing.
Is there any research on the relationship between corporate transparency and corruption in companies?
Here are a few links to research on the relationship between corporate transparency and corruption in companies:
How is AI being used to increase corporate transparency and who is doing it?
What is radical transparency?
Radical transparency is a phrase used across fields of governance, politics, software design and business to describe actions and approaches that radically increase the openness of organizational process and data. Its usage was originally understood as an approach or act that uses abundant networked information to access previously confidential organizational process or outcome data.
Does GDPR conflict with efforts to achieve corporate transparency?
No. GDPR relates to personal data rather than corporate data. Additionally, personal data about directors is exempted as explained below.
Director Identities on Companies House
Here is a helpful explanation from Digital Content Manager of Companies House, Jonathan Moyle:
"Under section 163 of the Companies Act 2006, a director must register their date of birth (plus other details) when they're appointed. The company must then send this information to Companies House under section 167.
We have a duty to register this information and make it available to the public. For directors appointed after 10 October 2015, only the month and year from their date of birth will be publicly available.
The GDPR allows an exemption under Schedule 2, Part 1 (5) of the Data Protection Act 2018. This exemption applies to Companies House because we must make information about registered companies available to the public under the Companies Act 2006."