The annual report (hereinafter referred to as AR) of the organization, regardless of the scale of the business, is the main instrument of financial communications. The content, scope and design of civil defense in some countries, for example, in the UK, are actively discussed by the public, and competitions are even arranged for such documents. The preparation and production of such GOs takes a lot of money, and they are often issued in huge quantities.
GO is formal financial reporting. Every year GO is sent to shareholders. GO is prepared by both commercial organizations and non-commercial organizations. According to this document, one can judge the company's activities for the year, its presumptive position for the coming year, one can see its current state and prospects.
GO introduces users to:
• a generalized description of the industry in which the organization participates;
• audited statements of income, financial position, cash flows and notes to statements;
• analysis of the financial condition of the business and the results achieved during two of the previous years;
• a description of the organization's activities for the past year;
• information about the various business segments of the enterprise;
• market value of shares and dividends.
This is an example of a minimal HO. Such a document usually fits only a few pages. Naturally, it costs a little (except in rare cases). It can be compared to a photocopy of a document. The organizations producing these reports have a goal of simply meeting legal requirements.
Quite a few businesses see GO as effective and trouble-free marketing tools that help spread their views on the fate of their business. In other words, many medium and large companies spend a lot of money on reports that are truly engaging and informative. This kind of GO can be safely called a forum through which a company expresses its attitude, influences, preaches, expounds and discusses any number of issues and topics.
An open letter to shareholders often sets the tone for public company reporting. Such letters usually focus on such aspects as the results of the past year, the company's initiatives and strategies, market conditions, significant business events, new managers and directors. This document is signed by the chairman of the board of directors. May be the president of the company or its chief operating officer.
Some of these letters may contain a dozen or more pages and include photographs of the CEO in various poses.
More often, however, these letters are significantly shorter and are only 3,000 words, or even less.
GO is often used as a tool to promote a topic or concept that has been endorsed by the organization's management (marketing high-profile figures). In this case, one may come across phrases such as “Preparedness for the realities of the future” or “Meeting the needs of the IT age”. Among other things, civil society sometimes includes individual events or economic conditions that took place in the current year.
There are enterprises that prescribe different milestones and anniversaries in their reports, demonstrating their successes to the audience, emphasizing their reliability and quality. Other organizations produce large and multi-sided reports in a proven format that they use annually with minor changes usually related to data updates.
In any case, the best HO is one that clearly defines the strategies used for profitable growth and displays the organization in a favorable light.
