Much has been claimed in the corporate world about the benefits of advancing the interests of all stakeholders: customers, society, employees and investors. We have also advocated Quality Financial Reporting as a way to benefit stockholders and others by challenging management to voluntarily communicate openly and completely with capital markets.The rewards offered by these behaviors are lower capital costs and higher stock prices. A key to making any progressive corporate governance strategy work is a reputation that builds trust and reduces risk.

At the heart of QFR is the premise that managers have only two things to offer the markets: prospective future cash flows and information about those cash flows. It does not matter how good the real prospects are if the information is so tainted and lacking credibility that no one trusts it. Further, following generally accepted accounting principles isn't enough to gain that trust and meet those needs because it consists of politically compromised minimum standards.

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