What must companies report regarding their engagement with stakeholders?

Companies are required to report on the impact of their business on stakeholders to provide transparency and accountability regarding their operations and decisions. This reporting encompasses a range of issues, including social, environmental, and economic effects that the company may have on various groups such as employees, customers, suppliers, and the community at large. By disclosing this information, companies can demonstrate their commitment to responsible business practices and ethical engagement with stakeholders.

Stakeholder engagement is increasingly recognized as crucial for sustainable business practices, as it helps companies understand the concerns and values of those affected by their operations. This information is essential for building trust and fostering positive relationships with stakeholders, which can ultimately lead to long-term success.

In contrast, the other options, while important in their own right, do not specifically address the broader responsibility companies have toward their stakeholders. Financial performance metrics, employee turnover rates, and sales growth are focused more on the internal financial and operational health of the organization rather than their broader impact on the external community and environment.