CASES Case: Greenwash's Wish List The management of Greenwash company is concerned about the growing demand on the part of investors and the public in general for environmental disclosures in corporate annual reports. In reviewing a number of foreign competitors' annual reports, they have observed a variety environmental disclosures, including 1) actual and contingent liabili. ties for the cost ofenvironmental clean-up, corporate programs and policies to protect the environment, and self-assessment reports ofthe internal goals reached with res to its environmental protection measures. They have also noticed that some companies include environmental disclosure in their annual report while others prepare a separat environmental report The management of Greenwash is agonizing over the type and extent of environmental disclosure to provide in the company's next annual report.They have hired you as a consultant to help them establish environmental reporting policies. 1. In your opinion, are environmental disclosures in company annual reports neces- sary? Explain