The Statement is a simple one-page annual declaration, issued by the company’s board of directors, that clearly and concisely articulates the significant audiences for the upcoming year or more and the time frames the company uses in evaluating its impact on them. The Statement helps determine what information is material for external reporting purposes and enables the company to properly frame the dialogue it has with its investors, other significant audiences, and all other stakeholders. Doing this requires that the board makes the tough choice of being transparent about which audiences are significant and which are not. While companies rightly claim that they only want to report on what’s material, most could do a better job of explaining how that determination is made. The Statement is the foundation for doing so.