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What is the Internal Report? – Definition,  Mean, Example
Business

What is the Internal Report? – Definition, Mean, Example

Internal Report Definition

The internal report is the document that communicates essential information to inform people inside the organization.

These documents designs it views and evaluated only by individuals working inside the institution.

What is Mean by Internal Report?

  • Internal reports must carefully identify since they contain sensitive information about the business health, indicators, performance, and development in different areas.
  • They often create employees from the organization and deliver and intended it provided to employees in the organization. The reports deal with different subjects like finance, sales, marketing, and human resources.
  • And companies often protect themselves by classifying these documents correctly as confidential to avoid accidental and intended disclosure.
  • And Staff members are also frequently asked to sign non-disclosure agreements to avoid the leakage of certain sensible information contained.
  • These reports might also jeopardize the company’s success in specific projects, products, and any other field.
  • And businesses must define the exact classification for documents and reports existence generated. It separates those that design for internal purposes only from those that it disclosed to the public.
  • It’s significant for public companies that trade in the stock exchange since asymmetric information or insider information is an important matter, legally speaking.

Example

  • Clarks Pharmaceutical Co company that produces drugs for cardiovascular diseases.
  • The company takes the specialized field it simultaneously working drug increases the blood’s oxygen level and helps the brain’s activity.
  • The Project Manager recently issues an internal report that contains several observations about the drug’s behavior and results obtained during the human trial phases.
  • Also, the tests revealed specific side effects that remain undesirable for potential clients.
  • And the manager advises the company to change some of the components it reduces the number of side effects.
  • Somehow, the report leaks to the media, and it causes a critical decline in the company’s share price, which caused significant losses to investors and shareholders.
  • The company conducted the investigation and fired the three employees who worked together to leak the report.
  • They require to sign the non-disclosure agreement that prohibited any internal report disclosure, such as this one.


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