Companies invest a lot of time, manpower, and creativity in their annual reports. There are good reasons why they should pay equal attention to translations at the interface between information and marketing.
Boring? Those days are long gone. Annual reports were once more or less dull presentations of company figures, with C-level prefaces and off-the-shelf financial reports. But things have changed a lot since then! Modern annual reports often relegate the legally required information to the last few pages. Instead, the majority of the report is filled with insights into the company, interviews, commentaries and, of course, outstanding images: Storytelling at its best. It comes to no surprise that special awards have been established to honor true masterpieces of the genre year after year.
Professional translation for correct figures
Translated versions of the annual report are mandatory in some cases, but almost all companies produce at least an English, and often a multilingual, translation. There are some good reasons to have this done by professionals.
The most obvious one is that, at its core, the annual report represents legally binding information about the company’s financial position and strategic direction. It is not an act of courtesy to inform stakeholders correctly. It is an obligation for most companies.
Preparing the report is reserved for experts who are familiar with the specific terminology and apply it consistently. The same applies to good translations. Colloquial or inaccurate translation of technical terms into the target language is extremely dangerous, since misunderstandings and misinterpretations can have massive legal and financial repercussions. The situation becomes even more complicated with different accounting standards such as IFRS or US GAAP. Depending on the standard, individual terms can have different meanings. Compliance with the correct terminology is particularly sensitive here.
Apart from this issue, flawless financial communication is also an image factor in any industry. Even without legal consequences, mistakes in this area are simply embarrassing.
Professional translation agencies exclusively employ native speakers of the target language, who are also experts in financial communication. Furthermore, these agencies can ensure linguistic consistency. Technical terms are stored in customer-specific databases with their respective correct translations, ensuring consistent technical terminology throughout the report.
Compelling annual reports are (also) pure emotion
Consistency is important in more than one regard. Besides presenting a well-rounded picture, annual reports must also be consistent with the desired image of the company. In addition to the necessary information, language and visual imagery always convey emotions – even if only subconsciously.
While the tabular presentation of key figures is by definition matter-of-fact and unemotional, the editorial environment provides plenty of opportunities to express emotions. Depending on how the company wants to be perceived, an annual report can appear approachable or distant, youthful or experienced, casual or serious. Annual reports are information carriers and marketing tools, all in one. Good copywriters are masters of conveying emotions – and so are good translators.
Localization: Translating the annual report with cultural insight
But they are also really good at adapting texts to other cultures. Language limitations can easily create cultural oddities. Even small differences can have an impact on the comprehensibility of the text.
Localization solves this issue. The source material is adapted to the cultural norms and characteristics of the target market. What is the local vernacular? Are there social conditions that need to be considered? Some things are also quite trivial, such as date and time formats, currencies, or measurement units. In other words, localization goes above and beyond traditional translation.
Transcreation: When translators get creative
Transcreation goes even one step further. The goal of this approach is to capture the essence of the original text and trigger the same emotions in readers in the target market. For proper transcreation, localizing a translation is not always enough. In some cases, content needs to be completely reworked. The translation then becomes storytelling itself. It adds emotion to precision.
Here’s an example: A company that develops innovative technology and is also credibly committed to sustainability, gender equality, or diversity will rightly emphasize both in its annual report. Nonetheless, with stakeholders in other cultures, it may be appropriate to shift the balance slightly towards technology. You don’t have to agree with it, but in parts of the world where ecological commitment or social diversity are not as popular, it may make sense to focus more on good old German engineering – without compromising your own beliefs.
But it doesn’t always have to be about the big issues. For example, transcreators also pay attention to whether allusions work in the target language. References to historical events, art, or pop culture only work if the background is known. This is where transcreation needs to get creative and produce new references, if necessary. Only real professionals possess this type of expertise.
Visual imagery: Giving annual reports a makeover
Good annual reports also include visual imagery that is as aesthetically pleasing as it is strategically thought out. The translated version must also be checked to ensure it is suitable for the target group. For example, if stakeholders in Asian, African, or South American countries are confronted with photos that only show typical Central Europeans, it will not seem very inviting.
And the stories that the images tell can also be inopportune. For example, photos depicting harmonious teams and flat hierarchies are popular. However, these types of images will miss the mark in areas of the world where people prefer hierarchical work structures and an emphasis on commitment.
Are you considering machine translation for your annual reports? Resist the temptation!
Annual reports play a crucial role in legal terms. At the same time, they are a highly regarded component of a company’s public image. Both aspects are equally important and must be taken seriously. Unfortunately, despite all its undeniable merits, artificial intelligence is not capable of substituting translations by human professionals.
And by the way, a high-quality translation is also an important criterion for major awards for annual reports.
