Integrated Reporting Business Case
Therefore, integrated reporting enables corporations to report business as a model of value creation rather than only reporting the financial benefits of the business. Integrated reporting enables firms to be more transparent while also instills greater confidence to the stakeholders while also indicating the sustainability of the firms business model. Despite the benefits that come with the integrated reporting very few firms across the globe are ready to adopt the reporting. Integrated reporting is the creation of value in the short, medium and long term through brief communication of the firm’s strategy, governance, performance and prospects in terms of its external environment. Integrated reporting does not do away with the traditional reporting but rather integrates the environmental and social metrics in this traditional reporting.
Externally, prospective providers of capital are able to acquire important information regarding the firm’s value. Internal Benefits The internal benefits of the integrated reporting include, good understanding of the process of creation of value while creates a chance to obtain more information making decision making easy. Innovation and learning are also important benefits that firms enjoy when they do non-financial reporting. Other benefit include the growth in reputation for any firm while improves its branding image, (KPMG,2011). The reporting enables companies to tackle their business models which most firms across the globe do not do frequently, (Roberts, 2014). Further, the reporting reduces asymmetry in information especially between organizations and its shareholders since the public is made aware through the information obtained in the integrated reporting.
In addition, investor’s confidence increases since they can understand the firms strategy while can deduce the sustainability of the business model of the firm, (IIRC, 2014). Therefore, most organizations find the reporting important in answering enquiries which are made by the stakeholders especially if it is broad. Similarities between Integrated Reporting Model, Scorecard, Corporate Social Responsibility and Sustainability Reporting Models It is the responsibility of an organization to indicate the influence and impact of its decisions and activities to the society and the environment by conducting a transparent and ethical business (Blowfield, 2011). The three aspects of sustainability namely, the economic, environmental and social are included in what is termed as sustainability reporting approach. Integrated Reporting Challenges and Solutions Businesses in the process of integrated reporting have to take several actions which may turn out to be hard since the reporting is a new approach that faces numerous challenges.
Indeed, in the process of pushing for the integrated reporting many employees may be forced to report what they do not feel others should know. In my opinion committees formed to make the reports should explain to the employees the benefits that come with such disclosures. In other cases the disclosure should be done in a manner that the employees suggest rather than imposing to them the way to do it. More so, in the process of coming up with integrated reports, high amounts of data arise. M. A. , 2011: Corporate responsibility. IIRC (2014). Guidance for the preparation of integrated reports. Available at: https://home. kpmg. com/content/dam/kpmg/pdf/2016/04/Integrated-report-2013-2014. pdf [Accessed 27 Jun. KPMG (2011). Roberts, R. H. Cho, C. , Michelon, G.
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