Integrated Reporting development

A broader understanding model is growing and taking hold of the market. It goes beyond the financial market to recognize the following territories, first, the existing value of an organization which not only creates value for stakeholders but also creates a good public image and reputation (Rowbottom & Locke, 2016). Secondly, the value generated is created for the environment and the society in general. Using these value territories, the model guides reporting which holds huge potential for firms, enabling the companies to fully understand the risks and crucial opportunities for the company. This report keenly explores both global and local momentum for the adoption and incorporation of the model, it also fully examines benefits and challenges of adopting the integrated reporting development as the next model for corporate reporting practice.

Many federal governments and organizations such as the Group of 100 still push and continues to support the voluntary shift towards integrated reporting (Soyka, 2013). A good example is the Australian Institute Company which has fully shifted its systems and policies at a stance. The organization is more positive and optimistic about the adoption of integrated reporting development in spite of the adoption there are however few potential concerns of liability with respect to making positive and forward-oriented statements. The global momentum towards the incorporation of integrated reporting has rapidly grown and more than 1700 organizations are preparing the International Integrated Reporting Council. According to a report by GE which is the second insurer of integrated reporting, mass critics have much been achieved in the United Kingdom.

Using integrated reporting creates relevant and streamlined reporting which fully answers the investor’s questions and needs rather than just taking the tick box approach which is a merely typically guided report of sustainability used in the past. Integrated reporting development creates a platform for organizations to be the market leaders both locally and globally. By doing so the approach enables them to tell their marketing stories and help in building confidence during the process. By drawing such stories, organizations are able to create value by telling complete narratives and recognizing the existence of market interdependency between major components. Having increased the uptake of the integrated reporting development in various organizations, there is much anticipation in terms of the landscape that many companies which have adopted and incorporated the approach will definitely be ahead of the curve (Soyka, 2013).

In its annual general meeting, the company provided several benefits which had resulted from the incorporation of the integrated reporting development such increased desire to explore external markets. The relevance of the integrated reporting in markets has been evidenced by the increased growth of companies in the global market. National Australian Bank yearly publishes an integrated annual review which provides information to all stakeholders about the opportunities and challenges they face as a financial institution. This information provides interested individuals and shareholders with relevant information they require, this particular information also helps create a big picture in the minds of the shareholders that is just beyond numbers. According to a report by the Bank they initially chose the approach as compared to other approaches and joined the IIRC which had previously adopted the platform.

Unlike the traditional approaches which only ensured that the organization met the expected qualifications and ensured that the organization meets the compliance requirements. The company not only does it provide greater transparency to their stakeholders, but also provides insights into how the organization will probably perform in the near future in ensuring scheduled programs and services are offered accordingly (Rinaldi, de Villiers & Unerman, 2018). This is a more thorough overview of the company’s performance, sustainability, and strategy in creating value and interrelations between the organization and the market. By doing so the company adheres to the holistic aspects and manners which are favorable and effective in providing purpose to the stakeholders. Taking a principled-based approach such as Integrated reporting development demonstrated that the company applies integrated thinking and knowledge across all decisions which are mandated to deliver sustainable value.

Arguments against adopting and implementation of the Integrated reporting development include internal resistance by employees and individual departments, particularly resistance pertaining to changes in the implementation. Often, when organizations are undergoing any changes in the system especially in the operations, there is always resistance from individuals who feel the new change will affect them negatively. The implementation of the Integrated reporting development in many organizations was faced with a lot of resistance, in some arguments individuals claim that Integrated reporting development will expose the firm’s operations and this can lead to increased competition. Another downslide associated with the Integrated reporting development approach is that it is much costly and requires a lot of resources in order to be effectively implemented at all levels of the corporation or the institution.

Primarily this is often caused by lack of skills and experiences in implementing the termed Integrated reporting development guidelines. In order for any change to occur in an institution or a firm cooperation among members is highly appreciated since it promotes fast implementation and execution of the already planned change (Rinaldi, de Villiers & Unerman, 2018). A good example of where the Introduction of Integrated reporting development approach faced a lot of challenges was in South Africa. Organizations in the country which were ready to accept and implement change faced a lot of resistance from members of the institution, some argued that implementation of the Integrated reporting would lead to job loses among the employees. Integrated reporting development requires a full change of mindset.

Integrated reporting is not only all about combining a report which is sustainable through the traditional approach. The Integrated reporting development approach truly has made many companies and firms successful not only in their operations but also in the global markets. However, the approach has some challenges such as prolonged implementation and lots of costs incurred in terms of finances and resources. I would recommend that companies which have already adopted and implemented the Integrated reporting development approach to engage many other desired companies and firms so that they can also reap the fruits associated with the approach. Lastly, companies which have adopted and implemented the approach should consistently communicate with both the stakeholders and shareholders concerning matters which may arise such as compliance and corporate governance.