Technology enables Integrated Reporting. Integrated Reporting enables Better Valuation (Part 2 of 2)

The origin of integrated reporting

Where did the concept of integrated reporting come from? Integrated Reporting started as a philosophical belief that corporate reporting was missing the mark. It is a global coalition of regulators, investors, companies, standard setters, the accounting profession and NGOs, led by the International Integrated Reporting Council (the IIRC) that has become a movement across the world. Together, this coalition shares the view that communication about value creation should be the next step in the evolution of corporate reporting.

 

Alongside more than a hundred companies globally, the IIRC produced the International <IR> Framework, which defines a new direction for corporate reporting – this framework was released in December of 2013.

 

The International Integrated Reporting Framework

 

Integrated Reporting concepts will become mandates

Large European companies will be mandated to report on non-financial issues, in addition to financial reporting, from 2018. Making this sort of change to corporate practice will only happen if companies make a concerted attempt to think holistically across multiple capitals, not just financial capital. That’s where Integrated Reporting comes in. But companies will only truly experience Integrated Reporting when it becomes part of the fabric of their management practice – Integrated Reporting will only be successful if companies practice integrated thinking in their organisations. In modern companies, this means the application of technology to the transition from the current model of corporate reporting (largely financials only) to the holistic view presented by the next generation of corporate reporting and management.

 

The role of technology

If integrated reporting is to play its role in better corporate performance, holistic investor engagement and the proliferation of a longer-term model of capitalism, it will not have come a moment too soon. But it needs the involvement of savvy business leaders, software and technology providers, regulators and strategic advisory consulting firms to drive the pace and scale of adoption of this much-needed new generation of business thinking. That is the mission of the IIRC to bring these constituents to the table to drive the future of corporate reporting. Will you get involved?

 

Read previous post on Integrated Reporting

 

 

Jyoti Banerjee is leading the <IR> Technology Initiative, a programme of the International Integrated Reporting Council, a global not-for-profit organisation headquartered in London. Tagetik is a participant in the <IR> Technology Initiative. Jyoti has spent over 20 years engaging with technology companies on go-to-market and business strategies. To find out more about the work of the IIRC, please see www.integratedreporting.org.

 

Integrated Reporting Event - Progressive CFO

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