Question

Is effective integrated reporting a realistic goal in most companies? Why or why not?

Answer 1

The concept of integrated reporting was proposed by the IIRC (International Integrated Reporting Council). It aims to incorporate everything from strategy through the process of management of risk; from the reporting of financials to meet the needs of the stakeholders. It tries to interlink all these together that make their interdepency much more crytal clear.

It is a realistic goal in most companies because it creates value addition.

Firstly, it helps in the process of sustainable development as the concept is more of a multi-capital model which includes both human and natural capital. Secondly, it also allows th stakeholders of the company to understand the company's value creation concepts and stories.

Hence, this helps in understanding the risks of the organisation, increases transparency to the stakeholders, ensures acknowledgement of how the company is working, what all areas the company is focusing on and is the company also looking into the stakeholders interests. The stakeholders understand the impacts of the work of the company in both long-term and short-term, considering both tangible and intangible impacts. Hence, integrated reporting is considered to be an effective and realistic goal.