CRO Association Our mission is to accelerate the profession of corporate responsibility.
Issue link: https://www.e-digitaleditions.com/i/100674
Reporting Hot, Flat, and More Transparent A deep look into the enlightened self interest of clearer business in a smaller world. By Brendan LeBlanc, Benjamin Miller, and Jeremy Osborn In a flattening world, integrated reporting is gaining ground and identifying opportunities for value creation. While globalization, advanced communications and interdependencies have shrunk the globe, they have also increased the complexities of business in the 21st century. Combined with pressing environmental and social challenges, businesses face profound big-picture pressures���not least of which are increased investor and stakeholder expectations surrounding the reporting of nonfinancial and financial information, both needed to understand an organization���s true value. In a rush to satisfy and comply, many companies have reacted with ���more is more��� reporting strategies to provide this information, creating reporting fatigue. Enter integrated reporting. Integrated reporting provides context to financial and non-financial information and goals. It [20] CR MAGAZINE | WINTER 2012 connects strategies with the organization���s commitment to the long-term stewardship of material environmental, social and economic issues. What���s the Issue? Over the last 20 years, investor and stakeholder reporting expectations have evolved. In addition to traditional financial performance measurements, companies are asked for more complete non-financial performance metrics and measurements. This change reflects a paradigm shift in market evaluation, where for many companies their intangible value now constitutes the major part of their market value. Leading businesses have responded by publishing sustainability reports, which include environmental, social and governance data in addition to financial disclosures.