An in-depth, enlightening look at the integrated reporting movement
The Integrated Reporting Movement explores the meaning of the concept, explains the forces that provide momentum to the associated movement, and examines the motives of the actors involved. The book posits integrated reporting as a key mechanism by which companies can ensure their own long-term sustainability by contributing to a sustainable society. Although integrated reporting has seen substantial development due to the support of companies, investors, and the initiatives of a number of NGOs, widespread regulatory intervention has yet to materialize. Outside of South Africa, adoption remains voluntary, accomplished via social movement abetted, to varying degrees, by market forces. In considering integrated reporting’s current state of play, the authors provide guidance to ensure wider adoption of the practice and success of the movement, starting with how companies can improve their own reporting processes. But the support of investors, regulators, and NGOs is also important. All will benefit, as will society as a whole.
Readers will learn how integrated reporting has evolved over the years, where frameworks and standards are today, and the practices that help ensure effective implementation–including, but not limited to an extensive discussion of information technology’s role in reporting and the importance of corporate reporting websites. The authors introduce the concepts of an annual board of directors’ ‘Statement of Significant Audiences and Materiality’ and a ‘Sustainable Value Matrix’ tool that translates the statement into management decisions. The book argues that the appropriate combination of market and regulatory forces to speed adoption will vary by country, concluding with four specific recommendations about what must be done to accelerate high quality adoption of integrated reporting around the world.
Inhoudsopgave
Foreword ix
Preface xiii
Acknowledgments xvii
Chapter 1: South Africa 1
The Uniqueness of South Africa 2
South Africa’s Journey to Integrated Reporting 3
South African Assessment of the South African Experience 10
Our Reflections on the South African Experience 18
Notes 18
Chapter 2: Meaning 31
Company Experimentation: Examples from the First Integrated Reports 32
Expert Commentary: The First Reflections on Integrated Reporting 40
Codification: Creating Common Meaning 44
Notes 51
Chapter 3: Momentum 59
Adoption 61
Accelerators 63
Awareness 78
Notes 80
Chapter 4: Motives 97
Companies 98
Audience 102
Supporting Organizations and Initiatives 106
Regulators 107
Service Providers 109
Notes 111
Chapter 5: Materiality 119
The Social Construction of Materiality 120
Materiality in Environmental Reporting 122
Comparing Different Definitions of Materiality 123
Audience 127
Governance 129
Materiality for Integrated Reporting 132
Notes 134
Chapter 6: The Sustainable Value Matrix 147
A Short History of the Materiality Matrix 147
Issues with the Matrix 150
The Current State of Materiality Matrices 152
From the Materiality Matrix to the Sustainable Value Matrix 157
Notes 165
Appendix 6A: Comparing the Ford and Daimler Materiality Matrices 173
Notes 177
Appendix 6B: Methodology for the Materiality Matrices Review 179
Note 189
Chapter 7: Report Quality 191
The Six Capitals 192
Content Elements 194
Special Factors 200
Assurance 207
Notes 209
Appendix 7A: Methodology for Analyzing 124 Company Integrated Reports 221
Notes 223
Chapter 8: Reporting Websites 225
Methodology 226
Website Category Analysis 227
Website Feature Analysis 233
Three Examples 241
Notes 246
Appendix 8A: Methodology for Website Coding 253
Chapter 9: Information Technology 261
Integrated Reporting Processes 262
Four IT Trends 265
Contextual Reporting 269
(World Market Basket) 271
Notes 274
Chapter 10: Four Recommendations 281
A Very Brief History of Financial Reporting 282
Balancing Experimentation and Codification 283
Balancing Market and Regulatory Forces 285
Greater Advocacy from the Accounting Community 287
Achieving Clarity Regarding the Roles of Key Organizations 289
A Possible Scenario 290
Final Reflection 292
Notes 292
About the Authors 299
Index 301
Over de auteur
ROBERT G. ECCLES is a Professor of Management Practice at the Harvard Business School. He has written four books on corporate reporting. He has also written over 25 articles and 20 teaching cases on integrated reporting and sustainability.
MICHAEL P. KRZUS is an independent integrated reporting consultant and researcher. He has provided advisory services to participants in the International Integrated Reporting Council Pilot Program, companies exploring the adoption of integrated reporting, and consulting organizations seeking to enhance integrated reporting capabilities for clients.
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