As public sentiment towards business practices remains highly distrusting, some of the globe's largest and most influential companies and investors have come together in a bid to promote more open and useful business reporting.
One hundred businesses across the globe are all taking part in a pilot programme run by the International Integrated Reporting Council’s (IIRC) to test and help develop the integrated reporting framework that aims to give a more informative view of a business.
Business leaders from across this pilot programme network will meet in Frankfurt on June 18 and 19 to share insights and provide feedback on the framework, which is out for public comment until July 15 2013.
‘Integrated reporting’ (IR), an approach for businesses to report on their value creation including financial and non-financial key performance indicators, is gaining traction with some of the world’s largest companies. Companies involved in the IIRC’s pilot programme say that they can now better judge the risks and opportunities of their businesses because IR facilitates a more holistic way of thinking and managing.
According to a report by the IIRC and Black Sun last year, 93% of companies involved in the programme say that IR helps them to overcome silos between departments such as Strategy, Controlling, IT, Investor Relations, Finance, Sustainability, Corporate Communications and others. 98% agree that IR will lead to a better understanding of how the organisation creates value.
A majority (95%) said IR also contributes to a better understanding of their business model and gives them the opportunity to focus on the right Key Performance Indicators (KPIs).