Integrated reporting: Getting it right
When boards seek out integrated reporting on companies' value, they're looking for results that go beyond mere profit and loss. As Board Agenda recently explained, compiling such reports accurately and effectively requires skills in inspecting for new and potentially unconventional sources of value. (Nov. 8, Adams) Unfortunately, many non-executive directors don't yet have the ability to assemble these reports.
To create strong and credible integrated reports, board members should ensure they have the right mix of skills among their non-executive ranks. Specifically seeking out insights into sources of value such as the state of development in areas around the world.
Outside experts can often be integral in the early stages of integrated reporting as businesses create statements describing their value creation. Working groups or subcommittees on the board will be involved in several stages of report creation, from the original statement to the content of the draft.
When finished, an integrated report will be a useful document to explain a business's unique take on value creation. It's a way for an organization to define its success in terms beyond the financial and, for that reason, it's a great way to reflect today's complex and business climate.
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