Recent developments in corporate reporting.

1. BEYOND FINANCIAL
REPORTING: THE CHANGING
LANDSCAPE OF CORPORATE
REPORTING
Abubakar Ahmed, PhD
School of Business and Entrepreneurship
American University of Nigeria
Abubakar.ahmed2024@aun.edu.ng

2. The Importance of
Corporate Reporting
• Corporate reporting is the process of
disclosing financial and non-financial
information about a company's
performance and operations.
• It plays a pivotal role in maintaining
transparency and accountability in
the business world.
• In this presentation, we will explore
why corporate reporting matters
and the profound impact it has on
both businesses and stakeholders.

3. Impact on Businesses and Stakeholders
• Businesses:
• Enhances Decision-Making: Accurate
financial reporting informs internal
decision-making, allowing companies
to allocate resources effectively.
• Builds Trust: Transparent reporting
fosters trust with investors, creditors,
and potential partners, facilitating
access to capital and opportunities.
• Compliance and Legal Requirements:
Compliance with reporting standards
ensures companies adhere to legal
and regulatory obligations.

4. Impact on Businesses and Stakeholders
• Stakeholders:
• Informed Investment Decisions:
Shareholders and investors rely on
corporate reports to assess a company's
financial health and performance.
• Responsible Business Practices:
Stakeholders, including customers and
employees, look for evidence of ethical
and sustainable business practices.
• Risk Mitigation: Timely reporting allows
stakeholders to identify and address
potential risks, safeguarding their
interests.

5. CSR Reporting:
Definition and
Importance
• Corporate Social Responsibility (CSR) Reporting is
the process of disclosing a company's
environmental, social, and ethical performance to
its stakeholders.
• Why CSR Reporting Matters
• Transparency and Accountability:
Demonstrates transparency in business
practices and holds companies accountable
for their impact on society and the
environment.
• Stakeholder Trust: Builds trust with
customers, investors, employees, and the
community, which can enhance a company's
reputation.

6. Components of CSR
Reporting
• Environmental Performance: Reports on
a company's environmental initiatives,
such as sustainability efforts, energy
efficiency, and emissions reduction.
• Social Impact: Highlights contributions
to social causes, including community
engagement, diversity and inclusion
efforts, and employee well-being.
• Ethical Governance: Demonstrates
adherence to ethical business practices,
including anti-corruption policies and
supply chain responsibility.

7. CSR Reporting: Key Reporting Frameworks
GRI Standards: The Global Reporting Initiative provides a widely
used framework for sustainability reporting.
SASB: The Sustainability Accounting Standards Board focuses on
industry-specific sustainability disclosure standards.
TCFD: The Task Force on Climate-related Financial Disclosures helps
companies report on climate-related risks and opportunities.

8. CSR Reporting: Top Companies
Rolex.
Lego.
Disney.
Adidas Group.
Microsoft.
Sony.
Cannon.
Michelin.

9. Microsoft: CSR
Reporting
• Here's a brief overview of CSR reporting in Microsoft:
• Comprehensive Reporting: Publishes an annual CSR
report that provides detailed insights into the
company's sustainability efforts, social impact, and
ethical practices. This report is accessible on their
website.
• Environmental Initiatives: Committed to reducing its
carbon footprint and has set ambitious goals to
become carbon negative by 2030. They also pledge
to eliminate their historical carbon emissions by
2050. These initiatives are detailed in their CSR
reporting.
• Diversity and Inclusion: Microsoft focuses on
promoting diversity and inclusion within its
workforce. They report on their efforts to increase
gender and racial diversity and provide data on
employee demographics and progress in this area.

10. Rolex: CSR
Reporting
Supply Chain Responsibility: Rolex has a strong focus on
responsible sourcing of materials, particularly precious
metals and gems. They communicate their dedication to
ethical sourcing through their public statements and
partnerships with industry initiatives.
Environmental Responsibility: Rolex takes measures to
minimize its environmental impact, particularly in its
manufacturing processes. They are known for their
energy-efficient facilities and responsible water
management practices.
Philanthropic Initiatives: Rolex is involved in various
philanthropic efforts, particularly in the fields of arts,
culture, and scientific research. They have supported
initiatives like the Rolex Mentor and Protégé Arts
Initiative and the Rolex Awards for Enterprise

11. Integrated Reporting: Definition
• Integrated Reporting is a holistic approach to corporate reporting that
combines financial and non-financial information.
• It provides a comprehensive view of a company's performance,
strategy, and value creation in the short, medium, and long term.
• Integrated reports aim to communicate how a company creates value
for all stakeholders, including shareholders, employees, customers,
and the wider society.

12. Integrated Reporting: Key
Principles
• Strategic Focus: Integrated reports should provide
insights into a company's strategy, governance, and
how it manages its resources to create value.
• Connectivity: They should demonstrate the
relationships between various factors, such as
financial, environmental, social, and governance
aspects.
• Materiality: Integrated reports should focus on
material information, highlighting what matters most
to stakeholders and the business.
• Conciseness: Reports should be concise, providing
relevant information without unnecessary clutter.
• Stakeholder Engagement: Stakeholder dialogue and
engagement should be evident in the report, reflecting
how the company considers stakeholder interests.
• Reliability and Completeness: Information should be
reliable, accurate, and complete, allowing stakeholders
to make informed decisions.

13. Recent Developments in
Integrated Reporting
• Global Reporting Initiative (GRI) Standards: GRI has integrated elements of
integrated reporting into its sustainability reporting framework, emphasizing
the importance of non-financial data.
• International Integrated Reporting Framework: The IIRC released the
Integrated Reporting Framework, providing guidance and principles for
organizations.
• Sustainability Reporting Standards: Increasingly, organizations are aligning
their SR with IR principles to provide a more comprehensive view of their
activities.
• Regulatory Requirements: Some countries have started to mandate or
encourage integrated reporting as part of corporate disclosure, fostering its
adoption.
• Technology Integration: Advances in technology and data analytics have made
it easier for companies to integrate and present both financial and non-
financial information in a cohesive manner.

14. Sustainability
Reporting: Definition
Sustainability Reporting is the practice of
disclosing a company's environmental, social, and
governance (ESG) performance and impacts.
It provides stakeholders with information about a
company's sustainability initiatives, goals, and
progress.
Sustainability reports offer transparency into a
company's commitment to responsible and ethical
business practices.

15. Sustainability Reporting: Significance
Transparency and Accountability: SR enhances transparency, holding companies accountable for
their ESG practices.
Stakeholder Expectations: Investors, customers, employees, and regulators increasingly expect
companies to disclose ESG information.
Risk Mitigation: It helps identify and mitigate environmental and social risks, safeguarding a
company's reputation and financial stability.
Competitive Advantage: Demonstrating strong sustainability performance can provide a
competitive advantage and attract socially conscious investors and consumers.
Long-term Resilience: SR is essential for long-term business resilience and sustainability in a
changing world.

16. Recent Changes and
Standards in SR
• GRI Standards (Global Reporting Initiative): GRI provides a widely
recognized framework for sustainability reporting, offering
comprehensive guidelines for ESG disclosure.
• SASB (Sustainability Accounting Standards Board): SASB focuses on
industry-specific standards to help companies report financially material
ESG information.
• TCFD (Task Force on Climate-related Financial Disclosures): TCFD provides
recommendations for disclosing climate-related financial risks and
opportunities.
• ESG Integration: Many organizations are integrating ESG factors into their
financial reporting, recognizing their impact on long-term value.
• Regulatory Requirements: Some countries have begun to mandate ESG
disclosure, emphasizing its importance.

17. Challenges of
Corporate Reporting
Data Accuracy: Ensuring the accuracy of financial and non-financial data can
be challenging in large organizations with complex operations.
Stakeholder Engagement: Balancing the diverse needs and expectations of
various stakeholders requires effective engagement strategies.
Regulatory Compliance: Staying up-to-date with evolving regulatory requirements
and reporting standards can be demanding and resource-intensive.
Data Privacy and Security: Protecting sensitive financial and non-financial data
from breaches and ensuring compliance with data privacy regulations is critical.
Transparency: Striking the right balance between providing sufficient information
for stakeholders while protecting proprietary data can be challenging.

18. Challenges of Corporate
Reporting
• Non-Financial Reporting: Reporting on non-financial aspects,
such as sustainability and social impact, adds complexity due
to the absence of standardized metrics.
• Materiality Assessment: Identifying and prioritizing material
information that is relevant to stakeholders can be subjective
and complex.
• Technology Integration: Leveraging technology for data
collection, analysis, and reporting requires significant
investments and expertise.
• Data Collection: Gathering data and ensuring its accuracy and
completeness can be a logistical challenge.
• Changing Business Models: Adapting reporting to reflect
evolving business models, such as the rise of digital
businesses, can be complex.

19. Future of Corporate
Reporting
• Integration of ESG Reporting: Environmental, Social, and
Governance (ESG) factors will become central to corporate
reporting, reflecting a company's impact on sustainability and
society.
• Technology-Driven Reporting: Advanced technologies like AI,
data analytics, and blockchain will streamline data collection,
analysis, and reporting, enhancing accuracy and efficiency.
• Integrated Digital Reporting: Interactive, digital reports will
replace static documents, providing stakeholders with dynamic,
real-time insights.
• Enhanced Materiality Assessment: Improved methods for
materiality assessment will help companies identify and
prioritize ESG issues that matter most to stakeholders.

20. Future of
Corporate
Reporting
Emphasis on Long-Term Value: Reporting will increasingly focus on
long-term value creation, encouraging responsible and sustainable
business practices.
Non-Financial Metrics: Non-financial metrics, such as sustainability
performance and social impact, will receive greater emphasis
alongside financial data.
Regulatory Evolution: Regulations will continue to evolve, potentially
leading to standardized ESG reporting requirements in some regions.
Focus on Stakeholder Engagement: Stakeholder engagement will
evolve, with companies actively seeking input and feedback to shape
their reporting.

21. Conclusion
INTEGRATED REPORTING:
COMBINING FINANCIAL
AND NON-FINANCIAL DATA
FOR A HOLISTIC VIEW OF
BUSINESS PERFORMANCE.
SUSTAINABILITY
REPORTING: DISCLOSING
ENVIRONMENTAL, SOCIAL,
AND GOVERNANCE (ESG)
EFFORTS AND IMPACTS.
CSR REPORTING:
COMMUNICATING
CORPORATE SOCIAL
RESPONSIBILITY INITIATIVES
AND ETHICAL PRACTICES.
IMPORTANCE: ENHANCES
TRANSPARENCY,
ACCOUNTABILITY, AND
STAKEHOLDER TRUST.
KEY PRINCIPLES: STRATEGIC
FOCUS, CONNECTIVITY,
MATERIALITY,
CONCISENESS,
STAKEHOLDER
ENGAGEMENT, AND
RELIABILITY.
RECENT DEVELOPMENTS:
GRI STANDARDS, SASB,
TCFD, ESG INTEGRATION,
AND REGULATORY
MANDATES.
FUTURE: EMBRACING
INNOVATION,
TECHNOLOGY, AND A
STRONG FOCUS ON ESG
FOR LONG-TERM VALUE
CREATION.