Corporate Sustainability - Evolution of Corporate Reporting

1. Evolution of Corporate Reporting
Dayana Mastura Baharudin
CORPORATE SUSTAINABILITY

2. Evolution of Corporate Reporting

3. Evolution towards Integrated Reporting

6. Annual Report – Definition
An annual report is a document that public companies issue to provide shareholders with important corporate
information. Potential investors, analysts, and financial journalists also read annual reports. In fact, when a major
company like Apple Inc. issues its report, a wide range of people examine it.
The majority of jurisdictions instruct companies to prepare and disclose annual reports. Many firms file their annual
reports at the company’s registry.
The main aim of the annual report is to provide a summary of how well (or badly) a company has performed over
the past 12 months. Additionally, the document provides a glimpse of things to come.
Creating a compelling annual report today is a real art. In fact, some people call it a science. There are even
agencies that specialize in preparing annual reports.

13. What is Corporate Citizenship?
• “Corporate Citizenship is a recognition that a business,
corporation or business-like organisation, has social, cultural
and environmental responsibilities to the community in which it
seeks a licence to operate, as well as economic and financial ones
to its shareholders or immediate stakeholders”.

17. Sustainability
Reporting
Sustainability reporting enables
organizations to consider their impacts on
a wide range of sustainability issues. This
enables them to be more transparent
about the risks and opportunities they
face.
Sustainability reporting is the key platform
for communicating sustainability
performance and impacts. A sustainability
report in its basic form is a report about an
organization’s environmental and social
performance.

18. Sustainability Reporting – Internal Benefits
Increased understanding
of risks and opportunities
Emphasizing the link
between financial and
non-financial
performance
Influencing long term
management strategy and
policy, and business plans
Streamlining processes,
reducing costs and
improving efficiency
Benchmarking and
assessing sustainability
performance with respect
to laws, norms, codes,
performance standards,
and voluntary initiatives
Avoiding being implicated
in publicized
environmental, social and
governance failures
Comparing performance
internally, and between
organizations and sectors

19. Sustainability Reporting – External benefits
Mitigating negative environmental, social and governance impacts
Improving reputation and brand loyalty
Mitigating
Enabling external stakeholders to understand the organization’s true value,
and tangible and intangible assets
Enabling
Demonstrating how the organization influences, and is influenced by,
expectations about sustainable development
Demonstrating

21. Integrated
Reporting
<IR>
• IR is backed by the IIRC, a powerful global coalition of regulators, investors,
companies, standard setters, the accounting profession and non-government
organisations who share the view that better communication about value
creation should be the next step in the evolution of corporate reporting.
• IR aims to build on reporting developments to provide a more holistic form of
reporting the value created by a business, by considering non-financial resources
such as human, social and intellectual capitals as well as financial capital.
• Active consideration of how these capitals impact on the business, and on
society generally, requires integrated thinking to ensure all business functions
(e.g. sustainability, strategy, human resources, operations), not just the finance
function, are involved in identifying and collecting data for these capitals, and
looking at their connectivity – and how value creation affects the business now
and in the future.
• Greater clarity on links between the capitals helps address the challenge of
demonstrating their place in strategic decision-making.