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Integrated Reporting, Corporate Governance & Responsible Boards

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Integrated Reporting, Corporate Governance & Responsible Boards

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Integrated Reporting, Corporate Governance & Responsible Boards

  1. 1. Integrated Reporting, Corporate Governance & Responsible Boards Basel Omar Abu-Ali 1
  2. 2. Financial Crisis and Stakeholders 2
  3. 3. Two main words were lost Results Management & Leadership Brand Image 3 Value
  4. 4. 4
  5. 5. 5 Boards Are Responsible!
  6. 6. The Rules of the Game have Changed! 6 Boards have responsibilities to maximize the Stakeholders’ value, not the shareholders alone!
  7. 7. The Rules of the Game have Changed! 7 Stakeholders need to assess the long term business value, and assess the stewardship of boards and management.
  8. 8. Boards had to act quickly! 8 Governments had to act to achieve and control long term economic stability…
  9. 9. 9
  10. 10. Corporate Governance • “The systems by which companies are directed and controlled.” Cadbury Report 1992 • A decisions making mechanism. • Concerned with the flows of information. • It determines company’s culture. • Boards are responsible to develop a coherent governance culture in their organizations. • Boards are responsible for the governance of their organizations. 10
  11. 11. Info System People Time Decision & ActionGood Governance 5 Rights 11
  12. 12. •Financial (quantitative) •Short term (focus) •Shareholders (mainly) •What is the long term business value?! 12
  13. 13. Still need something (tool)… to fill the gap to tell the full story (tell the truth) 13
  14. 14. Integrated Reporting 14 Consolidated Reporting Non-Financial (Qualitative) Information Business Value Creation Financial (Quantitative) Information Integrated Thinking Capitalsandresourcesutilization Short,Mid,andLongTerm
  15. 15. Ask the Right Questions (Why and How, not only What) 5 Rights With the help of IR; Boards are responsible and able to 15
  16. 16. 16 Link the dots Inputs and Outputs Cause and effect relationship With the help of IR; Boards are responsible and able to
  17. 17. 17 to collect all the pieces and complete the value puzzle! With the help of IR; Boards are responsible and able to
  18. 18. Integrated Analysis Integrated Reporting Integrated thinking Integrated Analysis 18 Integrated thinking and integrated reporting lead to integrated ‘strategic’ analysis; so boards can link the dots between inputs and outputs of the business model, between key performance and value indicators and drivers, as well as risks and opportunities.
  19. 19. Value Creation Process Integrated Reporting Integrated thinking Integrated Analysis 19 Better Decisions Better Actions Better capital and resources allocation and utilization Long Term Sustainable Value
  20. 20. Responsible Boards • Boards must drive Integrated Reporting, • and have to make sure that corporate reporting meets stakeholders (investors) needs. • The Boards are responsible to adopt the culture of Integrated reporting and its benefits. • and for Integrated Thinking to become embedded in the activities of the corporate. 20
  21. 21. Responsible Boards • So it is Boards responsibility to apply or produce Integrated Reports; 1- logically, 2- to meet environmental changes, 3- and to coop with international practice and trend; “… boards should produce an integrated report.” 21
  22. 22. Responsible Boards 22 Integrated Thinking Integrated Reporting Integrated Analysis Value Culture Corporate Governance Integrated Idea

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