The objective of this video is to introduce myself, my professional background and what training related services I offer in a personal story telling way.
4. <IR> Fundamental concepts
References: The International <IR> Framework, p. 33
VALUE CREATION
STORY
VALUE CREATION
“… process that results in
increases, decreases or
transformations of the capitals
caused by the organisation’s
business activities & outputs.”
<IR> Glossary
VALUE CREATION
CAPITALS
ACTIVITIES & OUTPUTS
SHORT, MEDIUM, LONG-TERM
10. Benefits
References: Realizing the benefits: The impact of Integrated Reporting, pp. 2-3
Value creation
Measurement
Finance
Decision making
Stakeholders
Broaden perspectives
Editor's Notes
The capitals
Stocks of value that change through organisation’s activities & outputs
Constant flow between & within the capitals
Not all capitals are equally relevant or applicable
Not required to adopt this categorisation
Important: Consider all capitals
Step One: Conduct a stakeholder mapping exercise. This allows you to understand your business’ principal stakeholders, who they are, their expectations of your company today and their future expectations. Questions for the Board: Are your stakeholders’ needs reflected in your strategy and business model? Are your stakeholders highlighting any risks or opportunities to be managed or exploited? To what extent does your strategy or business model need to be amended to reflect these expectations?
Step Two: In light of the views of your principal stakeholders, and potential changes to your strategy and business model, now is the time to consider the resources required to implement these changes – this could be in terms of R&D expenditure, recruitment to a particular division, new product design or innovation, plant and machinery, etc. Ask yourselves, are the different parts of your business talking to each other to achieve the delivery of a coherent strategy across the business? What more can you do as directors to break down silos to enable a better articulation and execution of your strategy?
Step Three: Communicate your strategy clearly and concisely. How it is responding to changes in your industry or stakeholder needs and expectations, to enhance stability and build a clearer understanding about how your business model is creating value through the use of multiple resources and relationships – your people, their ideas, natural resources, the community in which you do business, etc.
To conclude…
What does value mean for our organisation?
How do we want to create value into the future?
What are the interconnections and relationships between the factors that will help us to create value?
I believe if these questions become part of an organisation’s DNA, it will lead to them truly integrating sustainability into their business strategy and as such operations.
Not at all easy and lots of hard work ahead, but it is worth keeping the faith. NO?
Black Sun Plc research study in collaboration with IIRC
2nd research project with IIRC Pilot Programme organisations. 1st in 2012.
66 organisations responded to a survey about their reporting and management processes and impact they have seen of Integrated Reporting process.
>40% of repondents also participated in follow up interviews, providing both quantitative & qualitative data.
The results???
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