Integrated Reporting

Running head: INTEGRATED REPORTING
Integrated Reporting
Name of the Student
Name of the University
Author’s Note

1INTEGRATED REPORTING
Introduction
Integrated Reporting (IR) is depicted as presenting corporate information based on
entity’s performance, environmental, social and governance parameters. Primarily, organisations
depict both financial and non-financial information with the use of integrated reporting. It is
essential for the businesses to circulate such an information so that the stakeholders are able to
know about sustainable initiatives. In the recent times, IR has undergone significant development
in the annual report for ensuring improved brand value and customer loyalty (Macias & Farfan-
Lievano, 2017).
Significance of IR framework in contemporary corporate
The application of IR framework in the contemporary corporate can be noted among the
investors and stakeholders. However, the limitation of this framework is often criticised with its
application only during short-term approach of reporting. The important initiative to implement
IR can be defined with presenting a sustainable value for assisting stakeholder in both medium-
and short-term business. In addition to this, corporate reporting will be able to acknowledge the
developing economic reality which will be essential for organisational planning in the future. In
most cases, the leading corporate entities rely on IR framework for ensuring clear and concise
standard of reporting. This nature of reporting is often conducive for recognising the values and
present the same towards stakeholder. The important information in the integrated reporting is
able to guide the principle for multiple model IR approach. These models of IR have generally
focused on the areas of both financial and non-financial reporting purposes. Additionally, the
relevance of corporate reporting model is associated with appropriate reporting standards which
is followed by the organisation within global reporting (Dumay, 2016).

2INTEGRATED REPORTING
Therefore, it is to be noted that IR significantly contributes towards comparison of
financial reports with global standard of reporting. The various components of IR are established
with organisations involved in positively contributing towards external environment. In addition
to this, the initiatives such as disclosing governance factor can be directly evident with additional
value creation. As per the resource and strategy allocation, the organisations will be able to
concentrate on both short-term and long-term goals. The UN has also taken major initiative in
using sustainability reporting for ensuring that the companies are able to implement IR. This type
of initiative is often led by the negotiators by maintaining a “zero draft” policy. The zero draft
policy initiative has led to the development in areas where there is lack of access to health and
medical technologies. This is often related with addressing fair pricing and improvement in
procurement strategies. The application of such a policy will be conducive for the organisations
to ensure that companies are able to include sustainability factor in their financial reporting
(Corbella et al., 2018).
Private and public entities adopting IR framework
The adaptation of such a framework among the private companies can be evident with
Novo Nordisk, BASF, United Technologies Corporation (UTC), American Electric Power (AEP)
and Phillips Electronics. The aforementioned companies have undertaken such a reporting to
integrate various types of financial and sustainability information in their financial report. This
has permitted the organisations for recognising different areas of non-financial perspective apart
from mentioning the key performance based on financial perspective. However, more recently
the publicly listed companies have taken the assistance from dedicated IR officers (IROs) who
are responsible for monitoring different types of private meetings with shareholders and
investors. These officers have also used themselves in providing the required assistance for
conducting conferences. During the implementation of IR framework, it is obligated to