Integrated Reporting

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

1INTEGRATED REPORTING
Introduction
Integrated reporting is referred as the presentation of information which are depicted with
identifying company’s performance on social, governance and environmental parameters. Most
of the organization are based on projecting both financial and non-financial information as per IR
framework. It is necessary for the corporates to publish such an information for ensuring
sustainability of business. Similar nature of improvement of IR is also incorporated into the
annual report for improving customer loyalty and brand value (Aytekin & Kurt, 2018).
Significance of IR framework in the contemporary corporate
The consideration of IR framework as per the contemporary corporate is evident among
investors and stakeholders. The limitation of such a framework is however seen with
stakeholders feeling such a report can be used only with short-term approach. The main motive
of IR can be however inferred with assessment analysis of presenting a sustainable value for
assisting the stakeholders in both medium term and short-term course of business. Additionally,
it is the responsibility of the corporate reporting to ensure that the developing economic reality is
able to identify the needs related to organisational thinking and planning. Most of the leading
entities have already incorporated IR to ensure concise and clear reporting standards. This type
of reporting is able to identify the ways in which resources will be able to create value for the
organisations. The relevant components of corporate reporting acts as the guiding principle for
multiple model of IR application. In these multiple models, the IR have focused on areas ranging
from wide applications in both financial and non-financial reporting. The relevance of such
models in the corporate reporting can be depicted with associating the reporting standard
followed by the organisation with global reporting (Rezaee, 2017).

2INTEGRATED REPORTING
Such a framework of reporting is also essential in providing a vivid comparison of global
reporting standards. The different elements of IR are considered with organisations contributing
in the external environment. Moreover, the governance factor is evident with additional value
creation for company. Based on the strategy and resource allocation, the organisations are able to
focus on both long-term and short-term goals. Additionally, UN puts forward the global
reporting among the companies by using sustainability in their financial reporting. This is often
identified by maintaining a “zero draft” policy adopted by the negotiators. This requires all the
private and publicly listed companies to ensure minimum or zero carbon footprint and
integrating this information in the sustainability report within a particular reporting cycle. The
overall use of such a policy is helpful to ensure that the companies are clear on their side for
including necessary information about sustainability in the financial reporting (Atkins &
Maroun, 2015).
Adoption of IR framework by various types of private and public sector
The consideration of IR framework by various types of private sector companies may be
evident among Philips, Novo Nordisk, BASF, American Electric Power (AEP) and United
Technologies Corporation (UTC). These entities looking forward to adopt such a reporting
standard has been not only able to master sustainability and financial reporting to a single report
but also associate the various types of sustainability strategy of the business to assist the
companies and stakeholders. This is conducive in recognising the various types of priority areas
by the companies which are of non-financial perspective. In the recent times, the publicly listed
companies have appointed dedicated IR officers (IROs), who monitors the private meetings with
investors, shareholders. These officers are also seen to be providing the necessary assistance for
holding conferences (Adhariani & de Villiers, 2018). At the time of IR framework adoption by
several types of private and public sector companies, it is important to understand the investor