The Role of Annual Reporting in Business Development and ESG

This report provides a comprehensive overview of annual reporting and its critical role in modern business development, emphasizing the integration of Environmental, Social, and Governance (ESG) factors. It explores how annual reports serve as a vital communication tool for businesses to engage with stakeholders, demonstrating transparency and commitment to sustainable practices. The report delves into the evolution of business practices, highlighting the shift from profit-driven motives to sustainable profit models, reflecting societal values and environmental consciousness. It discusses the importance of sustainability reporting and integrated reporting as frameworks for businesses to communicate their policies and ideologies effectively. The report also examines the International Integrated Reporting Council (IIRC) and its role in developing standardized reporting frameworks for global acceptance and comparison. It concludes by underscoring the significance of annual reporting in building trust and ensuring long-term business success by aligning with stakeholder expectations and environmental responsibilities. The report references key academic sources, including works by Dignam & Lowry, Ahmad, Barker & Kasim, and Mulford & Comiskey, to support its analysis and recommendations.

INTRODUCTION:
The business world have revolved and evolved with the environment it surrounds itself with, the
growing trends, movements of the era often culminates into the business practice of the
millennium. The inevitable change spread across the corporate organization is a reflection of the
societies’ view and the factors that have helped in obtaining the same. The passage of time
mitigates towards more transparent and true business practice to develop the shape of the
economy in a manner which is suitable to all. From the age old motive of “profit making” to the
modern concept of “sustainable profits”, all reflects the current emotions of the environment and
the need to cater to those emotions in order to prevail in the corporate world.
Environment social governance or corporate governance is a concept that embarks the
responsibility of the corporate houses towards the environment, society and transparency of
business practice in general. The builders of the economy are conscious of their surroundings
and are critical of the ways the business households are conducting their business, Each and
every process employed, is under the scrutiny in general and the opinion formulated because of
that has great impact on the profitability and the market share of the company as a whole.
Sustainability reporting and integrated reporting are set of guidelines for business to enable them
with a means of communicating their policies to the public and stakeholders in a more
transparent and vivid way, that is clear to public and helps the corporate to communicate their
ideologies, visions and missions in a better manner.
Dignam, A., & Lowry, J. (2016). 15. Corporate governance 1: corporate
governance and corporate theory

ANNUAL REPORT: AN OVERVIEW INTO COMPANY’S PERFORMANCE
An Annual Report is generated at the end of the financial year, by the company, summarizing its
activities undertaken and the activities that it will undertake in the future, in a comprehensive
manner. The report is publishes to educate the stakeholders and the public in general regarding
the policies and procedures adopted by the organization, in order to facilitate a mechanized
relationship between the company and its stakeholders.
The need for publishing the annual report was realized after the stakeholders and public in
general were diluted of their rights by the dark practices adopted by the corporate to suppress
their rights and take un due advantage of the oppression demanded. A consumer are now aware
of their rights and are aware of the business environment and seeks answers from the corporate
of their decisions taken in areas that impact them as the stakeholders of the company.
With the evolution of time companies have come to a realization that in order to succeed in the
today’s business environment, consumers and stakeholders needs to be brought inside the
workings of the industry and their consent with policies and procedures is a must in order to
survive.
Therefore, in order to develop a symmetrical way of reporting for comparison and easy control
over the information available, International Reporting standards have been developed and
regularized to facilitate the reporting nuances and easy availability of the information by the
stakeholders and the consumers in general.
Sustainability reporting and integrated reporting:
Environmental, social and governance (ESG) refers to the three central factors in measuring the
sustainability and ethical impact of an investment in a company or business. The business
interaction with the environmental, social and governance factors are the foreplay on which they
are building their profitability, hence its inter –related and needs to be catered to with utmost
care.

Investor’s of today are very perceptive
of the ability of their business to impact environment, social and internal process in general, they
are aware of the rising climatic concern, human rights and the management structure in force that
gives credibility to the business processing.
Company will always need investors as long as it wants a share in the market or the economy,
therefore the more transparent and trustworthy are they in their workings more investor they can
attract to fund their business. Therefore, annual report is the platform where through sustainable
and integrated reporting they can present their process, structure and ideologies that truly
empowers their spirit and can spread the awareness amongst the stakeholders.
Need for Sustainability reporting and integrated reporting:
With the maturity of the business practice across the globe, the corporate houses had a shift in
basic foundation of establishing business , as now the sentiment of giving back to the society and
preserving the space we live in has seeped through, the strategic decision making now involves
and revolves around these factors.
The need of their contribution towards adopting environment friendly ways or their pro –
employees management structure and their various drives and initiatives eradicating social
injustice from the society is all part of the image that company now wishes to adjudicate, and the
means available for them to foretell is through systematic and regularized reporting as laid down
by the law, a simple disclosure in the annual report will not suffice, a regularized filing of returns
accompanied with action on hand is must to perfectly precast the image they want to develop and
maintain.
The International Integrated Reporting Council:
The International Integrated Reporting Council (IIRC) (previously the International Integrated
Reporting Committee) was formed in August 2010 and develops a standardized framework of
Ahmad, Y. J. (1996). Environmental accounting for
sustainable development

reporting style that can be accepted across the globe for easy access and comparison by the
business houses as well as the users of the business information.
The IIRC is an amalgation of experts from
various and varied field that can help in exploring better avenues of reporting style that contest
the aw to it’s absolute as well as has the ability of educated referencing and context that can help
investors across the platform to make informed decisions. It comprises a Steering Committee, a
Working Group and a three taskforces (dealing with content development, engagement and
communications, and governance).
The IIRC is the forbearer is developing and presenting ways for a common form of reporting and
analyzing the impact and suggestions that the business encounter while complying with the
same. They constantly are paving their way to encompass and broaden the horizon of reporting
in a more standardized fashion, for easy facilitation of the business houses.
CONCLUSION
Therefore, in the awakened generation of the business environment, where balance of profits and
sustainability is must, annual reporting is means of communication to the stakeholders and the
consumers regarding their policies of the business which resonates the same regard. In order to
have regularized and standardized form of reporting international standards on integrated and
sustainable reporting needs to be established and improvised and revised in accordance with the
needs of the business environment. In order to succeed today, stakeholders and environment are
the two pillars upon which the foundation of any business relies upon.
Mulford, C. W., & Comiskey, E. E.
(2005). Creative cash flow reporting:
uncovering sustainable financial
performance.
Barker, R., & Kasim, T. (2016). Integrated
Reporting: Precursor of a Paradigm Shift in
Corporate Reporting? Integrated Reporting,

REFERENCE
 Barker, R., & Kasim, T. (2016). Integrated Reporting: Precursor of a Paradigm Shift in Corporate
Reporting? Integrated Reporting, 81–108. http://doi.org/10.1057/978-1-137-55149-8_5
 Ahmad, Y. J. (1996). Environmental accounting for sustainable development. Washington, DC:
World Bank.
 Dignam, A., & Lowry, J. (2016). 15. Corporate governance 1: corporate governance and
corporate theory. Law Trove. http://doi.org/10.1093/he/9780198753285.003.1616
 Kim, K. A. (2010). Corporate Governance. London: Pearson.
 Mulford, C. W., & Comiskey, E. E. (2005). Creative cash flow reporting: uncovering sustainable
financial performance. Hoboken, NJ: J. Wiley.
 Rodrigue, M. (2015). The International Integrated Reporting Council: A Story of Failure; ‘But
Does Sustainability need Capitalism or an Integrated Report’ a Commentary on ‘The
International Integrated Reporting Council: A Story of Failure’ by Flower, J.; The International
Integrated Reporting Council: A Call to Action. Social and Environmental Accountability
Journal, 35(2), 128–129. http://doi.org/10.1080/0969160x.2015.1068568