Financial Sustainability and Integrated Reporting: Project Report

This project report delves into the critical aspects of integrated reporting and corporate governance. It begins with an introduction highlighting the significance of corporate governance and its evolution, particularly in the context of financial sustainability. The report then explores the concept of integrated reporting, its origins in corporate governance, and its role in enhancing a company's ability to manage value across different time horizons. A literature review provides a comprehensive overview of the subject, citing various studies and articles to explain the concepts. The report further analyzes the relationship between integrated reporting and corporate governance, emphasizing how integrated reporting connects financial and non-financial factors, governance, and environmental considerations. The report also examines the components of corporate governance within integrated reporting, including business models, risk management, strategic objectives, future outlook, performance evaluation, and governance structures. The report concludes by emphasizing the importance of integrated reporting as a communication tool for stakeholders, governments, and management, providing a clear picture of a company's position and performance. The project aims to provide a detailed understanding of integrated reporting and its role in corporate governance for achieving financial sustainability.

Running Head: Financial Sustainability Integrated Reporting 1
Project Report: Financial Sustainability Integrated Reporting

Financial Sustainability Integrated Reporting 2
Contents
Introduction.......................................................................................................................3
Corporate governance.......................................................................................................3
Literature review...............................................................................................................4
Corporate governance as integrated report’s part:............................................................6
Relationship between integrated reporting and corporate governance.............................8
Conclusion................................................................................................................................10
References.......................................................................................................................12

Financial Sustainability Integrated Reporting 3
Introduction:
Corporate governance is crucial for every organization. In the given case, corporate
governance has been analyzed. Ms Serrah was interested to do a course in integrated
reporting but due to some issues, she has moved on and didn’t appear in the course. Now in
this case, she has shown her willingness to know more about integrated reporting and
corporate governance. In this report, the main study has been done over the integrated
reporting. The origin of integrated origin is in corporate governance. It assists the
organization in enhancing the ability of the company in managing the value of the
organization in short term, medium term and long term.
The corporate governance is an internal system which contains the process,
procedure, people and various strategies that serve the needs and requirements of the
stakeholders as well as shareholders by managing, directing and controlling the activities by
the top level management of the company along with savvy, integrity and objectivity of the
company. The main goal of this report is to analyze and explain the importance, relationship
and concepts of the integrated reporting. Further, various other concept of the integrated
reporting has also been analyzed to enlighten the concept of integrated reporting for Ms
Serrah.
Corporate governance:
Corporate governance, corporate reporting, responsibility and integrated reporting are
the significant terms which have been used in an international business to manage the
business. The main motive behind enhancing these terms is the financial crisis and the
various problems in the market. The enhancement incidence behind integrated reporting is of
accounting scandals and environmental disaster (Eccles & Krzus, 2010). Further, business
concepts are quite complex and thus it is required for the businesses to manage and maintain
the corporate reporting. The concept of corporate reporting makes it simple for the business
to enlarge the business.
Earlier, the financial reporting used to be enough for the international business to
manage and analyze the performance and the position in the market. But now the market has
been complex and with the complexity, various problems have also been enhanced in the
market (Jensen & Berg, 2012). So, the concept of integrated reporting would be useful for the
company to manage all the complexity and the problems in the organization.

Financial Sustainability Integrated Reporting 4
Firstly, the concept of integrated reporting depict that the performance of an
international company bases over various financial and non-financial factors. For analyzing
the better performance of the company, it becomes important for the management of the
company to relate all these aspects and the variables with the help of the integrated reporting
to make a better study and decision (Frias‐Aceituno, Rodriguez‐Ariza & Garcia‐Sanchez,
2013). Interpreted reporting connects governance, financial, non financial, remuneration,
social, environmental and economical factors of a company. The concept of integrated
reporting could also be analyzed through the definition that this concept follows the targets
and strategies of the company to set the business.
Literature review:
The concept of integrated reporting could be understood more briefly through
conducting a study over various articles, study and magazine. Currently, entire corporate
scandals have been taken place due to corporate scandals and the insufficient control system
over the business. This all has impacted the policies and corporate governance power of the
company. Basically corporate governance arises because of conflicts among two parties of
the company and their interest. The associated parties are managers of the company and the
shareholders of the company. de Villiers, Rinaldi & Unerman, (2014) has defined that the
corporate governance is n internal system which contains the process, procedure, people and
various strategies that serves the needs and requirements of the stakeholders as well as
shareholders by managing, directing and controlling the activities by the top level
management of the company along with savvy, integrity and objectivity of the company
(Adams & Simnett, 2011).
Further, various organizations and the corporate governance department of various
countries have explained that the corporate governance is a set of companionship among the
management of the company, board of directors, shareholders of the company and the
stakeholders of the company. Further, Eccles & Saltzman, (2011) has explained in his study
that corporate governance explains the various significant issues which manages and
integrates the social, economical and environmental values and the business operations of the
company.
According to the Flower (2015), it is required for every organization to manage and
maintain the position of the corporate governance in an organization. Corporate governance
must be disclosed by the every organization on the aspect of politics, risk, social values,

Financial Sustainability Integrated Reporting 5
stakeholder’s perspective etc. to manage the diversity in the organization. Corporate
governance is a critical aspect of an organization. Nowadays, the principle of integrated
reporting has been more complex with the increased diversity and competition in the market.
Current changes into the corporate governance and integrated reporting have been driven
changes into the global level (Abeysekera, 2013).
Currently corporate governance has been managed and arose by the companies to
reduce the level of complexity. Ruggie (2011) has depicted in a study depict the corporate
governance is a sign of modern technology and changes in an organization. More, Admas
(2015), has briefed in his study that corporate governance explains the various significant
issues which manages and integrates the social, economical and environmental values and the
business operations of the company.
Integrated reporting is suitable for a company for a short term, long term and medium
term for a business. It assists the company to manage and administer the various policies and
the complexity in the operations of a business (Cheng et al, 2014). Integrated reporting
explains about the information of an organization in context of financial and non financial
term. It also expresses about the performance, strategy, prospects and governance which
reflects the commercial, social and environmental context in which the corporate governance
performs. This concept offers the concise and clear picture about the organization. This
concept creates and enhances the value of the company in future (Suter, Oelke, Adair &
Armitage, 2009).
An international committee has also been set by the international organization
community. This organizational committee evaluates the corporate governance and integrated
reporting of an organization and takes further steps accordingly. More, the concept of
integrated reporting depict that the performance of an international company bases over
various financial and non-financial factors (Cheng et al, 2014). For analyzing the better
performance of the company, it becomes important for the management of the company to
relate all these aspects and the variables with the help of the integrated reporting to make a
better study and decision (Busco, 2014).
According to the Admas (2015), it is required for every organization to manage and
maintain the position of the corporate governance in an organization. Current changes into
the corporate governance and integrated reporting have been driven changes into the global
level. Interpreted reporting connects governance, financial, non financial, remuneration,

Financial Sustainability Integrated Reporting 6
social, environmental and economical factors of a company (de Villiers, Rinaldi & Unerman,
2014). The concept of integrated reporting could also be analyzed through the definition that
this concept follows the targets and strategies of the company to set the business.
Further, it has been explained by Dumitru, Glavan, Gorgan & Dumitru, 2013) that
Corporate governance, corporate reporting, responsibility and integrated reporting are the
significant terms which have been used in an international business to manage the business.
Moreover, a study of Azapagic, (2003) express that the main motive behind enhancing
Corporate governance and responsibility and integrated reporting are the financial crisis and
the various problems in the market. Further, it has been added by Daub (2007) that the
enhancement incidence behind integrated reporting is of accounting scandals and
environmental disaster. Further, business concepts are quite complex and thus it is required
for the businesses to manage and maintain the corporate reporting (Schaltegger & Wagner,
2006). The concept of corporate reporting makes it simple for the business to enlarge the
business.
Jensen & Berg, (2012) has depicted into his study that in ancient times, financial
reporting was quite enough for the companies which are performing their business in the
international market, to manage and analyze the performance and the position in the market.
But now the market has been complex and with the complexity, various problems have also
been enhanced in the market. Further, as a conclusive study, it has been expressed by OECD
(2017) that the concept of integrated reporting would be useful for the company to manage all
the complexity and the problems in the organization.
Further, according to the study of Burritt, Hahn & Schaltegger, (2002), it has been
found that the integrated reporting is a process which has been founded by the organization
on the perspective of integrated thinking that outcomes in a periodic report of integrated
system by a company about the creation of value over time, communication and other related
factors. More, it has also been defined that the integrated reporting is an integrated
representation and holistic of the company’s performance in terms of responsibility as well as
sustainability and finance of the company.
Corporate governance as integrated report’s part:
Because, nowadays many companies, governments and the stakeholders have already
known the significance of social, environmental, governance information as a huge part of
annual report which is needed by the organization. Integrated reporting is the main part which

Financial Sustainability Integrated Reporting 7
offers stakeholders, government and the management of the company about the full picture of
structured around, performance and business model, strategic objective of organization which
includes financial and non financial information of the company. According to the
Schaltegger & Wagner, (2006), an integrated reporting is the summary of communication
about the governance, strategy, policy, prospects, performance in concern of external
environment of the company to lead the value creation in short term, long term and medium
term of the business.
In different words, the concept of integrated reporting is a significant document which
communicates with the companies, governments and the stakeholders about the current
position of the company and the governance, strategy, policy, prospects, performance of the
company. This report expresses the stakeholders about the value creation story of the
organization and policies in an understandable manner. Thus, the reports of integrated
reporting depict about the activities, risks, abilities and opportunities of the company which
has been grabbed by the company or could be grabbed by the company in near future
(Enquist, Johnson & Skålén, 2006).
It has been suggested that the main documents of the company and its communication
level is integrated reporting. It has been suggested that the most significant factors and
guiding principles which refers to the information which is not correct. Following are some
of the elements of the corporate governance:
 Business model and organizational overview:
This system assists the organization to analyze that how the sustainable value could be
created in long, short and medium term?
 Including risk, operating context and opportunities:
This system assists the organization to analyze that what could be the associated risk,
opportunities and the operating context of the company in order to manage and enhance the
operations and the performance of the company? (IIRC, 2013)
 Strategy and strategic objective to achieve the objectives:
This system assists the organization to analyze that what are the objectives and what
could be the strategies to achieve that goals of the company in order to manage and enhance
the operations and the performance of the company?
 Future outlook:

Financial Sustainability Integrated Reporting 8
This system assists the organization to analyze that what are the opportunities,
strategies, threats, challenges, uncertainties and other aspects of the company in order to
manage and enhance the performance of the company?
 Performance:
This system assists the organization to analyze that what could be the factors in an
organization which could enhance the performance of a company? (O'Donovan. 2003).
 Governance and remuneration:
This system assists the organization to analyze about various policies and governance
structure of an organization in order to manage and enhance the operations and the
performance of the company?
The above details depict that various concepts, performance, position, Performa,
profitability position etc of the company which focuses over the demands and the corporate
governance of the company. It enhances the organization to maintain and manage the full
picture of structured around, performance and business model, strategic objective of
organization which includes financial and non financial information of the company.
Relationship between integrated reporting and corporate governance:
The companies want to make sustainable values in order to enhance the financial values
and non financial values of the company which is required by the business to manage the
values for stakeholders and for the society to present and offer information to the
stakeholders (IIRC, 2013). Corporate governance is a part of the integrated reports of the
company which is developed by the organization in order to manage and rebuild the faith of
the stakeholders and to manage the feelings of interest of managers in line with owner’s
interest. Basically, the most important principles of the corporate governance are:
Fairness
Responsibility
Transparency
Accountability
The above factors depict that corporate governance mainly stand up over fairness,
transparency, accountability and fairness of the corporation. Accountability is a principle
which emphasize over the responsibility of the business and its impact over the environment.

Financial Sustainability Integrated Reporting 9
Further, it has been found that following are some of the guiding principles of corporate
governance:
Future orientation
Connectivity of information
Strategic focus
Stakeholder and responsiveness inclusiveness
Reliability
Materiality
Conciseness (IIRC, 2011)
The research methodology which has been used to describe the companionship
corporate governance and integrated reporting are empirical analysis of the content and
structure of published reports of various public companies. Integrated reporting is suitable for
a company for a short term, long term and medium term for a business. It assists the company
to manage and administer the various policies and the complexity in the operations of a
business.
The corporate governance is an internal system which contains the process, procedure,
people and various strategies that serve the needs and requirements of the stakeholders as
well as shareholders by managing, directing and controlling the activities by the top level
management of the company along with savvy, integrity and objectivity of the company.
Following is the relationship structure of integrated reporting ad corporate governance:
(O'Donovan. 2003)

Financial Sustainability Integrated Reporting 10
Firstly, the concept of integrates reporting is lied over the integrated reporting and
thinking which promotes the internal process for understand the interest and needs of
different stakeholders/ investors. The organizations which assist the integrated documents for
reporting are quite good to communicate the global performance of the company. Further, it
also connects the financial information and non financial information of a company which
includes those factors which focuses towards the future, embedded in integrated reporting
could enhance corporate governance (OECD, 2017).
Further, it has been explained by Admas (2015) that Corporate governance, corporate
reporting, responsibility and integrated reporting are the significant terms which have been
used in an international business to manage the business. Moreover, a study of Daub (2007)
express that the main motive behind enhancing Corporate governance and responsibility and
integrated reporting are the financial crisis and the various problems in the market. Further, it
has been added by Azapagic, (2003) that the enhancement incidence behind integrated
reporting is of accounting scandals and environmental disaster. Further, business concepts are
quite complex and thus it is required for the businesses to manage and maintain the corporate
reporting. The concept of corporate reporting makes it simple for the business to enlarge the
business.
Further, it has also been analyzed that the main focuses of the company is in integrated
reporting as integrated reporting is the main part which offers stakeholders, government and
the management of the company about the full picture of structured around, performance and
business model, strategic objective of organization which includes financial and non financial
information of the company. According to the Eccles, Krzus, Rogers & Serafeim, (2012), an
integrated reporting is the summary of communication about the governance, strategy, policy,
prospects, performance in concern of external environment of the company to lead the value
creation in short term, long term and medium term of the business.
Further, it has been found through the study of Busco (2014) that in ancient times,
financial reporting was quite enough for the companies which are performing their business
in the international market, to manage and analyze the performance and the position in the
market. But now the market has been complex and with the complexity, various problems
have also been enhanced in the market (Cheng et al, 2014). It assists the company to manage
and administer the various policies and the complexity in the operations of a business.
Conclusion:

Financial Sustainability Integrated Reporting 11
Through the above study, it has been found that the various changes have taken place
into the position of corporate governance. Because, nowadays many companies, governments
and the stakeholders have already known the significance of social, environmental,
governance information as a huge part of annual report which is needed by the organization.
Integrated reporting and corporate governance is the main part which offers stakeholders,
government and the management of the company about the full picture of structured around,
performance and business model, strategic objective of organization which includes financial
and non financial information of the company. An integrated reporting is the summary of
communication about the governance, strategy, policy, prospects, performance in concern of
external environment of the company to lead the value creation in short term, long term and
medium term of the business.
In ancient times, financial reporting was quite enough for the companies which are
performing their business in the international market, to manage and analyze the performance
and the position in the market. But now the market has been complex and with the
complexity, various problems have also been enhanced in the market. It assists the company
to manage and administer the various policies and the complexity in the operations of a
business. The origin of integrated origin is in corporate governance. It assists the organization
in enhancing the ability of the company in managing the value of the organization in short
term, medium term and long term.

Financial Sustainability Integrated Reporting 12
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Burritt, R. L., Hahn, T., & Schaltegger, S. (2002). Towards a comprehensive framework for
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Dumitru, M., Glavan, M. E., Gorgan, C., & Dumitru, V. F. (2013). International integrated
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Apulensis: Series Oeconomica, 15(1), 24.
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strategy. John Wiley & Sons.