Companies must do better at communicating their value, says expert
This year marks the end of the International Integrated Reporting Council’s (IIRC) Breakthrough Phase, a three-year period focused on the development and early adoption of integrated reporting around the world. And a leading expert says companies must do better.
Vijith Kannangara, chairman of Smart Media The Annual Report Company, says: ‘The world hasn’t seen anything yet, in terms of stakeholder activism. Companies must do a much better job of communicating their value proposition from a total stakeholder point of view.
‘This is the key to survive and thrive in the emerging new world where consumers will be empowered more than at any other time in history to vote with their feet, and activists will determine a company’s license to operate.’
The idea of integrated thinking and integrated reporting has grown organically in various geographies, often in tandem with the IIRC’s International Integrated Reporting Framework (IIRF). To help in this process Smart Media has developed the Smart Integrated Reporting Methodology eBook, based on the company’s experience in producing more than 60 integrated annual reports over the past seven years.
The methodology aligns with the Global Reporting Initiative Standards and the IIRF, while providing insights on value creation and capital formation.
‘I am yet to see any company that felt it was prepared with the requisite information to dive into an integrated annual report,’ says Kannangara. ‘Therefore, we consistently advocate a just-do-it approach. Once that first step is taken, its amazing how tacit islands of knowledge tend to crystallize into coherent propositions and stories of value creation across the spectrum of stakeholders.
‘This in turn motivates the company to sharpen its focus on thinking and acting in an integrated manner for the benefit of all stakeholders.’
Go here to receive a copy of the free reporting methodology eBook.