Businesses over the time have realised that the conventional reporting is too complex, lacks relevance and wasn’t enabling the sufficient communication between businesses, stakeholders and investors. Traditional reporting has evolved to be more for regulators than for business itself.
Integrated reporting has changed the picture of reporting on a bigger scale. It not only communicates the plan and future of the business but also acts as a medium of value creation for everyone associated with the business. Integrated reporting is an advanced step about communicating the ways in which a company manages its long-term value creation by taking an integrated approach to both traditional risks and sustainability risks. Instead of reporting on financial and sustainability performance separately, integrated reporting shows the way the company is integrating environmental and social thinking into its business. Integrated report goes beyond financial, employee, environmental and social data. It also showcases the bigger risks and opportunities the company can integrate into its long-term strategies and risk management, operational policies and processes. Integrated reporting brings together information that remains in different silos and presents a bigger picture of value created by the company.
India being one of the fastest growing economies in the world, with Indian companies making huge significance internationally today, it has become imperative for top Indian companies to adopt integrated reporting framework in their system. Integrated reporting from Indian companies’ perspective can gain good reputation internationally for the organisation as well as for the whole country. Integrated reporting not only helps in overcoming the concerns about corporate governance and demonstrate responsible leadership but also showcases the way an organisation is creating value for internal and external stakeholders, society and environment. Integrated reporting can put organisations at the core of current international debate about of maintaining trust in business.