May-2015

COVER
PRESIDENT’S
STORY
COMMUNIQUE
IR - A POWERFUL TOOL FOR
GOVERNANCE, STRATEGY
AND PERFORMANCE
Integrated Reporting helps the company
manage processes and activities in a more
effective way and, most importantly, build
awareness of the heterogeneous capitals,
resources, and relationships
used and affected
Jonathan Labrey
Chief Strategy Officer
International Integrated
Reporting Council, London
Value to the board
Corporate reporting, and the thinking
that has to accompany it, are
boardroom issues. This is where
strategy, performance and the development
and communication of
long-term value are best understood,
aligned and led. This view is endorsed
by the International Corporate
Governance Network (ICGN)
whose revised Global Governance
Principles now include the recommendation
that boards should produce
an integrated report. Reporting
is firmly placed among the responsibilities
of top management.
Board members are best placed
to ensure overall organizational and
cultural alignment and to achieve
the benefits that come from effective
reporting practices. Investors may
not yet routinely request integrated
reports, but this should not be a
reason for boards to delay starting
their journey. Investors say
they have more confidence in management
when they gain a clear picture
of the business from reporting.
As PwC research shows, investors
clearly want the benefits associated
14 the MANAGEMENT ACCOUNTANT MAY 2015
www.icmai.in