So why is Integrated Reporting important to corporate Australia, to the boards and senior management teams of major organisations?
Well really, what we’re seeing today is unprecedented amount of change. Everyday there are activities which are impacting on a corporation strategy; the risks and opportunities that it faces, whether it be from regulation, new technologies, changing demographics, changing customer preferences and the like.
Continual change - so our boards and senior management teams are continually reassessing their strategy; they continually re-reviewing their risks and opportunities. They make decisions based on those changes and then somehow they have to align their organisations and their key stakeholders to those changes.
Integrated Reporting provides the tool through which the board and senior management teams can actually articulate their changes to strategy clearly and succinctly, ensure their organisation is fully aligned - tweaks are made around activities that they are undertaking - to deliver on the revision to strategy, to mitigate those additional risks, to actually maximise those opportunities.
And likewise, thought those integrated report, the external stakeholders (the shareholders and others) can understand what has changed, why is this changed, what the board and management team have done to actually clearly continue to deliver value over time and be a sustainable organisation.