Corporate Reporting.pptx

Recent developments in corporate reporting.

1. BEYOND FINANCIAL REPORTING: THE CHANGING LANDSCAPE OF CORPORATE REPORTING Abubakar Ahmed, PhD School of Business and Entrepreneurship American University of Nigeria [email protected]

2. The Importance of Corporate Reporting Corporate reporting is the process of disclosing financial and non-financial information about a company's performance and operations. It plays a pivotal role in maintaining transparency and accountability in the business world. In this presentation, we will explore why corporate reporting matters and the profound impact it has on both businesses and stakeholders.

3. Impact on Businesses and Stakeholders Businesses: Enhances Decision-Making: Accurate financial reporting informs internal decision-making, allowing companies to allocate resources effectively. Builds Trust: Transparent reporting fosters trust with investors, creditors, and potential partners, facilitating access to capital and opportunities. Compliance and Legal Requirements: Compliance with reporting standards ensures companies adhere to legal and regulatory obligations.

4. Impact on Businesses and Stakeholders Stakeholders: Informed Investment Decisions: Shareholders and investors rely on corporate reports to assess a company's financial health and performance. Responsible Business Practices: Stakeholders, including customers and employees, look for evidence of ethical and sustainable business practices. Risk Mitigation: Timely reporting allows stakeholders to identify and address potential risks, safeguarding their interests.

5. CSR Reporting: Definition and Importance Corporate Social Responsibility (CSR) Reporting is the process of disclosing a company's environmental, social, and ethical performance to its stakeholders. Why CSR Reporting Matters Transparency and Accountability: Demonstrates transparency in business practices and holds companies accountable for their impact on society and the environment. Stakeholder Trust: Builds trust with customers, investors, employees, and the community, which can enhance a company's reputation.

6. Components of CSR Reporting Environmental Performance: Reports on a company's environmental initiatives, such as sustainability efforts, energy efficiency, and emissions reduction. Social Impact: Highlights contributions to social causes, including community engagement, diversity and inclusion efforts, and employee well-being. Ethical Governance: Demonstrates adherence to ethical business practices, including anti-corruption policies and supply chain responsibility.

7. CSR Reporting: Key Reporting Frameworks

8. CSR Reporting: Top Companies

9. Microsoft: CSR Reporting Here's a brief overview of CSR reporting in Microsoft: Comprehensive Reporting: Publishes an annual CSR report that provides detailed insights into the company's sustainability efforts, social impact, and ethical practices. This report is accessible on their website. Environmental Initiatives: Committed to reducing its carbon footprint and has set ambitious goals to become carbon negative by 2030. They also pledge to eliminate their historical carbon emissions by 2050. These initiatives are detailed in their CSR reporting. Diversity and Inclusion: Microsoft focuses on promoting diversity and inclusion within its workforce. They report on their efforts to increase gender and racial diversity and provide data on employee demographics and progress in this area.

10. Rolex: CSR Reporting

11. Integrated Reporting: Definition Integrated Reporting is a holistic approach to corporate reporting that combines financial and non-financial information. It provides a comprehensive view of a company's performance, strategy, and value creation in the short, medium, and long term. Integrated reports aim to communicate how a company creates value for all stakeholders, including shareholders, employees, customers, and the wider society.

12. Integrated Reporting: Key Principles Strategic Focus: Integrated reports should provide insights into a company's strategy, governance, and how it manages its resources to create value. Connectivity: They should demonstrate the relationships between various factors, such as financial, environmental, social, and governance aspects. Materiality: Integrated reports should focus on material information, highlighting what matters most to stakeholders and the business. Conciseness: Reports should be concise, providing relevant information without unnecessary clutter. Stakeholder Engagement: Stakeholder dialogue and engagement should be evident in the report, reflecting how the company considers stakeholder interests. Reliability and Completeness: Information should be reliable, accurate, and complete, allowing stakeholders to make informed decisions.

13. Recent Developments in Integrated Reporting Global Reporting Initiative (GRI) Standards: GRI has integrated elements of integrated reporting into its sustainability reporting framework, emphasizing the importance of non-financial data. International Integrated Reporting Framework: The IIRC released the Integrated Reporting Framework, providing guidance and principles for organizations. Sustainability Reporting Standards: Increasingly, organizations are aligning their SR with IR principles to provide a more comprehensive view of their activities. Regulatory Requirements: Some countries have started to mandate or encourage integrated reporting as part of corporate disclosure, fostering its adoption. Technology Integration: Advances in technology and data analytics have made it easier for companies to integrate and present both financial and non-financial information in a cohesive manner.

14. Sustainability Reporting: Definition

15. Sustainability Reporting: Significance

16. Recent Changes and Standards in SR GRI Standards (Global Reporting Initiative): GRI provides a widely recognized framework for sustainability reporting, offering comprehensive guidelines for ESG disclosure. SASB (Sustainability Accounting Standards Board): SASB focuses on industry-specific standards to help companies report financially material ESG information. TCFD (Task Force on Climate-related Financial Disclosures): TCFD provides recommendations for disclosing climate-related financial risks and opportunities. ESG Integration: Many organizations are integrating ESG factors into their financial reporting, recognizing their impact on long-term value. Regulatory Requirements: Some countries have begun to mandate ESG disclosure, emphasizing its importance.

17. Challenges of Corporate Reporting

18. Challenges of Corporate Reporting Non-Financial Reporting: Reporting on non-financial aspects, such as sustainability and social impact, adds complexity due to the absence of standardized metrics. Materiality Assessment: Identifying and prioritizing material information that is relevant to stakeholders can be subjective and complex. Technology Integration: Leveraging technology for data collection, analysis, and reporting requires significant investments and expertise. Data Collection: Gathering data and ensuring its accuracy and completeness can be a logistical challenge. Changing Business Models: Adapting reporting to reflect evolving business models, such as the rise of digital businesses, can be complex.

19. Future of Corporate Reporting Integration of ESG Reporting: Environmental, Social, and Governance (ESG) factors will become central to corporate reporting, reflecting a company's impact on sustainability and society. Technology-Driven Reporting: Advanced technologies like AI, data analytics, and blockchain will streamline data collection, analysis, and reporting, enhancing accuracy and efficiency. Integrated Digital Reporting: Interactive, digital reports will replace static documents, providing stakeholders with dynamic, real-time insights. Enhanced Materiality Assessment: Improved methods for materiality assessment will help companies identify and prioritize ESG issues that matter most to stakeholders.

20. Future of Corporate Reporting

21. Conclusion