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Intergrated reporting and corporate social responsibility - Coggle Diagram
Intergrated reporting and corporate social responsibility
IIRC consists of:
Regulators
Investors
Companies
Standard setters
The accounting profession
NGOs
Framework
takes a principles-based approach.
gives companies a degree of flexibility in how to produce their report.
It include a small number of requirements that are to be applied before an integrated report can be said to be in accordance with the Framework.
Objectives
Improve the quality of information available to providers of financial capital to enable a more efficient and productive allocation of capital.
Promote a more cohesive and efficient approach to corporate reporting that draws on different reporting strands and communicates the full range of factors that materially affect the ability of an organisation to create value over time.
Enhance accountability and stewardship for the broad base of capitals
Support integrated thinking, decision-making and actions that focus on the creation of value over the short, medium and long term.
Capital
Financial
available to an organization for use in the production of goods or the provision of services.
obtained through financing
debt, equity or grants, or generated through operations or investments
often distinguished from other forms of capital, such as physical capital (machinery, equipment, infrastructure) and human capital (knowledge, skills, and abilities of individuals).
Shareholders’ funds are the money employed in a company that has been contributed by individuals and institutions to finance a company in return for ordinary shares and preference shares and which will remain as a permanent source of finance as long as the company remains in existence (Pass, Lowes, Pendleton, & Chadwick, 1991).
Manufactured
refers to the tangible assets and infrastructure created by human beings for use in the production of goods or the provision of services, including:
buildings
equipment
infrastructure
It plays a critical role in economic development and productivity. It enhances the efficiency of production processes, facilitates trade and transportation, and enables the provision of goods and services to meet societal needs.
Manufactured capital includes assets manufactured by the reporting organization for sale or when they are retained for its own (IIRC,2021,p.19)
Intellectual
Organisational, knowledge-based intangibles
Categories
human capital
structural capital
Relational
The concept of ICA developed from earlier financial reporting conceptions of goodwill accounting and
intangibles accounting, and these concepts remain closely related (Petty and Guthrie, 2000).
Human
refers to the knowledge, skills, abilities, and attributes possessed by individuals that contribute to their productivity, economic value, and potential for future earnings.
Investment in education, lifelong learning, skills development, and health and well-being initiatives are vital to foster and maximize human capital.
a competitive intangible asset and there has been a shift towards recognition that intangible
resources more so than tangible resources drive value. (Stiles, 2003: 3).
Social and relationship
refers to the intangible assets and networks created through social interactions, relationships, and connections between individuals and organizations.
Social relationship includes
shared norms, and common values and behaviours
key stakeholder relationships, and the trust and willingness to engage that an organization has developed and strives to build and protect with external stakeholders.
intangibles associated with the brand and reputation that an organization has developed
an organization’s social licence to operate
“Unlike other forms of capital, social capital inheres in the structure of relations between actors and
among actors” (Coleman 1988: 90)
Natural
All renewable and non renewable environmental resources and processes that provide goods or services that support the past, present or future prosperity of the organisation.
includes; air, water, land, minerals and forests, biodiversity and eco-system health.
“The concept of natural capital, often understood as any stock of natural resources or environmental
assets that provides a flow of useful goods or services, now and in the future”. (Brand 2009: 608)
Guiding principles
Strategic focus and future orientation
Connectivity of information
Stakeholder relationships
Materiality
Conciseness
Reliability and completeness
Consistency and comparability