Over the past few years, integrated reporting has been gaining momentum as a new and more comprehensive way for businesses to communicate about value creation over time.
Integrated reporting lies on its counterpart in organization management, integrated thinking, however is at an earlier stage of development and has lesser advertised applications.As a less tangible notion, a shared and clear vision of integrated thinking still needs to be delineated: it is currently understood and implemented in various ways by different stakeholders and as a result, it is difficult to analyze its benefits and conditions of success.
MAZARS has designed a survey to collect our clients’ views on the definition, scope and implementation of integrated thinking.
Integrated reporting aims to:
‒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 organization to create value over time
‒Enhance accountability and stewardship for the broad base of capitals (financial, manufactured, intellectual, human, social and relationship, and natural) and promote understanding of their interdependencies
‒Support integrated thinking, decision-making and actions that focus on the creation of value over the short, medium and long term
Integrated thinking is the active consideration by an organization of the relationships between its various operating and functional units and the capitals that the organization uses or affects. Integrated thinking leads to integrated decision-making and actions that consider the creation of value over the short, medium and long term. Integrated thinking takes into account the connectivity and interdependencies between the range of factors that affect an organization’s ability to create value over time, including:
‒The capitals that the organization uses or affects, and the critical interdependencies, including trade-offs, between them
‒The capacity of the organization to respond to key stakeholders’ legitimate needs and interests
‒How the organization tailors its business model and strategy to respond to its external environment and the risks and opportunities it faces
‒The organization’s activities, performance (financial and other) and outcomes in terms of the capitals – past, present and future.
‒The more that integrated thinking is embedded into an organization’s activities, the more naturally will the connectivity of information flow into management reporting, analysis and decision-making. It also leads to better integration of the information systems that support internal and external reporting and communication, including preparation of the integrated report
Why an international survey on integrated thinking?
Integrated thinking lacks a clear vision: it is currently understood and implemented in various ways by different companies. As a result, it is difficult to identify the benefits it offers and the KPIs needed for its success. Mazars aims at issuing a state of the art of what integrated thinking is through an international web survey.
You can participate in the survey here: