BENEFITS OF INTEGRATED REPORTING (IR)
by LAY SI CHUA
1. What is IR
1.1. strategic and future-oriented communication about how organizations draw on the different resources and relationship available to create value over time
2. Improve decision making
2.1. utilizing the six capitals in integrated reporting,make sure that the six capitals are considered and fulfilled
3. Reporting align with modern business model
3.1. Zubinos has a quite complex business model with number of shops in different location and has interested to open shop outside UK, traditional reporting system becomes less accountable and inefficient
4. Recommendation
4.1. recommended to implement integrated reporting
4.2. risk of expansion of Zubinos to Europe should be identified and reported if Zubinos is going to proceed its plan of expansion, including Zubinos’ effort to manage the risk
4.3. explain Zubinos’ effort in maintaining ‘fair trade produce’ by listing the percentage of fair trade coffee used in the products in the integrating reporting
4.4. recommended to implement an information technology system to show the connectivity of data
4.5. advised that staffs are trained for integrated reporting by attending workshops and seminars
5. Why IR
5.1. Reporting cycle is short term in focus, backward looking, have a compliance box taking mentality and fragmental approach
5.2. Reports is too long and too complex, these cause businesses face a significant compliance burden and investors are not getting the right information
6. Positive impact on external engagement with stakeholders
6.1. attract new investors and give certain assurance for existing investors by listing the risk management taken by Zubinos
7. Fulfill stakeholder needs
7.1. includes all the information that should be considered and stakeholder are able to get the right information that they need that could lead to better consultation.
8. Improve reputation
8.1. shows both financial and sustainability reporting that help the investor to understand the organization, greater transparency
8.2. helps Zubinos to improve the reputation after the adverse publicity
