Sep 19, 2014
Integrated reporting is not just about more reporting, says Paul Druckman, Chief Executive Officer, The International Integrated Reporting Council.
New Delhi: Integrated reporting introduces companies to best practices, said Paul Druckman, Chief Executive Officer, The International Integrated Reporting Council.
Speaking at the 9th Sustainable and Inclusive Solutions Summit organised by the CII-ITC Centre of Excellence for Sustainable Development, in New Delhi, Druckman said that integrated reporting is not about more reporting but it helps the business get noticed and also spurs innovation.
Quoting Mahatma Gandhi, Druckman said that happiness is when there is harmony in what you think, what you say, and what you do.
“This harmony is missing in what companies are doing. Few businesses, according to him, can point to one voice of execution, and integrated reporting brings that consistency and cohesiveness to the business,” he said.
He clarified that integrated reporting is not an additional layer. “It is more about cohesive and concise reporting which does not allow irrelevant information to obscure the really important issues that are likely to affect the sustainability of the business model in the long term which creates a sustainable environment for us all,’ he added.
Integrated reporting can make fundamental transformation in matters related to the stakeholders, said UK Sinha, chairman of India’s capital markets regulator, Securities and Exchange Board of India (SEBI).
Sinha asserted that reporting was not important only from the shareholders’ point of view and added that people were demanding information like never before. “Integrated reporting is a toolkit which can provide the working and thinking of the organization,” he said.
Sinha also invited CII to develop a roadmap on integrated reporting for discussion with SEBI.
Sinha clarified that SEBI will not regulate disclosures that demand integrated reporting. He stressed on the need to first create awareness and build the environment that is experienced with integrated reporting. He suggested this approach based on SEBI’s experience in the past of gradually improving transparency via various clauses of the listing agreement.
Sinha acknowledged that Integrated Reporting is the next step in the evolution of reporting and that it marks a fundamental change in the way corporates communicate with their stakeholders.
Speaking on the readiness of corporates in India dor Integrated Reporting, he said, “We will be working along with industry to know in an incremental manner about integrated reporting rather than forcing something from our own side.”
“Some of you might have seen that when we have moved towards certain aspects of corporate governance and we have been very careful also to see that the trade and industry is prepared for the changes,’ Sinha added.
Y C Deveshawar, Past President, CII, emphasized the importance of rethinking capitalism and the role of reporting in it. He argued that the kind of corporate reporting in India and the rest of the developed world cannot be the same because of the different challenges that exist in the developing nations.
According to him, responsible capitalism needs to be progressed with businesses synergising the creation of shareholder and societal values in three steps; first with consumer value; second with utilizing resources; and third by replenishing resources.