Integrated Reporting: Communicating Value Creation

In the age of globalization, increased mutual dependency amongst the nations, advances in Information and technology, population growth and mounting worldwide consumption, the world scenario has changed. In such situation the corporate houses all over the world including India have developed new business models and strategies to do business and remain successful so as to create value for the stakeholders. Today, an organization operates keeping in mind the society and economy as a whole by means of sustainable strategy. It believes in concept of inclusive growth. Keeping the pace with the changing situations, the traditional pattern of corporate reporting has also undergone a substantial change. The information provided now by the business houses is more of stakeholders oriented rather than shareholders. Today the non-financial data along with the financial information is also reported. The corporate houses have adopted a pattern of reporting which is known as “Integrated Reporting”. They report in line with the standardized framework provided by GRI (Global Reporting Initiative) and in accordance with the thinking of IIRC (International Integrated Reporting Council). The paper attempts to provide the conceptual clarity of Integrated Reporting and to analyze how the value created for stakeholders has been reported by the companies using the integrated reporting principles. The study reveals that IIRC has provided the guiding principles and contents elements of integrated report which help the stakeholders to know in depth the value created by the company. It is concluded that the though the benefits of integrated reporting are largely understood, the acceptability of the concept is yet delayed and the percentage of the companies who have started integrated reporting practices is very less.