Companies that do integrated reporting vary in how effectively they implement it. But those that have got it right say it has improved the way they operate. The concept of integrated reporting (IR) has been gaining ground. Promoted by the International Integrated Reporting Council (IIRC), IR attempts to address weaknesses in traditional financial reporting and help business develop resilient operations for the medium and long term.
Rather than focusing solely on their use of financial capital, companies applying the IIRC’s International IR Framework also report on other forms of capital – manufactured, intellectual, human, social and relationship, and natural. The approach recognises that companies’ success depends on many factors, including the expertise of their people, the intellectual property they develop through research and development, and their interaction with the environment and societies in which they operate.