Free Essay On Companies Financial Information And Sustainability Costs

A sustainability report is a business formed report, which is separate from the usual financial reports. It normally discusses the company’s strengths and gives the company’s information on economic, environmental, social and governance performance. The report conveys the impacts of the organization, regardless of whether they are negative or positive. This kind of report is crucial for the stakeholders who use it to monitor the transparency rate in the organization. An effective sustainability report quantifies and measures the environmental performance of the organization. The process of making a sustainability report, therefore, highlights a company's weaknesses which help the organization to plan for their next move in their economic growth. Sustainability report always contains such information which is crucial for the analysis of a business and helps to manage business risks, which mere financial reports do not do.
Including sustainability reports during a company's audition has great benefits for the company. For instance, it gives the company a better reputation in the market. This happens when the company's transparency level increases, making the customers trust the company more and in the end increasing their total outcome. In addition, the surveys carried out through customer and employee interviews can be a good tool for meeting the expectation of the company employees hence increasing the loyalty of the employees to the company. Sustainability report also helps the company to increase in their efficiency level and reduce and manage wastes. Through this, the decision-making process is more efficient. Sustainability reporting, therefore, requires that a company to accumulate their information about the processes of the business and the impacts of the business which they had not measured before in their reports. This kind of report gives the firm the knowledge they need to manage the use of their resources and increase their efficiency and operational performance.
The International Integrated Reporting Council is a body that aims to create a globally accepted framework for the process that results in communications by an organization about the value of overtime. It is a powerful international cross-section of leaders who come from the corporate investments, accounting, and securities among others. The Integrated Reporting Council acts as a linkage between the strategy of an organization, its governance and its social aspect of the environmental and economic context to which it operates. Integration reporting shows the company's attempts to illustrate the interdependency of financial issues and financial performance. During this Integration reporting, the stakeholders are often interested in financial data or ESG data, but they were not interested in both.
The Integrated Reporting also tends to explain better in simpler terms which the investors can easily understand. They mostly understand numbers. They normally do not understand the carbon dioxide data and they also do not understand how ESG works or adds to the company. Integrated reporting, therefore, gives the stakeholders a wider and simpler view of the organization's data and transform them into better and workable data. One of the greatest benefits of the integrated approach is that it causes an integration thinking of the stakeholders. This creates a better interaction between the different departments in the organization which results in building better relations within the organization. Integrational reporting harmonizes the departments making a stakeholder understand data which were initially intended for the technicians only. Integrated reporting is more relevant when it comes to the roles of the secretary. The company secretary provides the important information link through to different groups and departments. This is the center of dissemination of information which helps the other departments to understand the financial position of the company.