Integrated reporting can improve sustainable resources use, Sri Lankan firms told
ECONOMYNEXT- Sri Lankan businesses should publish integrated reports to better capture and communicate the business evolution and strategies towards sustainability, said Raja Senanayake, Head of Process Development, Smart Media (Pvt) Ltd.
“It (integrated reporting) is nothing but communicating the story of value creation in a sustainable manner in the short, medium and long term emphasizing on three things: creating value but not breaking them, creating value for all stakeholders and for all type of sectors,”he said.
The main focus of the report is to explain the connections between the company’s various activities and how different parts contribute to value, Senanayake told a forum organized by CA Sri Lanka.
An integrated report is a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term.
Senanayake said that emerging developments such as digitalization, globalization, modernization and democratic changes challenge the conventional business model.
“(Due to) unorthodox competition, now the companies don’t know where the competition will come from,” said Senanayake.
Historical factors such as GDP growth and interest rates no longer influence the market trends.
The unpredictability of the market makes it difficult for companies to be sustainable.
The emerging developments set the context for the way entities should be managed and they set the content for the annual reports too, he said.
The context of the integrated report creates the platform for companies to better identify its resources and use them sustainably.
(COLOMBO, April 09, 2019)