Integrated Reporting and Sustainability Balanced Scorecard Quiz

Challenges and Benefits of Integrated Reporting and Sustainability Balanced Scorecard

• KPMG International's vision of an integrated report includes organizational overview, business model, operating context, strategic objectives, performance, future outlook, and governance.
• Vaessen and Tant's three-block model for integrated reporting includes financial and nonfinancial information in the short-, medium- and long-term.
• Davis and Lukomnik suggest steps for implementing integrated reporting, emphasizing the connection between sustainability and financial performance.
• Integrated reporting induces changes in company structures and is easier for companies already embedded with sustainability.
• Integrated reporting benefits include repositioning ahead of competitors, creating integrity, and ethical values.
• Challenges in integrated reporting include the time necessary for guidelines, making reports legitimate, universally applied, and auditable.
• Integrated reporting should include reports from stakeholders.
• Pioneers in integrated reporting include BASF, Dimo, Novo Nordisk, Phillips, and United Technologies, each using different methodologies.
• The King III Code of Governance Principles for South Africa requires all JSE-listed companies to deliver integrated reports, focusing on sustainability's impact on financial performance.
• Differences between integrated reporting and King III Code are seen in stakeholder focus, report structure, terminology, principles, financial information, length, and assurance.
• In the JSE, three hotel companies prepare integrated reports according to the King III Code with varying levels of sustainability reporting and impact measurement.
• Research shows a lack of literature on Sustainability Balanced Scorecard (SBSC) and integrated reporting in all industries, including the hotel industry, with little evidence that they improve management or interact with company strategy.