A conventional view of corporate reporting is that it provides an entity the means to communicate with equity and debt capital providers about past performance. Initiatives across the last 3-4 decades including triple bottom line, social and environmental accounting (SEA), corporate social responsibility and sustainability reports to a more outward looking and forward-looking corporate report.

The increasing awareness of worldwide megatrends such as climate change, inclusive capitalism, improved corporate stewardship and better corporate governance has powered sustainability up the corporate agenda in recent years. Belief in business to lead the way in creating a better society has risen and investors are increasingly focused on environmental, social and governance (ESG) issues when making their capital allocation decisions. Consumer trust in business is becoming ever more valued within organisations and integrating sustainability considerations throughout operations is essential if a company is to be recognised as a good corporate citizen.

Integrated reporting

Experts in the field of integrated reporting have provided valuable insights into the benefits of adopting integrated reporting: an approach to communicate how the various aspects of a companys operations, such as strategy, governance, performance, and prospects, create value over the short through to long term.

Integrated reporting is enhancing the way that organisations think about, plan and report on the story of their business. Adopting integrated reporting helps companies to think holistically about strategy and plans, make informed decisions and manage key risks. This builds investor and stakeholder confidence and improves future performance and it all starts with integrated thinking. This style of reporting, which is gaining traction internationally, is becoming the pre-eminent means of driving more authentic, comprehensive, and meaningful information about all aspects of an organisations performance and value creation story through to stakeholders.

In fact, numerous studies have unearthed links between integrated reporting and corporate success, with companies that have adopted integrated reporting showing outperformance in terms of:

higher market valuation;

greater stock liquidity;

better understanding of strategy by investors; and

more dedicated investor profiles.

www.luminous.co.uk. (n.d.). #illumination event 2: Integrating sustainability. [online] Available at: https://blog.luminous.co.uk/illumination-event-2-integrating-sustainability [Accessed 30 Jan. 2022]

Assessment details Assume that you are working for a consulting firm that specialises in implementing integrated reporting in large, listed companies. You are required to write a business report to the Chief Executive Officer of a large ASX listed company in Australia evaluating how a move from a conventional corporate to an integrated corporate report can benefit the company and its stakeholders. Your report should specifically address the following:

1. Limitations of the conventional corporate report. (Approximately 500 words)

2. What is integrated reporting and how can integrated reporting rectify the limitations of the conventional corporate report? (Approximately 500 words)

3. How does integrated reporting differ from sustainability reporting? [Note: In particular, demonstrate conceptual differences] (Approximately 500 words

4. Advantages and disadvantages (or costs and benefits) associated with integrated reporting, and theoretically informed recommendations as to how the company may benefit, in the balance, by adopting integrated reporting. [Note: refer to theories in accounting that explain why companies may adopt integrated reporting and based on those theories predict how the company might benefit by adopting integrated reporting] (approximately 500 words)

Additional guidance In this research assignment you will be providing your personal view based on research evidence, theory and original thought. In your assignment, you are expected to draw on: relevant accounting theories

relevant frameworks and/or standards

scholarly articles from academic journals

reports issued by professional accounting bodies, accounting firms (particularly, the Big 4), regulatory bodies, the IIRC, the GRI and other organisations.

official websites of professional accounting bodies, accounting firms (particularly the Big 4), regulatory bodies, the IIRC, the GRI and other organisations

media reports

Sustainability and integrated reporting are covered in Chapter 9 of your textbook. The theoretical knowledge necessary to successfully complete this research assignment is not confined to one or a few topics but spread across many topics in this unit. The theoretical knowledge provided in Chapters 8, 9 and 10 of your textbook is particularly relevant to this assignment.

The assignment should take the form of a business report and include an executive summary.

The entire assignment should not exceed 1500 words (+/- 10 %) (excluding title page, table of contents, reference list and the executive summary, but including footnotes, endnotes and appendices). A reference list is required.

Please provide a word count on the cover sheet.

To avoid plagiarism, you are required to provide a reference whenever you include information from other sources in your work. The rubric for marking this assignment is attached..