Formation of Integrated Reporting in the Context of Sustainable Development

Abstract

The purpose of the paper is to theoretically justify the preparation of integrated reporting, the influence of sustainable development ideas on the formation of the concept of integrated reporting, the problems of its creation and implementation in the practice of organizations. Methodology. The methodological and theoretical basis of the study was made up of the works of scientists and specialists in corporate reporting and sustainable development; frameworks, instructive and methodological materials for the formation of integrated reporting. We used general scientific methods of cognition such as comparison, analysis and synthesis, generalization, systematization, historical and logical methods. Results. Information deficiency arising from the formation of exclusively financial statements stimulates the emergence of integrated reporting. Non-financial reporting (social, environmental, etc.) provides useful information but does not reflect the relationship between different aspects of the company’s activities and its results, which does not contribute to understanding its ability to create value over time. The constant trend of companies to sustainable development involves the study of issues of formation of integrated reporting as a tool for building a sustainable business. The integrated report aims to provide an insight into the company’s resources and relationships that are known as the capitals and how the company interacts with the external environment and the capitals to create value. Key indicators of sustainability reporting, which should be reflected in integrated reporting, are grouped into three components: economic, environmental, and social. They are based on an assessment of the value of business and the value of capitals. Companies interested in implementing integrated reporting face a number of challenges, beginning with the fact that no globally accepted framework specifying what goes into an integrated report exists. But there are a growing number of examples of integrated reports from which companies can learn. Practical implications. This is an explanatory research to come with conceptual paper cited with recent literature for understanding the impact of sustainable development ideas on the emergence of integrated reporting. Despite the long list of internal and external challenges, the list of drivers contains a wide range of business advantages. Value / originality. Integrated reporting is a powerful tool for transparency and information openness of the company, which contributes to the sustainability of the business. Integrated reporting can become a tool for building a sustainable business for a company. In the process of its implementation and formation, the issues of the need to transform the company’s management system, strengthen control over the solution of environmental and social problems, study and improve the company’s business strategy should be resolved.

Análisis de prácticas sustentables en empresas de La Plata, provincia de Buenos Aires

“…La información integrada puede convertirse en una herramienta para construir un negocio sostenible para una empresa. En el proceso de su implementación y formación, deben resolverse los problemas de la necesidad de transformar el sistema de gestión de la empresa, fortalecer el control sobre la solución de problemas ambientales y sociales, y estudiar y mejorar la estrategia comercial de la empresa (Luhova & Pisochenko, 2021).…”