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1
Integrated Reporting,Corporate Governance
&Responsible Boards
Basel Omar Abu-Ali
Financial Crisis and Stakeholders
2
Two main words were lost
Results
Management & Leadership
Brand
Image
3
Value
4
5
BoardsAre
Responsible!
The Rules of the Game have Changed!
6
Boards have responsibilities to maximize the Stakeholders’ value, not the shareholders alone!
The Rules of the Game have Changed!
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Stakeholders need to assess the long term business value, and assess the stewardship of boards and management.
Boards had to act quickly!
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Governments had to act to achieve and control long term economic stability…
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Corporate Governance
• “The systems by which companies are directed and controlled.” Cadbury Report 1992
• A decisions making mechanism.• Concerned with the flows of information.• It determines company’s culture.• Boards are responsible to develop a
coherent governance culture in their organizations.• Boards are responsible for the
governance of their organizations.
Info
System
People
Time
Decision & Actio
n
Good Governance5 Rights
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•Financial (quantitative)•Short term (focus)•Shareholders (mainly)•What is the long term business value?!
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Still need something (tool)…
to fill the gap
to tell the full story (tell the truth)
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Integrated Reporting
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Strategy
Consolidated Reporting
Non-Financial (Qualitative) Information
Business Value Creation
Financial (Quantitative) Information
Environment
Risks &
Opportunities
Governance
Perform
ance
Operations
Integrated Thinking
Capi
tals
and
reso
urce
s uti
lizati
on
Shor
t, M
id, a
nd L
ong
Term
Business
Model
&
Ask the Right
Questions (Why
and How, not only What)
5 Rights
With the help of IR; Boards are responsible and able to
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Link the dots
Inputs and Outputs
Cause and effect relationship
With the help of IR; Boards are responsible and able to
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to collect all the pieces and complete the value puzzle!
With the help of IR; Boards are responsible and able to
Integrated Analysis
Integrated Reporting
Integrated thinking
Integrated Analysis
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Integrated thinking and integrated reporting lead to integrated ‘strategic’ analysis; so boards can link the dots between inputs and outputs of the business model, between key performance and value indicators and drivers, as well as risks and opportunities.
Value Creation Process
Integrated Reporting
Integrated thinking
Integrated Analysis
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Better Decisions
Better Actions
Better capital and resources allocation
and utilization
Long Term Sustainable
Value
Responsible Boards
• Boards must drive Integrated Reporting,• and have to make sure that corporate
reporting meets stakeholders (investors) needs.• The Boards are responsible to adopt the
culture of Integrated reporting and its benefits.• and for Integrated Thinking to become
embedded in the activities of the corporate.
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Responsible Boards
• So it is Boards responsibility to apply or produce Integrated Reports;
1- logically,2- to meet environmental changes,3- and to coop with international practice and trend;
“… boards should produce an integrated report.”
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Responsible Boards
Integrated Thinking
Integrated Reporting
Integrated Analysis
Value
CultureCorporate Governance
Integrated Idea