integrated reporting, corporate governance & responsible boards

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Integrated Reporting,Corporate Governance

&Responsible Boards

Basel Omar Abu-Ali

Financial Crisis and Stakeholders

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Two main words were lost

Results

Management & Leadership

Brand

Image

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Value

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BoardsAre

Responsible!

The Rules of the Game have Changed!

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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