Integrated Reporting, Corporate Governance & Responsible Boards

1. Integrated Reporting,
Corporate Governance
&
Responsible Boards
Basel Omar Abu-Ali
1

2. Financial Crisis and Stakeholders
2

3. Two main words were lost
Results
Management
& Leadership
Brand
Image
3
Value

4. 4

5. 5
Boards
Are
Responsible!

6. The Rules of the Game have Changed!
6
Boards have
responsibilities to
maximize the
Stakeholders’ value, not
the shareholders alone!

7. The Rules of the Game have Changed!
7
Stakeholders need to
assess the long term
business value, and
assess the stewardship
of boards and
management.

8. Boards had to
act quickly!
8
Governments had to
act to achieve and
control long term
economic stability…

9. 9

10. 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.
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11. Info
System
People
Time
Decision
& ActionGood Governance
5 Rights
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12. •Financial (quantitative)
•Short term (focus)
•Shareholders (mainly)
•What is the long term business value?!
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13. Still need something (tool)…
to fill the gap
to tell the full story (tell the truth)
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14. Integrated Reporting
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Consolidated Reporting
Non-Financial (Qualitative) Information
Business Value Creation
Financial (Quantitative) Information
Integrated Thinking
Capitalsandresourcesutilization
Short,Mid,andLongTerm

15. Ask the Right
Questions
(Why and
How, not only
What)
5 Rights
With the help of IR; Boards are
responsible and able to
15

16. 16
Link the dots
Inputs and Outputs
Cause and effect
relationship
With the help of IR; Boards are
responsible and able to

17. 17
to collect all the pieces and
complete the value puzzle!
With the help of IR; Boards are
responsible and able to

18. 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.

19. 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

20. 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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21. 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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22. Responsible Boards
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Integrated
Thinking
Integrated
Reporting
Integrated
Analysis
Value
Culture
Corporate
Governance
Integrated Idea