menu

Triple Pundit: Clorox Embraces Integrated Reporting & Why You Should Care

Triple Pundit: Clorox Embraces Integrated Reporting & Why You Should Care
Advertising

Reporting on all aspects of a business's operations, from strategy, sustainability, financial performance and environmental concerns, is increasingly important for stakeholders.

Triple Pundit
  • 18 october 2011

The concept of integrated reporting (IR) has been around for awhile but only recently are companies beginning to embrace it. According to the International Integrated Reporting Committee (IIRC):

IR demonstrates the linkages between an organization’s strategy, governance and financial performance and the social, environmental and economic context within which it operates. By reinforcing these connections, IR can help business to take more sustainable decisions and enable investors and other stakeholders to understand how an organization is really performing.

Benefits of IR

The idea is simple: in the past companies published separate CSR and financial reports for different audiences. Now however, an integrated report will keep all the relevant financial and ESG information in one report. The primary benefit of IR is that it encourages a more holistic view of the company’s operations. Financial executives are incentivized to consider the sustainable performance of their business. This perspective is needed for a company’s long-term objectives, strategy and corporate value.

According to Robert Eccles of Harvard Business School and author of  One Report: Integrated Reporting for a Sustainable Strategy based on Southwest Airlines’ transition to IR:

Integrated reporting instills the discipline to be much more specific about the relationships between financial and nonfinancial performance, and this will benefit all stakeholders.

In addition to Southwest Airlines which was one of the first companies to use IR;  BASF, Philips, Novo Nordisk, United Technologies Corporation (UTC) and American Electric Power (AEP) also use this method. In 2008, UTC was the first Dow Jones Industrial Average member to produce an integrated report. Now Clorox is joining this league.

Clorox Embraces IR

According to their website:

For Clorox, its financial performance and corporate responsibility commitment go hand in hand. That’s why we have integrated our financial, environmental, social and governance performance in one report. Our success in each of these areas matters to our stockholders and a range of other stakeholders, including employees, consumers, customers, government and non-government organizations, business partners and our communities.

Sales for the 2011 fiscal year ending in June stayed steady with the previous year at $5.2 billion. Clorox has managed to reduce energy and water use as well as GHG emissions. They have also made environmental improvements to 16 percent of their product portfolio with plans to improve a quarter of their products by 2013. Having all of this relevant information in one source makes assessment of company value and performance easier. Socially responsible investors demand this kind of information and many countries and stock exchanges might even make it mandatory. South Africa has already mandated IR for 450 publicly traded companies on the Johannesburg Stock Exchange and has released a first-draft South African Framework for Integrated Reporting.

The only downside of this format is that the report is bound to be very long which means stakeholders are unlikely to read it. However, the framework by IIRC will overcome this problem significantly. For now, it remains that IR may well be the future of reporting.

See the original post here

Written by Akhila Vijayaraghavan. Originally posted on Triple Pundit. Republished with kind permission. 

Image via Flickr user jtjdt

Advertising
Trending

How Indiegogo Is Becoming An Adult Product Destination

Retail
Home september 23, 2016

Watch This Fire Pit Dance Along To Your Favorite Song

Music City Fire is a system that is designed to flicker in time to ambient music

Automotive september 23, 2016

Slick GPS Navigator Gives Directions To Moped Riders

This small, round device attaches to a sideview mirror to display maps for safer traveling

Trending

Get PSFK's Related Report: Impact Debrief

See All
Home september 23, 2016

A Clock That Beautifully Manages Your Information Overload

The wall-mounted timekeeper is made to help people maintain focus and stay up to date with their appointments

Arts & Culture september 23, 2016

Performance Piece Blends Dancers Into Folds Of Light

The work provides commentary on the increasing connection between programmed and analog dimensions

Design & Architecture september 23, 2016

Design Firm Adapts Childhood Homes For Unemployed Young Adults

The studio has unveiled three prototypes of transformed living spaces for people forced to move back in with their families

Health september 23, 2016

These Chocolate Squares Claim To Reverse The Aging Process

A group of researchers from Cambridge University have developed a candy bar that promises to give you a youthful glow

Cities september 23, 2016

Food-Producing Architecture Competition Seeks To Better Feed Cities

A design challenge in Copenhagen highlights the need and beauty of urban farming

PSFK LABS REPORT

Future Of Automotive
Scenarios Driving The Digital Transformation Of An Industry
NEW

PSFK Op-Ed september 23, 2016

Productivity Expert: The Magic Of The Five-Hour Workday

Stephan Aarstol, Founder of Tower Paddle Boards, explains why the modern notion of office hours needs to evolve

PSFK Labs september 22, 2016

The Future Of Work: Why Innovation Is Every Employee’s Job

PSFK Labs sits down with management at Johnson & Johnson to learn how the company comes up with their next ‘big idea’

Health september 23, 2016

Wearable Monitors Sun Exposure To Prevent Sunburn

The clip monitors UV rays to make sure you're not receiving too much sunlight

Culture september 23, 2016

This Exhibition’s Crowning Jewel Is An 18k Gold-Plated Toilet

The piece, titled 'America,' is meant to raise questions about the country's wealth inequality

Culture september 23, 2016

Match Up With Dates On Tinder Based On Your Music Preferences

A new partnership with Spotify lets people pair up based on shared tastes in artists

Entertainment september 23, 2016

Capture, Cut Up, And Configure Your World In 360 Degrees

To meet a booming 360 and VR video-capturing industry, a multimedia software company bolstered its media editing suite for 360-video creation

PSFK LABS REPORT

Future Of Work
Cultivating The Next Generation Of Leaders
NEW

Advertising september 23, 2016

Buy Movie Tickets Directly From Your Facebook Profile

The new feature is part of a campaign from Fandango to further imbed social media into the ticket vendor's digital presence

Asia september 23, 2016

Co-Working Space Brings The Calming Atmosphere Of Nature Indoors

An architectural firm in China has designed a new type of shared office that prioritizes the natural environment

Retail september 23, 2016

Live Beacon Simplifies Cloud Sharing For Businesses

The battery-powered device and smartphone app allow anyone to send location-specific content without the hassle of code or hardware

No search results found.