Rather enable Triangle Plc to ensure stakeholders understand

Topics: BusinessAccountability

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Last updated: May 11, 2019

Rather than focusing with reporting the past financialperformance of the company, Integrated reporting will enable Triangle Plc toensure stakeholders understand how they create value in the short, medium and longterm, taking into consideration the companies interaction with the six capitalsand the external environment. Integrated reporting is built on the premise ofcreation of value. In traditional reporting, value creation is associated with animprovement of financial capital of Triangle Plc, leading to shareholder wealthmaximisation. Integrated reporting suggests that value creation is not justdependant on value linked to the financial capital, but also dependant on othercapitals, which ensures its significance to all stakeholders through generatingand preserving value across economic, social and environmental areas.

  Integrated reporting will enable Triangle Plcto ensure stakeholder trust and understanding of the company, as they emphasizewhat creates value in their company. Integrated reports are developed usingintegrated thinking whereby Triangle Plc must understand that value is created throughinteraction with others and the external environment, considering the sixcapitals and their dependency on each other, take a broader value approach and ensuringlong term gains. The importance of integrated reporting for Triangle Plc’s stakeholdersis enhanced due to its focus on the six capitals, indicating that value iscreated through increases or transformations to the financial, manufactured,intellectual, human, social and relationship and natural capitals (6 capitals).

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These capitals act as inputs to Triangle Plc’s business model, whereby thecompany delivers their mission and vision through governance and management, whichleads to true value creation in the long term for the six capitals. Integratedreporting allows the expansion of reporting boundaries to the environmental andTriangle Plc’s relationships through value creation of the six capitals. This contrastswith the traditional view that focuses on the company itself and its financialstatement. This ensures a change in the corporate behaviour of triangle Plc,appealing more to their responsibility to stakeholders as the company becomesmore sustainable and ethical.

Through reporting on six capitals, the integratedreport can analyse Triangle Plc’s strengths, opportunities, weakness andthreats within the external environment, considering both their accountabilityto shareholders and responsibility to stakeholders. Integrated reporting showsstakeholders, through the composition of the value chain and enhancement of theprocedures within the business model of Triangle Plc, how the six capitals are improved.Since integrated reporting extends the reporting boundaries for Triangle Plc.,reporting on capitals can hold a focus on the sustainability of Triangle Plc.,which is needed if the company is moving towards a stakeholder driven strategy.Reporting on the six capitals allows stakeholders to measure Triangle Plc’s performanceagainst their targets for the six capitals, enabling them to analyseperformance through an additional performance indicator.

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