In addition to volume, watered down information and a lack of focus on significant information in particular relating to strategy distort the purpose of these reports and call for new initiatives.
The need for innovation grows as companies publish increasing quantities of information while failing to ensure or to prove that it is consistent. What s more, the accumulation of different reports does not always answer the fundamental questions that their intended users are asking themselves:
>How does the company s value creation chain work? > What is the company s short, medium and long term outlook?
The strategic foreword, the first step towards efficient exter- nal communication.
Since October 2013, the UK Companies Act has required com- panies to disclose the main trends and factors (including social and environmental data) likely to affect the future development, performance and position of the company s business.
In the same vein, French think tank Institut Messine calls for a strategic foreword , in which management provides its analysis of the past financial year, its expectations for the current year and its strategic vision for the company. [...] The foreword would focus on optional items recommended by the regulator: key indicators (changes over time, comparison with peers and commentary), objectives, stra- tegic outlook, main risks and goals, etc.
SEE INSTITUT MESSINE S REPORT (JUNE 2015): IS THE FINANCIAL INFORMATION OVERLOAD DETRIMENTAL TO FINANCIAL INFORMATION?
This recommendation is in line with that of the Federation of European Accountants (FEE) concerning the CORE report , a comprehensive report or a summary offering a clear, fair insight into the company s main businesses, its key financial results and additional information that is considered to be relevant and material for the company s stakeholders.
SEE P.61 OF THE FUTURE OF CORPORATE REPORTING CREATING THE DYNAMICS FOR CHANGE (OCTOBER 2015).
1 INTEGRATED REPORTING:WHY SHOULD COMPANIES INNOVATE THEIR EXTERNAL REPORTING PRATICES?