1.0 Introduction
This purpose of this report is to explain the main purpose and key benefits of using Integrated Reporting to integrate financial and non-financial information into a single report. It explains the two selected 'Guiding Principles' (IIRC 2013) and shows how it helps to achieve the main purpose of Integrated Reporting together with the evaluation of the selected guiding principles in Newcrest Limited Annual Report (2017).
2.0 Purpose and Key Benefits of Integrated Reporting
2.1 Purpose of Integrated Reporting
" Integrated reporting provides financial and non-financial details of an organisation.
o Provides insights about the financial and non-financial (strategy, performance, governance, environmental and social) information (Ernst & Young 2014).
o To communicate or explain to investors and stakeholders about how an organisation creates value over time (IIRC 2013).
o Informs investors and stakeholders on all material elements affecting the organisation concisely (Busco et al.2013)
o Provides details about the capitals (financial, manufactured, intellectual, human, social and relationship, and natural) used and affected by an organisation (Busco et al. 2013).
o Explains the interplay among the organisation and the external environment and the capitals to create value in the long run (Ernst & Young 2014).
o Aims to look at the risks in a holistic way and find opportunities at the same time (UK-GBC 2015).
o To better articulate the interdependencies of the capitals (McCann 2017).
2.2 Key Benefits of Integrated Reporting
" Integrated reporting benefits the organisation and its stakeholders in many ways.
o Greater clarity of information from an extensive range of both internal and external information sources, to improve analysis in short and long term (Phillips et al. 2011).
o Enables investors to access the non-financial information needed to help make investment decisions (McCann 2017).
o Gives advantages to all stakeholders (employees, customers, suppliers, business partners, local communities, regulators and policy makers) that are inquisitive in an organisation's capability to create value over time (Busco et al. 2013).
o Enables them to resolve silos through integrated thinking, find out, and understand what makes the business tick (Deloitte 2015).
o Offers opportunity to recognize non-financial value drivers and make changes by reviewing the business model (Deloitte 2015).
o According to Black Sun's survey, some of the benefits are improvement in management information and decision-making resulting from the progress of data quality and better standards of corporate communications (Deloitte 2015).
o The progress of monitoring and review controls, systems and business processes, can be seen resulting in the improvement of the development and implementation of sustainable strategies (Krzus 2011).
o Richer engagement with the stakeholders as they are supplied with detailed insights regarding financial and non-financial outcomes of the company with the use of Internet; stakeholders gain a broader view of the company (Krzus 2011).
o Helps business to make more sustainable decisions (Busco et al. 2013).
3.0 Selected Guiding Principles of IIRC
3.1 Explanation of Strategic Focus and Future Orientation Principle
" Information about the organisation's strategies and how the strategies affect the value creation of the organisation in the short, medium and long term and its use of effects on its resources should be provided in an integrated report
" Highlights risks, opportunities and dependencies coming from the market position and business model of the organisation
" The relationship between past and future performance, the factors that may change the relationship, the balancing of short, medium and long-term interests by the organisation and how past experiences affect future strategic plans
" The principle allows an integrated reporting to illustrate how the availability, quality and affordability of significant capitals help to achieve the organisation's strategic goals and create value
3.2 Explanation of Stakeholder Relationships Principle
" Information about the nature and quality of the relationship between the organisation and its key stakeholders and how and to what degree the organisation understands, takes into consideration and responds to their valid needs, interests, and expectations
" Value is not created by the organisation alone, it is created through relationships with others thereby ongoing, positive relationship with key stakeholders is vital
" The organisation can understand what is important to stakeholders by engaging with them
" Stakeholders' useful insights assist the organisation to understand how stakeholders perceive value; analyse upcoming trends and material matters including opportunities and risks; develop and evaluate strategy; manage risks; and implement activities including strategic and accountable responses to material matters
4.0 Evaluation of Newcrest Mining Limited
Newcrest is a world-renowned company involved in the exploration, discovery and growth of gold and copper mines.
" Newcrest Mining Limited (2013) demonstrated effective use of both Strategic Focus and Future Orientation and Stakeholder Relationships principles in the annual report.
4.1 Strategic Focus and Future Orientation Principle
" The principle is applied as evidences are found in the report.
o The company gives detailed information about the strategies, risks, opportunities and dependencies.
" Operating risks and hazards is the most significant risk as the company does mining activities, it involves unanticipated incidents (Newcrest Mining Limited 2013).
" Gives opportunities to the community in the area where they operate such as employment regardless of gender, health, education and training opportunities, investment in community infrastructure, income-generating activities and improved community lifestyle (Newcrest Mining Limited 2013).
o The company gives comprehensive information about the past and future performance, how interests are dealt with, and strategic future plans determined by lesson learned in past experiences.
" Financial performance of the year 2017 and 2016 is compared and explained why the changes occurred (Newcrest Mining Limited 2013).
" Details of the interests in joint operations is provided and compared between the year before and the current year (Newcrest Mining Limited 2013).
" Three case studies of the company are given and shows the company's increased understanding of the mine's response to such events, thus making them aware of such events in the future (Newcrest Mining Limited 2013).
4.2 Stakeholder Relationships Principle
" There are some information that are found to show how the company values its stakeholders.
o Extensive insights about the economic, safety and health, environmental and social issues.
" Information about the awareness of the environmental performance and management of the company; rules and regulations of each mining operations (Newcrest Mining Limited 2013).
" They work closely with governments, communities, organisations and other stakeholders to ensure their programs meet the stakeholders' priorities and expectations (Newcrest Mining Limited 2013).
" Workforce health programs
" Performance Edge program
" Newsafe program
" Process Safety training program
" The report provides very detailed information about the financial and non-financial performance of the company which enhances transparency.
" The report shows how the investors, community, and government, are valued by implementing strategies to satisfy every stakeholders' needs and expectations.