List of Abbreviations
WICI-World Intellectual Capital Initiative
CSR-Corporate Social Responsibility
When it comes to the age of business information, the capability to share information effectively is as valuable as having the correct information. That is the reason why so many firms look for a business reporting tool which gets the correct information to the rightful people at the right moment.
Better Business Reporting
Consolidating and improving what is already reported is the first step in the quest for improved communication with the capital markets. This calls for more developed strategies for Business Reporting for organizations by dumping the narrow based, traditional financial disclosures to adapt to the modern innovations including corporate social responsibility reporting, XBRL, real time and web-based reporting. The current approach to reporting offers inconsistent approaches to supplementary communication and risks confusing decisions on investment.
Business reporting, as it is now, needs to be developed so that it can provide insights into performance prospects and business strategies. Otherwise, as it is now, business reporting mostly enables the evaluation of historical financial performance of a company. This development would call for the inclusion recent inventions and innovations like Corporate Social Responsibility, CSR, and sustainability reporting. Also, management commentary is paramount to the development of Business Reporting in any organization. Establishment of a Business reporting body, WICI, has so far been the biggest achievement.
Some of the benefits of improved business reporting are streamlined reporting process, more efficient capital allocation and accountability in organizations. For new entrants in business reporting, they will have to reflect on early movers like Novo Nordisk and Microsoft, which regularly give reports on the part of the benefits that business Reporting have put to their exposure.
The success of the business reporting framework developed by WICI depends on such components as market, strategy, performance and performance insights. The industries, which might benefit more from the implementation of the framework, are those with huge upfront investments, like pharmaceutical and mining, and business risks, such as banks.
Organizational clarity as to a business strategy and model in a firm can determine readiness on the part of an organization to embark on business reporting process. The number and cost of reporting processes in an organization is also another factor determining the success of business reporting in an organization. Globally, Business reporting movements are on the move with businesses having the challenge of being left behind.
Business reporting has its implications for regulators, legislators and setters for accounting standards. In Japan, for instance, business reporting is under the auspices of the ministry of trade, economy and industry but with notable participation from professionals in accounting. In US, the Global Public Policy Committee is under the auspices of the profession of accounting with substantial capital markets participation.
Business Reporting Movement was formed in the early 1990s, and has since been finding a common ground with the pioneers and developing a business reporting framework at the industrial level and overall. Other initiatives for business reporting have since come up.