454
H. Y. Ching
environmental management practices, but are still polluting. Recognizing these tradeoffs can help build stakeholder confidence in SRI and improve ESG implementation
(Delmas and Blass 2010).
2.3 Integrated Reporting
The IIRC’s mission is to provide an integrated framework for a globally accepted
reporting that brings together financial, environmental, social, and governance information in a clear, concise, consistent and comparable format to help businesses make
more sustainable decisions and enable investors and other stakeholders understand
how a company’s performance really is (Busco et al. 2014).
Thus, the IIRC seeks to correct major market failures by providing an approach
that, if widely adopted, will allow investors to discern which firms are best positioned to create value, and which are not (Soyka 2013). Created in December 2013,
the framework can be divided into two parts. The first shows the interrelationships
between IR concepts in the process of value creation. The second part of the framework focuses on the requirements for an integrated reporting, which consist of guiding
principles and content elements (Hurks et al. 2016).
The main objective of integrated reporting is to provide information about the
resources and relationships used and affected by an organization, these resources
are collectively referred to as “capital.” They are categorized in the framework as:
Financial, Manufacturing, Intellectual, Human, Social and relationship, and Natural
Capital (International Integrated Reporting Council 2013). Integrated reporting is
only the final step in a process or chain of integrated actions.
IR’s primary intent is to provide an appropriate balance between flexibility and
prescription, the IR framework is based on principles rather than rules based. The
idea is to recognize the wide variation in the individual circumstances of different
organizations, yet allowing a sufficient degree of comparability between organizations to meet the relevant information needs. For this reason, the IR Framework does
not focus on measurement rules, disclosure of individual issues, or even the identification of specific key performance indicators (KPIs). Instead, the framework is
driven by integrated thinking (Busco et al. 2013).
3 Methodology
The selection of industry segments was chosen by the authors for recognizing the
importance of the social, environmental and economic impacts they can cause in the
world through their activities. The segments are: automobile, consumer goods and
health care.
Five companies were chosen for each sector, Volkswagen, Daimler, and BMW,
Hyundai and General Motors (Automobile), Takeda, Bayer, Chugai, Mediclinic and
H. Y. Ching
environmental management practices, but are still polluting. Recognizing these tradeoffs can help build stakeholder confidence in SRI and improve ESG implementation
(Delmas and Blass 2010).
2.3 Integrated Reporting
The IIRC’s mission is to provide an integrated framework for a globally accepted
reporting that brings together financial, environmental, social, and governance information in a clear, concise, consistent and comparable format to help businesses make
more sustainable decisions and enable investors and other stakeholders understand
how a company’s performance really is (Busco et al. 2014).
Thus, the IIRC seeks to correct major market failures by providing an approach
that, if widely adopted, will allow investors to discern which firms are best positioned to create value, and which are not (Soyka 2013). Created in December 2013,
the framework can be divided into two parts. The first shows the interrelationships
between IR concepts in the process of value creation. The second part of the framework focuses on the requirements for an integrated reporting, which consist of guiding
principles and content elements (Hurks et al. 2016).
The main objective of integrated reporting is to provide information about the
resources and relationships used and affected by an organization, these resources
are collectively referred to as “capital.” They are categorized in the framework as:
Financial, Manufacturing, Intellectual, Human, Social and relationship, and Natural
Capital (International Integrated Reporting Council 2013). Integrated reporting is
only the final step in a process or chain of integrated actions.
IR’s primary intent is to provide an appropriate balance between flexibility and
prescription, the IR framework is based on principles rather than rules based. The
idea is to recognize the wide variation in the individual circumstances of different
organizations, yet allowing a sufficient degree of comparability between organizations to meet the relevant information needs. For this reason, the IR Framework does
not focus on measurement rules, disclosure of individual issues, or even the identification of specific key performance indicators (KPIs). Instead, the framework is
driven by integrated thinking (Busco et al. 2013).
3 Methodology
The selection of industry segments was chosen by the authors for recognizing the
importance of the social, environmental and economic impacts they can cause in the
world through their activities. The segments are: automobile, consumer goods and
health care.
Five companies were chosen for each sector, Volkswagen, Daimler, and BMW,
Hyundai and General Motors (Automobile), Takeda, Bayer, Chugai, Mediclinic and