Transforming Business Models to Create Value Through Integrated Reporting for New Clients Presentation by Thuto Masasa

Transcription

1 Presentation by Thuto Masasa

2 Contents Abount Nkonki and Kreston Reviewing Challenges Evolution of Corporate Reporting Shifts in Business Models to incorporate Capitals Results of 2017 Nkonki Survey on Integrated Reporting in South Africa

3 Nkonki Proprietary About Nkonki and Kreston 400 staff, 30 directors, raking as the second largest black owned business. Footprint and Affiliations Member of Kreston International: professionals through 186 firms in 113 countries The firm is awarded the Transnet external audit (APF) 2004 The firm is awarded the Top Emerging Female Owned Company of the Year 2010 Top Women Awards Top Gender Empowered Company: Financial Services Sector 2015 Nkonki wins an award for creating a new global service line for the entire Kreston International network 2016 Young Accountant of the Year 2016 IAB and TA Awards, awarded to Head of External Audit 3

4 Nkonki Proprietary Reviewing Challenges Relevance of corporate reporting Organization s plans, measures and reporting on annual performance questioned Reporting compliance-driven and not fit for purpose for investors The above challenge have been heightened by the Financial Crisis and the many global Corporate Scandals 4

5 Nkonki Proprietary Evolution of Corporate Reporting Financial Statements Compliance Reporting Management Reporting GRC Reporting CSR Reporting Environmental Reporting Sustainability Reporting Integrated Reporting The King Report on Corporate Governance for South Africa (King III) was released by the King Committee. Which included chapter 9 Integrated Report. In 2010 the JSE Listings Requirements were amended to adopt the King III principles on an apply or explain basis Release of King IV, emphasis on Integrated Reporting, Integrated Thinking and Assurance on integrated information. The wealth of a company is greatly dependent of the wealth of society around it 5 Nkonki 2017 Integrated Reporting Trends in SA Listed Companies and SOCs

6 Nkonki Proprietary Shifts in Business Models to incorporate Capitals Environment Risks and opportunities Outlook Oganisational overview Stakeholders Risks Strategy Vision and Mission Inputs Strategy and resource allocation BUSINESS MODEL Business activities Outputs Performance Outcomes Financial Manufactured Intellectual Social and relationship Human Natural Value creation Opportunities 6

7 Results of 2017 Nkonki Survey on Integrated Reporting in South Africa Nkonki Proprietary Observations from the full population (118 Companies): % of Companies directed their reports to Capital providers 5 91 Companies cultivated responsive stakeholder relationship with 66% linking to strategy and 35% establishing KPIs 6 71% Stated material issues and explained them, with only 52% disclosing determination thereof 7 40/118 Companies externally assured nonfinancial info 22 External Auditors Assured 18 Other Assurance providers Type of info assured: 89 Companies reported on succession planning Most Companies remuneration policy was linked to strategy with most executive receiving short-long term incentives linked to strategy Capitals 76% reported on natural capital. Several companies, Human and Intellectual capitals were combined BBBEE Carbon emissions Social spend Workplace diversity Local procurement Energy Consumption Training 7 Nkonki 2017 Integrated Reporting Trends in SA Listed Companies and SOCs

8 Results of 2017 Nkonki Survey on Integrated Reporting in South Africa Nkonki Proprietary Room for Improvement Conciseness Still an Issue External Assurance Reports Integrated Thinking Not Always Evident Reporting on Progress Limited Explanations of Determining Materiality Responsibility for the Report 8

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