Integrated Reporting: Navigating your way to a truly Integrated Report
Deloitte South Africa has released the 2nd quarterly report on the state of Integrated Reporting in South Africa. Over a hundred Corporate Reports were analysed, covering 7 subjects, 58 principles and 160 questions. The report reveals that Integrated Reporting standards have been adopted by more than half of South Africa’s listed companies, and that laggards are becoming increasingly isolated.
Although it is now necessary for JSE-listed companies to include a statement of compliance with the principles set out in the King Code on Governance Principles (King III) in their annual reports, many companies are still scoring surprisingly low on corporate governance matters. The Integrated Reporting team found that companies scored relatively well on corporate governance principles pertaining to the structure and composition of the board.
The survey also reveals that companies that take Integrated Reporting seriously score better on corporate governance. This indicates that good corporate governance principles are more effectively implemented where companies comply because they see the value in those principles.