How to measure the true costs of profit
The mandatory report for listed companies requires an integrated assessment to determine true sustainable value creation. But how is it calculated?
How do you value SA’s fresh air or water supply, the grasslands, rhinos, oceans, the impact of CO² emissions, investment in staff and community or spending on corporate social investment (CSI)? How is sustainable value calculated? It is mandatory for all listed companies to produce integrated reports in line with the International Integrated Reporting Council. Though there have been improvements in how companies report, each of the people-planet-profit dimensions are still reported separately by most companies. This is not integrated reporting, nor is it an accurate measure of good performance. King IV clearly sets out the required principles for such reports. Principle 4, for example, states: "Appreciate that the organisation’s core purpose, its risks and opportunities, strategy, business model, performance and sustainable development are all inseparable elements of the value-creation process." Integrated reporting requires an integrated assessment to determine true sustainable val...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.