Research on Integrated Reporting and Board Framework
We redefine the International Integrated Reporting Framework (IIRC) not merely as a "reporting framework" but as a "tool for management transformation." We are building a discussion framework for the Board of Directors to effectively oversee and promote value creation.
Key Research Areas
- Understanding the Essence of Integrated Reporting: Clarification of the mechanism of organizational transformation through the report preparation process.
- Systematization of 8 Content Elements: Integrated understanding as a value creation story.
- Board Discussion Framework: Systematic management oversight through 7 discussion areas.
Duality of Integrated Reporting Framework
| Function |
Content |
Essential Value |
| Superficial Function |
Reporting framework (Information disclosure to outside) |
Presentation of value creation story to investors |
| Essential Function |
Tool for management transformation (Thinking change inside) |
Penetration of integrated thinking into the organization |
8 Content Elements of Integrated Reporting
| Element |
Central Question |
| ① Organizational overview and external environment |
What do we do and in what environment do we operate? |
| ② Governance |
How does the governance structure support value creation? |
| ③ Business model |
How do we create value? |
| ④ Risks and opportunities |
What factors affect value creation? |
| ⑤ Strategy and resource allocation |
Where are we going and how will we get there? |
| ⑥ Performance |
To what extent have we achieved our strategic goals? |
| ⑦ Outlook |
What challenges and uncertainties do we face? |
| ⑧ Basis of preparation and presentation |
How do we determine reporting content and quantify it? |
7 Discussion Areas of the Board of Directors
| Area |
Main Agenda |
| Governance & Compliance |
Institutional design, Internal control, Information disclosure |
| Management & Business Strategy |
Mid-term management plan, Business portfolio, DX strategy |
| Finance & Investment |
Performance management, Capital policy, M&A |
| Risk Management |
Enterprise risk management, Cyber risk, BCP |
| HR & Organization |
Executive personnel, Succession planning, Human resource strategy |
| Stakeholder Engagement |
Shareholder dialogue, Climate change measures, Human rights DD |
| Other Important Matters |
Periodic reports, Organizational restructuring, Important litigation |
Conclusion
The true value of integrated reporting lies in whether the management team can deeply understand and clearly verbalize the company's value creation logic. The 8 elements are not "items" but "perspectives," and it is important that a consistent and persuasive story emerges through them. The Board of Directors functions as a core institution to oversee and promote this value creation process.
By creating a database of board meeting minutes, we can clearly demonstrate the relationship with integrated reporting.
