A new dimension of the entities' financial reporting: Integrated Reporting

• Author: Laptes R., Sofian I.
• Pages: 239-250

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 9 (58) No. 2 - 2016

A new dimension of the entities’ financial reporting:

Integrated Reporting

Ramona LAPTEŞ1, Ioana SOFIAN2

Abstract: Nowadays, the development strategy of big corporations is based on the principle

of sustainable development, which includes both protecting the interests of all involved

economic actors and minimizing the aggression on natural resources. In this context, the

financial communication process in large companies has acquired new meanings, being

reconsidered and taking the form of Integrated Reporting. The objective of this paper is to

develop a study regarding the theory of Integrated Reporting, based on a documentary

research on the reports published by the International Integrated Reporting Council and

organizations such as KPMG, E&Y or ACCA. Integrated Reporting is a new practice, still

under development and in expansion at international level. An integrated report tells the

story of a company’s journey towards achieving its vision and provides information about its

historical performance, but also about the expected one.

Key-words: Integrated Reporting, sustainability, financial reports, non-financial reports

1. Introduction

The new global economy characterized by globalization, fierce competition, focused

on knowledge and centered on the need of sustainable development, has led to the

diversification of a company’s responsibilities to any stakeholder and to society as a

whole. This economic context requires new performance standards, which go

beyond the economic sphere, reaching to include social and environmental elements.

Today, there is a conflict of interests regarding this planet’s needs. Companies

seek big and immediate gains, and consumers look for the most efficient, possible

allocation of available resources in order to increase their quality of life. Thus, on

each side two categories emerge: those who pursue their own interests and those

who collaborate given the interest they have. There are entities concerned only about

profit maximization and entities which, through their activity, are supporting the

1 Faculty of Economic Sciences and Business Administration, Transylvania University of Brasov,

ramona.laptes@unitbv.ro

2 Student at Faculty of Economic Sciences and Business Administration, Transylvania University of

Brasov, ioana.sofian@yahoo.com