The chart below shows that the only layer of value currently measured consistently by organizations is financial capital — usually through the annual report and accounts. This value is translated into dividends for shareholders or stock price gains.
The second layer encompasses shared value that benefits stakeholders directly related to the organization (employees, customers, suppliers, public treasury, etc.). Shared value depends extensively on factors such as employee performance operating permits and consumer confidence.
The third layer describes the value that an organization generates for society at large, even if it’s not directly linked to its business purpose. These externalities, as they are known, may be either positive or negative. An integrated report is broader than traditional approaches in terms of scope and time horizon. It should tell each organization’s unique value creation story for each of these areas and include how:
The chart below shows that the only layer of value currently measured consistently by organizations is financial capital — usually through the annual report and accounts. This value is translated into dividends for shareholders or stock price gains. The second layer encompasses shared value that benefits stakeholders directly related to the organization (employees, customers, suppliers, public treasury, etc.). Shared value depends extensively on factors such as employee performance operating permits and consumer confidence. The third layer describes the value that an organization generates for society at large, even if it’s not directly linked to its business purpose. These externalities, as they are known, may be either positive or negative. An integrated report is broader than traditional approaches in terms of scope and time horizon. It should tell each organization’s unique value creation story for each of these areas and include how:
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