Rather than focusing with reporting the past financial
performance of the company, Integrated reporting will enable Triangle Plc to
ensure stakeholders understand how they create value in the short, medium and long
term, taking into consideration the companies interaction with the six capitals
and the external environment. Integrated reporting is built on the premise of
creation of value. In traditional reporting, value creation is associated with an
improvement of financial capital of Triangle Plc, leading to shareholder wealth
maximisation. Integrated reporting suggests that value creation is not just
dependant on value linked to the financial capital, but also dependant on other
capitals, which ensures its significance to all stakeholders through generating
and preserving value across economic, social and environmental areas. Integrated reporting will enable Triangle Plc
to ensure stakeholder trust and understanding of the company, as they emphasize
what creates value in their company. Integrated reports are developed using
integrated thinking whereby Triangle Plc must understand that value is created through
interaction with others and the external environment, considering the six
capitals and their dependency on each other, take a broader value approach and ensuring
long term gains.
The importance of integrated reporting for Triangle Plc’s stakeholders
is enhanced due to its focus on the six capitals, indicating that value is
created through increases or transformations to the financial, manufactured,
intellectual, human, social and relationship and natural capitals (6 capitals).
These capitals act as inputs to Triangle Plc’s business model, whereby the
company delivers their mission and vision through governance and management, which
leads to true value creation in the long term for the six capitals. Integrated
reporting allows the expansion of reporting boundaries to the environmental and
Triangle Plc’s relationships through value creation of the six capitals. This contrasts
with the traditional view that focuses on the company itself and its financial
statement. This ensures a change in the corporate behaviour of triangle Plc,
appealing more to their responsibility to stakeholders as the company becomes
more sustainable and ethical. Through reporting on six capitals, the integrated
report can analyse Triangle Plc’s strengths, opportunities, weakness and
threats within the external environment, considering both their accountability
to shareholders and responsibility to stakeholders. Integrated reporting shows
stakeholders, through the composition of the value chain and enhancement of the
procedures within the business model of Triangle Plc, how the six capitals are improved.
Since integrated reporting extends the reporting boundaries for Triangle Plc.,
reporting on capitals can hold a focus on the sustainability of Triangle Plc.,
which is needed if the company is moving towards a stakeholder driven strategy.
Reporting on the six capitals allows stakeholders to measure Triangle Plc’s performance
against their targets for the six capitals, enabling them to analyse
performance through an additional performance indicator.