ABSTRACT
The International integrated reporting (IR) framework identifies three fundamental concepts: the value creation process; the capitals; and value creation for the organisation and others. The International IR Framework will enable the organisation to identify risks and opportunities and develop a strategy to mitigate or manage risks and take advantage of opportunities. IR encourages organisations to think about the trade-offs between the capitals in the decision-making process and informs how individually and collectively the capitals contribute to the value creation process. The capitals concept is consistent with the emphasis in IR on thinking about long-term success, not just that in the short and medium terms. The International IR Framework acknowledges both value created for stakeholders and value created for the organisation itself. The International IR Framework and Background papers do quite a good job of establishing the need for longer-term thinking.
