1.Introduction
The following basic
principles are used as a basis for preparing an integrated report, which gives
information about the content of the report and how it is presented.
• Strategic focus and future orientation: An integrated
report should provide insight into the strategy of the organization and how it
relates to its use and interaction with the ability to create value in the
short, medium and long term.
• Interconnection of information: An integrated report
should provide a holistic picture of the combination of factors that affect the
organization’s ability to create value over time, their relationship to each
other, and their dependencies.
• Significance: An integrated report should provide
information on issues that significantly affect the ability of the
establishment to generate value in the short, medium and long term.
• Being short and simple: An integrated report should be
short and concise.
• Reliability and completeness: An integrated report should
contain all material aspects, either positive or negative, in a way that does
not contain a balanced and material error.
• Consistency and comparability: Information on an
integrated report
(a) be based on a consistent basis over time, and (b) allow
the organization to compare itself with other organizations in terms of their
ability to create value in their time.
Quantitative and
qualitative information
Quantitative indicators, such as KPIs and monetary and
numeric measures, and the context in which they are presented can be extremely
useful in explaining how a corporation creates, uses, and influences value.
Qualitative indicators may also be used if appropriate and relevant:
• Value creation capability of the organization can be
reported through best combination of quantitative and qualitative information
• Not to quantify or monetize the value of an integrated
report at any time in an integrated report over time, the value it creates over
time, or the use of or influence on all capital items.
Relation to report
format and other information
An integrated report should be in the form of an
identifiable statement, aimed at the objective. The purpose of the report is to
establish a clear link between information about how value is created over time
rather than a summary of the information used in other declarations (eg
financial statements, sustainability reports, analyst interviews or website
notifications). This report can be prepared in response to existing compliance
requirements. An integrated report can be an independent report, or it can be a
separable, prominent and accessible piece of another report or declaration. For
example, a statistical report of the establishment can be added in front of a
report.
2. BASIC PRINCIPLES
2.1 The following Basic Policies are used as a basis for
preparing and presenting an integrated report, giving information about the
content of the report and showing how it is presented:
A. Strategic focus and future orientation
B. Interconnection of information
C. Significance
D. Being short and simple
E. Reliability and completeness
F. Consistency and comparability
These principles may be used separately or together in the
preparation and presentation of a report. Therefore, they should be judged very
well when applying this information, especially in situations where there is a
significant conflict between them (for example between being short and being
complete).
2.2
A. Strategic focus
and future orientation
An integrated report should provide insight into the
organization’s strategy and how it relates to its ability to create value in
the short, medium and long term.
Implementation of these Basic Principles
• Emphasis on key risks, opportunities and dependencies that
affect the organization’s location and business model
• Corporate executive managers’ views on:
– the relationship between past and future performance
and the factors that can change this relationship
-how to balance between the short, medium and long term
interests of the establishment
– what the organization learned from past experiences while
determining the future strategic direction of the organization
A continued focus on determining a strategic focus and
future orientation must ensure that the ongoing availability of its assets, its
quality and affordability, clearly contribute to its ability to achieve its
strategic goals and create value in the future.
B. Interconnection of information
An integrated report should provide a holistic picture of
the combination of factors that influence the organization’s ability to create
value over time, its relationship to each other, and its dependencies.
The greater the degree to which integrated thinking is
incorporated into the activities of an organization, the more the links between
the information are conveyed to the management reporting, analysis and
decision-making process and thus the integrated report in such a natural way.
The main forms used for inter-information linking include
the links between:
Content Items.
The integrated report links the Content Items as a whole to
a general image that reflects the dynamic and systemic interactions of the
organization’s activities. Sample:
-an analysis of how to combine resources to achieve current
performance of the resource transfer and its target, or whether to make other
investments
-information on how the strategy of the company will be
adapted when new risks and opportunities are identified or performance in the
past does not occur as expected
-increase or decrease in the speed of technological change,
changes in the external environment, such as developing and changing social
expectations and the reduction of resources on the planet
An analysis of the activities of the organization from past
to present to date may provide useful information to assess the plausibility of
the data reported for the period up to the present. Explanations about the
period from the past to the present can also be useful in analyzing the
available opportunities and management quality.
• Financial and other information. For example, reflections
on the following items:
-market share or expected revenue growth in terms of
research and development policies, technology / knowledge accumulation or
investment in human resources
-long-term customer relationships, increase in revenue and
profits in terms of customer satisfaction or reputation.
C. Significance
In the process of materialization for the purpose of
preparing and presenting an integrated report:
• Assessing the relevance of the relevant issues
according to known or potential impacts on the value creation process
• Priority of topics according to relative importance
ratings
• Identification of information to be disclosed about
financial issues
This process applies to both positive and
negative issues, including risks and opportunities and desired and undesired performance
or anticipation. It also applies to financial and other information. These
issues may have a direct impact on the organization itself, as well as affect
components belonging to others or made available to others.
In terms of maximizing effectiveness, the
materiality-setting process is integrated into the management processes of the
entity and involves the regular interaction with the financial contributors and
other parties to ensure that the integrated report meets its original purpose.
Determination of related subjects
Related topics are those that are likely to affect or affect
the ability of the organization to create value. This is determined by taking
into account the impact of the subject matter on the strategic, corporate
governance, performance or anticipation of the subject matter.
Normally, issues arising from value creation and discussed
at meetings with corporate governors are deemed relevant. It is important to
understand what key stakeholders’ views are when determining the relevant issues.
Issues that are relatively easy to unravel in the short-term
but are not kept under control should be considered within the scope of the
relevant issues, which are more harmful or difficult to control in the medium
or long-term. The issues can not be excluded for any reason, such as the
establishment does not want to control them or know how to handle them.
Not all relevant subjects are considered important. The
inclusion of a topic in an integrated report must be sufficiently significant
in terms of known or potential impact on value creation. If the effect of the
subject is too great for it and if it is uncertain whether it will take place,
the possibility of coming to the scene should be assessed.
Size is determined by assessing whether the subject’s
strategy, corporate governance, performance or the effect on expectations are
potentially significant in terms of value creation over time. This depends on
the nature of the subject and should be reasonably judged for it. The issues
can be regarded as important individually or as a whole.
The effectiveness of a subject does not need to be
qualitatively assessed to assess its size. Qualitative assessment may be
sufficient, depending on the properties of the subject.
The organization considers the following points when
evaluating the size of the impact:
• Quantitative and qualitative factors
• Views on the aspects of finance, operations,
strategy, reputation and regulation
• The location of the effect (internal or external)
• Time interval.
Priority on important issues
Once you have identified what are important issues, put them
in priority order of their size. This helps focus on the most important issues
while determining how they will be reported.
Identification of information to be disclosed
It should be judged very well when determining the
information to be disclosed about the numerical issues. Both internal and
external perspectives are utilized for this and regular interaction with the
parties is required to meet the original purpose of the integrated report.
D. Being short and simple
An integrated report should be short and simple. It provides
sufficient context to understand the strategy, corporate governance,
performance and anticipation of the organization without the complexity of an
integrated rapport with less relevant information.
The organization tries to strike a balance between being
short-lived in the integrated report and other basic principles, in particular
completeness and comparability. In order for an integrated report to be short and
simple:
• The materiality determination process described in the
previous section must be applied.
• Cross-referencing tools need to be used in order to
trace a reasonable structure and limit the repetition.
• Need to express concepts clearly and with as few
words as possible
• It may be preferable to use a flat language instead
of professional jargon or very technical terminology
• Avoid many common issues that are often referred to as
“stereotypes” and are not specific to the organization.
An integrated report should contain all positive and
negative quantitative aspects in a balanced and error-free manner.
E. Reliability and completeness
Reliability
The reliability of information depends on whether it has
balance and material error. Reliability (often also referred to as loyalty) is
enhanced by rigorous internal auditing and reporting systems, stakeholder
engagement, internal auditing or similar functions, and external audit from
outside the organization.
Management responsibilities have ultimate responsibility for
determining the strategy of the organization, its management, and how its
performance and anticipations will result in value creation over time. They are
responsible for ensuring that effective leadership and decision-making
capabilities are demonstrated in the preparation and presentation of an
integrated report, including the identification and management of employees
actively involved in the process.
When an integrated report is being drafted, the creation of
an audit scheme helps to determine whether the senior management report has
been reviewed and whether the information has enough information to be included
in the report. In some cases (eg for future information) an integrated report
may need to disclose mechanisms used to provide credibility. Relevant
disclosures are made in the event that important information is removed due to
lack of reliable data.
Balance
There is no prejudice in the selection or presentation of a
balanced integrated raporda information. The information in the proceeding can
not be biased, weighted, accented or stressed, unified, shifted or otherwise
manipulated in such a way as to change the likelihood of being perceived as
positive or negative.
Significant methods used in equilibrium are:
• Selection of presentation formats that are unlikely to
affect the assessments based on the integrated report irregularly or improperly
• The increase and decrease in capital items, the
strengths and weaknesses of the establishment, the positive and negative
performance, and so on. equal weighting
• Reporting according to previously reported targets,
forecasts and predictions
No material mistake
The fact that you do not have material mistakes does not
mean that the information is absolutely accurate in every way. It means:
• Processes and audits have been implemented to
reduce the risk of material misleading information to an acceptable low level
• Clearly reporting information containing forecasts and
explaining the features and limitations of forecasting processes
Completeness
A complete report contains all the necessary information,
both positive and negative. It is taken into account what subjects in the same
sector report on which issues in order to help ensure that all necessary
information is identified, as certain issues in one sector may be necessary for
all organizations in that sector.
In determining completeness, the scope of information
disclosed and the level of specificity or precision are taken into account.
This may also take into account potential concerns about cost / benefit,
competitive advantage and future information, each of which is described below.
Cost/Benefit
Information contained in an integrated report is the basis
of business management. Accordingly, if a topic is important to managing
business, it should not be considered a cost factor to obtain critical
information to properly handle and manage the business.
An organization may make cost and benefit appraisals to
determine the scope, specificity and certainty of the information required to
meet the intent of an integrated report, but should refrain from only relying
on cost basis when making a statement on an important issue.
Competitive advantage
An organization considers how to disclose information about
material issues (eg, critical strategies) related to competitive advantage in
the process of including it in the reporting process without releasing specific
information that may lead to the loss of its essential strength. The
organization accordingly considers what kind of profit a competitor will gain
from the information contained in an integrated report and balances it against
the need to meet the intent of the integrated report.
F. Consistency and comparability
Information on an integrated report:
• On a consistent basis over time
• It should be presented in such a way as to allow its
comparison with other organizations in terms of its value creation ability over
time.
Consistency
Reporting principles should be followed consistently in
successive periods unless an amendment is necessary to improve the quality of
the information at the time of the report. This includes reporting the same
KPIs if they continue to have material importance within reporting periods.
When a material change is made, it explains the cause and effect of the change
(and quantifies if applicable and numerically important).
Comparability
Since each organization follows a unique path while creating
value, specific information about an integrated report must differ from the
department to department. However, answering questions about Content Elements
that apply to all organizations helps ensure a reasonable level of
comparability among organizations.
The powerful tools used both in the integrated report itself
and in strengthening comparability in the linked detailed information may
include:
• Use sectoral or regional benchmarks
• Presenting information using rates (eg, research expenses
presented as a percentage of sales)
• To provide quantitative indications that are commonly used
by other organizations with similar activities, particularly where industry
standardized definitions are required. However, such representations are not
included in an integrated report unless they relate to the circumstances of the
establishment or are used by the organization on its own.
2.Definition of Problem
The company is one of Turkey’s largest fashion companies.
As the company experienced rapid growth, the infrastructural
development was not at the same speed. The data provided by the growth of the
company and the goal of becoming a global brand do not overlap.
Problems
1-Systemic problems: The most important reason why the
company can not look at the same data and can not make the decision making
processes healthy is the systematic problems. As mentioned in the paragraph
above, the fact that a company in this measure can not manage the data
effectively with the correct systems creates a serious extra operational cost
to the company.
The following headings are a serious problem. Now,this
report will give to detailed information to these.
A.Data is not clean.
There is not enough competence in the company. The reason is
that the turnover rate is high. so know-how is constantly disappearing.
Since the company does not have a common data perspective,
data is processed at the initiative of employees.
The fact that information is not clear affects the agility
of the system, slows the company’s operations and makes it difficult for the
reporting systems to work properly.
Data mining processes should be managed by people with
sufficient competence in the companies where such big facts are managed. As far
as our company is concerned, our company has not been successful in assigning
competent people to data processes in human resources and recruitment
processes.
On the other hand, the turnover level is high due to the
lack of suitable work environment for employees due to human resources
politics. In such problematic and manual operating systems, employees take
their know-how with them and can not transfer it to the company.
