A welcome new report underlines the importance of purpose in the corporate value creation story.
The Association of International Certified Professional Accountants (the Association) and the International Integrated Reporting Council (IIRC) have combined to produce ‘Purpose Beyond Profit’, revealing increasing corporate enthusiasm for taking a longer-term strategic perspective and having more insight into drivers of future performance.
Key findings of the research include:
- 96% agree that bringing financial and non-financial information together provides a more forward-looking, longer- term view of performance.
- 93% of executives agree that effectively explaining value creation is important.
- 89% of executives believe they need to shift focus to wider value creation.
- 79% agree that a longer-term perspective would improve value creation.
Most would agree that these are important priorites to set- but what’s required is board level commitment to supporting them.
After all, there is no reason why an understanding of how value is created and can be sustained over the long term, cannot also sit with the need to address short term demands- that keep most FDs and other executive awake at night.
Being able to think and act simultaneously across these different time horizons is the key.
