Organizations are no longer expected to just create profits. In addition, they are expected to focus on creating positive value for clients, employees and society. Activities that create societal value are more likely to remain profitable in the long run.
Your value to stakeholders
The Integrated Profit & Loss (IP&L) approach provides all you need to report and steer your total value creation objectively and transparently. IP&L enables a better understanding of value creation per capital and stakeholder. The six capitals of the International Integrated Reporting Council are considered, as shown below. In the IP&L, value is distributed across different stakeholders. Examples of stakeholders are investors, clients, employees, suppliers, governments, local communities, and society-as-a-whole.
The IP&L enables organizations to publish impact statements. Impact Statements are a systematic overview of the value that organizations create to stakeholders, in a way that enables them to steer on impact. This is analogues to financial statements. For example, with an IP&L organizations can show and steer on contributions to conventions, such as the SDG's, Paris Climate Agreement and Human Rights.
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