The intangibles information gap isn't going away. In fact, it keeps growing. It's the undercurrent of a lot of conversations about corporate value drivers, integrated reporting and even ESG. So I figured it was time to review the latest data.
Integrated reporting is still emerging in the U.S. It's a mostly bottom-up phenomenon with individual companies forging their own path. I explored these journeys in a report I released a few weeks ago. Now that I've had time to digest the findings, I am seeing three basic approaches.
Apple and Samsung are the leading global smartphone brands. They sell products that essentially do the same things. But ask just about any consumer and they'll tell you that the companies are radically different. This post explores these two companies using an integrated capital model to explore how and why these differences exist.
As promised, here is a summary model of how Samsung creates value. It's meant to be a companion piece to the post I wrote last week on Apple. Next week I'll compare the two.
In follow up to my post on developing value creation models, I thought I would try to create some examples using familiar companies. This first example is for Apple.
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The phrase value creation gets thrown around a lot lately. At a fundamental level, the purpose of every company is to create sustainable value for shareholders and stakeholders.
Value creation is at the heart of the integrated reporting framework from the IIRC. And the latest intellectual capital model from WICI. These models and the dozens that have come before them are all helpful introductions to the concept of value creation.
The problem is that these models are all generic. They tell you that there are categories of capitals that every company has. It's much more powerful to take the concept a step further and identify the actual capitals that a specific company has.
More and more companies in the U.S. are beginning to combine their financial, intangible and sustainability stories into a single integrated report. This innovative approach to reporting content is also leading to innovative means of presentation, including robust online interactive reports.
In a recent study I completed of ten U.S. integrated reports, seven of the ten companies provided a web presentation of their report: