INTEGRATED REPORTING AS A MECHANISM FOR ENSURING SUSTAINABLE BUSINESS DEVELOPMENT: INTERNATIONAL EXPERIENCE AND UKRAINIAN REALITIES
Abstract
The article examines integrated reporting as a system-forming mechanism for ensuring sustainable development under contemporary conditions of corporate governance transformation and growing demands for business transparency. It is substantiated that traditional financial reporting, primarily focused on reflecting past financial results, does not provide a comprehensive assessment of social, environmental, and governance factors that determine the long-term effectiveness of business operations. Non-financial (ESG) reporting, despite expanding the information scope, is often fragmented and insufficiently integrated with development strategy, which limits its managerial value. The purpose of the study is to provide a scientific substantiation of the role of integrated reporting as a tool of strategic management and long-term value creation in the context of ensuring sustainable business development. The methodological framework of the research is based on comparative analysis, systematization and generalization, scientific abstraction, and critical analysis of international and domestic experience in the implementation of integrated reporting. As a result of the study, the essential differences between financial, non-financial, and integrated reporting are identified, and their impact on the economic, social, environmental, and governance components of business activity is substantiated. The generalization of international practices and Ukrainian realities made it possible to identify the key problems of implementing integrated reporting in Ukraine, in particular the fragmentation of the regulatory framework, the lack of unified methodologies, and the predominantly declarative nature of information disclosure. An author’s interpretation of integrated reporting is proposed as a system-forming managerial instrument that combines strategic, analytical, and managerial functions and ensures the integration of economic, social, and environmental aspects of business activity. The practical significance of the results lies in the possibility of their use to enhance the effectiveness of strategic managerial decisions, corporate transparency, and business competitiveness in the context of achieving sustainable development goals.
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