What Do You Know About Materiality?

Nov 11, 2014 8:00 AM ET

The Integrated Reporting Movement, by Robert G. Eccles, Michael P. Krzus, and Sydney Ribot, explains how companies can ensure their own long-term viability by contributing to a sustainable society.

Although integrated reporting has seen substantial development, widespread regulatory intervention has yet to materialize. The authors provide guidance to promote wider adoption of the practice and success of the movement, starting with how companies can improve their own reporting processes.

Workiva presents the second excerpt in a series of three, from the fifth and sixth chapters of the book, dealing with the central but elusive concept of materiality. As a construct, it is always entity-specific and based on judgement—yet it's a critical component in financial, sustainability, and integrated reporting.

The authors provide two strategies for developing and managing issues of materiality. The first is an annual "Statement of Significant Audiences and Materiality" to be produced by the board. The second is the "Sustainable Value Matrix" that links materiality to resource allocation, stakeholder engagement, innovation, and reporting.

Click here to request a excerpt of The Integrated Reporting Movement, compliments of Workiva.