SBLIntegrated Thinking

Here's a very short answer: It's what underpins <IR>. Here's a slightly longer answer: Integrated thinking is the leadership philosophy or main guiding principle that underpins integrated reporting. An organisation is made up of and depends on a number of elements which are interrelated and connected over different timeframes. Leaders need to understand that the organisation’s prospects and potential depend on these element and linkages. So for integrated reports to be meaningful and useful, those leading and reporting on organisations, need to adopt integrated thinking. This type of thinking recognises that the prospects and outlook for an organisation and its stakeholders depend on how it can add value to a wider and broader range of capitals over the short, medium and longer term. Integrated thinking requires leaders to think much more broadly about how the organisation affects and is affected by its environment and over a longer timeframe. If you're really interested there's a "leadership paper" published on IFAC's www https://www.ifac.org/publications-resources/creating-value-integrated-thinking (it's free with registration). It is suitable for wider reading (the introduction page is enough to "get the idea") and there's a nice visual of the value creation process on page 11.

Thank you. During the March exam I was so confused as i thought both of the section 5 quesions were asking for the same thing.

Thank you both for asking and answering this question, as I couldn't find anything on the ACCA website directly about integrated thinking