Severe criticism was forwarded to the chairman of SmartWear from an influential institutional shareholder about what it perceived as the short-sighted and narrow focus of the board on the low cost – low price business model.

However, the board considers this criticism to be unjustified, since its focus has always been on the wider and longer-term strategic interests of SmartWear that has enabled it to achieve sustainable business growth.

The board believes the most probable reason for the criticism is a lack of understanding by certain investors of the SmartWear business rationale and the company’s integrated thinking.

To further improve the effectiveness of communication with investors, and the wider stakeholder community, the board of SmartWear decided to adopt its own version of the integrated reporting  framework.

The board unanimously agreed that the best results would be achieved when the company takes a more holistic view of its operations and performance, and so you are tasked to brief the board on how to make this message clearer to investors.

You have been asked by the CFO to help him make the case and persuade the board and his own finance team that integrated thinking and the Integrated Reporting  framework should be adopted at SmartWear.

Required:
(b) Prepare a briefing paper for the CFO to allow him to address the wider finance team to explain how corporate reporting using the  framework provides more relevant information for SmartWear’s shareholders about the creation of sustainable long-term value. (6 marks)

Professional skills marks are available for demonstrating appropriate communication skills to the different audiences. (4 marks)