SD# 3 Essay Example | Topics and Well Written Essays - 500 words

SD# 3 - Essay Example Consequently, the monetary value of the firm, as expressed through the financial statement, incorporates these factors to ensure that the company is responsible and maintains a healthy relationship with the environment for a future success. When a firm fails to provide better services or pollutes the environment, the resulting outcome will affect its reputation and operations, thus threatening its existence. The purpose of the International Integrated Reporting Council (IIRC) is to provide a holistic model that gives a comprehensive view of the firm operations and business strategies. Specifically, the program uses both the financial and nonfinancial information to establish the effectiveness of the business in maintaining a viable and sustainable business environment (IIRC n.p.). As expressed in its vision, the IIRC intends to embed integrated thinking in the business practices to make it a corporate reporting norm that leads to efficient and productive capital allocation. Consequently, this will lead the company to financial stability and sustainability in its operations. Therefore, the purpose of the IIRC is to improve business reporting to restore public trust in businesses, enhance investor’s confidence, and ensure efficient capital allocation in the economy for a sustainable and stable business environment (IIRC n.p.). The stock exchange market is a dynamic industry that changes drastically due to various factors such as public perception of the company or a negative assessment of the firm by an external entity. Therefore, for the NASDAQ exchange market to value a business, it must have holistic and comprehensive information about the company. Specifically, that does not only mean its financial performance but also its nonfinancial activities that are crucial in determining its future performance in the stock exchange. The profitability of a business depends on strategic management and social