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This study aims to summarise the findings of the perceptions of Chief Executive Officers (CEOs), Chief Financial Officers (CFOs) and senior executives of South African listed companies on the perceived benefits and implementation challenges as a result of implementing integrated reporting (IR) requirements, as well as motives for preparing an integrated report; it is performed two years into the South African IR regime,. South African-listed companies are among the first in the world to be subject to compliance with IR requirements in terms of stock exchange listing requirements. IR, as a novel and evolutionary step in corporate reporting, along with the influence that integrated thinking and IR principles will have on companies, has been the subject of global debate in recent years.

The research instrument used in the study comprised a self-administered Web-based survey aimed at CEOs and CFOs of all South African listed companies. The survey was validated by a pre-trail and data analysed by a statistician to ensure reliability.

The study revealed that listed companies, in a mandated regulatory regime implemented in a short period with reference to a highly prescriptive draft framework, attach value to the IR process primarily from the perspective of their corporate reputation, investor needs and stakeholder engagement and relations. This strengthens the business case for voluntary IR as a reporting regime. Advancement of corporate reputation appears to be a key motive to compile an integrated report, secondary to compliance as a primary motive. This indicates the perceived corporate legitimising effect of producing an integrated report. Furthermore, managers are more motivated by the legitimising aspect of advancing corporate reputation and stakeholder needs in compiling the integrated report than satisfying investor needs. This results in a disconnect between the perceived audience of the report by managers and the intended audience of the report as providers of capital as envisioned by the IIRC, which should be a matter for future consideration. Better resource allocation decisions and cost reductions are not indicated as an outcome of IR in the study. Furthermore, substantial changes to management information systems, with associated costs, would be required by companies to satisfy the requirements of the report content. The study revealed that the anticipated benefit of a company reconsidering its business model and encouraging sustainable product development is not perceived to be a material outcome in companies that implement IR, nor is assessing economic value creation and strategy considered a key motive for companies to compile an integrated report.

Further validation of the survey by statistical methods in addition to the pre-trial of the survey was not considered viable by the statistician in view of the limited amount of data. This may be viewed as a potential limitation of the study. Statistical analysis must also be interpreted with caution given the limited amount of data available for analysis. Other limitations include the fact that certain industries are too heavily represented instead of there being a mix of industries representing the entire market listed on the JSE, and that a substantial proportion of the companies are large listed companies and Socially Responsible Investment (SRI) Constituents. As a result, the results may not be representative of the overall market listed on the JSE.

Managers are more motivated by the legitimising aspect of advancing corporate reputation and stakeholder needs in compiling the integrated report than satisfying investor needs, while the intended audience of the report in the framework is the providers of financial capital. This needs to be considered in the future development of regulations and frameworks. Furthermore, policymakers and regulators should exercise caution in the early stages of IR, when there is still a lack of evidence to support significant short-term changes in reconsidering the business model as well as sustainable product development that could be convincingly attributed to mandatory IR. It is, therefore, critical that policymakers, government and regulators strive towards creating a wider enabling environment to advance sustainable product development and sustainable business models. This can include establishing incentives to encourage the development of sustainable products, or other incentives that serve to align business objectives with national and global objectives and frameworks. Industry bodies can play a significant role in developing universal industry standards in this regard. Consideration should further be given to implementing regulatory mechanisms for advancing and possibly enforcing responsible investment practices as a measure to fully engage business in the critical shift towards sustainable business practices.

The study is significant from a global perspective because IR and integrated thinking form a new and globally developing concept and the potential benefits and expected outcomes from an organisational perspective thereof for companies are currently the subject of continued global debate. This study aims to provide valuable insights into and understanding of the perceived organisational benefits of implementing IR requirements, as well as serves to highlight the challenge areas experienced in South African companies by compliance with IR requirements. The study also contributes towards the debate of motives of managers for producing an integrated report and how this will affect future directions.

The authors have examined the developments in law and in practice concerning integrated reporting. An integrated report combines the most material elements of information about corporate performance (re: financial, governance, social and environmental functioning) – currently reported in separate reports – into one coherent whole. The authors first explore the motivation of companies and legislators to introduce integrating reporting. Next, they analyse how integrated reporting can be supported by legislation thereby taking into account the existing regulatory environment.

Literature study; desk research, analysing integrated reports; organisation of an international academic conference (30 May 2012 in Rotterdam, the Netherlands).

EU law needs adjusting in the field of corporate annual reporting. Although integrated reporting is currently being explored by some frontrunners of the business community and is being encouraged by investors, the existing legal framework does not offer any incentive, nor is uniformity and credibility in the reporting of non-financial information stimulated. The law gives scant guidance to companies to that end. The authors argue that amending the mandatory EU framework can support the comparability and reliability of the corporate information. Moreover, a clear and sound EU framework on integrated corporate reporting will assist international companies in their reporting. Presently, companies have to comply with various regulations at an EU and a national level, which do not enhance a holistic view in corporate reporting. The authors provide options on how to do this. They suggest combining EU mandatory corporate reporting rules with the private regulatory reporting regime developed by the Global Reporting Initiative (GRI).

Focus on EU and Dutch corporate reporting laws, non-legislative frameworks, and corporate practices of frontrunners.

The chapter can provide guidance to policymakers, companies and other stakeholders who want to form an opinion on how to legally support integrated reporting. It addresses important questions, especially concerning how European and domestic legislation could be adjusted in order to (i) reflect the newest insights regarding corporate transparency and (ii) become an adequate framework for companies with added benefits for financiers and investors. Moreover, it reports on the benefits of integrated reporting for reporting companies. The authors argue that integrated reporting can be a critical tool in implementing corporate social responsibility (CSR) in the main corporate strategy of a company.

The purpose of this paper is to explore the perceived benefits of integrated reporting (IR) and factors influencing the motives that supervisory board members (SBMs) have for advocating a change towards IR implementation.

An exploratory survey study was conducted to investigate the influence of external market conditions, internal organizational conditions and observed benefits on the motivation to advocate IR adoption in companies that have not yet implemented IR. A unique set of survey data from 62 SBMs of Dutch companies was used for analysing the propositions derived from IR literature and based on institutional theory, legitimacy theory and diffusion of innovation theory.

The respondents indicated to be supportive of IR adoption. SBMs who had experienced the implementation of IR observed that IR offers benefits. Their motives for advocating a change towards IR in companies that had not implemented IR were influenced most by the observed benefits in IR companies. SBMs only involved in companies that had not adopted IR are motivated to support IR adoption to a similar extent. These findings suggest that directly observed benefits by SBMs need to exceed a considerable minimum level before these SBMs are more motived to advocate IR than their peers who have not witnessed the implementation of IR and that experiences are shared across companies. The motivation of both groups is influenced by external market conditions but not by internal organizational conditions.

The findings have implications for potential IR adopters and institutions promoting the further diffusion of IR as they emphasize the need for tangible benefits of IR and confirm that sharing good practices and benefits of IR can provide a catalyst for IR adoption. The findings contribute to the understanding of the motivation of SBMs as an important organizational condition for implementing IR as this study provides insights in the factors that drive this motivation of key actors influencing the decision to implement IR. Furthermore, the finding that these factors predominantly comprise tangible results and external market conditions is relevant from an organizational change perspective.

Understanding the mechanisms of IR-adoption decisions provides a relevant basis for deploying programmes promoting IR as a general reporting standard. This could provide society and a broad range of stakeholders with access to information incorporated in integrated reports. It could ultimately have a major impact on society by improving decision-making and increasing the long-term sustainability of organizations and their relations with stakeholders.

This study provides preliminary empirical evidence concerning the perspectives of SBMs on their motives for advocating IR, based on a unique sample from a country that has been involved with IR from its start.

This paper aims to explore the perspectives of corporate report preparers and other stakeholders on integrated reporting (IR) in a major Southeast Asian economy.

A survey is used to explore perspectives on IR.

There is a limited level of knowledge regarding IR, but a high level of interest. Corporate report preparers paradoxically state that they can see the benefits of IR, yet they are reluctant to implement it.

Changes to university curricula, training sessions, seminars and conferences may be needed to disseminate information regarding IR.

IR implementation may be stymied by the low levels of knowledge in Southeast Asia and hence lack of demand from stakeholders. High-quality reporting generally supports capital flows into a region and thus influences economic and social well-being. The integrated financial and non-financial information needs of stakeholders thus have an indirect impact on society.

Southeast Asia is an economic powerhouse and home to hundreds of millions of people. It is important to understand the potential for IR in this region. This is the first survey of its kind to explore these matters.

The paper’s purpose is to investigate the concept of integrated thinking as part of the International Integrated Reporting Council’s (IIRC’s) Integrated Reporting (<IR>) framework. It explores integrated thinking as a cultural control and analyses how it operates.

The paper presents a case study of ResBank (a pseudonym), a small Australian bank, which is participating in the IIRC’s <IR> Pilot Programme Business Network. ResBank issued its first integrated report in 2012. Using semi-structured interviews, we examine whether integrated thinking develops as espoused by the IIRC.

In ResBank’s case, we find that the responsible banking culture that was in place prior to joining the Pilot Programme is a stronger cultural control, alongside personnel, results and action controls. The implication for the IIRC is that integrated thinking clashes with the existing organisational culture rather than driving a new organisational culture.

If integrated thinking is to prevail, it may become a source of inertia rather than change because it advocates that an entire workforce should think the same way. We also question whether breaking down silos, as advocated by integrated thinking, is necessary across all organisational functions, especially concerning material organisational risks and reputation, because these silos foster independent thinking.

The problem with the arguments proposed by the IIRC is that they aim at a one-size-fits-all approach. Not every organisation has a disconnection between strategy, governance, past performance and future prospects nor do they all have disconnected departments that need reconnecting. Therefore, a fundamental problem with <IR> is that the IIRC argues ‘why’ companies need <IR>, not ‘how’ to implement <IR>, and especially not ‘how’ to operationalise integrated thinking.

The paper is a must-read because it contributes to the growing debate on the benefits of <IR> by examining and critiquing an early adopter’s practice.

The International Integrated Reporting Council (IIRC) has promulgated the production of integrated reports to enhance transparency and encourage improved stakeholder relationships. The purpose of this study/paper is to explore how managers prioritize the needs of stakeholders and to what extent integrated reporting is associated with those stakeholder relationships.

The paper uses a case study/interpretative approach to compare the underlying motivation for the preparation of an integrated report across three case study sites from three different industry groups. Face-to-face and telephone semi-structured interviews, email correspondence and a review of the integrated reports form the basis for the data collection and analysis.

The case studies investigated for this project provide evidence that integrated reporting did motivate further stakeholder engagement to increase the organizations’ legitimacy and transparency. Overall, the authors found that the three case study organizations used the production of an integrated report to cement their place as a “leader” in their respective industry group. Moreover, managers regarded the current statutory accounts as inadequate in communicating and engaging with a broad range of stakeholders. There were elements of enhancing, defending and repairing legitimacy and managers tended to equate legitimacy with transparency.

Three case study sites were selected on the basis of producing exemplary integrated reports, and senior executives provided their views on stakeholder engagement. For the scope of this study, the stakeholders themselves were not involved in this investigation which can be viewed as a limitation.

The international IIRC Framework is built upon the notion that stakeholders are integral to assisting the organization in creating value. The outcomes of this investigation suggest that for preparers, the incumbent organization is reliant on the leadership of senior managers (inclusive of the chief executive officer) and directors to actually instigate the process. In Australia and New Zealand, given that integrated reporting is not mandatory, regulators have no influence over the scope, content and veracity of integrated reports. It seems likely that further stakeholder engagement will become intrinsic to the business model of organizations as a means to quell any notion that it is engaging in greenwashing.

The value of this paper is to contrast how three quite distinct organizations are using their integrated reports to communicate their approach to stakeholder engagement. Stakeholder salience dimensions are used to explore the importance attributed by senior managers.

This study aims to apply the theory of planned behavior, the theory of stakeholders, the theory of technology acceptance to evaluate the factors that affect the application of integrated reporting in Vietnamese listed companies.

Quantitative research method was used through survey questionnaire. Research data is collected from 144 directors, accountants, administrators of companies listed on Vietnam stock market in the period 2020–2022. Multivariable regression analysis is performed with three independent variables: usefulness, ease of use and environmental influence. Dependent variable is intended to apply integrated report.

Research results show that all independent variables have a positive impact on the dependent variable. In particular, the environment influence variable has the largest impact (0.443), followed by the level of impact of Usefulness” variable and “Ease of use” variable are 0.243 and 0.241, respectively. The regression model manages to explain 52.8% of the impact of the factors on the application of integrated reports. An analysis of the differences between groups of enterprises by staff size and capital size is carried out, the results hereof show that large enterprises tend to apply more integrated reporting. From the research results, the authors propose recommendations to promote the application of integrated reporting in Vietnamese enterprises to gradually improve the quality of information disclosure, attract investment and accelerate international economic integration.

The study evaluates the current situation of integrated reporting of Vietnamese companies to understand the factors affecting the use of integrated reporting, from which to propose recommendations to promote the application of integrated reporting in Vietnamese enterprises to gradually improve the quality of information disclosure, attract investment and accelerate international economic integration.

The purpose of this paper is to examine formal participation in the early phase of the International Integrated Reporting Council’s (IIRC’s) standard-setting. The objective of the paper is to shed light on the characteristics of lobbying parties and the determinants of their lobbying behavior toward the IIRC. Additionally, the most important points of contestation regarding the IIRC’s initial proposal for integrated reporting are identified and discussed.

The authors analyze comment letters issued toward the IIRC’s 2011 discussion paper on the basis of a content analysis. The analysis is guided mainly by Sutton’s (1984) rational-choice model of lobbying and by findings from extant financial accounting lobbying research. The analysis of the data is both quantitative and qualitative.

The paper improves the understanding of the political nature of standard-setting in the context of integrated reporting. Among other things, the authors find that comment letters toward the IIRC’s discussion paper are mainly written by large multinational firms (as opposed to small- and medium-sized ones) and by preparers (as opposed to users). The authors also observe active lobbying by sustainability service firms and professional bodies which tend to take a critical position vis-à-vis the discussion paper’s emphasis on investor needs and shareholder value creation. Moreover, the qualitative analysis reveals that respondents voice different concerns regarding, for instance, the scope of audience of integrated reporting, issues of materiality and the relationship between integrated reporting and other existing reporting frameworks.

The analysis is limited to a consideration of the 2011 discussion paper of the IIRC. The IIRC’s more recent and forthcoming proposals will likely provide a basis to extend the paper’s findings and allow investigation of the role of lobbying for the further development of the framework.

The paper is, to the best of the knowledge, the first one to explore lobbying behavior by means of comment letters in the context of integrated reporting.

The purpose of this paper is to challenge the notion that non-financial reporting is mainly about impression management or is only a superficial response to the hegemonic challenges posed by the sustainability movement. It focuses on the most recent development in sustainability reporting (integrated reporting) as an example of how accounting for financial and non-financial information has the potential to expand the scope of accounting systems, promote meaningful changes to reporting processes and provide a broader perspective on value creation.

The research focuses on an African eco-tourism company which has its head office in South Africa. A case study method is used to highlight differences in the presentation of an integrated business model according to the case entity’s integrated reports and how individual preparers interpret the requirement to prepare those reports. Data are collected using detailed interviews with all staff members involved in the preparation process. These are complemented by a review of the minutes of the company’s sustainability workshops and integrated reports.

A decision by the case organisation to prepare an integrated report gives rise to different forms of resistance which limits the change potential of the integrated reporting initiative. Resistance does not, however, preclude reform. Even when individual preparers are critical of the changes to the corporate reporting environment, accounting for financial and non-financial information expands the scope of the conventional accounting system which facilitates broader management control and promotes a more integrated conception of “value”.

Integrated reporting should not be dismissed as only an exercise in corporate reporting and disclosure; it has a transformative potential which, given time, can enable new ways of managing business processes and articulating value creation.

This study answers the calls for primary evidence on how the requirement or recommendation to prepare an integrated report is being interpreted and applied by individual preparers. The findings add to the limited body of interpretive research on the change potential of new reporting frameworks. In doing so, the research provides theoretical support for developing arguments which challenge the conventional position that integrated reporting is little more than an exercise in impression management.

The first purpose of this paper is to investigate whether corporate governance mechanisms, in particular the characteristics of the board, audit committee and risk management committee, are associated with the level of disclosure in integrated reports of South African listed firms. The second purpose of this paper is to analyze how integrated reporting (IR) affects the sustainable development goals (SDGs).

This paper uses a mixed methods approach. First, a multiple regression analysis is used to estimate the impact of corporate governance mechanisms on IR practices of a sample of South African listed firms during the period between 2019 and 2021. Using the content analysis method to measure the level of IR, disclosures were measured using a disclosure index consisting of 60 information items developed from the IIRC framework and previous studies. Second, based on a database containing 33 articles in the Meditari Accountancy Research journal with a publication date from 2013 to 2021, a systematic review of the academic literature focusing on IR is conducted to analyze how IR influences SDGs.

The results indicate that board size, board independence and risk management committee independence have a positive effect on IR practices. However, board expertise, board activity, audit committee independence, audit committee size, audit committee expertise, audit committee meetings, risk management committee expertise, risk management committee meetings, risk management committee size and the auditor type are negatively related to IR practices. The results also indicate that IR has an important role in achieving SDGs by relying on integrated thinking that integrates sustainability into the enterprise’s strategy and helps the integration of capitals. In addition, sustainable business models create long-term values.

This study was limited to a sample size of 75 firms, which is country-specific; however, it sets the tone for future empirical research on the subject matter. This study provides an avenue for future research in the area of corporate governance and IR practices in other emerging countries, especially other African countries.

This study provides useful insights for managers and policymakers to better understand which corporate governance mechanisms can best encourage a company to improve IR practices.

To the best of the author’s knowledge, this study is, perhaps, the first to examine the effect of risk management committee characteristics on IR practices. This study provides new insight into the contribution of accounting research toward the achievement of SDGs.