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Prior research shows that companies that achieve high performance excel at certain financial objectives. This chapter addresses the question: Do companies that excel at these financial performance objectives also excel in integrated reporting and sustainability reporting?

We compare a sample of high performance companies (HPC) with a sample of companies that purport to support integrated reporting, and a sample that purport to support sustainability reporting. Our hypotheses are that HPC will equal or exceed the integrated reporting and sustainability reporting practices shown by International Integrated Reporting Committee (IIRC) and Global Reporting Initiative (GRI) companies and US companies will be less at these practices than non-US companies.

Our findings indicate that IIRC companies and GRI companies generally do not meet the high financial performance measures of the HPC. Based on an integrated reporting and sustainability reporting matrix, we show that HPC exhibit equal performance on the practices of sustainability and integrated reporting compared to GRI companies, but both HPC and GRI are lower on these practices than IIRC companies. Also, US companies disclose less information in sustainability reports and integrated reports as compared to non-US companies. Overall, all three groups fall short of full compliance with standards of integrated reporting and sustainability reporting.

This chapter provides evidence as to the financial performance and the current state of integrated reporting and sustainability reporting among HPC, GRI, and IIRC companies. This chapter highlights the global need for a generally accepted set of standards for sustainability and integrated reporting practices.

This paper aims to explore the nexus between integrated reporting and sustainability embeddedness. It seeks to contribute to a better understanding of the nexus by obtaining in-depth insight from the sensemaking of those in practice.

A single exploratory case study design strategy was applied to a leading stock exchange listed company in the property industry in South Africa. Rich qualitative data were gathered by applying multiple data gathering techniques to a diverse group of employees within the case company.

This empirical study contributes a metaphor of a cog and chain and nine themes that elucidate employee sensemaking at the nexus. Integrated reporting was found to drive sustainability embeddedness and foster changes within the organisation. The themes offer in-depth insight into how employees made sense of integrated reporting as a driver for sustainability embeddedness.

The findings emerged from a single case study that operated in a mandatory disclosure context and are therefore not generalisable. The findings reflect the intended outcomes of integrated reporting and further research to explore the unintended outcomes and challenges associated with integrated reporting is suggested.

The study contributes to a growing practice based agenda by offering a better understanding of how integrated reporting and sustainability are conceptualised and adopted in practice.

The findings offer organisations’ guidance on integrated reporting and sustainability embeddedness adoption which can have vast implications for society and the environment.

The study responds to gaps in the literature and calls for studies to explore the intersection between integrated reporting and sustainability embeddedness by engaging those in practice.

This paper aims to generate insights about the transformative potential of integrated reporting by exploring organisational adoption of non-financial reporting design archetypes available in the field.

Drawing on the concept of design archetype, this study conducts an exploratory interpretative based on qualitative semi-structured interviews and documentary analysis. The study is based on the Spanish integrated reporting field.

This study reveals that IIRC framework lacks the transformative potential to become an environmental disturbance for corporate reporting practice. It explains how organisations, in their attempt to seek coherence with underlying interpretative schemes, change their structural arrangements (structure, processes and systems) to adopt sustainability and integrated reporting design archetypes available in the field. Though organisational differences are portrayed, the transition from a sustainability-reporting archetype to an integrated-reporting archetype does not seem to be easily achieved.

Due to its exploratory nature, further investigation of the transformative potential of integrated reporting is needed to address intra-organisational factors such as internal stakeholder interests, organisational values, individual or collective agency to embed interpretative schemes into structural arrangements, and technical and managerial capabilities enabling action.

Findings inform practitioners and policymakers about the hindrances to integrated reporting implementation to be considered for prospective regulation and standardisation.

The study reflects on the difficulties for both mainstreaming sustainability to influence decision-making and developing reporting archetypes coherent with integrated thinking.

By focusing on archetype design, the paper provides insights to assess the transformative potential of integrated reporting.

The purpose of this paper is to investigate the internal mechanisms employed by early adopters of integrated reporting in Australia to manage their reporting process and explores whether integrated reporting is stimulating innovative disclosure mechanisms.

The study was based on in-depth semi-structured interviews with organisations in varying stages of implementing integrated reporting. In total, 23 interviews were conducted with sustainability managers, finance managers and communications managers across 15 organisations. A content analysis of the interviews was undertaken using qualitative coding techniques.

While the organisations that are producing some form of integrated report are changing their processes and structures, or at least talking about it, their adoption of integrated reporting has not necessarily stimulated new innovations in disclosure mechanisms. This study did not uncover radical, transformative change to reporting processes, but rather incremental changes to processes and structures that previously supported sustainability reporting.

A major limitation of this research study was the small sample of organisations and stakeholders that participated, and the single-country focus. Finance, accounting and strategy people were particularly under-represented in this study, as well as external stakeholders, and the conclusions can only be tentative until further tested.

This paper sheds light on the practices of early adopters of integrated reporting, and their learning could inform other organisations considering an integrated reporting approach.

As an emerging phenomenon, there are few empirical studies exploring integrated reporting practices and this paper provides some insights into integrated reporting in Australia.

Integrated reporting enhances the meaningfulness of non-financial information, but whether this enhancement is progressive or regressive from a sustainability perspective is unknown. This study aims to examine the influence of the Integrated Reporting (<IR>) Framework on the disclosure of financial- and impact-material sustainability-related information in integrated reports.

Using a disclosure index constructed from the Global Reporting Initiative’s G4 Guidelines and UN Sustainable Development Goals, the authors content analysed integrated reports of 40 companies from the International Integrated Reporting Council’s Pilot Programme Business Network published between 2015 and 2017. The content analysis distinguished between financial- and impact-material sustainability-related information.

The extent of sustainability-related disclosures in integrated reports remained more or less constant over the study period. Impact-material disclosures were more prominent than financial material ones. Impact-material disclosures mainly related to environmental aspects, while labour practices-related disclosures were predominantly financially material. The balance between financially- and impact-material sustainability-related disclosures varied based on factors such as industry environmental sensitivity and country-specific characteristics, such as the country’s legal system and development status.

The paper presents a unique disclosure index to distinguish between financially- and impact-material sustainability-related disclosures. Researchers can use this disclosure index to critically examine the nature of sustainability-related disclosure in corporate reports.

This study offers an in-depth understanding of the influence of non-financial reporting frameworks, such as the <IR> Framework that uses a financial materiality perspective, on sustainability reporting. The findings reveal that the practical implementation of the <IR> Framework resulted in sustainability reporting outcomes that deviated from theoretical expectations. Exploring the materiality concept that underscores sustainability-related disclosures by companies using the <IR> Framework is useful for predicting the effects of adopting the Sustainability Disclosure Standards issued by the International Sustainability Standards Board, which also emphasises financial materiality.

Despite an emphasis on financial materiality in the <IR> Framework, companies continue to offer substantial impact-material information, implying the potential for companies to balance both financial and broader societal concerns in their reporting.

While prior research has delved into the practices of regulated integrated reporting, especially in the unique context of South Africa, this study focuses on voluntary adoption, attributing observed practices to intrinsic company motivations. To the best of the authors’ knowledge, it is the first study to explicitly explore the nature of materiality in sustainability-related disclosure. The research also introduces a nuanced understanding of contextual factors influencing sustainability reporting.

There are still many different theoretical approaches and practical interpretations about what an integrated report is. Starting from this premise, the overall purpose of this chapter is to critically analyze the relationship between integrated reporting (IR) and social/sustainability disclosure. Indeed, although some scholars considered IR as a tool to improve the sustainability approach of the companies allowing to disclose more relevant social information, others are more critical about the potentiality of IR to improve social disclosure. Therefore, the general research question is: Is there a natural link between IR and social disclosure (true love) or is the IR a practice to “normalize” the social disclosure and accounting (forced marriage)?

In the attempt to provide a preliminary answer to the research question, the chapter analyzes what is the approach of three categories: (1) academics; (2) soft-regulators; and (3) companies. From the methodological point of view, a mixed method of analysis has been adopted.

From the analysis of the three different points of view, IR can be considered as a “contested concept” because of the heterogeneous and sometimes conflicting interpretations and implementation that are done on this type of report. This leads to relevant theoretical and practical implications.

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured supply chain practices, lack of awareness of the implications of the sustainability concept and failure to recycle poultry wastes. The current research thus attempts to develop an integrated supply chain model in the context of poultry industry in Bangladesh. The study considers both sustainability and supply chain issues in order to incorporate them in the poultry supply chain. By placing the forward and reverse supply chains in a single framework, existing problems can be resolved to gain economic, social and environmental benefits, which will be more sustainable than the present practices.

The theoretical underpinning of this research is ‘sustainability’ and the ‘supply chain processes’ in order to examine possible improvements in the poultry production process along with waste management. The research adopts the positivist paradigm and ‘design science’ methods with the support of system dynamics (SD) and the case study methods. Initially, a mental model is developed followed by the causal loop diagram based on in-depth interviews, focus group discussions and observation techniques. The causal model helps to understand the linkages between the associated variables for each issue. Finally, the causal loop diagram is transformed into a stock and flow (quantitative) model, which is a prerequisite for SD-based simulation modelling. A decision support system (DSS) is then developed to analyse the complex decision-making process along the supply chains.

The findings reveal that integration of the supply chain can bring economic, social and environmental sustainability along with a structured production process. It is also observed that the poultry industry can apply the model outcomes in the real-life practices with minor adjustments. This present research has both theoretical and practical implications. The proposed model’s unique characteristics in mitigating the existing problems are supported by the sustainability and supply chain theories. As for practical implications, the poultry industry in Bangladesh can follow the proposed supply chain structure (as par the research model) and test various policies via simulation prior to its application. Positive outcomes of the simulation study may provide enough confidence to implement the desired changes within the industry and their supply chain networks.

This study aims to focus on automated text analyses (ATAs) of sustainability and integrated reporting as a recent approach in empirical–quantitative research.

Based on legitimacy theory, the author conducts a structured literature review and includes 38 quantitative peer-reviewed empirical (archival) studies on specific determinants and consequences of sustainability and integrated reporting. The paper makes a clear distinction between analyses of reports due to readability, tone, similarity and specific topics. In line with prior studies, it is assumed that more readable reports with less tone and similarity relate to increased reporting quality.

In line with legitimacy theory, there are empirical indications that specific corporate governance variables, other firm characteristics and regulatory issues have a main impact on the quality of sustainability and integrated reporting. Furthermore, increased reporting quality leads to positive market reactions in line with the business case argument.

The author deduces useful recommendations for future research to motivate researchers to include ATA of sustainability and integrated reports. Among others, future research should recognize sustainable and behavioral corporate governance determinants and analyze other stakeholders’ reactions.

As both stakeholders’ demands on sustainability and integrated reporting have increased since the financial crisis of 2008–2009, firms should increase the quality of reporting processes.

This analysis makes major contributions to prior research by including both sustainability and integrated reporting, based on ATA. ATAs play a prominent role in recent empirical research to evaluate possible drivers and consequences of sustainability and integrated reports. ATA may contribute to increased validity of empirical–quantitative research in comparison to classical manual content analyses, especially due to future CSR washing analyses.

This study aims to propose a longitudinal analysis of motivations for Integrated Reporting (IR) adoption, internal changes, the benefits of IR implementation and compliance challenges.

The authors analyse a longitudinal case study of an Italian-listed company (Eni) participating in the IR-Pilot Programme (PP) and covering 10 years of IR adoption. The analysis was based on a mixed-method approach that included semi-structured interviews, content analysis of annual reports and triangulation with other data sources. Results are discussed regarding institutional theory, legitimacy theory and diffusion of innovation theory.

The study suggests that motivations for adopting IR change over time and participation in the IR-PP helps Eni acquire a comprehensive and substantial integrated view of value creation over time, makes integrated culture a key factor for strategic business sustainability and confirms the readiness of early adopters to comply with the non-financial Directive (NFD).

This study, among the few longitudinal case studies, provides organisations, regulators and academics with insights into the motivations driving the successful adoption and implementation of IR and the NFD. The results may help companies consider one of the tools currently deemed to bring sustainability into action and participation in pilot groups.

The purpose of this paper is to add to the limited body of interpretive research on integrated reporting by exploring challenges to preparing an integrated report. This is done using an integrated thinking framework which stresses the importance of an interconnection between sustainability performance, proactive sustainability management and integrated reporting.

Detailed interviews with 26 preparers at 9 South African-based organisations highlight practical issues encountered when producing an integrated report.

Integrated reporting is not consistently seen as a natural part of the business process, despite the relevance of multiple types of capital for organisations’ business models. The new report format is imposed on existing internal processes and reporting protocols which precludes a broad understanding of the purpose of integrated reporting and limits the development of management control systems and a supporting accounting infrastructure. In this constrained environment, reporting guidelines are used as disclosure checklists, stakeholder engagement is limited, systems are not always compatible and data analysis is difficult. Preparers are also unconvinced that integrated reports are taken seriously by investors, further limiting the interconnection between sustainability performance and integrated reporting.

Those charged with governance need to ensure that their organisations are identifying so-called non-financial issues as strategically relevant. Sustainability performance targets need to be clearly defined and linked to specific performance indicators. The management control systems and accounting infrastructure must be planned and developed to assist with the monitoring of sustainability performance and, in turn, to inform what information is included in integrated reports.

This study answers the calls for primary evidence on how integrated reports are prepared and the associated challenges. The findings add to the limited body of interpretive research on the functioning of corporate governance and accounting systems and offers practical insights for preparers and academics.