Integrated reporting and internal mechanisms of change. Issue 7 (19th August 2014)

• Record Type: Journal Article
• Authors: Stubbs, Wendy; Higgins, Colin; Rinaldi, Leonardo
• Is Part Of: Accounting auditing & accountability journal. Volume 27:Issue 7(2014)
• Publication Date: 2014-08-19
• Subjects: 657
• DOI: 10.1108/AAAJ-03-2013-1279
• Languages: English
• ISSNs: 0951-3574

Abstract

<abstract> <title> <x content-type="archive" xml:space="preserve">Abstract</x> </title> <sec sec-type="purpose"> <title>Purpose</title> <p>This paper investigates 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.</p> </sec> <sec sec-type="design|methodology|approach"> <title>Design/methodology/approach</title> <p>The study was based on in-depth semi-structured interviews with organisations in varying stages of implementing integrated reporting. Twenty-three interviews were conducted with sustainability managers, finance managers and communications managers across fifteen organisations. A content analysis of the interviews was undertaken using qualitative coding techniques.</p> </sec> <sec sec-type="findings"> <title>Findings</title> <p>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.</p> </sec> <sec sec-type="research limitations|implications"> <title>Research limitations/implications</title> <p>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. </p> </sec> <sec sec-type="practical implications"> <title>Practical implications</title> <p>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.</p> </sec> <sec sec-type="originality|value"> <title>Originality/value</title> <p>As an emerging phenomenon, there are few empirical studies exploring integrated reporting practices and this paper provides some insights into integrated reporting in Australia.</p> </sec> </abstract>