Integrated reporting: The Next Step Ahead for a Sustainable Society

  • Radu-Dan Turcu Department of Accounting and Audit, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, 010374 Bucharest, Romania, e-mail: radu.turcu@cig.ase.ro
Keywords: integrated reporting, sustainable development, sustainability

Abstract

The recent global developments have emphasized the limits of the actual corporate reporting system. Today's organizations experience a growing pressure exercised by various types of stakeholders as a result of the increasingly public concern regarding environmental and social issues. Hence, companies must assume their responsibility for the improvement of the environment and society within which they operate materialized through the disclosure of sustainability and corporate responsibility information. The main challenge is not to simply increase the amount of information provided inside the annual reports, but to increase their relevance through new, comprehensive and condensed reporting practices which combine and interconnect financial and nonfinancial data. Accordingly, the concept of integrated reporting is founded. Despite its necessity and adequacy, differences among countries regarding the adoption of integrated reporting exist. This paper aims to analyze the relation between the number of integrated reports issued by companies inside a country in relation with its economic, social and environmental performances. The results found that there is a higher commitment from companies, belonging to more developed countries, to make their contribution towards the development of integrated reporting concept and practice.

References

AccountAbility. 2005. Responsible Competitiveness: Reshaping Markets Through Responsible Business Practices. [online]. Available at: http://www.accountability.org /images/content/1/1/110/Full%20Report%20%28Compressed%29.pdf. [Accessed 2014, November 9].

Association of Chartered Certified Accountants. 2013. Understanding investors: directions for corporate reporting. [online]. Available at: http://www.accaglobal.com/content/dam/acca/global/PDF-technical/financial-reporting/pol-afb-ui02.pdf. [Accessed 2014, November 11].

Bolcárová, P. and Kološta, S. 2014. Assessment of sustainable development in the EU 27 using aggregated SD index. Ecological Indicators, 48 (January 2015), 699–705.

Busco, C., Quattrone, P., Frigo, M. and Riccaboni, A. 2013. Redefining Corporate Accountability through Integrated reporting. What happens when values and value creations meet? Strategic Finance, 95 (8), 33–41.

Busco, C., Quattrone, P., Frigo, M. and Riccaboni, A. 2014. Leading practices in Integrated Reporting. Strategic Finance, 96 (9), 23–32.

Devi, R. U. 2014. Integrated reporting – the future phase of corporate reporting: An analysis. International Journal of Research in Social Sciences, 4 (2), 393–409.

Drexhage, J. and Murphy, D. 2010. Sustainable Development: From Brundtland to Rio 2012. [online]. Available at: http://www.un.org/wcm/webdav/site/climatechange/shared /gsp/docs/GSP1-6_Background%20on%20Sustainable%20Devt.pdf. [Accessed 2014, November 7].

Druckman, P. 2014. Integrated Reporting: A New Governance Tool. The Corporate Board, 35 (206), 6.

Eccles, R. G. and Krzus, M. P. 2010. One report Integrated Reporting for a Sustainable Strategy. John Wiley & Sons.

Eccles, R. G., Krzus, M. P. and Ribot, S. 2014. Integrated Reporting Movement. John Wiley & Sons.

Ernst & Young. 2013. Six growing trends in corporate sustainability. Available at: http://www.ey.com/Publication/vwLUAssets/Six_growing_trends_in_corporate_sustainability_2013/$FILE/Six_growing_trends_in_corporate_sustainability_2013.pdf. [Accessed 2014, November 9].

Eurostat. 2014. Sustainable Development Indicators. [online]. Available at: http://ec.europa.eu/eurostat/web/sdi/indicators. [Accessed 2014, November 10].

Frías-Aceituno, J., Rodríguez-Ariza, L. and García-Sánchez, I. 2013. Is integrated reporting determined by a country's legal system? An exploratory study. Journal Of Cleaner Production, 44, 45–55.

Hall, P. A. and Soskice, D. 2001. Varieties of Capitalism. Oxford University Press.

Healey, M. 2013. Integrated reporting – one company's experience. Keeping good companies, June 2013, 262–264.

James, M. L. 2013. Sustainability and Integrated Reporting: Opportunities and Strategies for Small and Midsize Companies. Entrepreneurial Executive, 18, 17–28.

Jensen, J. and Berg, N. 2011. Determinants of Traditional Sustainability Reporting Versus Integrated Reporting. An Institutionalist Approach. Business Strategy and the Environment, 21 (5), 299–316.

Kolk, A. and Perego, P. 2008. Determinants of the adoption of sustainability assurance statements: an international investigation. Business Strategy and the Environment, 19, 182–198.

Matten, M. and Moon, J. 2008. Implicit and Explicit CSR: A Conceptual Framework for a Comparative Understanding of Corporate Social Responsibility. Academy of Management Review, 33 (2), 404–424.

Monterio, B. J. 2010. Sustainability reporting and XBRL – part 2. Strategic Finance, 92 (3), 56–61.

Monterio, B. J. 2014. Integrated Reporting and Corporate Disclosure. Strategic Finance, 96 (3). 54–57.

Opariuc, C. D. 2011. Statistica aplicată în științele socio-umane (Applied statistics in Socio-human sciences). ASCR Cluj-Napoca.

The International Integrated Reporting Council, 2013a. Consultation draft of the international Framework. [online]. Available at: http://www.theiirc.org/wp-content/upl oads/Consultation-Draft/Consultation-Draft-of-the -InternationalIR Framework.pdf. [Accessed 2014, November 9].

The International Integrated Reporting Council, 2013b. The International Framework. [online]. Available at: http://www.theiirc.org/wp-content/uploads/2013 /12/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf. [Accessed 2014, November 9].

Thomson, I. H. 2014. But does sustainability need capitalism or an integrated report: a commentary on The International Integrated Reporting Council: A story of failure by Flower, J. Critical Perspectives on Accounting, DOI: 10.1016/j.cpa.2014.07.003.

The Wall Street Journal and The Heritage Foundation. 2012. Index of Economic Freedom Promoting Economic Opportunity and Prosperity. [online]. Available at: http://www.heritage.org/index/download. [Accessed 2014, November 17].

United Nations Development Programme. 2013. Human Development Report 2013. The Rise of the South: Human Progress in a Diverse World. [online]. Available at: http://hdr.undp.org/sites/default/files/reports/14/hdr2013_en_complete.pdf. [Accessed 2014, November 17].

World Bank. 2012. World Bank Indicators. [online]. Available at: http://data.worldbank.org/indicator/NY.GNP.PCAP.PP.CD. [Accessed 2014, November 10].

XBRL. 2014. The Business Reporting Standards. [online]. Available at: https://www.xbrl.org/the-standard/what/an-introduction-to-xbrl/. [Accessed 2014, November 10].

Yale Center for Environmental Law & Policy. 2012. Environmental Performance Index and Pilot Trend Environmental Performance Index. [online]. Available at: http://epi.yale.edu/files/2012_epi_report.pdf. [Accessed 2014, November 17].
Published
2015-11-11
Section
Articles