Factors affecting the diffusion of integrated reporting – a UK FTSE 100 perspective

Abstract

Purpose – This study seeks to investigate the likely adoption of integrated reporting (IR), in addition to highlighting the limitations of current reporting practices. In particular, the analysis in this study used the characteristics of diffusion of innovation theory to investigate how perceptions of IR as offering a relative advantage over existing practices; its compatibility to existing organisational values, past experiences and needs; and its perceived complexity impacted on the adoption and diffusion of IR. Design/methodology/approach – Methodology was based on a content analysis of 22 UK FTSE 100 annual and sustainability reports across industries. To build a phenomenological triangulation research approach, semi-structured interviews were conducted with ten senior managers to ascertain their perceptions of current SR practices and IR. Findings – The analysis in this study revealed that low/medium levels of linkages exist between the majority of reports in the sample, thus limiting their usefulness. Based on these findings, this study suggests that senior managers perceive IR as having a relative advantage over existing practice. Overall, the senior managers interviewed were supportive of IR and this research revealed that many companies are starting to integrate their reporting along IR guidelines. This study further identifies factors that are likely to impact on more widespread diffusion of IR. Research limitations/implications – The sample size to assess linkages between reports was based on a sample of company reports across industries to give a balanced view of reporting practices. This could be viewed as a limitation as it was not a representative sample of the population as a whole. Another limitation of this research study was the small sample of organisations that participated in the interview process, and the single country focus. Practical implications – This study has identified several factors that were likely to impact on wider spread diffusion of IR, which should be of interest to practitioners in this field as well as those considering the adoption of IR. Originality/value – As an emerging phenomenon, there are few empirical studies exploring IR practices and perceptions. To the best of the authors' knowledge, this is the first paper that provides some insights into IR from a UK perspective.

Do Board's Corporate Social Responsibility Strategy and Orientation Influence Environmental Sustainability Disclosure? UK Evidence

“…Second, our analysis is limited to CESD made only in stand‐alone CSR reports or annual reports. Further research might address this issue and focus on examining other outlets of corporate communication such as online reporting (see, e.g., Robertson and Samy, ). Third, this study used female directors as a measure of board diversity but does not account for the other measures of diversity.…”

“…CSR reporting is the process of disseminating information on the social and environmental performance in corporate annual reports, stand‐alone reports and/or websites (Guthrie et al , ; Robertson and Samy, ). CSR literature states that environmental reporting helps companies to resolve some of their damaged reputation and environmental problems and sustain good relationships with relevant stakeholders (e.g.…”

The Influence of Integrated Reporting on Business Model and Strategy Disclosures

“…Annual reports disclose BMs in various ways across the world and 63% of articles examined in a study show an explicit link between the BM and a company's ability to generate revenue and drive financial performance (Topazio ). Robertson and Samy () investigate the limitations of current reporting practices and argue that there no clear connection between financial and non‐financial information, because companies do not make use of integrated thinking.…”

“…Despite the increase in the volume of disclosure, key aspects of disclosure are poorly incorporated, financial and non‐financial information are discussed in silos, and disclosures are generic and not company specific (Du Toit et al. ; Haji and Anifowose ; Robertson and Samy ). Companies are increasingly conforming to the reporting language in the IR Framework (Haji and Hossain ), but the introduction of IR has not stimulated new innovation in disclosure mechanisms (Stubbs and Higgins, ).…”

Effects of Integrated Reporting on Corporate Disclosure Practices regarding the Capitals and Performance

“…Rinaldi, Unerman and de Villiers (2018) state that 'IR practices have now had time to mature and become more widely adopted'. Still, the interest in IR shown by organizations, accounting professionals and academics (Robertson and Samy, 2015;Barth et al, 2017;Zhou, Simnett and Green, 2017;Adams and McNicholas, 2007;Mio, Marco and Pauluzzo, 2016;Ojo, Mbohwa and Akinlabi, 2015) is balanced by the debate around the challenges associated with the implementation of the International <Integrated Reporting> Framework (IIRF).…”