Human resources managers as custodians of the King III code

Beer, Frank De; Toit, Daniel Hercules Du

doi:10.4102/sajems.v18i2.769

Cited by 5 publications

(1 citation statement)

References 4 publications

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“…Internal organisational factors Ballou et al, 2012;De Beer and Du Toit, 2015;Frías-Aceituno et al, 2013b;Frías-Aceituno et al, 2014;Lodhia, 2015;Steyn, Higgins et al, 2014;Reuter and Messner, 2015;Simnett and Huggins, 2015 More awareness of and focus on sustainability and its impacts Steyn, 2014 Process enhancement and internal changes Brown and Dillard, 2014;Higgins et al, 2014;James, 2014;Lodhia, 2015;Steyn, 2014 3.5 lists all variables used for capturing the responses to the questionnaire, along with their operationalizations and values. It also includes the survey questions and their reference numbers, as used throughout this study.…”

Section: External Market Factorsmentioning

confidence: 99%

The (r)evolution of integrated reporting

de Graaff

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Since the foundation of the International Integrated Reporting Council (IIRC) in 2010, the concept of integrated reporting (IR) has gained widespread attention. The IR Framework as first published by the IIRC in 2013 aims to fulfil stakeholders’ demands by providing an overview in which all strands of information, and their attendant impact on the value creation process, are connected in the integrated report. Although the integrated report is an important outcome of IR, this product should ultimately be based on the process of integrated thinking. Integrated thinking fulfils a pivotal role in the integrated reporting process, but most of the attention has been given to the report as a product rather than to integrated thinking as a key internal process. The impact of IR adoption on the organisation internally, and the degree to which integrated thinking becomes visible in the organisation, has thus far remained underexposed. This dissertation studies the extent to which IR affects the observable presence of integrated thinking within performance management systems (PMSs). Through recourse to legitimacy theory and management fashion theory, a preliminary assessment of the development of IR is provided. The uncovered genealogy of claims about potential benefits of IR are explored in more detail by administering a survey among Dutch supervisory board members (SBMs). Both the perceived benefits of IR and the factors that influence the motives of SBMs to advocate for a change towards IR implementation are explored. The results also stress the iterative process that is taking place between IR and integrated thinking practices. Some of the claims about IR pertained to topics such as: the breaking down of silos within organisations, improved decision-making, better alignment between financial and non-financial information, and an overall more holistic business approach. These claims describe aspects which can be encompassed under the umbrella of integrated thinking. In this dissertation, integrated thinking is approached from a management control perspective. Through conducting case studies with four Dutch companies that have multiple years of experience with publishing integrated reports, it becomes apparent that each of the organisations experienced changes in their PMSs due to IR. The results of this dissertation show that due to IR implementation, integrated thinking is becoming visible in the PMSs, because PMSs are becoming more integrated with respect to financials and non-financials. This study also shows the iterative process between the concepts of IR and integrated thinking. These changing PMSs are in alignment (at least partially) with the espoused benefits of IR outlined in literature. Such an overview of the IR journey is expedient for both academics studying the concept of IR, and practitioners seeking a more complete understanding of what they can expect from IR implementation and what they can learn about the impact of IR and use of integrated thinking in practice. It also helps standard setters’, regulators’ and consultants’ attempts to provide more guidance to companies aiming to better understand the phenomenon of integrated thinking.

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Section: External Market Factorsmentioning

confidence: 99%

The (r)evolution of integrated reporting

de Graaff

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Integrated reporting: exploring supervisory board members’ perspectives on the motives, drivers and benefits

Graaff

Steens

2022

JAOC

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Purpose 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. Design/methodology/approach 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. Findings 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. Practical implications 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. Social implications 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. Originality/value 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.

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Integrated reporting: Much ado about nothing?

Graaff¹,

Steens²,

Camfferman³

2021

Financial Reporting

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Integrated reporting, which helps companies to share their value creation pro-cesses with their stakeholders, has developed rapidly in recent years. Due to the increased attention paid to the International Integrated Reporting Framework is-sued by the International Integrated Reporting Council, the number of companies worldwide engaging in integrated reporting is continually rising, which is presuma-bly driven by the claimed benefits of this practice. Through recourse to legitimacy theory and management fashion theory, here we provide a preliminary assessment of the development of integrated reporting, alongside considering the potential in-fluence of academic research in its growth. We review the existing body of aca-demic literature on this topic, ultimately identifying 123 claims about the benefits of IR from 29 papers published in 15 journals between May 2011 and September 2016, before proceeding to analyse both the sources and the level of substantia-tion of these claims. Our findings suggest that only a few of the purported ad-vantages of integrated reporting are supported by actual empirical evidence, while most of the claims only cite a limited number of primary sources. Based on these results and our assessment of the development of the concept of IR, we propose a future research agenda.

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Human resources managers as custodians of the King III code

Cited by 5 publications

References 4 publications

The (r)evolution of integrated reporting

The (r)evolution of integrated reporting

Integrated reporting: exploring supervisory board members’ perspectives on the motives, drivers and benefits

Integrated reporting: Much ado about nothing?

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