Integrated Reporting: Case of Lebanon

Abstract

Integrated thinking is the dynamic reflection of the relationships between the organization different operating and functional units and the capitals used as defined by the IIRC. The integrated decision making and actions that take short medium and long term value creation can be attained by adopting integrated thinking. Managers and employees must, however, be aware of a matrix of considerations that combines each of the six capitals (i.e. financial, manufactured, intellectual, human, social and natural) with each functional unit in an organization. Integrated reporting applies principles and concepts that emphasizes on having the reporting process more cohesive, efficient and adopting' integrated thinking'. It improves the quality of the information available to financial capital providers so that the allocation of capital is more efficient and productive. Previous researchers studied integrated reporting and its importance on the welfare of the organization; however, none of the studies investigated practically the effect of integrated reporting on business profitability and sustainability. The aim of this paper is to investigate the variable affecting the adoption of integrated reporting in Lebanon. The researcher will conduct a questionnaire in order to support the paper objectives. The sample will consist of banks, audit firms and multinational companies. A Regression analysis was conducted to verify the relation between the dependent variable (Adoption of integrated reporting) and the independent variables (Education, and Occupying a position in the accounting department).Also regression analysis is used in order to study the impact of the expected challenges on the application of integrated reporting. This paper will help in extending the knowledge and the deep understanding of integrated reporting as a crucial basis in organization development and sustainability.