Integrated reporting and integrated thinking in Italian public sector organisations

2017 ◽  
Vol 25 (4) ◽  
pp. 553-573 ◽  
Author(s):  
James Guthrie ◽  
Francesca Manes-Rossi ◽  
Rebecca Levy Orelli
Keyword(s):  
Public Sector ◽  
Processes Of Change ◽  
Press Releases ◽  
Structured Interviews ◽  
Integrated Reporting ◽  
Content Type ◽  
Early Adopters ◽  
Academic Literature ◽  
Reporting Framework ◽  
History Of

Purpose This paper aims to explore the linkages between integrated reporting (IR) and organisations’ internal processes, specifically focusing on investigating the internal mechanisms of change that can lead organisations to adopt IR disclosure and how this impacts on integrated thinking internally. Design/methodology/approach The paper draws upon previous analysis and insights provided in the IR academic literature, as well as analysing several directives, policy and framework pronouncements. The study also draws on the management accounting change literature, using it as a lens to observe early adopters’ practice. In addition, it provides detailed case studies considering the internal processes of change in five early adopters of the integrated reporting framework (<IRF>) and whether the adoption leads to internal “integrated thinking”. Five Italian public sector organisations are analysed, and the authors make use of official documents, press releases and in-depth semi-structured interviews with the major internal actors. Findings The research highlights that the processes of change in organisations adopting IR is their adoption of a way of thinking, that is, integrated thinking, as a result of the process of internalisation. Research limitations/implications Given the short history of IR, this sample is small due to the small number of early adopters. Originality/value The paper provides academics and policymakers with insights into the process of change to be considered while adopting the <IRF> and responds to calls in the IR literature for further field-based studies on IR’s impact on internal processes. Also, the paper highlights that the European Directive on the disclosure of non-financial and diversity information (2014/95/EU) has the potential to increase environmental, social and governance disclosures amongst European companies.

scholarly journals THE INTEGRATED REPORTING FRAMEWORK ACROSS PUBLIC ADMINISTRATION: A THEMATIC REVIEW

2022 ◽  
Vol 7 (1) ◽  
pp. 410-440
Author(s):  
Mona Othman ◽  
Norida Basnan ◽  
Azlina Ahmad ◽  
Mohd Fairuz Md Salleh
Keyword(s):  
Public Sector ◽  
Public Administration ◽  
Future Research ◽  
Integrated Reporting ◽  
Policy And Practice ◽  
Academic Literature ◽  
Reporting Framework ◽  
Thematic Review ◽  
International Integrated Reporting Council ◽  
Key Aspects

Background and Purpose: The Integrated Reporting framework as emphasised by The International Integrated Reporting Council (IIRC) in 2013 (revised 2021), was accepted as one of the mechanisms nationwide to enhance public accountability. However, far fewer studies examined the intersection of the Integrated Reporting (IR) framework and the public sector. Addressing the gap, reviews of the literature were presented synthesising the adoption of the IR framework across public administration.   Methodology: By drawing upon SCOPUS, Science Direct and Mendeley databases were employed to generate academic literature beginning in 2011 through 2020. Following the inclusion and exclusion processes, 23 articles were selected and analysed by using ATLAS.ti 8.   Findings: The findings of the review were discussed qualitatively and quantitatively. Particular discerning were the qualitative findings; the findings outlined insights into key developments on the IR framework across the following groups, namely, ‘Fundamental Concepts’, ‘Guiding Principles’, and ‘Content Elements’. Key aspects of challenges concerning the adoption of existing frameworks in public administration were discussed.   Contributions: Future research might better consider developing a more appropriate IR framework for public administration, a framework that integrates policy and practice. By focusing on the academic literature emphasising the IR framework, academics, regulators, and reporting organisations could formulate appropriate strategies for public administration.   Keywords: Framework, integrated reporting, public sector, thematic review.   Cite as: Othman, M., Basnan, N., Ahmad, A., & Md Salleh, M. F. (2022). The integrated reporting framework across public administration: A thematic review. Journal of Nusantara Studies, 7(1), 410-440. http://dx.doi.org/10.24200/jonus.vol7iss1pp410-440

Investment considerations and impressions of integrated reporting

2018 ◽  
Vol 9 (1) ◽  
pp. 2-28 ◽  
Author(s):  
Pei-Chi Kelly Hsiao ◽  
Martin Kelly
Keyword(s):  
Private Information ◽  
Firm Value ◽  
Information Needs ◽  
Investment Decisions ◽  
Capital Allocation ◽  
Structured Interviews ◽  
Integrated Reporting ◽  
Content Type ◽  
Investment Appraisal ◽  
Reporting Framework

Purpose Integrated reporting (IR) aims to improve the quality of information available to capital providers. While IR is associated with decreases in investor uncertainty and increases in firm value, it is unclear how IR information directly influences investment decisions. This paper aims to investigate the investment considerations of Taiwanese investors and their initial impressions of the International Integrated Reporting Framework (IIRC Framework). In doing so, this study examines the relationships between investment considerations and the IIRC Framework’s concepts. Design/methodology/approach Semi-structured interviews were undertaken with 16 investors in Taiwan. Thematic analysis was used to analyse the data collected. Findings In addition to economic and financial outlook, competitive advantages and ownership structure, Taiwanese investors emphasise management credibility as an important factor that influences investment decisions. Investors are reliant on private information sources and quantitative data. Sustainability disclosures and sustainability performance beyond legal requirements are often not considered. Taiwanese investors lack awareness of the IIRC Framework and are sceptical about the premise that integrated reports can provide information material to investment appraisal. The assertion that integrated reports reduce information asymmetry and influence investment decisions has to be treated with caution. Research limitations/implications Self-selection bias and a potential lack of transferability in the findings are issues inherent in the research method and sample used. Practical implications IR information needs to be frequently updated rather than disclosed in a periodic report. Furthermore, integrated reports need to demonstrate a direct link between non-financial performance and financial value creation. Social implications Mandating the supply of integrated reports is unlikely to influence investors’ capital allocation decisions unless investor demand is a driver of the regulation. Originality/value This study is one of the few to investigate IR from the investor’s perspective. Observations from this preliminary study warrant further investigations into the relevance of IR to investment communities globally.

Integrated reporting and changes in management control systems in large Japanese companies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Masahiro Hosoda
Keyword(s):  
Control Systems ◽  
Early Stage ◽  
Management Control ◽  
Structured Interviews ◽  
Integrated Reporting ◽  
Content Type ◽  
Early Adopters ◽  
Japanese Companies ◽  
E Mail

Purpose This study aims to examine the integration of integrated reporting (IR) into the formal control systems (FCSs) early adopters use to implement IR, and investigate whether it drives informal control systems (ICSs) change at this early stage. Design/methodology/approach A case study was conducted in seven large Japanese companies. Data were gathered through semi-structured interviews and e-mail exchanges with the managers responsible for developing integrated reports in Japanese companies that excel in IR practices. Content analysis was adopted to analyze the data. Findings The results showed incremental changes to the integration of IR into FCSs. However, the integration may not cause radical changes to ICSs because all sample companies recognized the importance and necessity of embedding integrated thinking in all levels of companies to put it into practice for value creation over time. Originality/value This study contributes to IR research from an internal corporate perspective. Specifically, this study provides new knowledge on the relationships between IR and MCSs. This research also gives new insight into operationalization and internalization of sustainability in terms of IR and MCSs in companies, not only in Japan, but also worldwide.

Risk management factors contributing to transgressions in the procurement practices in South African SOEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lindani Myeza ◽  
Naledi Nkhi ◽  
Warren Maroun
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Public Sector ◽  
South African ◽  
Public Procurement ◽  
African State ◽  
Political Influence ◽  
Structured Interviews ◽  
Content Type ◽  
Executive Level

PurposeThe study aims to deepen the understanding of why risk management principles are circumvented, thereby contributing to transgressions in public procurement for South African state-owned enterprises (SOEs). A deeper understanding of why risk management principles are circumvented is especially important in South Africa, given the high social, economic and environmental risks to which national and major SOEs are exposed in the procurement process.Design/methodology/approachThe study uses a qualitative design, based on detailed semi-structured interviews with 19 participants comprising management advisors, forensic investigators and auditors to explore why risk management principles are circumvented by South Africa SOEs.FindingsThe results of the study indicate that the tone that is set at political and executive level plays an important role in determining compliance with risk management principles by lower-level staff. Intense levels of political influence at SOEs are the main reason behind risk management systems being undermined.Originality/valueThe current study is one of the first explorations of why transgressions in public procurement continue to be evident despite risk management reforms being adopted by South Africa public sector. The research responds to the call for more studies on why reforms in South Africa public sector are not reducing transgression in public procurement. The study provides primary evidence on the importance of political and executive leadership in influencing the effectiveness of risk management reforms in the public sector.

Issues and challenges of IFRS 9 in Malaysian Islamic financial institutions: recognition criteria perspective

2021 ◽  
Vol 12 (2) ◽  
pp. 239-257
Author(s):  
Marziana Madah Marzuki ◽  
Abdul Rahim Abdul Rahman ◽  
Ainulashikin Marzuki ◽  
Nathasa Mazna Ramli ◽  
Wan Amalina Wan Abdullah
Keyword(s):  
Financial Institutions ◽  
Financial Reporting ◽  
Business Models ◽  
Fair Value ◽  
Financial Instruments ◽  
Structured Interviews ◽  
Content Type ◽  
Reporting Framework ◽  
Islamic Financial Institutions ◽  
Ifrs 9

Purpose The purpose of this paper is to investigate the effects and challenges of the new amendment of International Financial Reporting Standards (IFRS) 9 in Malaysia from the perspectives of regulators, auditors, accountants and academicians in Malaysian Islamic financial institutions. For the purpose of this study, this paper focuses on the recognition criteria perspective of the standard, which provides a basic understanding of the financial reporting framework. Design/methodology/approach Using 10 series of semi-structured interviews undertaken with key individuals in regulatory bodies, audit companies, full-fledged Malaysian Islamic Banks and Malaysian higher learning institutions. Findings The findings revealed that IFRS 9 strengthens International Accounting Standards 39 in terms of relevance and reliability, recognition of financial instruments and identification of business models. Nevertheless, Islamic financial institutions face challenges in terms of a faithful representation of fair value, substance over form, identification of financial instruments before recognition criteria and the extent of the role of risk management in reducing manipulation in identifying business models. Research limitations/implications This study provides implications to regulators and standard setters in Malaysia to enhance the quality of financial reporting framework and practices in Islamic financial institutions in this country using IFRS 9. Practical implications Practically, the findings of this study can be used by the regulators to resolve the issues that arise in adopting IFRS 9 among Islamic financial institutions to further enhance financial reporting quality. Originality/value The findings of this study are very important to ensure that the adoption of IFRS among Islamic financial institutions are in line with Sharīʿah principles. To date, no studies have been done on the challenges of adopting IFRS 9 among Islamic financial institutions in Malaysia.

Adoption of integrated reporting in Sri Lanka: coverage and trend

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thilini Cooray ◽  
Samanthi Senaratne ◽  
Nuwan Gunarathne ◽  
Roshan Herath ◽  
Dileepa Neelangi Samudrage
Keyword(s):  
Sri Lanka ◽  
Design Methodology ◽  
The Other ◽  
Sri Lankan ◽  
Legitimacy Theory ◽  
Integrated Reporting ◽  
Content Type ◽  
Disclosure Requirements ◽  
Comprehensive Index ◽  
Reporting Framework

Purpose This paper aims to examine the coverage of and trends in reporting content elements in the integrated reports of the Sri Lankan companies following the International Integrated Reporting Framework (IIRF). Design/methodology/approach Based on a comprehensive checklist developed on the content elements of the IIRF, 171 corporate integrated reports were content-analyzed over a period of three years. The results were theorized subsequently using the legitimacy theory. Findings The study identifies that the extent of and trend in the coverage of content elements of the IIRF have increased during the period under consideration despite some under-addressed areas. It indicates that Sri Lankan companies are making progress in the preparation of integrated reports in line with the IIRF, which provides evidence in support of both strategic and institutional perspectives of the legitimacy theory because of the proactive actions taken by managers to acquire legitimacy along with the other normative and mimetic pressures available in the IR landscape. Originality/value This is one of the first studies that evaluate the compliance of IR adopters with the IIRF overtime in the entirety of a single country. It also develops a comprehensive index to capture the disclosure requirements of IR and extends the analysis to a voluntary context using both strategic and institutional perspectives of the legitimacy theory.

Development of public sector information management systems: challenges and promising practices

2018 ◽  
Vol 46 (3) ◽  
pp. 184-195 ◽  
Author(s):  
Hannan Khalid ◽  
Asim Noor ◽  
Javed Iqbal ◽  
Shahid Farid ◽  
Victor Chang
Keyword(s):  
Public Sector ◽  
Information Management ◽  
Time Management ◽  
Information Management System ◽  
Structured Interviews ◽  
Content Type ◽  
Governmental Organizations ◽  
Project Integration ◽  
Management Project ◽  
Scope Management

Purpose More and more governmental organizations are switching to information systems to enhance their operations and reduce cost but the development of these systems involves a lot of challenges. This paper aims to find out the challenges that project managers have to face during the development of such systems and the practices they can adopt to address these challenges. Design/methodology/approach To identify the challenges, data have been gathered across six key project management areas. The six targeted key areas are project integration management, project scope management, project time management, project cost management, project human resource management and project communications management. The authors have coordinated with 11 managerial-level IT professionals using semi-structured interviews and have gone through their communication archives. Findings Findings prove that practices such as focusing on cost reduction, informal congregations, trainings and frequent communication between vendor and client help in addressing the challenges. Furthermore, learning from management experiences of the managers can assist managers in similar role to create a pattern of success while working with governmental projects. Originality/value The authors peek into the development life cycle of a public sector project named as prison information management system. The project has encountered numerous challenges and has been accomplished in significantly delayed time than designated.

Leadership of change in South Africa public sector turnarounds

2018 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mampe Kumalo ◽  
Caren Brenda Scheepers
Keyword(s):  
South Africa ◽  
Public Sector ◽  
Current Literature ◽  
Organisational Change ◽  
Director General ◽  
Change Processes ◽  
Structured Interviews ◽  
Content Type ◽  
The Public ◽  
Financial Consequences

PurposeOrganisational decline has far-reaching, negative emotional and financial consequences for staff and customers, generating academic and practitioner interest in turnaround change processes. Despite numerous studies to identify the stages during turnarounds, the findings have been inconclusive. The purpose of this paper is to address the gap by defining these stages, or episodes. The characteristics of leaders affect the outcome of organisational change towards turnarounds. This paper focusses, therefore, on the leadership requirements during specific episodes, from the initial crisis to the full recovery phases.Design/methodology/approachA total of 11 semi-structured interviews were conducted with executives from the public sector in South Africa who went through or were going through turnaround change processes and 3 with experts consulting to these organisations.FindingsContrary to current literature in organisational change, this study found that, in these turnaround situations, leadership in the form of either an individual CEO or director general was preferable to shared leadership or leadership distributed throughout the organisation. This study found four critical episodes that occurred during all the public service turnarounds explored, and established that key leadership requirements differ across these episodes. The study shows how these requirements relate to the current literature on transactional, transformational and authentic leadership.Practical implicationsThe findings on the leadership requirements ultimately inform the selection and development of leaders tasked with high-risk turnaround change processes.Originality/valueFour episodes with corresponding leadership requirements were established in the particular context of public sector turnaround change processes.

scholarly journals Assessing the quality of collaboration towards the achievement of Sustainable Energy Innovation in PFI school projects

2015 ◽  
Vol 8 (3) ◽  
pp. 408-440 ◽  
Author(s):  
Sulafa M. Badi ◽  
Stephen D Pryke
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Sustainable Energy ◽  
Primary Data ◽  
Future Research ◽  
Limited Attention ◽  
Structured Interviews ◽  
Content Type ◽  
Energy Innovation

Purpose – The purpose of this paper is to examine the quality of collaboration towards Sustainable Energy Innovation (SEI) in Private Finance Initiative (PFI) projects. While the capacity of PFI to encourage collaboration towards innovation is largely advocated by its proponents; however, it remains to be supported by empirical evidence. Design/methodology/approach – Adopting the Complex Product System (CoPS) innovation management model, the authors assess the quality of collaboration at the interface between the innovation superstructure of public sector clients and users, and the innovation infrastructure of private sector designers, contractors and operators. Two interactional elements are examined upon which the quality of collaboration is assessed: openness of communication and alignment of objectives. The authors apply the model to four new-built PFI school projects within the context of the UK government Building Schools for the Future Programme. Semi-structured interviews with total of 50 key stakeholders were used as the primary data collection method. Findings – PFI has introduced a number of problematic issues weakening collaborative efforts towards innovation in the project environment. Particularly, the study underlines the restricting internal contractual relationships within the integrated Project Company and the misalignment of Design-Construction-Operation sustainability objectives. It also highlights ineffective communication with public sector clients and users brought in by the restricted nature of PFI engagement processes as well as the misalignment of public sector-private sector sustainability objectives. Research limitations/implications – The qualitative nature of the chosen research methodology limits the ability to generalise. The research findings need to be confirmed or rejected by means of quantitative research as representative of all PFI projects. Practical implications – The study emphasizes the public authority’s role in relation to providing the necessary conditions for the creation of a collaborative environment conducive to SEI in PFI projects. Originality/value – The study was able to expand the understanding of innovation and collaboration management processes in PFI projects in three respects: First, addressing the limited attention to innovation in PFI research, the study is the first to examine the quality of collaboration in PFI projects towards the implementation SEI. Second, examining the quality of collaboration in PFI projects through the lens of CoPS provides a new understanding of sustainability innovation and strongly indicates that the CoPS model should be expanded to account for the dynamics of innovation processes in the procurement of sustainable CoPS. Third, the explorative nature of the study was useful in generating research hypotheses that can form the basis for future research on SEI in PFI projects.

Top ten South African companies’ disclosure of materiality determination process and material issues in integrated reports

2018 ◽  
Vol 19 (2) ◽  
pp. 230-247 ◽  
Author(s):  
Natasja Steenkamp
Keyword(s):  
South African ◽  
Environmental Issues ◽  
Integrated Reporting ◽  
Content Type ◽  
Sustainable Performance ◽  
Award Winning ◽  
Reporting Framework ◽  
Determination Process ◽  
Practical Implications ◽  
Insight Into

Purpose The purpose of this paper is to develop guidelines of what award winning companies, leading practice in integrated reporting (IR) disclose in their integrated reports about material issues and their materiality determination processes. Also, to provide insight into what they disclose about their perception of materiality. Design/methodology/approach A content analysis was conducted to investigate what the top 10 South African companies of the 2015 Ernst and Young Excellence in Integrated Reporting Awards disclosed in their 2014 and 2015 integrated reports about their materiality determination processes, material issues and what materiality means to them. Thematic analyses were conducted in developing guidelines. Findings All except one company applied the International Integrated Reporting Framework. The materiality determination processes, material issues and companies’ descriptions of materiality are diverse. Material issues most companies identified relate to employees, social and environmental issues, customers and sustainable performance. Practical implications The proposed guidelines will provide useful strategies for organisations embarking on the IR journey about what issues could be considered as material and therefore included in integrated reports. It also proposes activities companies can undertake to identify, evaluate and prioritise material issues and execute their materiality determination process. Originality/value This paper is the first to develop guidelines of material matters and materiality determination processes. It also adds to existing literature on IR practice and the application of materiality.

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