Sustainability KPIs for integrated reporting

2017 ◽  
Vol 13 (3) ◽  
pp. 625-642 ◽  
Author(s):  
Tomoki Oshika ◽  
Chika Saka
Keyword(s):  
Performance Indicators ◽  
Value Added ◽  
Integrated Reporting ◽  
Content Type ◽  
Listed Firms ◽  
A Value ◽  
New Perspective ◽  
The Stability ◽  
International Integrated Reporting Council ◽  
Practical Implications

Purpose The framework of the International Integrated Reporting Council (IIRC) is principles-based and does not provide specific key performance indicators (KPIs) for integrated thinking and reporting. Therefore, the purpose of this paper is to propose KPIs for integrated reporting which decipher a firm’s sustainability through empirical analysis. Design/methodology/approach As a proxy of firms’ sustainability, the authors focus on firms that have survived for more than 100 years and that have already achieved sustainability, and analyze these firms to reveal the financial features that distinguish sustainable firms from the other firms. Findings The study found two distinguishing facts: the value added that is distributed to stakeholders other than shareholders is significantly larger, and the stability of profitability and the profitability itself are significantly higher in sustainable firms. Practical implications The study proposes a value-added distribution and the stability of profitability as sustainability KPIs for integrated reporting. Originality/value First, this study provides the first evidence that value added distribution and the stability of profitability distinguish a firm’s sustainability. Second, it provides a new perspective in the search for sustainability KPIs. Third, as the empirical data consist of all listed firms in 136 countries, the results should be robust and general.

Integrated reporting and board characteristics: evidence from top Australian listed companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Omran ◽  
Dinesh Ramdhony ◽  
Oren Mooneeapen ◽  
Vishaka Nursimloo
Keyword(s):  
Firm Size ◽  
Gender Diversity ◽  
Listed Companies ◽  
Board Independence ◽  
Integrated Reporting ◽  
Growth Opportunities ◽  
Content Type ◽  
Board Characteristics ◽  
International Integrated Reporting Council ◽  
Practical Implications

PurposeDrawing upon agency theory, this study analyses the influence of board characteristics on integrated reporting (IR) for the top 50 companies listed on the Australian Securities Exchange (ASX50). Focus is placed on IR at the aggregate level as well as its separate components, namely Future Opportunities and Risks (FOPRI), Governance and Strategy (GOVSTR), Performance (PERF), Overview and Business Model (OBM) and General Preparation and Presentation (GPP).Design/methodology/approachA checklist is devised based on the IIRC (International Integrated Reporting Council) framework to track companies' disclosures for the period from 1st July 2014 to 30th June 2017. Regression analysis is used to investigate the determinants (board size, board independence, activity of the board, gender diversity, firm size, profitability and growth opportunities) of IR and its separate components.FindingsThe findings indicate a significant and positive effect of board independence on the aggregate IR index, FOPRI and GPP. A negative and significant association is found between activity of the board and both the aggregate IR index and its separate components, including GOVSTR, PERF and GPP. Additionally, the aggregate IR index is significantly related to firm size, profitability and growth opportunities.Research limitations/implicationsThe limited sample of 50 companies over three years is the main limitation of the study. The study suffers from an inherent limitation from the use of content analysis in assessing the level of IR. No checklist to measure the level of IR can be fully exhaustive. Furthermore, we focus on whether an item in the checklist is disclosed, using a dichotomous scale, thus ignoring the quality of information disclosed.Practical implicationsThe study has several practical implications. From a managerial perspective, it shows that having more board meetings harms the level of IR. The results can guide regulators, such as the Australian Securities and Investment Commission (ASIC) and the Australian Securities Exchange (ASX), when drafting new regulations/guidelines/listing rules. If regulators aim for a higher level of integration in the reports, they know which “triggers to pull” to attain their target. Our results can guide regulators to choose the appropriate trigger among various alternatives. For instance, if a higher level of integrated reporting is desired, size instead of profitability should be chosen. Finally, ASX listed companies can use our checklist as a scorecard for their self-assessment.Originality/valueThis research is the first to investigate IR by devising a checklist based on IIRC (2013) along with an additional GPP component in the ASX context. Using separate models to examine each component of the aggregate IR index is also unique to this study. The study also brings to the fore the role of gender-diverse boards in promoting IR. It reiterates the debate about imposing a quota for better gender representation on boards.

Readability of integrated reports: an exploratory global study

2019 ◽  
Vol 32 (5) ◽  
pp. 1532-1557
Author(s):  
Gerard William Stone ◽  
Sumit Lodhia
Keyword(s):  
Design Methodology ◽  
Large Scale ◽  
Scale Analysis ◽  
Integrated Reporting ◽  
Content Type ◽  
Corporate Reporting ◽  
Large Scale Analysis ◽  
Accessible Information ◽  
International Integrated Reporting Council ◽  
Practical Implications

Purpose A goal of integrated reporting (IR) under the International Integrated Reporting Council (IIRC)’s leadership is to provide clearly written, comprehensible and accessible information. In light of this objective, the purpose of this paper is to explore the readability and accessibility of integrated reports, an issue magnified by the IIRC’s continual commitment to clear and readable report language, and its intention for IR to become the corporate reporting norm. Design/methodology/approach In a whole text software facilitated analysis, the study utilises readability measures and supplementary measures of reader accessibility in a multi-year analysis of a large sample of global integrated reports sourced from the IIRC examples database. Findings The findings highlight the low readability of analysed integrated reports and indicate that readability is not improving. The supplementary measures suggest sub-optimal use of visual communication forms and overuse of structural presentation techniques which may contribute to reader accessibility of the analysed reports. Research limitations/implications The study extends readability analysis to an emerging corporate reporting phenomenon and its findings contribute to the growing IR literature. The study applies supplementary measures of reader accessibility which advance the methods available to assess the communication efficacy of integrated and other corporate reports. Practical implications The analysis of the readability and accessibility of integrated reports in the study indicates that the IIRC’s goal of clear, comprehensible and accessible reporting is not reflected by reporters’ practices. This has implications for the IIRC, reporting organisations, report readers and regulators. Originality/value The study represents the first large-scale analysis of the readability and accessibility of global integrated reports.

scholarly journals Integrated reporting in higher education: insights from Scotland, Northern Ireland and Wales

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahalaximi Adhikariparajuli ◽  
Abeer Hassan ◽  
Mary Fletcher ◽  
Ahmed A. Elamer
Keyword(s):  
Higher Education ◽  
Northern Ireland ◽  
Design Methodology ◽  
Integrated Reporting ◽  
Effective Mechanism ◽  
Content Type ◽  
Educational Thought ◽  
Internal Process ◽  
International Integrated Reporting Council ◽  
Practical Implications

Purpose This paper aims to examine the level of disclosure on content elements of integrated reporting (IR) in Scotland, Northern Ireland and Wales higher education institutions (HEIs). The authors suggest that integrated thinking is an internal process that organizations can follow to increase the level of disclosure on IR that can be used as an effective mechanism to enhance accountability with stakeholders. Design/methodology/approach International Integrated Reporting Council (IIRC) guidelines and content analysis are used to analyze IR content elements in HEI reports from 2014-2016. Findings The results indicate a significant increase in the trend and extent of IR content elements. The HEI-specific characteristics examined, such as establishment of HEI; adoption of IR framework and governing board size are all statistically and positively associated with IR content elements disclosure. This paper introduces signalling theory to explore the idea that appropriate communication via integrated thinking can close the gap between the organization and its stakeholders via increased level of disclosure on IR content elements. Practical implications The results will assist policymakers and regulators to assess the benefits of voluntary implementation of IR at HEIs and evaluate possible mandatory implementation of IIRC guidelines. Second, the findings can assist managers of institutions interested in implementing IR. Social implications This study recommends universities to explicitly address IR issues in reporting, as this will increase their impact as leaders of educational thought in addition to their roles as partners, advisors, counselors and assessors. Originality/value This study explores whether HEIs in Scotland, Northern Ireland and Wales provide disclosure on IIRC content elements as a reflection of integrated thinking and whether the connectivity and interdependence between different departments will help to signal to stakeholders how HEIs create value for society.

Living where you work

Facilities ◽  
2018 ◽  
Vol 36 (5/6) ◽  
pp. 258-271 ◽  
Author(s):  
Andrew T. Carswell
Keyword(s):  
Linear Models ◽  
Value Added ◽  
Data Sets ◽  
Multifamily Housing ◽  
Content Type ◽  
Individual Housing ◽  
A Value ◽  
Added Benefit ◽  
Site Manager ◽  
Practical Implications

Purpose This paper aims to examine whether property managers who live on-site within a residential apartment building provide a value-added benefit to the management in the form of cost control and revenue maximization. Design/methodology/approach This research uses two large US data sets that cover operational and financial data of apartment owners/operators and the financial and individual housing situations of renters themselves. The regression models developed were general linear models with operating expenses, rent collection and monthly rent paid as dependent variables, with on-site resident manager status as the experimental variable. Findings This research finds that the value of on-site property managers does not definitively maximize rent revenue, as expected. On-site property managers also don’t show significant reductions in operating expenses, although they are not cost centers either. Individual renter households do, however, pay a significant rent premium for units in communities with on-site personnel living there. Research limitations/implications The limitations of this research include the inability to merge the two data sets and the inability to measure the intangible attributes of the on-site residential manager’s experience. Practical implications As roughly 30 per cent of US rental apartment buildings have some form of on-site manager, this research has some practical implications for multifamily housing investors/owners, a highly visible US building sector. Social implications The action of hiring an on-site residential property manager also addresses issues related to the optimization and efficient allocation of human resources for property management companies. Originality/value This appears to be the first research addressing property managers who live at the site where they also work.

Exploring forward-looking information in integrated reporting

2018 ◽  
Vol 19 (1) ◽  
pp. 102-121 ◽  
Author(s):  
Elisa Menicucci
Keyword(s):  
Firm Size ◽  
Multivariate Regression Analysis ◽  
Firm Characteristics ◽  
Integrated Reporting ◽  
Content Type ◽  
Reporting Framework ◽  
Research Gap ◽  
International Integrated Reporting Council ◽  
Practical Implications ◽  
Forward Looking

Purpose The purpose of this paper is to investigate the effect of firm characteristics on forward-looking disclosure (forward-looking information (FLI)) within the context of integrated reporting (IR). The study assesses the extent of FLI provided in integrated reports and empirically fills the research gap into the topics of FLI disclosed in the IR. Design/methodology/approach A manual content analysis is run to investigate the level and the topics of FLI in 282 integrated reports available in the International Integrated Reporting Council (IIRC) website. A disclosure index composition consisting of 27 information items is developed from the list of content elements comprised in the Integrated Reporting Framework (IIRC, 2013). Three hypotheses are proposed and eight models are tested within a multivariate regression analysis in order to explore the effects of three main variables (firm size, profitability and leverage) on FLI. Findings The study confirms that firms are reluctant to provide FLI in integrated reports. The results show that profitability and firm size have a statistically significant relationship with the level of specific topics of FLI. Conversely, leverage is found to be insignificant in explaining the extent of FLI. Research limitations/implications To improve the reliability of findings presented in this study, several others may be conducted by inspecting more variables that may affect the extent of FLI or by increasing the number of companies included in the sample. Practical implications The results provide comprehensive insights into the current forward-looking disclosure practices of early adopters in integrated reports and can be a useful evidence for preparers of it. This paper has also practical implications especially for managers and regulators (e.g. IIRC) since it encourages further efforts to promote FLI if firms want that the disclosure offered in the IR is perceived as “informative” by their significant stakeholders. Originality/value The research adds to the prior disclosure literature concerning FLI since acquired results are ambiguous. There are a very restricted number of studies that have explained the variation of FLI in the light of firm characteristics and no study has analyzed this research topic within the context of IR.

scholarly journals Enablers and barriers to the involvement of accountants in integrated reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mitali Panchal Arora ◽  
Sumit Lodhia ◽  
Gerard Stone
Keyword(s):  
Financial Reporting ◽  
Institutional Entrepreneurship ◽  
Integrated Reporting ◽  
Content Type ◽  
Study Approach ◽  
Telephone Interviews ◽  
Corporate Reporting ◽  
Assurance Process ◽  
International Integrated Reporting Council ◽  
Practical Implications

Purpose With the increasing adoption of integrated reporting and the subsequent interest of the accounting discipline in its development, this paper aims to examine the enablers and barriers to the involvement of accountants in integrated reporting. Design/methodology/approach The paper adopts a case study approach by collecting interview data from six organisations that have adopted integrated reporting internationally. In the selected organisations, face-to-face and telephone interviews were conducted with professionals who are involved in the preparation of an integrated report. The interviewees in this study included key integrated report preparers including accountants, corporate reporting managers, sustainability managers and other report preparers. Institutional entrepreneurship provided the theoretical insights for this study. Findings The study found that accountants’ expertise in corporate reporting and especially their knowledge of the assurance process was one of the major reasons why they were involved in integrated reporting. Accountants’ in-depth understanding of an organisation in addition to their general analytical and interpersonal skills were also found to be useful in preparing an integrated report. However, the voluntary nature of integrated reporting along with the lack of sufficient guidelines deterred accountants from being involved in integrated reporting. The study also found that accountants themselves did not see value in integrated reporting and found it challenging to convert numerical information to narratives, thus limiting their involvement in integrated reporting. Research limitations/implications Whilst prior studies have underlined accountants’ institutionalised practices, this study uncovers the strategies applied by accountants to maintain their institutionalised practices. The specific application of the institutional entrepreneurship concept identifies mechanisms and strategies through which accountants restrict their practices to narrow taken-for-granted roles. Practical implications This study uncovers practical implications by highlighting the factors that limit the involvement of accountants within integrated reporting. One of the major implications identified relates to the training of accountants to apply their existing skills and expertise in non-financial reporting to contribute effectively to multi-disciplinary teams that contribute towards integrated reporting in organisations. This study also provides an impetus for the International Integrated Reporting Council to provide more guidance for preparing an integrated report. Originality/value This is one of the initial studies that has explored the enablers and barriers to the involvement of accountants in integrated reporting through its focus on organisations that are already practising this form of reporting. The use of institutional entrepreneurship theory adds to the theoretical insights for exploring the involvement of the various actors in integrated reporting.

The implementation of sustainability reporting in a small and medium enterprise and the emergence of integrated thinking

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adriana Rossi ◽  
Mercedes Luque-Vílchez
Keyword(s):  
Sustainability Reporting ◽  
Organizational Dynamics ◽  
Organizational Practice ◽  
Integrated Reporting ◽  
Accounting Systems ◽  
Content Type ◽  
Medium Enterprise ◽  
The One ◽  
International Integrated Reporting Council ◽  
Practical Implications

Purpose This study aims to examine the process through which sustainability is integrated into the organizational practices of accounting. Design/methodology/approach Action research, drawing on the lens of neo-institutional theory, is used to explore the integration process of sustainability in an Italian company. Findings The results show how different factors and organizational dynamics contribute to the initiation of both sustainability reporting and the progressive diffusion of sustainability practices in this organization, within the small- and medium-sized enterprise (SME) category. In addition, signs of integrated thinking were identified while charting the process of sustainability reporting and its institutionalization within the company. Research limitations/implications The study shows that the idea of integrated thinking was rooted in organizational culture prior to the International Integrated Reporting Council (IIRC) framework and the momentum it gave to integrated reporting. In this sense, this research provides evidence to confirm the existence of an alternate narrative in relation to the one offered by the IIRC framework. Practical implications The present study contributes to understanding how SMEs can integrate sustainability into their accounting systems. Managers working in these organizations may learn from this experience. Originality/value On the one hand, this study further the knowledge of sustainability integration processes within an organizational practice, especially in the case of SMEs. On the other hand, the study is, perhaps, the first to identify signs of integrated thinking on the journey through the sustainability institutionalization process.

The importance of co-operatives to the New Zealand economy

2017 ◽  
Vol 44 (12) ◽  
pp. 2086-2096 ◽  
Author(s):  
Morris Altman
Keyword(s):  
Lower Bound ◽  
Design Methodology ◽  
Value Added ◽  
Direct Impact ◽  
Content Type ◽  
Robust Estimates ◽  
A Value ◽  
Indirect Impact ◽  
Size Estimates ◽  
Practical Implications

Purpose The purpose of this paper is to measure the size of New Zealand’s co-operative sector, in terms of its direct contribution to output and employment as well as its indirect impact. This adds to the construction of a rigorous representation of the global co-operative economy. Design/methodology/approach The findings here are based on data derived largely from surveying the co-operative sector in 2012. A value added approach is used to estimate the co-ops sector’s contribution to New Zealand’s GNP. Findings The author estimates suggest that the cooperative sector is much larger, even in its direct impact on the economy, than the prior estimates indicate. Research limitations/implications Assumptions were made on the size contribution of missing firms and the value added contribution of co-ops. These assumptions need to be interrogated and improved upon, albeit the assumptions are designed to generate lower bound size estimates. Practical implications The methodology adopted in this paper can be used to develop more rigorous estimates of the size of the co-op sector globally. Social implications The results empirically challenge the worldview of conventional economics that co-ops are not economically sustainable, where co-ops offer a more equitable and democratic mode for production and development. Originality/value This paper presents revised, relatively robust, and methodologically transparent estimates of the size of New Zealand’s co-operative sector. These estimates suggest a much larger sector than previously thought. The methodology developed here can contribute to developing more robust estimates of the size of the co-op sector globally.

Library as knowledge ecosystem

2015 ◽  
Vol 36 (4/5) ◽  
pp. 329-339 ◽  
Author(s):  
Dehua Ju ◽  
Beijun Shen
Keyword(s):  
Public Library ◽  
Value Added ◽  
Content Type ◽  
The Public ◽  
A Value ◽  
Specific Objective ◽  
Growth Of Knowledge ◽  
Marine Economy ◽  
Knowledge Intensive ◽  
Practical Implications

Purpose – The purpose of this paper is to develop a network-based approach for doing active knowledge services in the coming networked knowledge era. Design/methodology/approach – A novel solution so-called “Internet of Knowledge (IoK)” is proposed in this paper, which can be used to organize scattered resources into a value-added knowledge asset for serving any specific objective through internet connection. Findings – It enables the public library to be an attractive habitat for both knowledge consumers and contributors to share and co-create knowledge works. It will be an ideal ecosystem for supporting the growth of knowledge-intensive industries. Research limitations/implications – A pilot system has being developed to promote the development of marine economy. Practical implications – The IoK-based approach is expected to be applied to more domains in the next China’s five-year plan. Originality/value – The main contribution is to integrate many great ideas from world gurus into a single solution framework, in other words, an integration innovation.

Graduates giving back – a mentoring program for MBA students

2015 ◽  
Vol 4 (3) ◽  
pp. 200-212 ◽  
Author(s):  
Ann Darwin
Keyword(s):  
Higher Education ◽  
South Australia ◽  
Value Added ◽  
Master Of Business Administration ◽  
Mentoring Program ◽  
Education Students ◽  
Content Type ◽  
Mba Students ◽  
A Value ◽  
The University

Purpose – The purpose of this paper is to discuss the challenges and obstacles encountered in the implementation of a mentoring program for Master of Business Administration (MBA) students at the University of South Australia (UniSA) Business School. The paper starts with an exploration into the need for a mentoring program, the trial and subsequent four years of implementation. The paper also explores the network model of mentoring and the reasons why this, rather than a more traditional model, was chosen for the program’s implementation. Design/methodology/approach – This exploratory case study uses data from over 600 students and their alumni mentors over a five-year period to evaluate and improve the program as well as cultivating a critical community of adult learners. Findings – Feedback from students indicates that the mentoring program is regarded by most as a value-added feature of their early learning as it offers support, if and when it is required, from those who have been there before. Research limitations/implications – Results are limited to one institution. However, as research into mentoring for higher education students is thin on the ground, this study contributes to our understanding of the positive impacts of mentoring on student success. Practical implications – This paper emphasizes the importance of business leaders giving back to their alma mater through mentoring current MBA students. It shows how mentoring can support learning and management development. Originality/value – This is an original study which explores ways to increase the learning of higher education students for positive social outcomes.

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