The Integrated Reporting Committee of South Africa

2020 ◽  
pp. 37-66
Author(s):  
Leigh Roberts ◽  
Wayne van Zijl ◽  
Dannielle Cerbone
Keyword(s):  
South Africa ◽  
Integrated Reporting

Exploring the implications of integrated reporting on organisational reporting practice

2016 ◽  
Vol 13 (4) ◽  
pp. 415-444 ◽  
Author(s):  
Abdifatah Ahmed Haji ◽  
Dewan Mahboob Hossain
Keyword(s):  
South Africa ◽  
Impression Management ◽  
Integrated Reporting ◽  
Content Type ◽  
Regulatory Authorities ◽  
Reporting Practice ◽  
Trade Offs ◽  
Academic Researchers ◽  
Management Techniques ◽  
Over Time

Purpose The purpose of this paper is to examine “how” the adoption of integrated reporting (IR), and the embedded multiple capitals framework, has influenced organisational reporting practice. In particular, the paper examines how companies report and integrate multiple capitals in various organisational reporting channels following the introduction of an “apply or explain” IR requirement in South Africa. Design/methodology/approach Using a qualitative case study approach based on discourse analysis, this paper examines various organisational reports including integrated reports, standalone sustainability reports, websites and other online materials of highly regarded, award-winning, integrated reporters in South Africa over a four-year period (2011-2014), following the introduction of IR requirement. The authors draw five impression management techniques, namely, rhetorical manipulation, thematic manipulation, selectivity, emphasis in visual presentation and performance comparisons to explain disclosure and integration of multiple capitals. Findings The authors find that companies are increasingly conforming to reporting language espoused in existing IR guidelines and multiple capital frameworks over time. For instance, it is found that the research cases have increasingly used specific grammars in existing IR guidelines such as “capitals” and “material” issues, with companies acknowledging the “interdependencies” and “trade-offs” between multiple capitals. Companies have also started to recognise that the capitals are subject to “increases, decreases, and transformations” over time. However, the disclosures are generic, rather than company-specific, and lack substance, often framed in synthetic charming aimed to showcase adoption of IR practice. In addition, the current discourse on multiple capital disclosures is one of the defending, even promoting, organisational reputation, rather than recognising how organisational actions, or inactions, impact multiple capitals. The paper concludes that the emerging IR practice, and the embedded multiple capital framework, has not really improved the substance of organisational reports. Practical implications The results of this study have a number of implications for regulatory authorities, public and private sector organisations as well as academic researchers. For regulatory authorities, the results inform relevant regulatory authorities how IR practice is taking shape over time, particularly within the context of a regulatory setting. Second, the empirical analyses, which focused on highly regarded, award-wining, integrated reporters, draw the attention of regulatory bodies as well as users of corporate reports to concerns related to a growing number of rating agencies of organisational reports. Finally, for academic researchers, the theoretical implications of this study is that, given the pervasive use of multiple impression management techniques in various organisational reports, the authors support the notion that corporate disclosure practices should be examined through the lens of multiple theoretical perspectives to enhance our understanding of the nature of organisational reporting practice. Originality/value This study provides a more focused preliminary empirical account of the implications of IR practice, and the embedded multiple capital frameworks, on the quality of organisational reporting practice following the adoption of mandatory IR requirement in South Africa.

Evaluating the Adequacy of Water-Related Reporting and Disclosure by High-Impact users in South Africa

2016 ◽  
Vol 18 (01) ◽  
pp. 1650003 ◽  
Author(s):  
Marthinus Jacobus Botha ◽  
Sanlie. L. Middelberg
Keyword(s):  
South Africa ◽  
Theoretical Background ◽  
High Impact ◽  
Global Reporting Initiative ◽  
Integrated Reporting ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Reporting Practices ◽  
Disclosure Requirements

South Africa is facing a water crisis in terms of the scarcity and the quality of its water. Considering this water-constrained future, it is evident that companies in South Africa should pay attention to the pristine management and reporting of this scarce resource. The purpose of this paper is to evaluate the reporting and disclosure requirements of water of Socially Responsible Investment-indexed (SRI-indexed) JSE-listed companies. The disclosure requirements of integrated reporting, King III, the Global Reporting Initiative (GRI) and the Association of Chartered Certified Accountants (ACCA) provided the theoretical background. Content analysis was used as the research method to analyse the integrated reports of high-impact users. The findings of the study include that most of the companies illustrate commitment towards water stewardship by reporting on water-related aspects. A more comprehensive standardised set of guidelines to report on water per sector could add value to the reporting practices of companies.

scholarly journals Evaluation of corporate integrated reporting in South Africa post King III release South Africa: An exploratory enquiry

2013 ◽  
Vol 6 (2) ◽  
pp. 421-438 ◽  
Author(s):  
Theophilus S. Makiwane ◽  
Nirupa Padia
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Corporate Governance ◽  
Financial Performance ◽  
South African ◽  
Listed Companies ◽  
Integrated Reporting ◽  
Management Processes ◽  
The Future ◽  
Governance Risk

Following the release of the King III report on Corporate Governance for South Africa, which became effective in March 2010, South African companies are expected to embrace the concept of integrated reporting in terms of which they are required to provide details of their strategies, corporate governance, risk management processes, financial performance and sustainability. More importantly, companies need to show how these components of integrated reporting are linked to one another so that stakeholders can make informed decisions about such companies’ current performance as well as their ability to create and sustain value in the future. The purpose of this study was to determine whether the level of reporting by South African listed companies has improved since the release of the King III report. It was subsequently found that there have been some progress in this regard, but there is still much room for improvement if the objectives of integrated reporting are to be fully met.

The trend of integrated reporting practice in South Africa: ceremonial or substantive?

2016 ◽  
Vol 7 (2) ◽  
pp. 190-224 ◽  
Author(s):  
Abdifatah Ahmed Haji ◽  
Mutalib Anifowose
Keyword(s):  
South Africa ◽  
South African ◽  
Integrated Reporting ◽  
Content Type ◽  
Reporting Practices ◽  
Trade Offs ◽  
Novel Approach ◽  
Determination Process ◽  
International Integrated Reporting Council

Purpose The purpose of this paper is to examine the trend of integrated reporting (IR) practice following the introduction of an “apply or explain” IR requirement in South Africa. In particular, the authors examine whether the IR practice is ceremonial or substantive in the context of a soft regulatory environment. Design/methodology/approach By way of content analyses, the authors examine the extent and quality of IR practice using an IR checklist developed based on normative understanding of existing IR guidelines. The evidence is drawn from 246 integrated reports of large South African companies over a three-year period (2011-2013), following the introduction of IR requirement in South Africa. Findings The results show a significant increase in the extent and quality of IR practice. The findings also reveal significant improvements in individual IR categories such as connectivity of information, materiality determination process and reliability and completeness of the integrated reports. However, despite the increasing trend and evidence of both symbolic and substantive IR practice, the authors conclude that the current IR practice is largely ceremonial in nature, produced to acquire organisational legitimacy. Practical implications For academics, the authors argue that there is a need to move away from the “what” and “why” aspects of the IR agenda to “how” IR should work inside organisations. In particular, academics should engage with firms through interventionist research to help firms implement integrated thinking and substantive reporting practices. For organisations, the findings draw attention to specific aspects of IR that require improvement. For policymakers, the study provides evidence based on the developmental stage of IR practice and draws attention to certain areas that need clarification. In particular, the International Integrated Reporting Council and Integrated Reporting Committee of South Africa should provide detailed guidelines on connectivity of information, material issues and disclosure of multiple capitals and their trade-offs. Finally, for educators, in line with the ACCA’s embedment of IR in its accounting courses, there is a need to incorporate IR in the curriculum; in particular, the authors argue that the best way to advance IR is in a “ubiquitous” spread in accounting and management courses. Originality/value This study provides empirical account of IR practice over time in the context of a regulatory IR environment. The construction of an IR checklist developed based on normative understanding of local and international IR guidelines is another novel approach of this study.

scholarly journals Investigating the extent of sustainability reporting in the banking industry

2016 ◽  
Vol 11 (4) ◽  
pp. 71-81 ◽  
Author(s):  
Anet M. Smit ◽  
Johan van Zyl
Keyword(s):  
South Africa ◽  
Social Responsibility ◽  
Banking Industry ◽  
Stock Exchange ◽  
Sustainability Reporting ◽  
Performance Criteria ◽  
Global Reporting Initiative ◽  
Integrated Reporting ◽  
Total Compensation ◽  
Annual Total

This study investigated the extent to which banks in South Africa report on remuneration and incentives according to the Global Reporting Initiative (GRI) guidelines. The study was done by examining the annual integrated reports of eight commercial banks listed on the Johannesburg Stock Exchange. Content analysis was used as the research method in this empirical study. There was, on average, 75% compliance to G4-51 a, the standard concerning remuneration policies by the integrated reports studied and 69% compliance to G4-52 a, the standard concerning the process for determining remuneration. There was a very low degree of compliance to standard G-53 a and standard G4-55 a, which concern how stakeholders’ views are sought and taken into account regarding remuneration and the ratios regarding compensation, respectively. Two of the standards had no compliance at all. They are G4-51 b and G4-54 a that respectively, concerns how the performance criteria in the remuneration policy relate to the highest governance bodies’ and senior executives’ economic, environmental and social objectives and the ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees. These are two of the most important standards in order to reach the objective of social responsibility reporting with regards to remuneration and that serious consideration must be given as to why there is no compliance. Based on the findings from this study, it is found that social reporting by the banks listed on the JSE with regards to remuneration, as indicated by the GRI G4, are relatively poor. Keywords: sustainability reporting, sustainable development, global reporting initiative, integrated reporting; remuneration and incentives, corporate social responsibility, banking industry, South Africa. JEL Classification: M14, N2, N27, M52

scholarly journals The Level of Integrated Reporting Alignment with the IIRC Framework: Evidence from South Africa

2019 ◽  
Vol 15 (1) ◽  
pp. 99 ◽  
Author(s):  
Arcangelo Marrone ◽  
Lara Oliva
Keyword(s):  
South Africa ◽  
South African ◽  
Development Process ◽  
Limited Resources ◽  
Corporate Disclosure ◽  
Integrated Reporting ◽  
Firm Profitability ◽  
Size Firm ◽  
Reporting Tool ◽  
International Integrated Reporting Council

In recent years, corporate disclosure policies have undergone important changes due mainly to greater requests from stakeholders and the presence of limited resources. Companies are forced to rethink their disclosure strategies and the way they communicate to the outside, in order to increase transparency and meet the needs of their stakeholders. In this context, Integrated Reporting (IR), developed by the International Integrated Reporting Council (IIRC), represents a new way to provide, in a single document, interconnected information on strategies, risks, performance, governance and future prospects. In the development process of this reporting tool, South Africa played an important role. Therefore, this study aims to analyse the level of alignment of integrated reports with the IIRC framework in the South African contest. The results show first of all that South African companies provide integrated reports with high levels of alignment with the IIRC framework. Secondly, the analysis of the determinants shows how firm size, firm profitability and financial leverage positively affect the level of compliance of the integrated reports with the IIRC requirements.

scholarly journals Integrated reporting vs. sustainability reporting for corporate responsibility in South Africa

2015 ◽  
Vol 29 (29) ◽  
pp. 7-17 ◽  
Author(s):  
Alexandra F. Clayton ◽  
Jayne M. Rogerson ◽  
Isaac Rampedi
Keyword(s):  
South Africa ◽  
South African ◽  
Stock Exchange ◽  
Sustainability Reporting ◽  
Annual Reports ◽  
Integrated Reporting ◽  
Corporate Reporting ◽  
And Performance ◽  
The Impact ◽  
Responsible Manner

AbstractLarge corporates have come under increasing pressure to conduct their business in a more transparent and responsible manner. In order for business to fulfil its obligations under the ethic of accountability stakeholders must be given relevant, timely, and understandable information about their activities through corporate reports. The conventional company reports on annual financial performance, sustainability and governance disclosures often fail to make the connection between the organisation’s strategy, its financial results and performance on environmental, social and governance issues. Recognising the inherent shortcomings of existing reporting models, there is a growing trend to move towards integrated reporting. South Africa has been one of the most innovative countries in terms of integrated corporate reporting. Since 2010 companies primarily listed on the country’s major stock exchange have been required to produce an integrated report as opposed to the former sustainability report. The aim in this study is to review the development of integrated reporting by large corporates in South Africa and assess the impact of the required transition from sustainability reporting to integrated reporting on non-financial disclosure of eight South African corporates using content analysis of annual reports.

The role of the internal audit function in integrated reporting: a developing economy perspective

2018 ◽  
Vol 26 (4) ◽  
pp. 657-674 ◽  
Author(s):  
Lindie Engelbrecht ◽  
Yaeesh Yasseen ◽  
Irfaan Omarjee
Keyword(s):  
South Africa ◽  
Best Practice ◽  
Academic Research ◽  
Internal Audit ◽  
Integrated Reporting ◽  
Content Type ◽  
Internal Audit Function ◽  
Area Of Concern ◽  
Initial Perception

Purpose The purpose of this paper is to explore the roles of the initial perceptions of chief audit executives (CAEs) on the role of internal audit function (IAF) in integrated reporting (IR) in South Africa. This paper draws attention to possible challenges and barriers to internal audit’s (IAs) involvement in the integrated reporting process (IRP). Design/methodology/approach Detailed interviews were carried out in 2016 with 10 CAEs from the EY Excellence in Integrated Reporting Awards for South Africa. An interpretive approach involving thematic content analysis was used to construct key themes which provided the CAE’s initial perception of the IAF’s role in IRP. Findings Despite the current role being limited, the findings suggest that the IAF has unexploited potential to improve the IRP. These roles include: providing assurance on data integrity; reviewing risks and opportunities; evaluating the adequacy of governance and risk management controls and giving assurance on the IRP. A benefit to the IAFs involvement in the IRP relates to their extensive knowledge of the business. The lack of skills in the IA profession is an area of concern, as there is a shortage of capacity and specialist skills. Research limitations/implications The interpretive style will assist IAFs to understand and define their role in the IRP, as well as to follow best practice in the IRP. Originality/value This paper is the first to explore the views and make recommendations on the role of the IAF in the IRP. This paper can be seen as an important contribution to academic research as the role of IAF in the IRP is exploratory in a global context.

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