What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.

The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)

This paper provides insights into salient issues in the development of the Integrated Reporting ( ) Framework, and emerging issues in the implementation of this Framework, with the aim of identifying opportunities for future research The International Integrated Reporting Council (IIRC) has recently produced a reporting framework for the preparation of a concise, user-oriented corporate report which expands the scope of a company’s reporting using a multiple capitals concept and requires a description of a company’s business model, allowing a better communication of its value creation proposition To gain international acceptance, the market-based benefits of adopting the framework must be demonstrated

Integrated reporting and assurance: Where can research add value?

Spain is one of the European countries that is the most strongly committed to the presentation of non-financial information. In 2017, Spain adapted its legislation to Directive 2014/95/EU through Royal Decree-Law 18/2017, which required Public Interest Entities (PIEs) to provide information in accordance with the requirements of the European Union (EU) Directive, with respect to financial years from 1 January 2017. Our research is focused on Spanish IBEX-351 listed companies and seeks to identify current trends in non-financial reporting. To our knowledge, the present paper is the first study to examine the impact made in Spain by the legislative changes. Our aim is to analyse the publication of non-financial information by Spanish listed companies whose first reports in this regard were made from early 2018. Specifically, we consider the impact of this information disclosure, determining whether the companies in question restrict themselves to meeting regulatory requirements or whether they go further and voluntarily supply additional information. Our findings show that the level of regulatory compliance produced is associated with the business sector in which the company operates. We also show that the highest rates of disclosure of non-financial information correspond to companies that provide this information in the sustainability report.

https://www.mdpi.com/2076-3387/8/3/29/pdf

Empirical Analysis of Non-Financial Reporting by Spanish Companies

The diffusion of integrated reporting has encouraged academics to pay greater attention to this topic. Several studies have been conducted since the 2011 of the Discussion Paper “Towards Integrated Reporting: Communicating Value in the 21st Century” by the International Integrated Reporting Council. However, conflicting opinions and the wide range of extant studies underscore the need to better understand the current contributions in the field. Furthermore, the novelty of integrated reporting makes it necessary to define as yet unexplored fields in this research stream. To that end, we conduct a systematic review of the literature to classify the research according to normative and descriptive perspectives and identify an agenda that will be able to guide future studies. The review shows that the concept of value creation, internal and qualitative determinants, the content and quality of integrated reporting, and its impacts need further investigation.

Appreciations, criticisms, determinants, and effects of integrated reporting: A systematic literature review

Corporations and large entities are increasingly disclosing material information on their financial and non-financial capitals in integrated reports (IR). The rationale behind their IR is to improve their legitimacy with institutions and stakeholders, as they are expected to communicate on all aspects of their value-creating activities, business models and strategic priorities. In this light, the purpose of this paper is to trace the theoretical underpinnings that have led to the organizations’ environmental, social and governance (ESG) disclosures, and explain the purpose of integrated thinking and reporting.,Following a review of relevant theories in business and society literature, this contribution examines the latest developments in corporate communication. This research explores the GRI’s latest Sustainability Reporting Standards as it sheds light on IIRC’s framework. Afterwards, it investigates the costs and benefits of using IR as a vehicle for the corporate disclosures on financial and non-financial performance.,This contribution sheds light on the latest developments that have led to the emergence of the organizations’ integrated thinking and reporting as they include financial and non-financial capitals in their annual disclosures. The findings suggest that the investors and the other financial stakeholders remain the key stakeholders of many organizations; it explains that they still represent the primary recipients of the corporate reports. However, the integrated disclosures are also helping practitioners to improve their organizational stewardship and to reinforce their legitimacy with institutions and other stakeholders in society, as they embed ESG information in their IR.,IIRC’s framework has its inherent limitations that are duly pointed out in this paper. However, despite its weaknesses, this contribution maintains that its guided principles and content elements could support those organizations that may be willing to voluntarily disclose their non-financial performance in their corporate reports.,This paper has discussed about the inherent limitations of the accounting, reporting and auditing of the organizations’ integrated disclosures. It pointed out that the practitioners may risk focusing their attention on the form of their reports, rather than on the content of their IR. Moreover, this contribution implies that the report preparers (and their stakeholders) would benefit if their IR is scrutinized and assured by independent, externally recognized audit firms.,This contribution has addressed a gap in academic literature along two lines of investigation. First, it linked key theoretical underpinnings on the agency, stewardship, institutional and legitimacy theories, with the latest developments in corporate communication. Second, it critically evaluated the regulatory instruments, including: GRI’s Sustainability Reporting Standards and the framework, among others; as these institutions are supporting organizations in their integrated thinking and reporting.

/pdf/theoretical-insights-on-integrated-reporting-the-inclusion-3bpvddiw7p.pdf

Theoretical insights on integrated reporting: The inclusion of non-financial capitals in corporate disclosures

Purpose




This paper aims to look into the new corporate reporting phenomenon, the so-called integrated reporting (IR), so as to assess the information level provided, identify trends and explore its determining factors.




Design/methodology/approach




This study looks into the IR disclosure level of the annual reports published by 91 companies in the International Integrated Reporting Council (IIRC)’s pilot programme. The authors’ empirical research focuses on four areas: the guiding principles of connectivity and materiality, as well as two content elements: the business model and governance. Following extant research on voluntary disclosure, a disclosure index is proposed and some hypotheses are put forward on its connection with some corporate variables.




Findings




The results point out that the disclosure levels of the IRs published by IIRC’s pilot programme members reach medium levels of disclosure. According to the authors’ index, the level of disclosure is significantly associated with the specific environment of organizations (i.e. region and industry), assurance of the report and publication in the IIRC website.




Originality/value




This study makes a relevant contribution, as it presents an innovative IR disclosure index and sheds some light on the disclosure practices of early adopters of IR. This evidence is valuable in understanding the trends in this field and could help the IIRC and other standard setters with a view to improving sustainable development and reporting.

Integrated reports: disclosure level and explanatory factors

Leading companies worldwide are increasingly concerned about stakeholders’ needs. They include sustainability initiatives regarding the environment and the community in their business strategy and adopt a new way of communication with stakeholders, that is, the Integrated Report (IR). This document should include in just one document the information traditionally provided in the annual report, the sustainability report, and the corporate governance report. This article presents the IR phenomenon and pays special attention to the key concept of “connectivity,” according to the International Integrated Reporting Council (IIRC). However, Internet and digital technologies have provided new channels of communication and interaction through social media. Within the framework of the Legitimacy Theory, Reputation Risk Management, and Stakeholder Theory, this article argues that the new possibilities brought by social media can be most valuable for IR purposes as they are useful to increase transparency and stakeholder engagement. Having looked into 78 integrated reports for the year 2012 of the companies included in the IIRC pilot programme, our study posits that the level of IR connectivity (or its absence) can be due to the combination of three types of factors (information quality, corporate characteristics, and communication factors), using fuzzy-set qualitative comparative analysis. Our findings confirm the equifinality tenet and the causal asymmetry principle. Very interestingly, in the sufficiency analysis, some factors always appear present (big size, long reports, and many channels of social media used) in the model for IR connectivity whereas in the model for non-IR connectivity size and report length are always absent though the listing status is always present. This pioneering study is unique and valuable as it opens up a new line of research on IR and social media use, two of the latest trends in company reporting.

Integrated Reporting, Connectivity, and Social Media

https://cyberleninka.org/article/n/539453.pdf

Yaismir Adriana Rivera-Arrubla

Papers

Integrated reports: disclosure level and explanatory factors

Integrated Reporting, Connectivity, and Social Media

El concepto de informe integrado como innovación en reporting corporativo