ADOPTION OF INTEGRATED

REPORTING
AN ATTEMPT
TO REDUCE THE GAPS BETWEEN
CSR DISCOURSE AND ITS
IMPLEMENTATION

Ioana-Maria Dragu

ABSTRACT

This chapter investigates how integrated reporting (IR) can contribute to a

better corporate social responsibility (CSR) implementation through
diffusion and adoption of CSR practices and actually applying the CSR
discourse. Based on innovation diffusion theory, we intend to analyse the
diffusion and adoption of CSR on the grounds of IR. The purpose of this
study is to demonstrate that IR does indeed represent a mean of reducing
the gaps between CSR discourse and its implementation. In order to select
the most relevant papers in the area of CSR and IR, we applied the method
of positive research. Therefore, the review of literature was made by
analysing various theoretical and empirical studies. Setting the main
coordinates for CSR and IR through theoretical background, we continue
with an empirical analysis on 23 companies that voluntarily publish
integrated reports. We intend to demonstrate that IR encourages a

Redefining Corporate Social Responsibility

Developments in Corporate Governance and Responsibility, Volume 13, 43
70
Copyright r 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
ISSN: 2043-0523/doi:10.1108/S2043-052320180000013006
43
44 IOANA-MARIA DRAGU

diffusion of CSR practices, as companies become more interested in their

CSR behaviour.
Keywords: reporting; integration; adoption; CSR; discourse;
implementation; corporation

INTRODUCTION
Integrated reporting (IR) has emerged from the pressure exercised by external
factors, especially the political, cultural and economic ones. The financial crises
represented a benchmark for the economic environment, rising new insights on
corporate reporting. Stakeholders’ needs and expectations moved forward
towards a complete and transparent reporting as financial and non-financial
performance enhanced interdependence.
In the light of the twenty-first-century global challenges of climate change,
we argue for the opportunity of IR that incorporates corporate social respon-
sibility (CSR) and financial reports into a single, integrated, annual report.
The holistic view of an integrated report provides economic, social and envi-
ronmental value for stakeholders, including shareholders and investors who
are beginning to focus more upon the value-added of the extra-financial
information. Therefore, we motivate our choice of studying integrated
reports and CSR by aiming to contribute to the knowledge of a field that has
become very much debated in the later years, as it results from past experi-
ences of financial crises and current economic, social and environmental chal-
lenges that affect not only the present but the future generations also. This
research is destined to bring a contribution to the implication of IR for CSR
practices, by investigating if the adoption of IR can encourage the diffusion
of CSR practices.
Although CSR literature contains many studies on CSR practices, none
of them considers the aspect of integrated reports and the perspective that
this new reporting trend can reduce the gap between CSR discourse and its
implementation.

A SHORT HISTORY OF CORPORATE REPORTING

FROM CORPORATE SOCIAL RESPONSIBILITY
REPORTS TO INTEGRATED REPORTS
If we were to go back in time and define an evolution for corporate reporting,
there are approximately 20 years of progress from one stage to the other.
Adoption of Integrated Reporting 45

During the 1960s, the business environment was familiar only with financial
reporting. Several works from that time show that researches were focused
strictly on financial reporting (Givoly and Hayn, 2000; Zeff, 2007; Biggadike,
1979; Mouck, 1993).
Twenty years later, academics and scholars begun to publish papers on the
relevance of governance and non-financial information (besides the financial
one), while the concept of CSR was evolving in parallel with all these as a sepa-
rate process (Murray and Vogel, 1997; Burchell et al., 1985; Benston, 1982). In
addition, there was an increasing tendency for the corporate environment to
issue governance reports and non-financial reports (Gussow and Clancy, 1986).
However, these separate reports showed some sort of similarity with the infor-
mation presented in the financial report and disclosed main impacts or influ-
ences of social responsibility for the company performance (Aupperle et al.,
1985; Cochran and Wood, 1984; McGuire et al., 1988; Mitchell et al., 1997;
Waddock and Graves, 1997). Meanwhile, companies also started to publish
more and more CSR reports, although these had an opposite approach to the
financial report, describing the ‘good side’ of the corporation, in terms of
community benefits, social programmes, etc., without expressing the impact
or quantifying the social performance (Henderson et al., 1980; Deegan and
Rankin, 1996). Besides, several works demonstrate the CSR integration1 into
corporate reporting (Werther and Chandler, 2005; Jenkins and Yakovleva,
2006).
The vision of IR has its roots in the Value Reporting Framework or
Corporate Reporting Framework set up by PricewaterhouseCoopers (PwC)
in 1999
the framework that aimed at that time to summarise a list of specific
information that can be disclosed by all companies from any sector. This repre-
sents the first attempt to ask corporations report on their value, strategy and
performance, and provide measurements for these elements (PwC, 2011). Later
on, up to year 2000, CSR becomes more linked to financial reporting, as inter-
national literature on CSR builds on CSR impacts for investor decisions or the
introduction of socially responsible investors and socially responsible analysts
(Radley, 2012; Tsoutsoura, 2004; McWade, 2012; Eccles et al., 2010). Also,
from practical point of view, corporations started to publish reports in which
CSR information was mixed with the financial information (Montiel, 2013;
Arvidsson, 2011; Xuan et al., 2014; De Villiers and van Staden, 2011; Fifka and
Drabble, 2012; Dhaliwal et al., 2012; Andrew et al., 2012; Mio and Venturelli,
2013; Kirklin et al., 2013; ACCA, 2012; Ching et al., 2013; Buniamin, 2012;
Cormier et al., 2003).
In 2001, South Africa was initiating regulatory actions on IR (Kneale,
2002): South African governance code on Integrated Sustainability Reporting,
according to which organisations should disclose social and environmental
commitments. Later on, in 2002, Novozymes, the Dannish company, was issu-
ing the first integrated report, followed by Novo Nordisk (Eccles et al., 2010).
The Enhanced Business Reporting Consortium (EBR360) provides a global
46 IOANA-MARIA DRAGU

framework based on voluntary disclosure in which non-financial information

(including key performance indicators) is meant to express past and future per-
formance (Anderson et al., 2005).
In 2004, SustainAbility presented the main challenges and opportunities
of integrated reports (SustainAbility, 2004), while Vancity (2005) provides a
clear definition of IR and conveys a complex analysis on 12 companies that
issue integrated reports. White (2005) tries to identify the producers of inte-
grated reports, their main motivation and the most suitable type of information
to be included in such a report. Meanwhile, the World Intellectual Capital
Initiative (WICI) starts working at a global framework that takes on stake-
holders’ perspective, in addition to traditional shareholder performance orienta-
tion (WICI, 2008). As a consequence, companies were beginning to report the
financial and non-financial information in a single unified report. In addition,
the study presented by KPMG and SustainAbility (2008) shows that there is
tendency for corporation to integrate the CSR reports into the annual financial
reports.
Year 2008 is representative in the evolution of IR for the publication of
research papers on integrating CSR information in the annual report
(Mammatt, 2009), as well as main motivation and challenges for these new
reports (Oates, 2009). During the same period, the Institute of Directors of
Southern Africa (KING III) issues the South African governance code accord-
ing to which companies have to produce one or at the maximum two inte-
grated reports that present the overall performance in a holistic and integrated
manner (IoDSA, 2009). In 2008, the European Commission organised five
workshops on ESG disclosure where many stakeholders perspectives have
been discussed, the purpose being to find the best approach to engage with
stakeholders (EC, 2009).
In 2009, we witness many debates on the adoption and challenges of IR
(Elkington and Renaut, 2009). During the same year, the International
Corporate Governance Network (ICGN) seeks to identify the drivers for non-
financial information integration in corporations’ annual reports (ICGN,
2009). Then, on 17 December 2009, we arrive at the preliminary foundation of
International Integrated Reporting Committee (IIRC), within the Prince’s
Accounting for Sustainability Project meeting (Sonnerfeldt, 2013). The two-
year period of 2008
2009 is remarked for common goals of sustainability and
CSR in terms of socioenvironmental nature and stakeholder orientation (Loew
et al., 2004).
Early literature on IR expanded in 2010, in a period when world events
were changing the perspective on extra-financial information. In 2010, Eccles
and Krzus (2010) publish their first book on IR, in which the integrated
report is denominated as ‘one report’. We consider that in 2010, IR registered
the higher progress ever, through the establishment of two main authoritative
committees in the filed: Integrated Reporting Committee (IRC) under the
supervision of South African Institute of Chartered Accountants (SAICA)
Adoption of Integrated Reporting 47

and International Integrated Reporting Council (IIRC), officially formed on

2 August 2010 when it was known as International Integrated Reporting
Committee (Knoll and Feigenbutz, 2014).
In 2011, the IIRC issued its first Exposure Draft on IR, mentioning the con-
tent elements and principles for integrated reports. In addition, the IIRC
started working at the Pilot Programme project, organising a conference in
Rotterdam. The Pilot Programme included 80 corporations and 25 investors
and developed networks for receiving feedback on the adoption and implemen-
tation of IR (Wild and van Staden, 2013). In July 2011, the IFRS Advisory
Council organised a meeting for discussing the main stages in corporate report-
ing evolution, focusing on the initial developments of the integrated report (De
Villiers and Van Staden, 2011).2
During 2010
2012, scholars and academics developed theoretical and
empirical studies in the field of IR. Their research involved mainly the subjects
of IR determinants, adoption and characteristics (Jensen and Berg, 2012; Eccles
et al., 2010; Eccles and Saltzman, 2011; Farrar, 2011). More specific studies
(Steyn, 2015; Solomon and Maroun, 2012) concentrate on the stage of IR with
respect to a certain country (e.g. South Africa
with mandatory IR or
Australia
IR on a voluntary basis). Others approach the process of environ-
mental, social and governance (ESG) integration or the role of non-financial
information in the decision-making process when socially responsible investors
and analysts are involved (Mammatt, 2009; Watson and Monterio, 2011;
Wilkinson et al., 2004).
In addition, the next period between 2012 and 2014 (Fig. 1) had also
marked the revolution of IR through international events such as the
Rio þ 20 ACCA (2012), the World Economic Forum, Organisation for
Economic Cooperation and Development (OECD) conference, GRI G4 con-
ference, G20 Russia Summit, World Economic Forum and OECD conference
G20 Australia.3

World Economic Forum

IR Framework
IR Consultation OECD Conference
Prototype IR Framework
Draft G20 Australia
IR Database

2012 1st half 2013 2nd half 2013 2014

Rio World Economic Forum G20 Russia Summit

Conference
OECD Conference
GRI G4

Fig. 1. IR Timeline. Source: Author’s design.

48 IOANA-MARIA DRAGU

Finally, we agree that the evolution of IR shows, in fact, the road to IR,
from early regulation initiatives, to CSR implementation, and in the end, the
single report containing both financial and non-financial information.
All the above being mentioned, the annual report has presented an inter-
esting evolution, from the fully financial-oriented report, to the financial and
non-financial information integration in a single report, and financial,
corporate governance, CSR integration in a unified report, and finally we
expect that the future will bring a real shift to an official single ‘integrated
report’, with standardised reporting rules for worldwide organisations, start-
ing with 2015.
If we compare this perspective with the idea expressed in the IIRC
Discussion Paper (IIRC, 2011), we find many similarities, as the integrated
report evolved from separate disclosures on governance and sustainability
information, as well as management commentary, and financial statements/
financial reporting. While management commentary, governance and remuner-
ation from the Discussion Paper represent the non-financial information in the
previous approach (IFRS, 2011), according to Loew et al. (2004), CSR is con-
tained in sustainability.
Table 1 presents the main reporting initiatives that contributed to the
development of the IR framework. Even since before the year 2000, inter-
national accounting organisations, and accountancy profession itself, have
been involved in preparing new reporting frameworks, guidelines or specific
checklists for a mixture and financial and non-financial information. We
consider that each of the following set of guidelines had certain limitations,
and IR represents the ultimate stage in the corporate reporting evolution
(Table 1).
On 12 September 2011, the IIRC issued a Discussion Paper, Towards
Integrated Reporting
Communicating Value in the 21st Century, through
which it created the foundation of the IIRC framework to serve both produ-
cers and users of integrated reports. The following year, they introduced a
Prototype Framework, while in April 2013 a Consultation Draft had been
released, and in December 2013 they already had the final version for the
framework (www.iirc.com). If the discussion paper was the first step in intro-
ducing the content elements and principles of an integrated report, as well as
providing definitions for the main terms related to IR, the prototype is a
detailed presentation of those elements and principles, or key concepts, while
the consultation draft was issued with the purpose of gathering important
feedback from all the stakeholders in order to obtain a complete and compre-
hensive version of the framework. In addition, the IIRC has created a data-
base for integrated reports in which they provide examples of reports that
follow the content elements and principles of the framework, sustained by
Blacksun organisation that published case studies on IR (Steyn, 2015;
Kooiker, 2014).
 Adoption of Integrated Reporting
Table 1. Frameworks/Reports/Checklists Related to the Origins of IR.
Crt. Year Framework Organisation That Short Description of the Framework Limitations/Means of Improvement
No. Issued the Framework

1. 1999 Value Reporting Framework PricewaterhouseCoopers • Aimed to summarise a list of • This framework concentrates on
(or the Corporate Reporting (PwC) uniformised information that can corporate value and performance,
Framework) be disclosed by all companies from but it should also connect to
any sector; asked corporations stakeholders, business models or
report on their value, strategy and other types of non-financial
performance and provide information; it should also be based
measurements for these elements on International Reporting
Guidelines in order to gain more
credibility as PwC is an audit
company (so, here, we have only the
auditor and consultant perspective,
and regulatory perspective for
instance is missing, not to mention
other stakeholders)
2. 2003 Indicators that count Business Impact Review • Report on 20 organisations that • The list of indicators is not
Group disclose several indicators for exhaustive, as there are others that
showing their impact on have the advantage to be correlated
community, environment, workplace with the state in which the
and marketplace corporation is headquartered
(e.g. HDI
Human Development
Index; NCSRI
National
Corporate Social Responsibility
Index; CPI
Corruption
Perception Index; BPI
Bribery
Perception Index; GDP
Gross
Domestic Product)

49
 Table 1. (Continued )

50
Crt. Year Framework Organisation That Short Description of the Framework Limitations/Means of Improvement
No. Issued the Framework

3. 2003 Voluntary, global disclosure Enhanced Business • The framework concentrates on • The financial information should
framework on non-financial Reporting Consortium current and future performance not be excluded from this
and key performance (EBR360) framework; performance has to be
indicators measured from both financial and
non-financial point of view; the
framework should at least have
considered the perspective of IASB-
IFRS
4. 2007 Voluntary global framework World Intellectual • It was issued based on the PWC • Although it goes beyond
for measuring and reporting Capital Initiative (WICI) reporting framework and Society of shareholder perspective, and
corporate performance to Investment Professionals in extends to other stakeholders, it can
shareholders and other Germany (DVFA) that contains improve by adding information on
stakeholders key performance indicators for risks and opportunities, future
environmental, social and outlook or other information on
governance (ESG) information that kind (included nowadays in the
IIRC content elements and
principles)
5. 2007 Connected Reporting The Prince’s Accounting • ESG-orientated framework • There is no connection between the
Framework For Sustainability developed on environmental ESG elements and financial

IOANA-MARIA DRAGU
Project (A4S) information information as in the integrated
report
6. 2007 New corporate reporting • Integration of financial and non- • The framework needed more details
model based on financial information in a single on the type of information to be
Corporation20/20 principles unified report included in the single report, and
of governance the means of integration for these
elements
7. 2008 The model of the single or Institute of Directors of • Presents the overall performance in • The model should contain
dualistic integrated report Southern Africa a holistic and integrated manner additional explanations on the
(KING III) elements to be included in an
integrated report
 Adoption of Integrated Reporting
8. 2011 Discussion Paper International Integrated • Shows examples of IR schemes • This is only an image of the initial
Reporting Committee from companies’ annual reports stage of an integrated report; the
(IIRC) IIRC was preparing to issue a
framework for setting reporting
guidelines in the IR area
9. 2012 Prototype of the IIRC International Integrated • Presentation of content elements • Besides the IIRC perspective, we
Framework Reporting Council and principles, as well as key could consider the IASB/IFRS
(IIRC) concept related to IR requirements regarding the
disclosure of non-financial
information
10. 2013 Consultation Draft of the International Integrated • Issued with the purpose of • Here again, we would add the
International <IR > Reporting Council gathering important feedback from IASB/IFRS perspective
Framework (IIRC) all the stakeholders in order to
obtain a complete and
comprehensive version of the
framework
11. 2013 GRI G4 Framework GRI Global Reporting • Concentrates more on • This set of guidelines was preparing
Initiative sustainability reporting and the reporting environment for the
sustainability integration within the IIRC final version of framework on
annual report IR; some elements from GRI G4
were further debated and improved
in the current IR Framework.
12. December Final Framework International Integrated • The final version of the framework • Additional views (IFRS, European
2013 Reporting Council includes the IIRC content elements Commission Directives, etc.)
(IIRC) and principles, and key terms or
processes related to IR, taking into
account the feedback received

Source: Author’s design.

51
52 IOANA-MARIA DRAGU

RESEARCH FRAMEWORK
This section presents the theoretical framework of the chapter, starting from
three main research directions, namely (Fig. 2):
(1) CSR (definition, characterisation, benefits and implementation)
explain-
ing the gap between discourse and its implementation.
(2) IR (definition, characterisation, benefits and implementation)
analysing
how non-financial reporting (such as CSR) evolved into integrated
reporting.
(3) The connection between CSR and IR
demonstrating how can IR reduce
the gap between CSR discourse and its implementation.
We develop the current study on the background of innovation and diffu-
sion theory (Rogers, 1962, 1995; Zaltman et al., 1973). In our view, the best
modality to assess the implementation of CSR due to a disclosure of integrated
reports would be to look deep into the companies’ practices and establish if the
diffusion and adoption of CSR is influenced by IR. Other CSR theories used in
corporate literature include legitimacy theory, neo-institutional theory, agency
theory, stakeholder theory, institutional theory, integrative social contracts
theory, etc. (further exemplified in this chapter). However, the most suitable
theory for our study is innovation and diffusion theory as we seek to under-
stand both CSR and IR from the perspective of reducing the gap between
reporting theory and practice. Although this chapter concentrates on CSR
reporting practices, we do not engage into an analysis of CSR reports, but
instead, we look into integrated annual reports published by corporations.
After presenting both CSR and IR, we initiate an investigation on two

CSR discourse

CSR discourse
CSR IR
Definition and Definition and
GAP characterisation (1) characterisation (1) GAP
Implementation and Implementation and
benefits (2) benefits (2)
CSR implementation

CSR implementation

Innovation and diffusion theory

Fig. 2. Theoretical Framework of the Chapter. Source: Author’s design.

Adoption of Integrated Reporting 53

dimensions: the positivist research approach in literature review and the case
study investigation.
The main research question can be stated as follows:
How does IR reduce the gap between CSR discourse and its implementation?
In order to be able to provide an answer, we first conducted a positive
research, by selecting theoretical and empirical papers on CSR and IR.
Previous research demonstrates the gap between CSR discourse and its imple-
mentation, as the IR approach brings new insights on CSR vision promoting
corporate social responsible behaviour.
For the second part of our research we developed a case study. We designed
our research on 23 corporations headquartered in 10 distinct countries: AEP,
Altron, Amplin plc, Anglo Platinum, BASF, Capita Group, Eskom, Gold
Fields, Great Portland Estate, Implats, Logica plc, Massmart, Metso
Corporation, National Grid, Natura, Novo Nordisk, Philips, Potash Group,
RB Platinum, UTC, Vodacom, Wolesely and Xstrata plc. In addition, we inves-
tigated all the available documentation related to these corporations, from
annual reports, to press releases, publications, newspapers, CEO statements
and other relevant information that have been disclosed on their websites. The
companies from our sample have chosen to publish integrated reports on a
voluntary basis and most of them start their IR journey from CSR reports and
finally manage to integrate the financial and non-financial information into a
single reporting document. We mainly searched for information related to
CSR practices and the benefits derived from them. As mentioned earlier, our
objective is to investigate whether the adoption of IR reduces the gap between
CSR discourse and its implementation.

CORPORATE SOCIAL RESPONSIBILITY:

DEFINITION, CHARACTERISATION, BENEFITS
AND IMPLEMENTATION
CSR
Definition and Characterisation

Scholars and academics have always been interested in CSR, defined as the
responsible behaviour employed by companies even when profit interests
should be put at first (Marsden, 2000). Pinney (2001) states that a corporate
socially responsible behaviour is generated by less environmental and societal
damage, inducing instead a positive impact.
Corporate literature applies legitimacy theory to provide a better under-
standing on the CSR concept (Claasen and Roloff, 2012). Claasen and Roloff
(2012) perform interviews with various stakeholders to find out how CSR can
contribute to the organisational legitimacy. The findings suggest that CSR
54 IOANA-MARIA DRAGU

practices can engage some of the stakeholders’ expectations from a certain per-
spective, but at the same time it can damage others. Stakeholder engagement
and the needs of future generation represent primary CSR elements (Dahlsrud,
2006). Therefore, CSR originates from the organisations’ impact on society and
environment (Hopkins, 2003).
Szegedi (2010) outlines the evolution of CSR in an attempt to characterise
the notion of CSR from literature debates, or myths versus reality. The scholar
discussed previous studies, as well as a series of interviews and surveys and
used descriptive analysis to find the true essence of CSR. Finally, it is demon-
strated that CSR represents a must for any company that pursuits profit maxi-
misation, as the latter is influenced by CSR.

CSR
Implementation and Benefits

The process of CSR implementation assumes an actual integration of both

societal and environmental into activities and operation conducted by compa-
nies. Further on, this implementation should take place according to stake-
holders’ needs and expectations (Lea, 2002). The integration perspective is
strengthened by Lanoizelée (2011) who mentions that ‘corporate responsibil-
ity integrates companies’ environmental and social concerns into all their
activities’ (p. 79).
Lanoizelée (2011) describes the CSR implementation from a perspective of
competitive advantage. Engaging in three different accounting theories

neo-institutional theory, agency theory and legitimacy theory
the academic
studies are a set of listed companies from ‘CAC 40’ French stock market. CSR
disclosure analysis is performed by determining the frequency of terms and
words used in the text of the reports. The results show that no sustainable com-
petitive advantage is recognised in the companies’ reports, while CSR practices
seem to be in contradiction with corporations’ interests. Therefore, we can state
that the gap between CSR theory and practice, between CSR discourse and
its implementation, is still present. A similar study on CSR implementation
(Argandoña, 2011) investigates stakeholder theory and institutional theory.
Finally, the scholar finds that some CSR items are more relevant than the
others from the corporations’ perspective as the environmental needs should
prevail societal needs.
Martinuzzi (2011) investigates competitive advantage in the chemical, con-
struction and textile industries. The scholar initiates both content analysis and
the interview technique, his research being based on competitiveness theories.
The results show that companies indeed are willing to adopt a CSR behaviour
in all the studied sectors. Other studies focus on CSR level and state influence
on CSR practice (Balboni and Balboni, 2008; Tarı́, 2011).
Adoption of Integrated Reporting 55

Benabou and Tirole (2010) discuss three dimensions of CSR-related benefits,

either direct or indirect. The first one involves the connection between CSR
practices and profit generation. The second refers to the role of stakeholders
and the visions of sustainability in contrast to profit interests. The final CSR
dimension states that social-environmental benefits should be obtained at the
cost of profit increases. In addition, Argandoña (2011) claims that companies
that apply CSR practices enhance a series of benefits in the form of reputation,
cost reduction, employee retention and others.
Gyves and O’Higgins (2008) study the benefits generated by CSR, espe-
cially the mutual ones, for companies versus stakeholders and society. Both
neo-classical theory and social legitimacy theory are tested, and the
employed methodology involves interview technique. Findings prove that
shareholders’ needs and expectations can be accomplished through a volun-
tary adoption of CSR practice. If Gyves and O’Higgins (2008) argue for the
voluntary side of CSR, Björn (2012) pleads against mandatory CSR disclo-
sure, the main argument being that this will not lead to higher transparency
in corporate reporting. In addition, Björn (2012) uses the integrative social
contracts theory and a qualitative research perspective to demonstrate that a
‘comply or explain’ basis is not effective for the corporate business environ-
ment. In addition, we mention another study on norms and compliance
(Merce and Simon, 2009) that presents the CSR standards in their evolution.
Analysing the literature review in the field of CSR, Merce and Simon (2009)
conclude that, in general, corporations are aware of the standards stipula-
tions, although some aspects still remain unclear. The academic also consid-
ers international CSR organizations issue new standards of voluntary or
mandatory nature.

IR: DEFINITION, CHARACTERISATION, BENEFITS

AND IMPLEMENTATION
IR
Definition and Characterisation

IR brings together financial and non-financial information, in a concise and

clear manner. As an interface between performance, strategy and gover-
nance, on the one hand, and environment, social and economic aspects, on
the other hand, the advantage of integrated reports is providing stake-
holders’ information on the overall organisation performance. In addition,
many academics and international organisations sustain the cause of IR
(Eccles and Krzus, 2010; Mammatt, 2009; IIRC, 2010; GRI, 2010;
AccountAbility, 2010).
In order to provide a deep understanding of the concept of IR, we have
gathered various definitions, opinions and facts upon the concept of IR.
56 IOANA-MARIA DRAGU

The history of IR has its roots in the notion of triple bottom line mentioned
for the first time by Elkington (1998). The concept of IR is outlined by
White (2005) who performs an analysis upon various corporations’ reports.
By 2010, the scholars and academics were becoming more interested in the
topic of IR, enlarging the international literature. Therefore, the notion of
IR has evolved from the triple bottom line (Elkington, 1998), being inocu-
lated by scholars and academics in their studies on corporate reporting
(White, 2005; Eccles et al., 2010). The IIRC has been set up with the purpose
of establishing a common framework for integrated reports: ‘The goal of the
IIRC is not to increase the reporting burden on companies and other enti-
ties. Rather, it is to … help us all make better decisions about the resources
we consume and the lives we lead’ (Ian Ball, CEO of the International
Federation of Accountants and Co-Chair of the IIRC Working Group).
Eccles et al. (2010) characterise the integrated report as a mixture between a
financial report and a non-financial one. The academic states that the pro-
cess of integration involves actually an inclusion of the ESG information,
into the annual report that contains mainly financial information. A publica-
tion issued by Deloitte Touche Toohmatsu Limited (Deloitte, 2011) distin-
guishes between two meanings attributed to IR. The first one represents
the definition provided by the South Africa IRC, according to which the
integrated report addresses its stakeholders, by presenting the story of the
organisation in a proper and clear language that would facilitate the under-
standing of the users of the reports. The IRC states very clearly that the
financial, economic, social and environmental values have to be maintained
on short-, medium- and long-time periods. In one of their reports, Ernst &
Young (2011) mention that the CFO is responsible for presenting the
‘sustainability story’ of the corporation (p. 5). In addition, investors have
become more interested in the non-financial aspects, along with the financial
ones. Moody’s and Standard & Poor’s are starting to recall for sustainability
policies, while ratings and indices on sustainability are being developed
for measuring sustainability reporting practices. The second definition
(Deloitte, 2011) has been issued by the IIRC, and it mentions the connection
between the strategy, financial performance, governance and sustainability
elements
social, environmental and economic pillars (Robinson and
Tinker, 1998), as integrated reports contribute to efficient sustainable deci-
sions by providing a holistic view of organisations’ performance to the stake-
holders, especially investors.
Eccles et al. (2010) provide advice on how to approach IR. The academics
explain how companies can develop integrated reports and how to develop atti-
tudes for changing to IR. Further on, the topic of integrated reports has been
highly debated within literature. Therefore, corporations, nowadays, can diffuse
and adopt IR trends being guided by literature, while IR practices fill the lack
of knowledge in research regarding this new topic and represent a basis for
scholars who conduct studies on the matter.
Adoption of Integrated Reporting 57

Academics and scholars aimed to study the main characteristics of inte-

grated reports. Farrar (2011) establishes eight elements that characterise IR:
integrated thinking; stewardship for manufactured, human, intellectual, natural
and social capital; strategic objectives and value creation; long-term vision;
transparency and trust; flexibility; avoiding complexity and extended reports;
and implementing technologies and innovation. A study developed by Rossou
(2011) sets other eight characteristics for integrated reports: disclosure of
forward-looking information; assurance on the quality of this type of informa-
tion; to be prepared annually; to contain positive aspects and challenges; the
elements of finances and sustainability should be presented in a holistic and
integrated manner; financial results have to be set within a context; all perfor-
mance areas are to be subject for reporting integration; provide assurance on
material sustainability or non-financial issues (audit committee). Both Farrar
and Rossou consider the trend of integrated non-financial reporting in their
research.
Loska (2010) argues that IR emerges a new set of standards for regulating
non-financial information. The scholar considers that the challenges faced by
integrated reports are stakeholder engagement, effective communication and
connection between financial and non-financial information.

IR
Implementation and Benefits

IR approach is meant to change the traditional view on corporate reporting,

and in time, the business environment will understand better its external and
internal benefits in terms of cost reduction, reputation, corporate image,
stakeholder engagement, etc. According to Eccles and Saltzman (2011), the
internal benefits refer to improvements in resource allocation, shareholder
engagement and reputation, while the external advantages relate to investors
who rely on ESG disclosure and to stock exchanges regulation, frameworks,
standards, guidelines and compliance with these criteria. Further on, corpora-
tions have to assimilate the benefits derived from IR, in terms of value added
on long term, improving sustainability practices at national levels, increase in
reporting transparency, stakeholder engagement and many other advantages
(ACCA, 2012).
The accountancy profession also recognises the importance of IR adoption.
Chartered Institute of Management Accountants (CIMA) supports the IR ini-
tiative because of the mutual benefits of increased accountability, the holistic
view of reporting more than financial information and building sustainable
value.4 Other benefits include community and social programmes (Henderson
et al., 1980; Deegan and Rankin, 1996), improving sustainability practices at
national levels, reporting transparency, stakeholder engagement (ACCA, 2012),
improvements in resource allocation and reputation (Eccles and Saltzman,
58 IOANA-MARIA DRAGU

2011). In addition, IR can provide the socially responsible investor and analyst
(Radley, 2012) all the necessary information for making decisions. As IR is
investor-oriented, integrated reports should bring ‘rewards’ for all stakeholders,
as the outcome of IR is the image in front of clients and society. Still, share-
holder values should be on the first place, business partners remaining the main
beneficiaries of IR.
Finally, all the six forms of capital (financial, relational, human, social, man-
ufactured and natural) from the integrated report are used in producing value,
and this value is reflected in the end in the benefits for the community/society,
environment and economy at national level, demonstrating at the same time a
high degree of accountability.

FROM CSR TO IR
DOES IR IMPROVE

CSR PRACTICE?
This section presents the organisational perspective upon CSR practice. In
addition, we have gathered opinions from companies’ management as well as
information disclosed in the annual integrated reports or other sources. After
analysing this set of companies, we intend to prove that the adoption of IR
engages both social and environmental benefits by fostering CSR practices’
implementation.

Data Description

The case study involves a sample of 35 integrated reports, from 23 companies

that operate in 10 different countries (Table 2). Therefore, our database com-
prises large corporations: AEP, Altron, Amplin plc, Anglo Platinum, BASF,
Capita Group, Eskom, Gold Fields, Great Portland Estate, Implats, Logica
plc, Massmart, Metso Corporation, National Grid, Natura, Novo Nordisk,
Philips, Potash Group, RB Platinum, UTC, Vodacom, Wolesely and Xstrata
plc. The firms from our sample have also been classified by industry type: aero-
space and industrial, agriculture, banking and insurance, chemicals, communi-
cation, construction, cosmetics, electricity, electronics, information technology,
medicine, mining, real estate and retail. Our database contains reports for
financial years 2009 and 2010.
We included reports starting with 2009, this being a crucial year for finan-
cial and non-financial reporting integration, when the IIRC was funded
(Eccles and Saltzman, 2011), and the King Code of Governance Principles for
South Africa was set (IRC, 2011). In 2010, the IIRC did not issue any guid-
ance or reporting principles yet, as the first discussion paper was published in
2011, so all the organisations that presented non-financial information
Adoption of Integrated Reporting 59

Table 2. Sample of Integrated Reports.

S. No. Year Industry Country Company

1 2010 Electricity USA AEP

2 2010 Electronics South Africa Altron
3 2009 Banking and assurance UK Amlin plc
5 2009 Mining South Africa Anglo Platinum
6 2010 Mining South Africa Anglo Platinum
7 2009 Chemicals Germany BASF
8 2010 Chemicals Germany BASF
9 2009 Banking and insurance UK Capita Group
10 2010 Banking and insurance UK Capita Group
11 2009 Electricity South Africa Eskom
12 2010 Electricity South Africa Eskom
13 2009 Mining South Africa Gold Fields
14 2010 Mining South Africa Gold Fields
15 2009 Real estate UK Great Portland Estate
16 2010 Real estate UK Great Portland Estate
17 2010 Mining South Africa Implats
18 2009 Information technology UK Logica plc
19 2010 Information technology UK Logica plc
20 2010 Retail South Africa Massmart
21 2009 Mining Finland Metso Corporation
22 2009 Electricity UK National Grid
23 2010 Electricity UK National Grid
24 2010 Cosmetics Brazil Natura
25 2009 Medicine Denmark Novo Nordisk
26 2010 Medicine Denmark Novo Nordisk
27 2010 Electronics Netherlands Philips
28 2009 Agriculture Canada Potash Group
29 2010 Mining South Africa RB Platinum
30 2010 Aerospace and industrial USA UTC
31 2010 Communication South Africa Vodacom
32 2010 Construction UK Wolesely
33 2009 Mining Switzerland Xstrata plc
34 2010 Mining Switzerland Xstrata plc

Source: Author’s design.

60 IOANA-MARIA DRAGU

Table 3. Sample Distribution.

Affiliation/Argument for Being Considered an List of Companies from the Sample
Integrated Report

IIRC Pilot Programme Anglo Platinum; BASF; Capita Group;

Eskom; Gold Fields; Natura; Novo Nordisk
IIRC Database
examples of Integrated Reports Implats; Vodacom; Xstrata plc
http://examples.theiirc.org/fragment
Nominalisations for international awards in Amlin plc; Great Portland Estates;
reporting field/winners of global reporting Massmart
competitions (‘FTSE 250 Excellence in Corporate
Reporting’; ‘Excellence in reporting’; JSE Limited
Socially Responsible Investment Index)
Evidence from international literature on leading Philips; UTC
companies in IR (Eccles et al., 2012; Eccles et al.,
2010)
Studies performed by audit firms on new reporting Logica plc; Metso; National Grid; Potash
trends (PWC, 2011; KPMG, 2012) Group
Organisations expressing engagement towards AEP; Altron; RB Platinum; Wolesely
IR/sustainability/corporate responsibility

Source: Author’s design.

including CSR elements in the annual report were following their own vision
on IR, in the absence of any referential or framework. Therefore, these cor-
porations become pioneers in IR.
Seven companies from our sample are part of the Pilot Programme (Anglo
Platinum, BASF, Capita Group, Eskom, Gold Fields, Natura, Novo Nordisk)
developed by the IIRC. All the others were included in the sample because of
the strong orientation towards the IR trend. Some have been extracted from
the IIRC database of integrated reports, while others were awarded with inter-
national prizes for excellence in reporting. Literature review and field studies
performed by audit companies represented another source for defining our sam-
ple, as well as the engagement expressed by certain corporations towards
IR (Table 3).

Case Study on IR Adopters

Given the fact that these companies adopted IR, we should be able to measure the
CSR commitment (CSR reporting practices), answering our research question:

How does IR reduce the gap between CSR discourse and its implementation?
Adoption of Integrated Reporting 61

Further on, we will present the non-financial reporting initiatives of each

of our case company, explaining how they implemented IR from a CSR/
non-financial reporting initial stage. This short/brief presentation also shows
how these corporations managed to reduce the gap between CSR disclosure in
theory and its actual implementation, and as we can deduce, the adoption of
IR schemes helped to diminish this gap and increase the degree of CSR infor-
mation in corporate reports.
A contributor to the Carbon Disclosure Project, American Electric Power
(AEP) begins its journey to IR in 2007, when starting to issue CSR reports.
During the past years, the company succeeds to improve its reporting trans-
parency and becomes stakeholder oriented. The managing director on sus-
tainability, Sandy Nessing, considers that financial and non-financial
information is interrelated and mutual. In addition, Nessing believes that cor-
porations can develop their CSR reporting practice by adopting IR. Starting
with 2010, Altron plc prepares its integrated reports more from a CSR per-
spective than an economic, profit-oriented one. Therefore, in this particular
case, the adoption of IR leads to higher CSR disclosure. In addition, we can
assume that this also generates stronger commitment to CSR practice.
United Technology Corporation (UTC) organises its integrated report as an
environmental related one. Therefore, this company becomes accountable on
its actions, especially the impact upon the environment, and engages a corpo-
rate responsible behaviour, by militating for resource preservation, community
involvement, gas emission reduction and other environmental damages. The
CSR programmes developed by UTC include Power PW1000G with the pur-
pose of energy reduction or ACE for lowering costs, while improving efficiency.
Implats plc issues integrated reports that include CSR information, but they
claim for separate CSR/Sustainability/Environmental reports, and they imple-
ment a performance assessment. This vision denies our statement that inte-
grated reports contribute to a better CSR implementation. On the contrary, it
is argued that a CSR report is enough as a warranty for CSR practice. In line
with the case of Implats, there is Massmart plc-, whose CEO observes a weak
disclosure level for CSR information, while more importance is attributed to
the financial aspects. Anglo Platinum discloses corporate responsibility reports,
separately from their integrated report. In addition, they mention the evolution
trend in CSR practices, but still, this cannot be attributed entirely to integrated
reports. Anglo Platinum considers that progress can still be made in their
implementation of CSR practices. The improvements the company has achieved
in the CSR area so far are presented in their integrated report and in an addi-
tional CSR report. One of the most relevant projects is Modikwa which is meant
to initiate value.
RB Platinum concentrates on specific CSR elements, such as community or
environmental actions, or energy-consumption targets, while BASF seeks the
achievement of success on long term, as a member of the Carbon Disclosure
62 IOANA-MARIA DRAGU

Project and by employing in a safety Quality Assessment System. In addition,

Potash Group involves in water quality programmes.
Capital Group is very dedicated to the IR cause, and concentrates on all
the information related to CSR in this report. Their main concern is to
reduce the costs with energy. Eskom distinguishes itself through the usage of
non-financial information (CSR) in the process of decision-making. Gold
Fields prioritises CSR reporting publishing CSR-related information in an
integrated report, a sustainability report and a GRI report. They create pro-
grammes for community, health and education support. Amlin is also inter-
ested in community programmes and has an open approach to CSR
implementation.
Great Portland Estate publishes an annual report in which CSR informa-
tion is well integrated. The company projects relate to the environment and
the community. Logica plc- maintains its commitment to CSR practices. The
Head of Corporate Responsibility, Christèle Delbé, mentions during a press
conference that CSR and sustainability information should be included in the
annual report of a company. The company also involves in community
programmes.
Metso Corporation pleads for integrating CSR and sustainability informa-
tion within the annual report. For National Grid, the engagement in CSR prac-
tice involves Greenhouse Gas solutions management, as for example the
acquisition of software that could facilitate this task.
Natura, the cosmetics company, represents an example of CSR implementa-
tion, as the approach to biodiversity and an accountability for the natural
resources are main objectives. Novo Nordisk perceives CSR as a key compo-
nent of successful outputs. Namely, in their view, CSR leads to performance on
long term. Therefore, they continue to develop CSR practices, which they pres-
ent in an integrated form of a single unified report. The corporation is a mem-
ber of AA1000 framework for accountability.
The Chief Executive Officer of Xstrata Corporation, Mick Davis, outlines
the need to deliver value to the society, especially through community pro-
grammes, social welfare and environmental concern. Therefore, a successful
CSR implementation should bring not only internal but also, most importantly,
external benefits.
The strategy of Philips company is to impress stakeholders by publishing
integrated reports on their green products, carbon footprint, innovation, energy
efficiency or that is meant to reduce costs and increase the environmental qual-
ity, as well as to sustain the green products. Wolesely has definitely gained its
stakeholders attention with their new centre for innovation, efficiency, technol-
ogy, energy and recycling. Ultimately, their main concern is climate change.
A similar case is known for Vodacom, whose green innovation centre based on
renewable energy reduces carbon emissions.
Adoption of Integrated Reporting 63

FINDINGS
This section is divided into two main parts: the findings observed from the liter-
ature review approach or positivist research, respectively, the results from the
case study analysis on the companies’ reporting practice.

The Gap between CSR Discourse and Its Implementation
Is IR a Vector

for the Gap Reduction?

Falkenberg and Brunsæl (2011) study the connection between CSR and perfor-
mance. On the ground of instrumental theories, the academic investigates four
different criteria on a sample of two companies: strategic disadvantage, strate-
gic necessity, temporary strategic advantage and strategic advantage. The
results are not conclusive, so this study does not provide enough evidence for a
relationship between CSR and performance. Therefore, we can add that cor-
porations will not be motivated to adopt CSR practices, in the absence of a
specific link to their performance. Another research that attempts to connect
CSR to performance is conducted by Oba (2011), who uses the market value as
an indicator. The academic performed an analysis upon various annual reports
and scored the CSR policies mentioned in the documents. Different results are
obtained, but no positive relationship between the two main elements: CSR
and market value. Still, the IR approach assumes that non-financial informa-
tion (including CSR) affects the financial performance of the company. That is,
by adopting the IR vision, corporate perspective should change. The integrated
report presents, among others, CSR practices so that stakeholders are informed
on the company’s CSR behaviour (Eccles et al., 2010). Nowadays, socially
responsible investors analyse non-financial information and its influence upon
the organisation performance (Clements and Brown, 2012). Therefore, we iden-
tify a need for CSR integration into annual reports.
Emergent IR literature discusses the frameworks developed by the IIRC, in
a corporate environment from which malfunctions of sustainability and CSR
are not absent (Farrar, 2011). We consider that corporate social reporting prac-
tice originates from corporate reputation and image in front of the stake-
holders. However, a separate CSR report does not cover the financial elements.
Positive CSR insights have sometimes the purpose of covering negative infor-
mation on financial results of companies. We believe that integrated reporting
can decrease the ambiguity regarding the information disclosed in the annual
reports. Further on, integrated reports are addressing to each stakeholder in an
equal manner (IIRC, 2010). In this context, we advocate the adoption of IR,
which could contribute to a reduction of the gap between CSR discourse and
its implementation.
64 IOANA-MARIA DRAGU

Table 4. IR
An Incentive for Implementing the CSR Discourse.

The Nature of CSR Mechanisms of Effective Means of Reducing the Gap
Information in the Integrated Implementing CSR between CSR Discourse and Its
Report Practices Implementation

• Technology, efficiency and • CSR integration • Effective communication with

climate change
• Innovation, transparency,
orientation towards
stakeholders
• Reducing greenhouse gas
emissions
• Climate change
• Carbon Disclosure project
• Environmental impact,
resource scarcity,
community programs
• Carbon footprint
• Green innovation
• Energy efficiency and
recycling
• Biodiversity
• Quality Assessment System
development into stakeholders
decision-making • Connection between financial and
• Responsible usage of non-financial information
natural resources • Accountability towards people and
• Specialised CSR planet
departments • Integrating CSR information within
• Research centres for integrated annual reports
CSR purposes • Focusing on economic, social and
• Stakeholder environmental
engagement • Environmental and social integration
• Credibility in front of into business operations
stakeholders • Creating role model companies in the
• Visions of CSR as a field of CSR
driver for long-term
performance
• Emphasis on corporate
social responsibility

Source: Author’s design.

CSR Reporting from Theory to Practice in Integrated Reports

All the companies included in our study are involved in CSR programmes.
Here we synthesise some of the major projects and their implications, but the
general assumption is that corporations that engage in IR manage to implement
CSR practices in a successful manner. As these corporations are new emerging
reporting companies through their voluntary addiction to IR, this strengthens
our initial statement that the adoption of IR reduces the gap between CSR dis-
course and its implementation.
Table 4 summarises our findings on how IR can reduce the gaps between
CSR discourse and its implementation.

FINAL REMARKS
The intention of this chapter was to verify that the adoption of integrated
reports by companies will show improvement in the CSR implementation of
the 23 sample companies. Our investigation assumes both positivist research
and case study approaches. This chapter is meant to contribute to the literature
of CSR, and in particular, CSR reporting.
Adoption of Integrated Reporting 65

This chapter is meant to present an overview on the impact of IR adoption

upon CSR implementation. We investigate whether integrated reports influence
the CSR behaviour of corporations. Reviewing the literature in the field of
CSR we find evidence for the gap between the CSR discourse and its implemen-
tation. However, when analysing a set of emergent adopters of IR, we need to
admit that they present a high degree of CSR involvement. In addition, we
believe that by combining the set of financial information with the non-financial
one, corporation finally admits that CSR represents a major influence for their
long-term performance. Nowadays, companies have become aware of their
accountability in relation to stakeholders, concentrating on reporting transpar-
ency in order to increase their credibility.
To sum up, IR can contribute to the CSR discourse implementation,
through diffusion and adoption of IR practice, that generates a higher interest
for disclosing CSR information. So, the diffusion and adoption theory can be
applied for reducing the gap between CSR discourse and its implementation,
and the IR trend is an influential vector in this sense, as the CSR information
represents a part/section from an integrated report.

LIMITATIONS AND FURTHER RESEARCH

We acknowledge that the current study can still be improved by collecting
more information on CSR practices, enlarging the sample or even organising
field interviews with the management. Further research can be developed using
empirical studies, by extending the period for evaluating the information in
integrated reports.

NOTES

1. The only evidence in CSR literature in this sense relates to an ‘integration’ of poli-
cies and processes within companies’ operations, and we cannot find any record of an
information disclosure approach; however, this perspective is meant to lead, in time, to a
proper integration of CSR information/CSR reporting within the annual report.
2. http://www.ifrs.org/The-organisation/IFRS-AdvisoryCouncil/Documents/JulyAP
10AReportofAdvisoryCouncilJuneMeeting.pdf
3. http://www.accountingforsustainability.org/
4. http://www.cimaglobal.com/

REFERENCES

ACCA. 2012. Integrating Material Sustainability Information into Corporate Reports Should Be a
Key and Critical Outcome of Rioþ20. Available at: http://www.accaglobal.com/en/discover/
news/2012/05/sustainability-rio.html
66 IOANA-MARIA DRAGU

AccountAbility. 2010. Accountability setting the standard for corporate responsibility and sustain-
able development. Available at: http://www.accountability.org/ [Accessed 14 October 2010].
Anderson, A., Herring, P. and Pawlicki, A. 2005. EBR: the next step: enhanced business reporting will
improve information quality, integrity and transparency, Journal of Accountancy, 199(6), 71.
Andrew, N., Wickham, M., O’Donohue, W. and Danzinger, F. 2012. Presenting a core-periphery
model of voluntary CSR disclosure in Australian annual reports, Corporate Ownership &
Control Journal, 9(2), 438
448.
Argandoña, A. 2011. Stakeholder Theory and Value Creation, IESE Business School Working Paper
No. 922. Available at: http://ssrn.com/abstract¼1947317 or http://dx.doi.org/10.2139/ssrn.
1947317
Arvidsson, S. 2011. Disclosure of non-financial information in the annual report: a management-
team perspective, Journal of Intellectual Capital, 12(2), 277
300.
Aupperle, K.E., Carroll, A.B. and Hatfield, J.D. 1985. An empirical examination of the relationship
between corporate social responsibility and profitability, Academy of Management Journal,
28(2), 446
463.
Balboni, A. and Balboni, F. 2008. A Duopoly Model of Corporate Social Responsibility and Location
Choice, Dipartimento Scienze Economiche, Universita’ di Bologna in its series Working
Papers.
Benabou, R. and Tirole, J. 2010. Individual and corporate social responsibility, Economica, 77,
1
19.
Benston, G.J. 1982. An analysis of the role of accounting standards for enhancing corporate gover-
nance and social responsibility, Journal of Accounting and Public Policy, 1(1), 5
17.
Biggadike, R. 1979. The risky business of diversification, Harvard Business Review, 57(3), 103
111.
Björn, F. 2012. Development of norms through compliance disclosure, Journal of Business Ethics,
106, 73
87.
Buniamin, S. 2012. The quantity and quality of environmental reporting in annual report of
public listed companies in Malaysia, Issues in Social and Environmental Accounting, 4(2),
115
135.
Burchell, S., Clubb, C. and Hopwood, A.G. 1985. Accounting in its social context: towards a history
of value added in the United Kingdom, Accounting. Organizations and Society, 10(4),
381
413.
Ching, H.Y., Gerab, F. and Toste, T.H. 2013. Analysis of sustainability reports and quality of infor-
mation disclosed of top Brazilian companies, International Business Research, 6(10), 62.
Claasen, C. and Roloff, J. 2012. The link between responsibility and legitimacy: the case of De Beers
in Namibia, Journal of Business Ethics, 107, 379
398.
Clements, P.H. and Brown, G. 2012. Lenses and Clocks: Financial Stability and Systemic Risk, A
joint paper presented by the United Nations Environment Programme Finance Initiative
(UNEP FI), the International Institute for Sustainable Development (IISD), and The
Blended Capital Group (TBCG).
Cochran, P.L. and Wood, R.A. 1984. Corporate social responsibility and financial performance,
Academy of Management Journal, 27, 42
56.
Cormier, D., Berthelot, S. and Magnan, N. 2003. Environmental disclosure research: review and syn-
thesis, Journal of Accounting Literature, 22, 1
44.
Dahlsrud, A. 2006. How corporate social responsibility is defined: an analysis of 37 definitions,
Corporate Social Responsibility and Environmental Management, (in press). Published online
in Wiley InterScience. Available at: www.interscience.wiley.com
Deegan, C. and Rankin, M. 1996. Do Australian companies report environmental news objectively?
An analysis of environmental disclosures by firms prosecuted successfully by the environmen-
tal protection authority, Accounting, Auditing & Accountability Journal, 9(2), 50
67.
Deloitte. 2011. Integrated Reporting: A Better View? Global Sustainability and Climate Services.
Adoption of Integrated Reporting 67

De Villiers, C. and Van Staden, C. 2011. Shareholder requirements for compulsory environmental
information in annual reports and on websites, Australian Accounting Review, 21(4),
317
326.
Dhaliwal, D.S., Radhakrishnan, S., Tsang, A. and Yang, Y.G. 2012. Nonfinancial disclosure and
analyst forecast accuracy: international evidence on corporate social responsibility disclosure,
The Accounting Review, 87(3), 723
759.
Eccles, R. and Saltzman, D. 2011. Achieving sustainability through integrated reporting, Stanford
Social Innovation Review. Available at: http://people.hbs.edu/rec%20D%20-%20cles/
2011SU_Features_EcclesSaltzman.pdf
Eccles, R., Ioannou, I. and Serafeim, G. 2012. The Impact of a Corporate Culture of Sustainability on
Corporate Behaviour and Performance, Working Paper, Harvard Business School. Available
at: http://www.hbs.edu/research/pdf/12-035.pdf
Eccles, R., Krzus, M.P. and Tapscott, D. 2010. One Report: Integrated Reporting for a Sustainable
Strategy, 1st ed., Hoboken, NJ, Wiley.
Eccles, R.G. and Krzus, M.P. 2010. One Report: Integrated Reporting for a Strategy, Hoboken, NJ,
Wiley.
EC (European Commission). 2009. European Workshops on the Disclosure of Environmental, Social
and Governance Information. Available at: http://ec.europa.eu/enterprise/newsroom/cf/item-
longdetail.cfm?item_id¼3723
Elkington, J. 1998. Cannibals with Forks: The Triple Bottom Line of 21st Century Business, Gabriola,
New Society Publishers.
Elkington, J. and Renaut, J.-P. 2009. The Holy Grail of Integrated Reporting. Available at: http://
www.sustainability.com/blog/the-holy-grail-of-integrated-reporting
Ernst & Young. 2011. Climate change and sustainability. How sustainability has expanded the
CFO’s role. Available at: http://www.ey.com/US/en/Services/Specialty-Services/Climate-
Change-and-Sustainability-Services/How-sustainability-has-expanded-the-CFOs-role
Falkenberg, J. and Brunsæl, P. 2011. Corporate social responsibility: a strategic advantage or a stra-
tegic necessity? Journal of Business Ethics, 99, 9
16.
Farrar, J. 2011. Integrated reporting: Can it solve the sustainability information gap? Available online
at: http://www.zdnet.com/blog/sustainability/integrated-reporting-can-it-solve-the-sustain-
ability-information-gap/1635
Fifka, M.S. and Drabble, M. 2012. Focus and standardization of sustainability reporting
a com-
parative study of the United Kingdom and Finland, Business Strategy and the Environment,
21(7), 455
474.
Givoly, D. and Hayn, C. 2000. The changing time-series properties of earnings, cash flows and
accruals: has financial reporting become more conservative? Journal of Accounting and
Economics, 29(3), 287
320.
GRI. 2010. Year in Review: 2009/10. Available at: https://www.globalreporting.org/resourcelibrary/
GRI-Year-in-Review-2009-2010.pdf
Gussow, J.D. and Clancy, K. 1986. Dietary guidelines for sustainability, Journal of Nutrition
Education and Behavior, 18(1), 1
4.
Gyves, S. and O’Higgins, E. 2008. Corporate social responsibility: an avenue for sustainable benefit
for society and the firm? Society and Business Review, 3(3), 207
223.
Henderson, S., Duncan-Jones, P., Byrne, D.G. and Scott, R. 1980. Measuring social relationships
the interview schedule for social interaction, Psychological Medicine, 10(04), 723
734.
Hopkins, M. 2003. The Planetary Bargain
CSR Matters, London, Earthscan. Available at: http://
www.iso.org/iso/social_responsibility
ICGN (International Corporate Governance Network). 2009. ICGN Statement and Guidance on
Non-financial Business Reporting.
IFRS. 2011. IFRS Advisory Council Meeting. Prepared for discussion at a public meeting of the
IFRS Advisory Council of the IASB. Available at: http://www.ifrs.org/Meetings/
MeetingDocs/Advisory%20Council/2011/June/20th%20and%2021st/AC-0611-AP10.pdf
68 IOANA-MARIA DRAGU

IIRC. 2011. Towards Integrated Reporting, Communicating Value in the 21st Century. Available at:
www.theiirc.org
IIRC (International Integrated Reporting Committee). 2010. Committee Members. http://www.inte-
gratedreporting.org/node/6
IoDSA. 2009. King Report Governance for South Africa 2009. Available at: http://african.ipapercms.
dk/IOD/KINGIII/kingiiireport/
IRC, Integrated Reporting Committee of South Africa. 2011. Framework for Integrated Reporting
and the Integrated Report, Discussion paper. Available at: http://www.sustainabilitysa.org/
Portals/0/IRC%20of%20SA%20Integrated%20Reporting%20Guide%20Jan%2011.pdf
Jenkins, H. and Yakovleva, N. 2006. Corporate social responsibility in the mining industry: explor-
ing trends in social and environmental disclosure, Journal of Cleaner Production, 14(3),
271
284.
Jensen, C.J. and Berg, N. 2012. Determinants of traditional sustainability reporting versus integrated
reporting. an institutionalist approach, Business Strategy and the Environment, 21, 299
316.
Kirklin, J.K., Naftel, D.C., Kormos, R.L., Stevenson, L.W., Pagani, F.D., Miller, M.A. and Young,
J.B. 2013. Fifth INTERMACS annual report: risk factor analysis from more than 6,000
mechanical circulatory support patients, The Journal of Heart and Lung Transplantation,
32(2), 141
156.
Kneale, C.D. 2002. King II Report on Corporate Governance: Summary of Code of Corporate
Practices and Conduct, Johannesburg, Institute of Directors of Southern Africa. Available at:
http://www.krepublishers.com/02-Journals/JHE/JHE-35-0-000-11-Web/JHE-35-2-000-11-
Abst-PDF/JHE-35-2-095-11-2177-Mariri-T/JHE-35-2-095-11-2177-Mariri-T-Tt.pdf
Knoll, J. and Feigenbutz, A. 2014. Integrated reporting
a “one-size-fits-all” solution, Managerial
Economics, 15(2), 165
175.
Kooiker, K.G.H. 2014. Towards a New Corporate Reporting Model? Analysing Stakeholder Opinions
Concerning The role of Business in Society and Integrated Reporting. Available at: http://
essay.utwente.nl/65567/
KPMG. 2012. Integrated Reporting Performance insight through Better Business Reporting. Available
at: www.kpmg.com/integratedreporting.
KPMG & SustainAbility. 2008. Count Me In: The Readers’ Take on Sustainability Reporting.
Available at: http://www.sustainability.com/downloads_public/insight_reports/Count_Me_
In.pdf [Accessed 10 December 2009].
Lanoizelée, Q.F. 2011. Are competition and corporate social responsibility compatible?: The myth
of sustainable competitive advantage, Society and Business Review, 6(1), 77
98.
Lea, R. 2002. Corporate Social Responsibility, Institute of Directors (IoD) member opinion survey,
London, IoD. Available at: http://www.epolitix.com/data/companies/images/Companies/
Institute-of-Directors/CSR_Report.pdf
Loew, T., Ankele, K., Braun, S. and Clausen, J. 2004. Significance of the CSR Debate for
Sustainability and the Requirements for Companies, Future E.V. an Institute for Ecological
Economy Research GMBH (IÖW).
Loska. 2010. Integrated Reporting: Towards a Framework for a Sustainable International Corporate
Reporting. Master’s Thesis, 81 pp.
Mammatt, J. 2009. Integrated sustainability reporting and assurance. Proceedings for CIS Corporate
Governance Conference, Johannesburg.
Marsden, C. 2000. The new corporate citizenship of good business: part of the solution to sustain-
ability, Business and Society Review, 105(1), 9
25.
Martinuzzi, A. 2011. Responsible competitiveness
Linking CSR and competitive advantage in
three European industrial sectors, Zeitschrift für Umweltpolitik and Umweltrecht, 3, 297
337.
McGuire, J.B., Sundgren, A. and Schneeweis, T. 1988. Corporate social responsibility and firm
financial performance, Academy of Management Journal, 31(4), 854
872.
McWade, W. 2012. The role for social enterprises and social investors in the development struggle,
Journal of Social Entrepreneurship, 3(1), 96
112. Series no. 27, University of South
Australia.
Adoption of Integrated Reporting 69

Merce, B. and Simon, A. 2009. Multiple standards: is this the future for organizations?
Sub-theme
15: Multiplicity and plurality in the world of standards, Journal of Cleaner Production, 17(8),
742
750.
Mio, C. and Venturelli, A. 2013. Non-financial information about sustainable development and envi-
ronmental policy in the annual reports of listed companies: evidence from Italy and the UK,
Corporate Social Responsibility and Environmental Management, 20(6), 340
358.
Mitchell, R.K., Agle, B.R. and Wood, J.D. 1997. Toward a theory of stakeholder identification and
salience: defining the principle of who and what really counts, The Academy of Management
Review, 22(4), 853
886.
Montiel, I. 2013. Corporate social responsibility and corporate sustainability: Separate pasts, com-
mon futures, Organization & Environment, 21(3), 245
269.
Mouck, T. 1993. The “revolution” in financial reporting theory: A Kuhnian interpretation, The
Accounting Historians Journal, 33
57.
Murray, K.B. and Vogel, C.M. 1997. Using a hierarchy-of-effects approach to gauge the effective-
ness of corporate social responsibility to generate goodwill toward the firm: financial versus
nonfinancial impacts, Journal of Business Research, 38(2), 141
159.
Oates, T. 2009. Jigsaw must be complete. Sustainable Business, October. Available at: http://content.
yudu.com/A1gpi0/SustainBusSupp09/resources/14.htm
Oba, V.C. 2011. The impact of corporate social responsibility on market value of quoted conglomer-
ates in Nigeria, ICAN Journal of Accounting and Finance, 3, 64
70.
Pinney, C. 2001. Imagine Speaks Out. How to Manage Corporate Social Responsibility and
Reputation in a Global Marketplace: The Challenge for Canadian Business. [Retrieved 23 June
2003].
PwC. 2011. 11 Reporting Tips, Good Practice in Corporate Reporting. Available at: www.corporater-
eporting.comhttp://www.imagine.ca/content/media/team_canada_china_paper.asp?
section¼media
Radley, Y. 2012. The value of extra-financial disclosure. What investors and analysts said,
Accounting for Sustainability, Global Reporting Initiative. Available at: https://www.globalre-
porting.org/information/news-and-press-center/Pages/Investors-and-analysts-use-extra-finan-
cial-information-in-decision-making-suggests-new-research.aspx
Robinson, J. and Tinker, J. 1998. Reconciling ecological, economic and social imperatives. In The
Cornerstone of Development: Integrating Environmental, Social and Economic Policies, Eds J.
Schnurr and S. Holtz, Ottawa, International Development Research Centre.
Rogers, E.M. 1962. Diffusion of Innovations, 1st ed., New York, NY: Free Press.
Rogers, E.M. 1995. Diffusion of Innovations, 4th ed., New York, NY: Free Press.
Rossou, R. 2011. Integrating sustainability reporting. Presentation delivered at the Women in
Finance Conference, South Africa. Available at: http://www.slideshare.net/Reana1/inte-
grated-sustainability-reporting
Solomon, J. and Maroun, W. 2012. Integrated Reporting: The Influence of King III on Social, Ethical
and Environmental Reporting, London, The Association of Chartered Certified Accountants.
Available at: http://www.accaglobal.com/content/dam/acca/global/PDF-technical/integrated-
reporting/tech-tp-iirsa.pdf
Sonnerfeldt, A. 2013. The IIRC
An Emerging Epistemic Community? An Exploration of the
Tensions between Emerging and Prevailing Logics in the Corporate Reporting Regulatory
Space. Available at: http://grammatikhilfe.eu/accounting/Seminars-andWorkshops/
AOSworkshop/SONNERFELDT.pdf
Steyn, M. 2015. Senior executives’ perspectives of integrated reporting regulatory regimes as a mech-
anism for advancing sustainability in South African listed companies, Southern African
Business Review, 18(3), 142
174.
SustAinability. 2004. Risk & opportunity: best practice in non-financial reporting. sustainability.
com. Available at: http://www.sustainability.com/downloads_public/insight_reports/R&
O2004.pdf
70 IOANA-MARIA DRAGU

Szegedi, K. 2010. The concept and development tendencies of corporate social responsibility, Club of
Economics in Miskolc TMP, 5, 67
74.
Tarı́, J.J. 2011. Research into quality management and social responsibility, Journal of Business
Ethics, 102, 623
638.
Tsoutsoura, M. 2004. Corporate Social Responsibility and Financial Performance, Haas School of
Business, University of California at Berkeley. Available at: http://responsiblebusiness.haas.
berkeley.edu/documents/FinalPaperonCSR_PDFII.pdf
Vancity. 2005. Integrated Reporting: Issues and Implications for Reporters. Available at: https://www.
vancity.com/SharedContent/documents/IntegratedReporting.pdf
Waddock, S.A. and Graves, S.B. 1997. The corporate social performance-financial performance
link, Strategic Management Journal, 18(4), 303
319.
Watson, L.A. and Monterio, B.J. 2011. The next stage in the evolution of business reporting
The
journey towards an interlinked, integrated report, The Chartered Accountants, July,
pp. 75
78.
Werther, W.B. and Chandler, D. 2005. Strategic corporate social responsibility as global brand
insurance, Business Horizons, 48(4), 317
324.
White, A.L. 2005. Fade, integrate or transform? The future of CSR, business for social responsibil-
ity. Available at: www.bsr.org
WICI (World Intellectual Capital Initiative). 2008. A Global Framework for Measuring and
Reporting on Intellectual Assets and Capital. Available at: http://www.worldici.com/index.
php
Wild, S. and van Staden, C.J. 2013, July. Integrated reporting: initial analysis of early reporters

an institutional theory approach. In 7th Asia Pacific Interdisciplinary Accounting Research
Conference, Kobe, pp. 26
28.
Wilkinson, D., Fergusson, M., Bowyer, C., Brown, J., Ladefoged, A., Monkhouse, C. and
Zdanowicz, A. 2004. Sustainable Development in the European Commission’s Integrated
Impact Assessment for 2003, Final Report for the UK Department of the Environment, Food
and Rural Affairs (DEFRA). Institute for European Environmental Policy (IEEP).
www.iirc.com
Xuan, Z.H.A.O., Lieke, Z.H.A.N.G. and Yuwei, S.O.N.G. 2014. Environmental information disclo-
sure of listed company study on the cost of debt capital empirical data: based on thermal
power industry, Canadian Social Science, 10(6), 90
96.
Zaltman, G., Duncan, R. and Holbeck, J. 1973. Innovation and Organizations, Hoboken, NJ, John
Wiley.
Zeff, S.A. 2007. Some obstacles to global financial reporting comparability and convergence at a
high level of quality, The British Accounting Review, 39(4), 290
302.