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Perspectives of
Sustainability reporting and Thai-listed
integrated reporting perspectives companies

of Thai-listed companies
Neungruthai Petcharat 671
Faculty of Business and Management Studies, Gulf College of Oman,
Muscat, Oman, and Received 1 September 2018
Revised 28 January 2019
6 March 2019
Mahbub Zaman Accepted 9 April 2019
Business School, Hull University, Hull, UK

Abstract
Purpose – This paper aims to examine the reporting on sustainability and the level of compliance with
international best practice, the Global Reporting Initiative (GRI), aimed at improving communicative value to
users.
Design/methodology/approach – Using a qualitative approach, comprising interviews with senior
managers and analysis of disclosures in annual reports of Thai-listed companies, this paper contributes to the
literature by providing evidence from an emerging market setting.
Findings – This study finds that sustainability reporting and integrated reporting perspectives of
sampling companies are aiming to satisfy information needs to stakeholders and value creation to
external users. Sustainability disclosures are related to some aspect of integrated reporting (IR) principles
but not all.
Research limitations/implications – The findings of this study are based on the results from
interviews and annual reports of five business sectors, and may therefore, not reflect the sustainability
reporting practices and/or annual reports of other Thai-listed companies. Also, there is limited reporting on
future outlook.
Practical implications – The findings suggest that while sustainability and IR is being adopted very
widely, in many countries, there is much variation in reporting practice especially in our emerging country
context adopting a “comply or explain” approach.
Social implications – For the Thai-listed companies, IR systems could be in their early stages and still
have long way to go. The results can greatly encourage Thai-listed firms to incorporate integrated
information in annual reports based on international standards thus building trust in capital markets and
wider society.
Originality/value – The findings contribute to the literature on sustainability reporting and on the level of
compliance with international best practice such as GRI by providing empirical analysis of non-financial
disclosures within publicly available reporting in Thailand.
Keywords Stakeholder, Integrated reporting perspectives, Sustainability information,
Sustainability reporting practices, Sustainability reporting
Paper type Research paper

1. Introduction
Journal of Financial Reporting and
An integration of business information in annual reports has evolved over the years because Accounting
of increasingly complex business environments and changes in stakeholder needs. Vol. 17 No. 4, 2019
pp. 671-694
International Integrated Reporting Committee (IIRC) (2011, p. 6) and Lin (2009) have agreed © Emerald Publishing Limited
1985-2517
that firms need to produce integrated reports to bring together: DOI 10.1108/JFRA-09-2018-0073
JFRA [. . .] material information about an organization’s strategy, governance, performance and
prospects in a way that reflect the commercial, social, and environmental context in which it
17,4 operates. It provides a clear and concise representation of how an organization creates value, now
and in the future.
Integrated reporting (IR) aims to incorporate financial and non-financial information –
collective mind of those charged with governance and management performance in terms
672 of economic, environment and social well-being in annual reports (Deloitte, 2011). Stubbs
and Higgins (2014) found that while firms are producing some form of IR and changing
processes or structures, the adoption of IR remains the same in sustainability disclosure.
A small sample of Australian firms indicated that IR in Australia was at early stage
while grappling with how best to be implemented within a company (Stubbs and Higgins,
2014). Villiers et al. (2014) also found that the understanding of IR varies and it is enacted
within institutions because of the rapid development of IR policy and early development
of practices. IR practices provide a company with a way to build on the foundations of
financial, management commentary, governance, remuneration and sustainability
reporting (Villiers et al., 2014). Business information in a company’s report is expected to
create more effective value in order to satisfy information needs to stakeholders.
In Asian countries (e.g. India, Indonesia, Malaysia, Philippines, South Korea, Singapore
and Thailand), the development of a corporate sustainability discloser does not vary
considerably among the countries. However, based on the respective national business
system within the Asian countries, multinational companies in Thailand are more likely to
adopt corporate social responsibility (CSR) than national companies (Chapple and Moon,
2005). IR should explain how a company reaches its vision by building values, being enacted
by management and monitored by governance using effective resources such as financial,
intellectual, social and environmental capital (Abeysekera, 2013). Business information
integrated in the reports is the mainstay for listed companies to incorporate business
performance, corporate structures and other stakeholders along with economic growth
(Chaiprasi, 2014).
Thus, this study investigates:
 How Thai-listed companies bring together business information about a company’s
strategy, governance, performance of economic, environmental, social and
community in which it operates in IR perspectives?
 How IR of companies in Thailand create communicative value when satisfying
information needs to stakeholders?
 How sustainability reporting of Thai companies is related to the IR matter for value
creation?

This study explored sustainability reporting and IR perspectives of Thai-listed companies

in particular, their compliance with CSR guidelines to bring together business information,
good corporate governance, environmental and social performance and future outlook of IR
principles for investigations. In this study, one research question and propositions are given
below:

RQ. To what extent sustainability reporting and IR perspectives of Thai-listed

companies to satisfy information needs to stakeholders and value creation to
external users?
 P1. Sustainability reporting practices of Thai-listed companies represent good corporate Perspectives of
governance, fair business operation, respects of human rights and fair treatment of Thai-listed
labor, consumer responsibility, social development and environmental conversation.
companies
P2. Sustainability reporting practices of Thai-listed companies incorporate business
information in the reports relatively relevant to the IR principles to satisfy
information needs to stakeholders.
P3. Sustainability reporting practices of Thai-listed companies meet the international IR 673
perspectives of international best practices for creation of a communicative value to
external users.

2. Prior literature and conceptual framework

2.1 Integrated reporting and its communicating value
According to the International Integrated Reporting Council (IIRC) (2013), IR has been
developed and designed to enhance and consolidate existing reporting practices. The
development of IR aimed to provide companies with a way to incorporate business
information together with strategy, government and performance needed to assess
organizational value in the twenty-first century. IR requires linking different pieces of
business information to the connectivity principle while expecting companies to give a clear
representation of the interaction among different resources for the production of benefits for
shareholders and stakeholders (Boonlua and Phankasem, 2016). Successful companies are
expected to maintain and strengthen good corporate governance systems in terms of
transparency and complete information based on international best practice (International
Integrated Reporting Council [IIRC], 2013). IR perspectives aim to maintain and straighten
corporate governance systems in accordance with the commonly accepted international best
practices (International Integrated Reporting Council [IIRC], 2013). As an IR manner is
mainly a voluntary disclosure, it can be used as a company’s strategic decision where the
board of directors formulates polices and monitors business activities (Abeysekera, 2013).
The strategic thinking of management at boardroom levels with the organizational intent
and operational activities are incorporated in the reports to faithfully promote
organizational performance to stakeholders. The combination of accountability and
reporting transparency of business activities are the cornerstones in disclosing monetary
and non-monetary nature (Abeysekera, 2013). IR provides primary users such as
institutional investors with the ability to influence how companies are communicating
information to their stakeholders (International Integrated Reporting Council [IIRC], 2013;
Solomon and Solomon, 2006).
According to Atkins and Maroun (2015), the first set of IR matters of the country has not
been much interested in exploring the opinions of different stakeholders of how institutional
investors react to the IR.
Belverd et al. (2016) claimed that high-performance companies were not generally
recognized from International Integrated Reporting Council (IIRC) companies and Global
Reporting Initiative (GRI) companies. High-performance companies were having equal
performance on sustainability and IR practices compared to GRI companies. These
companies seemingly fell short of full compliance with standards of IR and sustainability
manners. Nishitani et al. (2016) found that the initiation of IR practices of Japanese
companies listed in the stock market from 2012 to 2014 was different from the UK-listed
companies. Based on a survival analysis, Japanese-listed companies with better
environmental performance were more likely to initiate IR practices earlier than UK-listed
JFRA companies with better or worse environmental performance. In relation to the initiation of IR
17,4 practices, Japanese-listed companies used IR as a business strategy to create shareholder
value by satisfying information needs to enhance decision-making of their financial
investors. According to Villiers et al. (2014), the Integrated Reporting Framework in
Singapore, was publicly established by the Singapore Accountancy Commission. The
framework was expected to provide a more comprehensive and cohesive picture of firms
674 thus contributing to greater information transparency. A number of listed companies from
other countries (e.g. Europe, South Africa and Asia) have used the Integrated Reporting
Framework to considerably develop their policy and practice for considerable tractions
(Villiers et al., 2014). In this relation, if IR enables to closely connect to the notion of financial
value creation, business information in the corporate sustainability report of a company
would potentially satisfy information needs to stakeholders and other external users
(Villiers et al., 2014).
In Thailand, IR practices in Thai context have not been much of interest to Thai-listed
companies (Ratanajongkol et al., 2006). Thai firms are moving toward IR practices and still
have a long way to go for preparation of IR (Petcharat and Mihret, 2016; PWC Thailand,
2013). The survey of price waterhouse cooper found that IR of Thai companies is in its early
stages of incorporating non-financial performance and financial performance in mandatory
disclosures (PWC Thailand, 2013). Companies are required to provide data accuracy and
transparency on environmental and social facets thus satisfying information needs to
investors (PWC Thailand, 2013). An integration of environmental and social data in a Thai
company’s reports is falling short on company’s potential to enable accounting
communication to stakeholders or other external users (Kuasirikun and Sherer, 2004;
Petcharat and Mihret, 2016; Thawornwong, 2011). Meanwhile, the fundamental concepts of
IR have been agreed by the Federation of Accounting Professions in Thailand to report
transparent performance (PWC Thailand, 2013). As a result, companies are having less
intention to integrated non-financial performance such as environmental and social factors
in annual reports (Petcharat and Mihret, 2016; Prayukvong and Olsen, 2014). This result in
environmental and social information in financial statements is more difficult for the
financial analysts when estimating potential returns and investment risks (Eccles et al.,
2001).
According to KPMG (2012) IR can help firms explain their operational performance
regarding adding shareholder value. Recently, GRI and IIRC have agreed that corporate
reporting needs to be seen as how a company’s financial statement is linked with its
environmental and social performance (Deloitte, 2011; The IIRC Organization, 2013). IR
creates a better opportunity for a company to support investors’ and stakeholders’ interests
in embracing a sustainable future (Deloitte, 2011; The IIRC Organization, 2013). As such
environmental and social performance indicators identified by the GRI (2006, 2010 and 2011)
should be fully captured to enhance internal management decision-making and a company’
report effectively. A lack of IR in a developing country such as Thailand is not seen as a
suitable way to mitigate the pressure or to seek the support of stakeholders. In the context of
environmental and social performance in IR, it is possible that this information is reported to
either seek the support of or mitigate pressures from stakeholders. Thus, this study
examines Thai-listed companies representing their business information along with
strategy, good corporate governance, economic, social and environmental performance and
future outlook in annual reporting systems. The study aimed to seek how companies are
complying with the corporate sustainability reporting guidelines when providing reports to
meet the IR perspectives. Sustainability reporting practices and IR perspectives drawn in
this study are discussed next.
2.2 Sustainability reporting and integrated reporting perspectives Perspectives of
Organizations involved in sustainability and IR initially aim to enhance investment decision Thai-listed
of stakeholders. Business information together with strategy, governance, financial
performance and sustainability achievement information in the reports is integrated in the
companies
form of sustainability reporting manners. The disclosures of environmental and social
performance have, however, increasingly been disclosed separately as stand-alone reports
on a variety of media such as a company’s website (Cho et al., 2009). In relation to this, as a
stand-alone disclosure, social and financial performance has been provided with a greater
675
range of issues and long information to meet the needs of a range of stakeholders (Villiers
et al., 2014). As a result, sustainability information in relation to environmental and social
performance becomes more complex and difficult to satisfy information needs of external
users. To reduce the complexity of the information, social and environmental information
together with financial performance have been incorporated in single reports (Villiers et al.,
2014). With an integration of social, environmental and financial performance together with
governance information has come to be known as IR (Hopwood et al., 2010; Villiers et al.,
2014). IR practices have been introduced to companies with sustainability reporting
mechanism incorporating business information together with strategy, governance,
performance and social and environmental sustainability (Boonlua and Phankasem, 2016;
International Integrated Reporting Council [IIRC], 2013).
According to Chambers et al. (2003), corporate sustainability reporting in Asia was far
behind than those in Western countries. However, Asian countries have developed their own
reporting systems for sustainability disclosures. Thai companies have been required to
ensure that they have met international and social environmental standards (Thapanachai,
2000; Tungrhapheephakorn, 2001 cited in Kuasirikun and Sherer, 2004). They suggest that
environmental and social data should be accurately reported in a company’s financial
statement as associated with the information in voluntary disclosures. In this relation,
international markets have been concerned about social well-being and environmental
awareness of Thai companies for decades (Kuasirikun and Sherer, 2004). To deal with this
issue, the Stock Exchange of Thailand (SET) has required Thai-listed companies to set,
implement and incorporate policies and procedures for environmental improvements in
their reports (Lin, 2009). Companies can use the principle of either “explain” or “comply”
with environmental sustainability reporting of both mandatory and voluntary disclosures
(SET, 2008; Suttipun and Stanton, 2012). With this respect, environmental indicators in the
GRI guidelines are introduced to Thai-listed companies to basically help them publish their
environmental performance and to promote environmental sustainability (GRI, 2014;
Institute of Management Accountants, 2008; The IIRC Organization, 2013). This creates
more accurate information on environmental facets of their operations to enable more
effective decision-making on cost savings as well as having the ability to satisfy information
needs of stakeholders and the public (Adams, 2010; Chansarn, 2013). The SET has also set
the CSR guidelines for sustainability reporting practices. It aims to facilitate Thai-listed
companies to report business information together with:
 good corporate governance;
 fair business operation;
 respect for human rights and fair treatment of labor;
 consumer responsibility;
 participation in social development; and
 environmental conservation (SET, 2008).
JFRA According to the previous studies (Kuasirikun and Sherer, 2004; Kraisornsuthasinee, 2006;
17,4 Petcharat, 2015; Petcharat and Mihret, 2016), the extent of environmental information in
mandatory and voluntary disclosures by listed companies has not been clearly identified or
measured using either set of international guidelines. Sustainability reporting practices of
Thai-listed companies (construction [CST] sectors) showed room for improvement with
respect to enhancing informativeness of sustainability achievement to users. Mandatory
676 reporting regime on the Thai CST sectors has fostered the quantity of sustainability
achievement in annual reports. Wide variations, however, still exist in the information
disclosed in the report owing to management’s considerable reporting direction (Petcharat
and Mihret, 2016). Thai companies basically understand environmental and social
responsibility practices, as well as recognize environmental information based on the CSR
guidelines of SET (2008). In addition, as a voluntary regime, little information on
environmental factors was incorporated in the CSR disclosures in an informative form
(Moisescu and Mihai, 2006; Petcharat, 2015). Companies failed to sufficiently incorporate
environmental information in external reports while only few companies fully disclose their
carbon emissions, energy and water consumptions and total volume of waste productions
externally (Thanatrakolsri, 2014). Suggestions emanating from previous studies (Stubbs
and Higgins, 2014) show that the need for IR should be further examined across different
countries, and with a wider range of internal and external stakeholders. An initial aim of this
is to further understand the IR mechanisms and explore changes in reporting mechanisms in
response to IR manner (Stubbs and Higgins, 2014). Abeysekera (2013) also suggested the
transformative power of integration of various aspects of organizational capital, vision and
values. The comparative study provides valuable insights and explains why and how each
factor playing a role in integrating various aspects of capital, performance and transparency
of the reports should be included in future research (Abeysekera, 2013; Boonlua and
Phankasem, 2016).
It can be seen that sustainability reporting in Thai context has been produced to promote
how companies are taking environmental and social issues into account while improving
economic performance, but not all an integration of business information to the connectivity
of integrated reporting principles. The CSR guidelines of the SET can help incorporate
business information, strategy, governance, performance, social development and
environmental conservation in annual reports (Lin, 2009). Multinational companies in
Thailand incorporated three emerging themes in their reports including economic
contribution and community participation, community interaction relation strategy and
capacity building in human rights (Pimpa and Moore, 2015). As annual reports can be
mainstay to incorporate business performance, corporate structures and economic growth,
national companies in Thailand are required to disclose more comprehensive view of
performance – economic, environment and social that goes beyond financial measurements
alone (Chaiprasi, 2014). Companies need to incorporate business information in relation to
strategy, governance, performance and prospects reflecting environmental, social and
community in their reports based on IR practices (Chaiprasi, 2014; International Integrated
Reporting Committee [IIRC], 2011). This study therefore discovered sustainability reporting
practices of Thai-listed companies integrating business information including a company’s
strategy, governance, performance, social development and environmental conservation in
the reports for value creation. Sustainability reporting perspectives of Thai companies meet
the needs of IR principles – organizational overview and business model, operating context –
risks and opportunities, strategic objectives and strategic to achieve those objectives,
governance and remuneration, operational performance and future outlook. Legitimacy
theory is used to explain the results from the study.
2.3 Conceptual framework Perspectives of
This study sought to examine sustainability reporting of Thai-listed companies complying Thai-listed
with CSR guidelines to satisfy information needs of stakeholder and external users.
Multinational companies in Thailand have incorporated three emerging themes in the CSR
companies
reports including economic contribution and community participation, community
interaction relation strategy and capacity building in human rights (Pimpa and Moore,
2015). This provided multinational companies in Thailand to communicate with investors to
build sustainable value at the same time (Pimpa and Moore, 2015). In relation to this, Thai- 677
listed companies are required to provide more comprehensive view of performance –
economic, environment and social that goes beyond financial measurements alone
(Chaiprasi, 2014). The SET has provided CSR guidelines for Thai-listed companies to either
“comply” or “explain” corporate sustainability achievement in the reports (SET, 2008;
Suttipun and Stanton, 2012). According to Petcharat and Mihret (2016), sustainability
reporting practices of Thai-listed companies, however, showed room for improvement with
respect to enhancing informativeness of sustainability achievement to users. Mandatory
reporting regime on the Thai-listed companies (CST sectors) has fostered the quantity of
sustainability achievement in annual reports. However, information disclosed in the reports
is owing to management’s considerable reporting direction.
Previous studies (Kuasirikun, 2005; Lin, 2009; SET, 2008; Suttipun and Stanton, 2012)
claimed that business activity in Thailand have been contributed to a large part of
sustainability in mandatory disclosures. Sustainability information in the reports was aimed to
satisfy information needs of stakeholders and the public. IR perspectives representing
organization’s strategy, business model, performance and plans against the background of the
context in which it operates could help companies to build communicative value (International
Integrated Reporting Committee [IIRC], 2011). Thai-listed companies are going a long way to
consider specific time to work for IR preparation thus moving toward IR (PWC Thailand, 2014),
as IR practices have not been much of interest to Thai companies (Ratanajongkol et al., 2006).
Thus, of particular interest to this study is the extent to how sustainability reporting and IR
perspectives of Thai-listed companies create communicative value to satisfy information needs
to external users. Sustainability reporting practices and IR perspectives of Thai-listed
companies and their compliance with CSR guidelines to bring together business information,
strategy, governance, performance and future outlook of IR principles were targeted for an
investigation. A conceptual framework was underlined from the review of literature (Figure 1).

Sustainability reporting mechanism and integrated reporting practices

reporting principles
Guidelines & integrated
Responsibility
Corporate Social

principles
integrated reporting
Guidelines &
Responsibility
Corporate Social

reporting principles
Guidelines & integrated
Responsibility
Corporate Social

Figure 1.
A conceptual
framework of
Reporting Sustainability sustainability
Provide Used by External users
mechanisms information reporting mechanism
P3 and integrated
P1
P2 reporting practices
JFRA 3. Research methods
17,4 3.1 Approach
Exploratory research was used in this study using an interpretive mode of inquiry based on
qualitative data. The investigation aims to bring out the appropriate ways to incorporate
economic, environmental and social information in data in IR system of a company. In-depth
interview was used with organizations incorporating economic, environmental and social
678 performance in IR. Sustainability reports of sampling companies were reviewed to seek
whether the sustainability reporting practices of Thai-listed companies meet the
international integrated reporting perspectives for creation of a communicative value to
external users. Integrated reporters in Thailand were expected to bring together business
information about a company’s strategy, governance and performance of economic,
environmental, social and community in which it operates in IR perspectives. Information
integrated in the reporting systems was also aimed to create communicative value when
satisfying information needs to stakeholders. And economic, environmental and social
performance in a sustainability report of Thai-companies was related to the IR practices for
value creation.
This study investigated commitments of Thai-listed companies to either “explain” or
“comply” their:
 good corporate governance;
 fair business operation;
 respect for human rights and fair treatment of labor;
 consumer responsibility;
 participation in social development; and
 environmental conservations.

Certain questions sought to individually probe chief accountants, controllers, chief financial
officers and management accountants in relation to sustainability reporting practices within
organizations. In addition, data was conducted through a review of sustainability reports
and IR perspectives of samples. Business information together with a company’s strategy,
good governance and performance of economic, environmental, social and community
development incorporated in the reports based on the CSR guidelines of SET in 2008 was
targeted. The requirements of the SET, good corporate governance, fair business operation,
respect for human rights and fair treatment of labor, consumer responsibility, participation
in social development and environmental conservation, were set as an analysis theme
(SET, 2008; Suttipun and Stanton, 2012). Content analysis method was considered
appropriate for this study.

3.2 Sample selection

Participants were selected from 50 largest companies listed on the SET. A total of 50
management accountants providing sustainability reports from 50 companies in the SET
were selected across 5 sectors: food and beverage manufacturing (FBM) (10), petroleum and
chemical product manufacturing (10), machinery and equipment manufacturing (MEM) (10),
CST (10) and transports (TRS) (air and road) (10). Furthermore, 15 annual reports of
international listed-companies were selected from the same sectors in interviews including
10 reports of Asian companies and 4 of US companies. According to the previous studies
(Cullen and Whelan, 2006; Zvezdov, 2012), management accountants play a significant role
in moving toward a corporate sustainability, as well as setting sustainability strategies to
achieve the best sustainability outcomes. They also fulfill their traditional role in identifying Perspectives of
and measuring all sources of expenditures paid for sustainability improvement Thai-listed
(Collins et al., 2011). The connection between societal and economic progress is linked with
business strategies and non-financial reporting (Zvezdov, 2012) when identifying how a
companies
company achieves its sustainability for value creation. Thus, to meet corporate
sustainability goals, management accountants drive as collaborators with a company to
provide environmental and social data incorporating both mandatory and voluntary
disclosures. 679
As IR helps promote how companies meet environmental and social improvement
targets (Boonlua and Phankasem, 2016), management accountants’ roles with a combination
of financial expertise and business acumen are expected to drive sustainable business
success (Petcharat, 2015). Data accuracy incorporated in the financial reports is aimed to
guide critical business decisions and drive strong sustainable business performance. The
accounting profession is aiming to use an environmental and social framework to fully
identify and capture environmental and social performance indicators (Institute of
Management Accountants, 2008). Management accountants have intentions to capture
environmental and social information to incorporate at some levels of quantification in
annual reports. Thus, this study selected 50 management accountants who have been
involved in setting sustainability strategies and providing sustainability reports. The
sustainability reporting guidelines of the SET were set as an analysis theme shown in
Table I.
The participants were probed how a company provides a clear and concise
representation to create values when incorporating corporate governance, fair business
operation, respect for human rights and fair treatment of labor, consumer responsibility,
participation in social development and environmental conservation in the reports. At the
first stage, the questions referred to the general knowledge about sustainability reporting
relating to an integration of business information to the connectivity principle. This includes
maintaining and straightening corporate governance systems in accordance with the
commonly accepted international best practices. In the second section, participants were
asked how companies incorporate business information in relation to good corporate
governance, fair business operation, respects of human rights and fair treatment of labour,
consumer responsibility, social development, and environmental conversation in annual
reports in line with integrated reporting principles to satisfy information needs to
stakeholders.

3.3 Content analysis methods

A content analysis method was used to analyze interviews of each sector using qualitative
coding techniques (Strauss and Corbin, 1990). Through coding, related words were counted
from exact match, related words, phrase and sentences that emerged within the data
resulting in the key themes (Neuman, 2006; Patton, 1990). Measuring the number of words
provides this study with a way to see more detailed than measuring “part-page” disclosure
(Deegan and Gordon, 1996). The analysis theme was categorized according to: good
corporate governance, fair business operation, respect for human rights and fair treatment
of labor, consumer responsibility, participation in social development and environmental
conservation. Table II provides an analysis theme identified from the CSR guidelines of the
SET. To enrich the results of the study, secondary data of annual reports (50) of sample from
the same sectors in interviews was used to benchmark with multinational firms.
Multinational corporates (MNCs) that have engaged in corporate sustainability activities in
developing countries such as Thailand (Ite, 2004; Weyzig, 2007) were used in benchmarking
 17,4

680
JFRA

Table I.

sustainability
reporting themes
Business sectors and
Sustainability reporting themes
Respect for humanhuman
Good corporate Fair business rights and fair treatment Consumer Participation in social Environmental
governance operation of labor responsibility development conservation

Food and beverage manufacturing      

– FBM
Petroleum and chemical product –      
PCP
Machinery and equipment      
manufacturing – MEM
Construction – CST      
Transports (air and road) – TRS      
Total annual reports – 50
Number of participants – 50
Sustainability reporting concepts
in annual reports (SET, 2008)
Good corporate governance
Fair business operation
Respect for human rights and fair
treatment of labor
Consumer responsibility
Participation in social development
Environmental conservation
IR perspectives (International Integrated Reporting Committee [IIRC],
Perspectives of
2011) and International Integrated Reporting Council [IIRC], 2013) Thai-listed
companies
Organization leaderships, strategic decision-making process, skills of
leaderships and remuneration of leadership
Operational overview and business model, business strategy, risk
management, opportunities and financial and non-financial
performance 681
Respect and honor, equal opportunity, fair remuneration, skills
improvement, updated relevant information, good communication,
efficiency and good relations
Standard quality and services in suitable price, reliable services in
accordance with the trade agreements, stressing the importance of
keeping confidential information and providing better opportunities
to benefit clients
Develop and strive to build and protect customers, suppliers and
business partners with common values and behaviors, key
relationships, trust and loyalty Table II.
Use of natural resources – material, energy water and air. Manage use Sustainability
of land, mineral and forests. Maintain biodiversity and ecosystem reporting themes and
health IR perspectives

themes. Integrated information in annual reports of samples was benchmarked with the
reports of 15 MNCs indicated from the same sectors in interviews, 10 of Asian companies
and 4 of US companies established in Thailand. Benchmarking analysis themes were
identified from IR principles including operating context – risks and opportunities, strategic
objectives and strategies to achieve those objectives, governance and remuneration,
operational performance and future outlook of International Integrated Reporting Council
(IIRC) (2013). IR perspectives represent an organization’s strategy, governance, performance
and prospects in a way that reflects the commercial, social and environmental context. This
facilitates a company to create and sustain value now and in future (International Integrated
Reporting Council [IIRC], 2013). Thus, IR principles of the International Integrated
Reporting Council (IIRC) (2013) were used as benchmarking analysis including
organizational overview and business model, operating context – risks and opportunities,
strategic objectives and strategies to achieve those objectives, governance and
remuneration, operational performance and future outlook. Content analysis methods were
used to count the number of words in the sustainability reports to compare with the
information in the IR of benchmarking companies. Results were identified using proportion
of words counted from the proportions of the reports. An analysis theme was set based on
the CSR guidelines of SET (2008), shown in Table II.

4. Results and discussions

Based on the requirements of the SET, listed companies need to incorporate good corporate
governance, fair business operation, respect for human rights and fair treatment of labor,
consumer responsibility, participation in social development and environmental
conservation in annual reports. The answers to the P1 reveal that business information
incorporated in sustainability reports and IR perspectives of Thai-listed companies was
classified into the set of analysis themes – good corporate governance, fair business
operation, respects of human rights and fair treatment of labor, consumer responsibility,
social development and environmental conversation for value creation. The participants
JFRA indicated that accounting mechanisms were used along with sustainability reporting
17,4 perspectives to help integrate business information together with corporate governance,
financial performance and social and environmental context in annual reports. Number of
words of overall IR perspectives identified in the interview was allocated into the analysis
themes – good corporate governance, fair business operation, respect for human rights and
fair treatment of labor, consumer responsibility, participation in social development and
682 environmental conservation shown in Table III.
Owing a small number of companies of each type of industries, there was only little
difference of total number of words and percentage of information integrated in
reporting. Participants mentioned that integrated information in relation to fair business
operation was mainly incorporated in the reports, followed by good corporate
governance. With the same levels of reporting (90-95), sustainability information of
samples was fallen into good corporate governance and fair business operation. At the
same levels of 85-89, information in the sustainability reporting of a sample were fallen
into respect for human rights and fair treatment of labor and participation in social
development. And with the same levels of reporting (79-84), sustainability information in
the reports was fallen into consumer responsibility and environmental conservation. The
average number of words disclosed per company was high in each indicator of five
sectors. However, consumer responsibility and respect for human rights of petroleum and
chemical products (PCM) and fair treatment of labor of CST appeared less information
than others. Examples of interviews are provided as follows:
[. . .].Our good corporate governance included organisation leaderships, Strategic decision-making
process, Skills of leaderships, Remuneration of leadership [FBM:3].

[. . .] [. . .] fair business operation, Respect for human rights and fair treatment of labour,
Consumer responsibility, Participation in social development, and Environmental conservation
[FBM: 5,6,8 and 9].

[. . .].consumer responsibility, Social development, Environmental conservation [PCP:9].

[. . .]. consumer responsibility, Participation in social development, and Environmental

conservation [PCP:10].

FBM PCP MEM CST TRS

Analysis themes n = 50 n = 50 n = 50 n = 50 n = 50

Good corporate governance 90 91 90 91 88

Fair business operation 93 92 92 92 91
Respect for human rights and fair treatment of labor 84 83 83 79 85
Consumer responsibility 84 78 86 80 82
Participation in social development 86 85 89 87 82
Environmental conservation 83 81 80 82 84
Accum word count 520 510 520 511 512
Total number of words 495 505 495 504 505
Relative count (%) 519.80 509.50 579.80 510.52 509.50
Table III.
Overall IR Note: Food and beverage manufacturing (FBM), petroleum and chemical product (PCP), machinery and
perspectives equipment manufacturing (MEM), construction (CST) and transports (air and road) (TRS)
 [. . .] [. . .] consumer Responsibilities, Environmental Conservation, Community Involvement and Perspectives of
Social Development, Research and Development from Social Responsibility Operations [MEM:5].
Thai-listed
[. . .] [. . .] respect for human rights and fair treatment of labour, Consumer responsibility, Social companies
development, and Environmental protections [MEM:8].

[. . .] environmental protection, social and community improvement [. . .]. Environmental

protection quality of life of community [. . .].[CST:1 and CST:2] 683
[. . .] we have incorporated good corporate governance, fair business operation, social
development, and environmental conservation in annual reports [. . .].[CST:5]

[. . .] we paid most attention to incorporate participation in social development and environmental

conservation but only few points of consumer responsibility that we included in the reports
[PCP:10].

[. . .] [. . .] our CSR measurement was provided belong with SET requirements [. . .] [TSR:7].
It can be seen that sustainability reporting practices of Thai-listed companies have complied
with the corporate sustainability guidelines of the SET to represents good corporate
governance, fair business operation, respect for human rights and fair treatment of labor,
consumer responsibility, social development and environmental conversation in annual
reports. As an Asian country, Thailand has developed sustainability reporting system
(Chambers et al., 2003) and complied with the CSR guidelines of the SET for decades.
Business information incorporated in sustainability reports of Thai companies aimed to
meet the requirements of international and social environmental standards (Thapanachai,
2000; Tungrhapheephakorn, 2001 cited in Kuasirikun and Sherer, 2004). Companies have
used sustainability reporting guidelines of both mandatory and voluntary disclosures
(SET, 2008; Suttipun and Stanton, 2012). Business information together with strategy,
governance, economic, social and environmental performance incorporated in the reports
enable more effective decisions of external users. The reports help mitigate the pressure or
to seek the support of stakeholders when investment decisions need to be made.
This study found that sustainability reporting practices of Thai-listed companies
incorporate business information in the reports relatively relevant to the IR principles when
satisfying information needs to stakeholders. The development of IR perspectives designed
to enhance and consulate existing sustainability reporting practices for creation of
communicative value was targeted for investigation. The interview was conducted through
criterions of each indicator of the CSR guidelines of the SET. Number of words mentioned
by participants how business information in relation to good corporate governance, fair
business operation, respects of human rights and fair treatment of labor, consumer
responsibility, social development, and environmental conversation are relevant to the
integrated reporting perspectives (Table IV).
The numbers of words were counted from the answer of participants regarding a
company’s commitment to either “explain” and/or “comply” with the guidelines of the CSR
guidelines of SET (2008) together with IR principles (International Integrated Reporting
Committee [IIRC], 2011, 2013). Participants were expected to identify whether a company
explains and or complies with the guidelines and/or the requirements of the IR principles
when preparing a sustainability report. The answer to P2 show that Thai-listed companies
explained and complied how a company incorporated business information together with
governance, strategy, performance and social and environmental conservation to satisfy
JFRA Industry sectors
17,4 FBM PCM MEM CST TRS Total words
CSR guidelines n =10 n =10 n =10 n =10 n =10 in disclosure

Good corporate governance

Organization leaderships 30 28 29 23 25 135
684 Strategic decision-making process 30 26 28 21 22 127
Skills of leaderships 15 19 16 19 22 101
Remuneration of leadership 15 18 17 18 19 87
90 91 90 91 88 450
Fair business operation
Operational overview and business
model 18 18 17 19 18 90
Business strategy 18 18 17 16 17 86
Risk management 20 17 18 16 18 89
Opportunities 17 19 18 19 16 89
Financial and non-financial
performance 20 20 22 22 22 106
93 92 92 92 91 460
Respect for human rights and fair treatment of labor
Respect and honor 12 9 9 8 10 48
Equal opportunity 10 10 11 8 11 50
Fair remuneration 11 12 11 9 13 56
Skills improvement 12 15 14 14 14 69
Updated relevant information 11 11 13 16 15 63
Good communication 13 14 12 15 11 65
Efficiency and good relations 15 12 13 9 14 63
84 83 83 79 85 414
Consumer responsibility
Standard quality and services 25 22 22 24 25 118
Reliable services in accordance with the
trade agreements 18 16 19 16 16 85
Stressing of keeping confidential
information of customers 19 18 21 18 16 92
Providing better opportunities to
benefit clients 22 22 24 22 25 115
84 78 86 80 82 410
Participation in social development
Building values and behaviors 27 26 28 26 25 132
Key relationships 29 26 26 28 26 135
Trust and loyalty 30 33 35 33 31 162
86 85 89 87 82 429
Environmental conservation
Use of natural resources – material,
energy water and air 29 28 25 29 38 149
Table IV. Manage use of land, mineral and
Number of words forests 26 25 27 25 26 129
and percentage of Maintain biodiversity and ecosystem
health 28 28 28 28 20 132
corporate
Word count 83 81 80 82 84 410
sustainability Total word count 495 505 495 504 503
information Relative count (%) 519.80 509.50 579.80 510.52 509.50
information needs with stakeholders. Sustainability reports of the samples were provided Perspectives of
along with the international standards and requirements of the SET. Companies complied Thai-listed
with the CSR guidelines in reporting how they participated in social development and
environmental conservation. They also used the guidelines to help integrate business
companies
information in relation to good corporate governance, fair business operation, respect for
human rights and fair treatment of labor, consumer responsibility, participation in social
development and environmental conservation in annual reports. However, respect, honor
and equal opportunity of CST sectors were incorporated in the reports at lower numbers of
685
words, as well as reliable services in accordance with the trade agreements and stressing of
keeping confidential information of customers of petroleum and chemical product sectors.
Some examples of interviews are shown below:
[. . .] our company disclosed energy consumption, GHG reduction, water conservation, waste
management, and environmental conservation as priority in annual reports [PCP:5].

Yes, we incorporated energy conservation, environmental protection, risk management of

drought, emissions (NOx, SO2, TSP), and Occupational Health and Safety in annual reports
[PCP:6]

[. . .] we disclosed [. . .. concerning health and safety in work place, maintaining social and
environmental, society and community development, concerning social and environmental
awareness to employees, also social and environmental development [. . .].[CST:10]

[. . .] attain a better quality of life as to share benefits with the community and society [. . .].
[TSR:2]

We disclosed Whistle blower, Social quality of life management, Health care and safety of
employees, Community improvement, Customers satisfaction, Climate change, Sustainable
material management, Sustainable use of resources, and Biodiversity and ecosystem service
[TSR:9].
Based on the results, Thai-listed companies incorporated business information together
with:
 good corporate governance;
 fair business operation;
 respect for human rights and fair treatment of labor;
 consumer responsibility;
 participation in social development; and
 environmental conservation in the reports.

Sustainability reporting of Thai companies met the requirements of the SET setting,
implementing and incorporating policies and procedures for environmental improvements
in their reports (Lin, 2009). Companies used the principle of either “explain” or “comply”
with sustainability reporting manners of both mandatory and voluntary disclosures (SET,
2008; Suttipun and Stanton, 2012). Business information together with good corporate
governance, fair business operation, respect for human rights and fair treatment of labor,
consumer responsibility, participation in social development and environmental
conservation need to be explained in informative form or complied with sustainability
reporting practices. In mandatory and voluntary disclosures, companies need to explain
JFRA how environmental and social performance meets the needs of stakeholders’ interests.
17,4 Business information in the sustainability reports need to be more accurate and should be
able to satisfy information needs of stakeholders and the public at the same time (Adams,
2010; Chansarn, 2013). Thus, by complying with the CSR guidelines, companies become
strong sustainable growth organizations and capable of creating value both immediately
and in the future (SET, 2008).
686 The answers to P3 show that sustainability reporting practices of Thai-listed companies
meet the international IR of international best practices when creating communicative value
to external users. Participants were asked how business information in the reports based on
the CSR guidelines of the SET are relevant to the IR principles of the International
Integrated Reporting Council (IIRC) (2013). Participants were expected to identify business
information in the sustainability reports that are related to the IR principles including
organizational overview and business model, operating context – risks and opportunities,
strategic objectives and strategies to achieve those objectives, governance and
remuneration, performance and future outlook. Business information incorporated in the
sustainability reports of samples was relevant to good corporate governance, fair business
operation, respect for human rights and fair treatment of labor, consumer responsibility,
participation in social development and environmental conservation. The data from
interview was fallen into each indicators of IR principles including organizational overview
and business model, operating context – risks and opportunities, strategic objectives and
strategies to achieve those objectives, governance and remuneration, operational
performance and future outlook. Word count of CST sectors appeared to be higher than
others, followed by transportation in all IR perspectives. Surprisingly, future outlook
appears to be biased in incorporating in the reports. Thai companies may not pay much
attention to mention future intention and/or trend of business development in the reports
(Table V).
Based on the results, Thai-listed companies were aiming to maintain and strengthen
good corporate governance systems in terms of transparency and complete information
based on international best practice (International Integrated Reporting Council [IIRC],
2013). This includes corporate governance systems in accordance with the commonly
accepted international best practices (International Integrated Reporting Council [IIRC],
2013). According to Abeysekera (2013), IR practices are mainly voluntary disclosures

Business information in sustainability reports

FBM PCM MEM CST TRS Total words
IR principles of the IIRC n =10 n =10 n =10 n =10 n =10 in disclosure

Organizational overview and

business model 85 92 88 91 93 449
Operating context – risks and
opportunities 88 94 78 89 75 424
Strategic objectives and strategic
to achieve those objectives 89 66 70 91 85 401
Table V. Governance and remuneration 94 91 81 91 93 450
Business information Operational performance 92 93 75 92 89 441
Future outlook 42 31 52 65 66 256
in sustainability
Accum word count 490 467 444 519 501 2421
reports and IR Total number of words 1186 1131 1075 1256 1213
principles Relative count (%) 240.04 218.16 197.15 269.25 251.02
incorporating business strategies, policies and monitoring business activities together with Perspectives of
governance, performance and future outlook (International Integrated Reporting Council Thai-listed
[IIRC], 2013). Some samples of integrated information in annual reports mentioned by
participants are summarized as follows (Table VI).
companies
Sustainability reporting practices of Thai-listed companies meet the needs of
international IR of international best practices when creating communicative value with
external users. Integrated information in the annual reports of samples aimed to provide
sustainable firms with a way to maintain and straighten corporate governance systems in 687
accordance with the commonly accepted international best practices (International
Integrated Reporting Council [IIRC], 2013). Abeysekera (2013) claimed that detailed
information of organization overview needs to be included in the IR along with the process
whereby an organization creates and sustains value, and changes to the business model.
This is consistent with the results of interview that sampling companies incorporated
companies’ structures, management teams and management profiles together with the
business strategy and change for the deployment to the business model in annual reports.
Multiple dimensions of organizational performance and future outlook were also integrated
in the sample reports. Most importantly, IR manners need to make accountability and
performance within firms while depending on the honesty and fairness embedded in an
organization’s values (Abeysekera, 2013).
This study found that IR information of samples made accountability and performance
when disclosing context and content factors in which the organizations operates. Companies
aimed to incorporate business information together with risks and strategies, governance
and performance, in annual reports to satisfy information needs to external users. Based on
the results, future outlook appeared to be biased to be incorporated in annual reports.
Companies mainly identified current issues and strategies together with business
performance and development to mislead stakeholders. Integrated information in the reports
was shown accountability and performance bounded by content and context factors falling
into each element of the IR principles of the International Integrated Reporting Committee
(IIRC) (2011).
Thai-listed companies were intending to report business information together with
strategy, governance and remuneration and organizational performance in annual reports.
Sustainability reporting practices of Thai-listed companies paid most intention to
incorporate information falling into each element of IR principles. However, information in
relation to future outlook appeared to be biased toward incorporating in annual disclosures,
particularly in FBM and PCM sectors. Participants from FBM and PCM sectors did not
mention whether companies incorporated future trend and/or future development in annual
reports. As IR practices are mainly a voluntary disclosure (Abeysekera, 2013), companies
need to incorporate information that is need to assess the past and current performance, as
well as much wider in future resilience (International Integrated Reporting Committee
[IIRC], 2011).
This study further sought to benchmark integrated information in annual reports of
samples with the annual reports of MNCs in Thailand. This aimed to clearly see how
integrated information in annual reports of samples could be closely related to the IR
practices of MNCs established in Thailand. It included 15 of international listed-companies
selected from the same sectors in interview and 10 Asian companies and 4 of US companies.
IR principles of the International Integrated Reporting Council (IIRC) (2013) were applied in
benchmarking themes – organizational overview and business model, operating context –
risks and opportunities, strategic objectives and strategic to achieve those objectives,
governance and remuneration, operational performance and future outlook. Total number of
 17,4

688
JFRA

Integrated
Table VI.

information in
annual reports
Organizational overview and We included a company’s structure . . . business process, product categories – chicken parts cooked chicken, for instance..[FBM#8]
business model We incorporated the company structure, management profiles, company’s core products . . ...in annual reports [MEM#4]
We incorporated the company structure and overview, management profile, and business strategies . . . in annual reports . . . [CST#6]
We reported management chart, management team, history and significant development of the company [TRS#2]
Operating context – risks and Risk factors within the organization . . ...company provides both opportunities and channels . . . [FBM#8]
opportunities Our company has prepared a strategy to evaluate the risk potential fraud “which will be instrumental in making important in developing the measures
Anti-corruption [FBM#9]
We disclosed risk from fluctuation of steel prices . . . risk from the excess supply and price competition . . . our company has to adapt itself by
expanding its production lines to produce round steel bars with diameter of 6-9 mm which have low competition and requires higher production
technology, skill and investment but earn higher profit margin... . ..[MEM#4]
We reported risk associated with business uncertainty, lack of workforces, land lease contract renewal, exchange rate volatility, production costs,
liquidity, and accident . . . [TRS#2]
Strategic objectives and We reported continuous improvement and keep pace with changes to the target [FBM#9]
strategic to achieve those We reported how our company has assessed the effectiveness of the policy . . .. in organizational management using Key Performance Indicators (KPIs)
objectives and behaviour (Behavioural Factor) . . . [PCM#1]
We incorporated pricing strategy . . ..on liquidity management than the profit per unit . . ...maintaining the good relationship with the trading partners
is regarded as a significant marketing strategy . . ... maintaining the quality standards, reliability on delivery and payment . . ..[MEM#4]
We included risks in business, risks related to production, and financial risks . . .. incorporated in annual reports . . ..[CST#6]
Governance and Our company has included corporate governance practices and supervision of the internal users’ information . . .. in annual reports . . ...[PCM#1]
remuneration We reported the importance of the good corporate governance, . . ..the key factor to strengthen the . . . sustainable growth of business as well as
promotion of the organization’s transparent operation,. . . .. to enhance the confidence of shareholders, investors, related persons and stakeholders . . .
. . ..[MEM#4]
We disclosed Governance Policy . . . the process of good governance . . . to raise the performance of the company for sustainable growth . . . [CST#6]
Our company reported the principle of good governance policy and guidelines pertaining to rights of shareholders . . . [TRS#2]
Operational performance We report financial highlights and financial status . . . profit and/or loss . . ..[FBM#9]
In our annual reports, you can see the explanation and analysis of financial status and operating results to show the operational performance . . ..
[MEM#4]
We included the company’s performance . . . . . . financial statements, profits and/or losses, cost, income, and expenses . . .. . .[TRS#2]
Future outlook Our future change and important developments include . . ... [FBM#8]
We included a summary of the key changes and developments in the past throughout future [PCM#1]
We provided industry outlook and competitive conditions in the future in annual report . . ..[MEM#8]
words counted from integrated information in annual reports of samples was benchmarked Perspectives of
with integrated information in the annual reports of MNCs. Proportion and percentage of Thai-listed
word count was applied. The proportion and percentage of word count from integrated
information in annual reports of samples were lower than benchmarking companies. The
companies
total number of words of integrated information of samples (48.42; 10.60 per cent) was lower
than total word count of the US companies’ reports (71.00; 15.54 per cent) (Table VII). In
addition, total number of words of integrated information in the reports of samples was also
689
less than international companies from the same sectors in the interview (54.33; 11.89 per
cent), (57.67; 12.62 per cent), (56.00; 12.26 per cent), (58.00; 12.69 per cent) and (55.67; 12.18
per cent). Surprisingly, total number of words of samples was also lower than the integrated
information of Asian companies’ reports (55.80; 12.21 per cent).
Based on the results, integrated information in annual reports of Thai-listed companies
fell into each element of IR principles – organizational overview and business model,
operating context – risks and opportunities, strategic objectives and strategies to achieve
those objectives, governance and remuneration and operational performance. Information in
relation to future outlook was, however, not expected to integrate in voluntary disclosure
scenes. According to International Integrated Reporting Committee (IIRC) (2011),
international reporting requirements and market scenes have evolved separately and
differently in various jurisdictions of IR practices. In Thailand, for instance, the SET has set
the CSR guidelines to report business information in annual reports (SET, 2008). As IR
system is in its early stages of incorporating non-financial and financial performance in
mandatory reports (PWC Thailand, 2013), the requirements of the SET could hold some part
of IR practices. This would make IR in Thai context moves toward big change in near future
(Kirdsinsap and Setthasakko, 2014).

5. Conclusion
This paper sought to explore sustainability reporting practices of Thai-listed companies and
reporting mechanisms of early adopters of IR practices. In-depth interview was used to
conduct interviews of 50 management accountants of Thai companies listed in the SET
based on an under-studied area within both the sustainability reporting and IR literature.
According to the previous studies (Chambers et al., 2003; Thapanachai, 2000;
Tungrhapheephakorn, 2001), sustainability reporting perspective in Asian countries was
behind Western countries. To deal with this matter, SET (2008) has set the CSR guidelines to
ensure that Thai-listed companies incorporated business information, strategy, governance,
performance, social development and environmental conservation in annual reports
(Lin, 2009). Participants indicated that business information together with business
strategy, corporate governance performance, social development and environmental
conservation were incorporated in annual reports.
Thai-listed companies were seemingly producing reports in some form of IR. This is
consistent with previous studies (Thapanachai, 2000; Tungrhapheephakorn, 2001).
Sustainability reporting practices of Thai companies meet the international reporting
standards of both mandatory and voluntary disclosures (SET, 2008; Suttipun and Stanton,
2012). Business information integrated in annual disclosures together with strategy,
governance, economic, social development and environmental conservation enabled
effective investment decision of external users. As IR perspective was in its early adoption
stage (PWC Thailand, 2014), companies complied with the CSR guidelines in incorporating
business information in annual reports. The guidelines helped integrate business
information together with good corporate governance, fair business operation, respect for
 17,4

690
JFRA

overview
Table VII.
Benchmarking IR
Best practices
Thai listed- companies
International listed-companies Asian companies US Companies (case study)
FBM PCM MEM CST TRS
IR principles of the IIRC n =3 n=3 n=3 n=3 n=3 n = 10 n=4 n = 50

Organizational overview and

business model 29 29 27 29 29 95 47 449
Operating context – risks and
opportunities 27 28 28 30 28 97 48 424
Strategic objectives and strategic
to achieve those objectives 26 29 29 29 27 87 47 401
Governance and remuneration 27 29 28 28 28 92 47 450
Operational performance 27 29 28 30 27 93 47 441
Future outlook 27 29 28 28 28 94 48 256
Accum word count 163 173 168 174 167 558 284 2421
Proportion of words 54.33 57.67 56.00 58.00 55.67 55.80 71.00 48.42
Relative count (%) 11.89 12.62 12.26 12.69 12.18 12.21 15.54 10.60
human rights and fair treatment of labor, consumer responsibility, participation in social Perspectives of
development and environmental conservation to satisfy information needs to stakeholders. Thai-listed
Furthermore, numbers of word counts show that business information in the reports of
samples was mostly relevant to the IR principles of international standard – organizational
companies
overview and business model, operating context – risks and opportunities, strategic
objectives and strategies to achieve those objectives, governance and remuneration,
operational performance and future outlook. Integrated information of sample was
attempting to report context and content factors falling into each element of the IR principles 691
of the International Integrated Reporting Committee (IIRC) (2011). Companies, however,
mainly provided current issues and strategies together with business performance and
development to mislead stakeholders.
In complying with the requirements of the SET, samples reported business information
including strategy, governance, performance, social development and environmental
conservation for value creation. Information integrated in sustainability reports was fallen
into all elements of IR principles of International Integrated Reporting Committee (IIRC)
(2011). Business information in the reports was relevant to the processes and structures of
the sustainability reporting and IR practices of international principles (Chaiprasi, 2014;
Simnett and Huggins, 2015). Sustainability reporting practices of samples were aiming to
incorporate current business information while ignoring future intention of operation
improvement. While sustainability reporting practices of samples were producing some
form of IR practices to satisfy information needs, future outlook appeared to be biased to be
explained in the reports. Thai-listed companies were seemingly adopting IR manners in
their reporting practices but not all. Future intention, for instance, was mentioned as little as
possible;
Our future change and important developments include [. . .] [FBM#8] [. . .] We included a
summary of the key changes and developments in the past throughout future [PCM#1] [. . .].

We provided industry outlook and competitive conditions in the future in annual report [. . .].
[MEM#8]
In addition, review of the annual reports from the same sectors in the interview was
benchmarked with annual reports of international companies established in Thailand to
enrich the results of the study. Results of benchmarking analysis from the review of annual
reports were consistent with the results from the interviews. Business information in annual
reports of samples (e.g. organizational overview and business model, risks and
opportunities, strategic objectives, governance and remuneration and operational
performance) was mostly related to international firms. Future outlook, however, appeared
to be biased to incorporate in the reports. Business information in the reports of Thai-listed
companies may create communicative value with external users but not all, comparing to
information of the international firms. As IR perspective in Thai context is in its early stage
(PWC Thailand, 2014), the CSR guidelines could provide Thai companies to move toward IR
thus enhancing and consolidating existing reporting practices.
Major limitations of this study were the sample size, participants, and business sectors.
Future research should explore a larger group of samples and participations from a variety
of business sectors involved in sustainability reporting and IR perspectives. In-depth
interview was used to conduct interviews of 50 management accountants of Thai-listed
companies from 5 sectors including FBM (10), PCM (10), MEM (10), CST (10) and TRS (air
and road) (10). A total of 15 sustainability reports selected from the same sectors in the
interviews were reviewed to benchmark with the 10 of other Asian companies, and 4 of US
JFRA firms. To enrich the interview data, finance and external stakeholders should be considered
17,4 for further study to be either surveyed or interviewed. Further studies are also required to
collect data with companies undertaking IR across different Asian countries with a wider
range of internal and external stakeholders. This could create better understanding of
reporting mechanisms that promote and facilitate IR of companies in Asia.

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Corresponding author
Neungruthai Petcharat can be contacted at: pmuangmusik023@gmail.com

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