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Institutional Pressures and Integrated Reporting Adoption in Sri Lanka

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Integrated Reporting (IR) for Sustainability

Part of the book series: Eco-Efficiency in Industry and Science ((ECOE,volume 34))

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Abstract

This chapter addresses the question as to why public listed companies are driven to the voluntary adoption of integrated reporting in Sri Lanka. The analysis was carried out using the institutional theoretical lens, with specific reference to the concept of institutional isomorphism in order to identify the coercive, mimetic and normative pressures that are the external driving forces for the adoption of IR. The study involved in-depth semi-structured interviews with key IR stakeholders in Sri Lanka, including early adopters, timely and late adopters, professional associations, accounting firms, annual report producing companies, a consultant and an academic. All three types of isomorphic forces were found to collectively influence decisions to adopt IR by the sample companies. Coercive isomorphism was identified as coming about through pressure from the International Integrated Reporting Council (IIRC), influence from the organisational adoption of sustainability reporting practices, influence from the parent company and pressure from stakeholders. The sample companies demonstrated experiences of mimetic isomorphism from competitive pressure, global trends and corporate recognition and the bandwagon effect through the role model or leading organisations in IR (best practice organisations) since practitioners considered IR as the best practice for corporate reporting. The interviewees appeared to be pressured by normative isomorphism through the influence of auditors and professional organisations. Annual report producing companies which provide supporting services to public listed companies (PLCs) in their annual report preparation process, were also found to be a source of normative pressure acting on Sri Lankan companies to adopt IR.

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Author information

Authors and Affiliations

  1. Department of Accounting, Faculty of Management and Finance, University of Colombo, Colombo, Sri Lanka

    Nuradhi Kalpani Jayasiri

Authors
  1. Nuradhi Kalpani Jayasiri
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Corresponding author

Correspondence to Nuradhi Kalpani Jayasiri .

Editor information

Editors and Affiliations

  1. Griffith Business School, Griffith University, Southport, QLD, Australia

    Ki-Hoon Lee

  2. Department of Accounting, University of Sri Jayewardenepura, Nugegoda, Sri Lanka

    Samanthi Senaratne

  3. Department of Accounting, University of Sri Jayewardenepura, Nugegoda, Sri Lanka

    Nuwan Gunarathne

Appendix 3.1: Interviewee Details

Appendix 3.1: Interviewee Details

No.

Interview date (m/d/y)

Industry

Company/institute code

Interviewee’s position

Interviewee code

1

04/04/18

Bank 1/PPE

B1

CFO

B1-1

2

06/07/18

Bank 2

B2

Senior Manager Finance

B2-1

3

06/13/18

Insurance 1

IN1

Senior Manager

IN1-2

4

05/17/18

Construction 1

CN1

General Manager (GM)-Commercial

CN1-1

5

05/09/18

Diversified Holding 1

DH1

Group CFO

DH1-1

6

01/29/18

Diversified Holding 1

DH1

Accountant

DH1-3

7

03/22/18

Diversified Holding 3

DH3

Group CFO

DH3-1

8

05/18/18

Diversified Holding 3

DH3

Business Analyst

DH3-3

9

06/13/18

Healthcare 1

HC1

Head of Finance and Corporate Planning

HC1-1

10

05/16/18

Hotel 1

HT1

Finance Controller

HT1-1

11

06/22/18

Motor 1

MT1

CFO

MT1-1

12

07/13/18

Motor 1

MT1

Accountant 1

MT1-2

13

02/02/18

Plantation 1 and 2

PL1&2

Managing Director

PL1&2–1

14

02/02/18

Plantation 1

PL1

GM Tea Marketing and Corporate Affairs

PL1-1

15

02/07/18

Plantation 1

PL1

GM Finance

PL1-2

16

05/04/18

Plantation 3

PL3

CFO/DGM Finance

PL3-1

17

03/15/18

Power 1

PW1

CFO

PW1-1

18

05/10/18

Power 1

PW1

Head of Finance

PW1-2

19

05/10/18

Power 1

PW1

Finance Manager

PW1-3

20

04/11/18

Telecommunications 1

TLC1

CFO

TLC1-1

21

04/10/18

Telecommunications 1

TLC1

DGM—Accounting Systems

TLC1-4

22

05/15/18

Telecommunications 1

TLC1

Senior Assistant Manager-Corporate Communications

TLC1-5

23

06/07/18

Bank 3

B3

Chief Financial Officer (CFO)

B3-1

24

05/24/18

Bank 3

B3

DGM Finance

B3-2

25

05/24/18

Bank 3

B3

Executive Officer—MIS and Sustainability Unit

B3-3

26

05/17/18

Healthcare 2

HC2

CFO

HC2-1

27

06/13/18

Trading 1

TR1

Group CFO

TR1-1

28

06/01/18

State Bank 1

SB1

Deputy General Manager (DGM) Finance and Planning

SB1-1

29

03/07/18

Professional Accounting Organisation 1

PAO1

Former president/Partner

PAO1-1

30

01/09/18

Professional Accounting Body 2

PAB2

Senior Specialist, Technical Policy and Engagement

PAB2-1

31

07/18/18

Audit Firm 1

AU1

Manager-Transaction Advisory Services

AU1-1

32

07/09/18

Audit Firm 2

AU2

Manager-Client Services

AU2-1

33

05/24/18

AR Writer 1

ARW 1

Director

ARW1-1

34

06/05/18

AR Producing Company 2

ARPC 2

CEO

ARPC2-1

35

06/05/18

AR Producing Company 2

ARPC 2

Executive

ARPC2-2

36

06/12/18

AR Producing Company 3

ARPC 3

Executive CEO

ARPC3-1

37

07/20/18

Academic/Sri Lanka

ACASL

Senior Lecture 2

ACASL2

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Jayasiri, N.K. (2023). Institutional Pressures and Integrated Reporting Adoption in Sri Lanka. In: Lee, KH., Senaratne, S., Gunarathne, N. (eds) Integrated Reporting (IR) for Sustainability. Eco-Efficiency in Industry and Science, vol 34. Springer, Cham. https://doi.org/10.1007/978-3-031-41833-4_3

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