Advertisement

Integrated Reporting in India: Research Findings and Insights

  • Sumona GhoshEmail author
Chapter
Part of the CSR, Sustainability, Ethics & Governance book series (CSEG)

Abstract

Even though there has been a growing importance of integrated reporting globally but there has been limited research conducted with respect to IR in India. Hence the study investigated the extent to which the companies in India are integrating financial and non-financial data in their reporting. It employed Longitudinal Qualitative Document Analysis for the period 2010–2016 using an Integrated Reporting Index (IRI) in examining annual reports of 102 most valuable companies ranked on the basis of market capitalization. Based on the score range of 100–0 being the maximum and minimum respectively, the study revealed an average IRI of 70%. We observed that governance and performance were the two most well reported content elements throughout. In contrast information about business model was the least reported content element. We observed that financial and human capital were the two most well reported capital form disclosed by the companies and the two least reported ones were manufactured and intellectual capital. From our study we observed that the selected companies fell into four levels of integration i.e. high integration, low integration, progressive integration and moderate integration. 38.24% of the companies fell into the category of high integration and 26.47% of the companies fell into the category of low integration. Hence Indian companies are nearly well equipped to adopt and implement “integrated reporting” as required by the IIRC framework but preparation of “Integrated Report” needs its promotion amongst such companies in the Indian context so that it encourages them to step forward and adopt this method of reporting.

References

  1. Abeysekera, I. (2013). A template for integrated reporting. Journal of Intellectual Capital, 14(2), 227–245.CrossRefGoogle Scholar
  2. ACCA. (2012). Integrating material sustainability information into corporate reports should be a key and critical outcome of Rio+20. Retrieved from http://www.Accaglobal.Com/en/discover/news/2012/05/sustainability-rio.html
  3. Adams, C. A. (2004). The ethical, social and environmental reporting-performance portrayal gap. Accounting, Auditing & Accountability Journal, 17(5), 731–757.CrossRefGoogle Scholar
  4. Adams, C. A. (2015). The international integrated reporting council: A call to action. Critical Perspectives on Accounting, 27, 23–28.CrossRefGoogle Scholar
  5. Adams, S., & Simnett, R. (2011). Integrated reporting: An opportunity for Australia’s not-for-profit sector. Australian Accounting Review, 21(3), 292–301.CrossRefGoogle Scholar
  6. Adams, C. A., Potter, B., Singh, P. J., & York, J. (2016). Exploring the implications of integrated reporting for social investment (disclosures). The British Accounting Review, 48(3), 283–296.CrossRefGoogle Scholar
  7. Athma, P., & Laxmi, N. R. (2013). Integrated reporting: The global scenario. The IUP Journal of Accounting Research & Audit Practices, XII(3), 7–18. Available at SSRN. Retrieved from https://ssrn.Com/abstract=2357840.
  8. Barker, R., & Kasim, T. (2016). Integrated reporting: Precursor of a paradigm shift in corporate reporting? In Integrated reporting (pp. 81–108). Basingstoke: Palgrave Macmillan.CrossRefGoogle Scholar
  9. Brown, J., & Dillard, J. (2014). Integrated reporting: On the need for broadening out and opening up. Accounting, Auditing and Accountability Journal, 27(7), 1120–1156.CrossRefGoogle Scholar
  10. Busco, C., Frigo, M. L., Quattrone, P., & Riccaboni, A. (2013a). Integrated reporting: Concepts and cases that redefine corporate accountability. Cham: Springer.CrossRefGoogle Scholar
  11. Busco, C., Frigo, M. L., Quattrone, P., & Riccaboni, A. (2013b). Redefining corporate accountability through integrated reporting: What happens when values and value creation meet? Strategic Finance, 95(2), 33–42.Google Scholar
  12. Carels, C., Maroun, W., & Padia, N. (2013). Integrated reporting in the South African mining sector. Corporate ownership Control, 11, 991–1005.CrossRefGoogle Scholar
  13. Cheng, M., Green, W., Conradie, P., Konishi, N., & Romi, A. (2014). The international integrated reporting framework: Key issues and future research opportunities. Journal of International Financial Management and Accounting, 25(1), 90–119.CrossRefGoogle Scholar
  14. Churet, C., Robeco, S. A. M., & Eccles, R. G. (2014). Integrated reporting, quality of management, and financial performance. Journal of Applied Corporate Finance, 26(1), 56–64.Google Scholar
  15. Cleverly, P., Phillips, D., & Tilley, C. (2010). Tomorrow’s corporate reporting. The landscape of integrated reporting reflections and next steps (pp. 197–202). Massachusetts: The President and Fellows of Harvard College Cambridge.Google Scholar
  16. De Villiers, C., Rinaldi, L., & Unerman, J. (2014). Integrated reporting: Insights, gaps and an agenda for future research. Accounting, Auditing & Accountability Journal, 27(7), 1042–1067.CrossRefGoogle Scholar
  17. Dhaliwal, D., Li, O. Z., Tsang, A., & Yang, Y. G. (2011). Voluntary nonfinancial disclosure and the cost of equity capital: The initiation of corporate social responsibility reporting. The Accounting Review, 86(1), 59–100.CrossRefGoogle Scholar
  18. Dhaliwal, D., Radhakrishnan, S., Tsang, A., & Yang, Y. G. (2012). Nonfinancial disclosure and analyst forecast accuracy: International evidence on corporate social responsibility disclosure. The Accounting Review, 87(3), 723–759.CrossRefGoogle Scholar
  19. Dragu, I. M., & Tiron-Tudor, A. (2013a). GRI compliance and prerequisites of integrated reporting for Asian-Pacific companies. Annales Universitatis Apulensis Series Oeconomica, 15(2), 432–442.Google Scholar
  20. Dragu, I. M., & Tiron-Tudor, A. (2013b). The integrated reporting initiative from an institutional perspective: Emergent factors. Procedia-Social and Behavioral Sciences, 92, 275–279.CrossRefGoogle Scholar
  21. Dumay, J., Bernardi, C., Guthrie, J., & Demartini, P. (2016, September). Integrated reporting: A structured literature review. Accounting Forum, 40(3), 166–185.CrossRefGoogle Scholar
  22. Eccles, R., & Armbrester, K. (2011). Integrated reporting in the cloud. IESE Insight, 8, 13–20.CrossRefGoogle Scholar
  23. Eccles, R. G., & Krzus, M. (2010). One report: Integrated reporting for a sustainable strategy. Hoboken, NJ: Wiley.Google Scholar
  24. Eccles, R. G., & Serafeim, G. (2011). Leading and lagging countries in contributing to a sustainable society. Boston, MA: Harvard Business School, Working Knowledge.Google Scholar
  25. Eurosif and ACCA. (2013). What do investors expect from non-financial reporting? Retrieved from www.eurosif.org and www.accaglobal.com
  26. Flower, J. (2015). The international integrated reporting council: A story of failure. Critical Perspectives on Accounting, 27, 1–17.CrossRefGoogle Scholar
  27. Frías-Aceituno, J. V., Rodríguez-Ariza, L., & García-Sánchez, I. M. (2013a). Is integrated reporting determined by a country's legal system? An exploratory study. Journal of Cleaner Production, 44, 45–55.CrossRefGoogle Scholar
  28. Frías-Aceituno, J. V., Rodríguez-Ariza, L., & García-Sánchez, I. M. (2013b). The role of the board in the dissemination of integrated corporate social reporting. Corporate Social Responsibility and Environmental Management, 20(4), 219–233.CrossRefGoogle Scholar
  29. Frías-Aceituno, J. V., Rodríguez-Ariza, L., & García-Sánchez, I. M. (2014). Explanatory factors of integrated sustainability and financial reporting. Business Strategy and the Environment, 23, 56–72.CrossRefGoogle Scholar
  30. Garcia-Sánchez, I. M., Rodríguez-Ariza, L., & Frias-Aceituno, J. V. (2013). The cultural system and integrated reporting. International Business Review, 22(5), 828–838.CrossRefGoogle Scholar
  31. Ghosh, S. (2016). Reporting of CSR activities in India: Are we still at a Nascent stage even after the legal mandate? In M. Nayan & S. René (Eds.), Corporate social responsibility in India: Cases and development after the legal mandate. Cham: Springer.Google Scholar
  32. Glaser, B. G., & Strauss, A. (1967). The discovery of grounded theory: Strategies for qualitative research. Chicago, IL: Aldine Publishing.Google Scholar
  33. Gurvitsh, N., & Sidorova, I. (2012). Survey of sustainability reporting integrated into annual reports of Estonian companies for the years 2007-2010: Based on companies listed on Tallinn Stock Exchange as of october 2011. Procedia Economics and Finance, 2, 26–34.CrossRefGoogle Scholar
  34. Higgins, C., Stubbs, W., & Love, T. (2014). Walking the talk(s): Organizational narratives of integrated reporting. Accounting, Auditing and Accountability Journal, 27(7), 1090–1119.CrossRefGoogle Scholar
  35. Hindley, T., & Buys, P. W. (2012). Integrated reporting compliance with the global reporting initiative framework: An analysis of the South African mining industry. International Business & Economics Research Journal, 11(11), 1249–1260.Google Scholar
  36. Ioana, D., & Tiron-Tudor, A. (2013). New corporate reporting trends. Analysis on the evolution of integrated reporting. Annals of the University of Oradea, Economic Science Series, 22(1), 1221–1228.Google Scholar
  37. Ioannou, I., & Serafeim, G. (2012). What drives corporate social performance? The role of nation-level institutions. Journal of International Business Studies, 43(9), 834–864.CrossRefGoogle Scholar
  38. Ioannou, I., & Serafeim, G. (2015). The impact of corporate social responsibility on investment recommendations: Analysts’ perceptions and shifting institutional logics. Strategic Management Journal, 36, 1053–1081.CrossRefGoogle Scholar
  39. IoDSA. (2009). King Code of Corporate Governance for South Africa2009. Johannesburg: Institute of Directors in Southern Africa.Google Scholar
  40. IR. (2016). Integrated reporting. Accessed April 25, 2016, from http://integratedreporting.org/
  41. IRCSA (Integrated Reporting Committee of South Africa). (2011). Framework for integrated reporting and the integrated report. Accessed May 18, 2017, from http://www.sustainabilitysa.org
  42. Janeka, C., Riccerib, F., Sangiorgia, D., & Guthrie, J. (2016). Sustainability and integrated reporting: A case study of a large multinational organisation.Google Scholar
  43. Jensen, J. C., & Berg, N. (2012). Determinants of traditional sustainability reporting versus integrated reporting: An institutionalist approach. Business Strategy and the Environment, 21(5), 299–316.CrossRefGoogle Scholar
  44. Kiran, V. U., & Goud, M. M. (2015). A study of integrated reporting in Indian banks. The Management Accountant, 50, 29–33.Google Scholar
  45. Kiron, D., Kruschwitz, N., Haanaes, K., Reeves, M., FuiszKehrbach, S.-K., & Kell, G. (2015). Joining forces: Collaboration and leadership for sustainability. MIT Sloan Management Review, The Boston Consulting Group, and the United Nations Global Compact. Retrieved from http://marketing.mitsmr.Com/PDF/56380-MITSMR-BGC-UNGCSustainability2015.pdf?cid=1
  46. Lee, K. W., & Yeo, G. H. H. (2016). The association between integrated reporting and firm valuation. Review of Quantitative Finance and Accounting, 47(4), 1221–1250.CrossRefGoogle Scholar
  47. Loska, T. (2011). Integrated reporting. Towards a framework for a sustainable international corporate reporting. Munich: Grin, Verlag GMBH.Google Scholar
  48. Luke, T. W. (2013). Corporate social responsibility: An uneasy merger of sustainability and development. Sustainable Development, 21(2), 83–91.CrossRefGoogle Scholar
  49. Maubane, P., Prinsloo, A., & Van Rooyen, N. (2014). Sustainability reporting patterns of companies listed on the Johannesburg Securities Exchange. Public Relation Review, 40(2), 153–160.CrossRefGoogle Scholar
  50. Mitchell, M., Curtis, A., & Davidson, P. (2012). Can triple bottom line reporting become a cycle for “double loop” learning and radical change? Accounting, Auditing & Accountability Journal, 25(6), 1048–1068.CrossRefGoogle Scholar
  51. Owen, G. (2013). Integrated reporting: A review of developments and their implications for the accounting curriculum. Accounting Education, 22(4), 340–356.CrossRefGoogle Scholar
  52. Perego, P., Kennedy, S., & Whiteman, G. (2016). A lot of icing but little cake? Taking integrated reporting forward. Journal of Cleaner Production, 136, 53–64.CrossRefGoogle Scholar
  53. Raju, K. K. (2015). Communicating value to the stake holders: A case study of Tata Steel Company Ltd. The Management Accountant, 50, 34–35.Google Scholar
  54. Siebecker, M. R. (2009). Trust & Transparency: Promoting efficient corporate disclosure through Fiduciary-based discourse. Washington University Law Review, 87(1), 115–174.Google Scholar
  55. Sierra-García, L., Zorio-Grima, A., & García-Benau, M. A. (2015). Stakeholder engagement, corporate social responsibility and integrated reporting: An exploratory study. Corporate Social Responsibility and Environmental Management, 22(5), 286–304.CrossRefGoogle Scholar
  56. Solomon, J., & Maroun, W. (2012). Integrated reporting: The influence of King III on social, ethical and environmental reporting. London: The Association of Chartered Certified Accountants. Retrieved from http://www.accaglobal.com/content/dam/acca/global/PDF-technical/integratedreporting/tech-tp-iirsa.pdf.
  57. Stubbs, W., & Higgins, C. (2014). Integrated reporting and internal mechanisms of change. Accounting, Auditing and Accountability Journal, 27(7), 1068–1089.CrossRefGoogle Scholar
  58. Thiagarajan, A., & Baul, U. (2014). Holistic intellectual capital conceptual offering for empirical research and business application. International Journal of Management, 3(1), 31–50.Google Scholar
  59. Van Bommel, K. (2014). Towards a legitimate compromise? An exploration of integrated reporting in the Netherlands. Accounting, Auditing & Accountability Journal, 27(7), 1157–1189.CrossRefGoogle Scholar
  60. Van Zyl, A. S. (2013). Sustainability and integrated reporting in the South African corporate sector. International Business and Economics Research Journal, 2(8), 903–926.Google Scholar
  61. Velte, P. (2014). Improving corporate governance quality through modern controlling: Integrated reporting in the German two tier system. Business and Economics Journal, 5(1), 2–5.Google Scholar
  62. White, L. A. (2005). New wine, new bottles: The rise of non-financial reporting. A Business Brief for Business for Social Responsibility. Retrieved from https://www.bsr.org
  63. Yu, K., Du, S., & Bhattacharya, C. B. (2014). Everybody’s talking but is anybody listening? Stock market reactions to corporate social responsibility communications. Working paper.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.St. Xavier’s CollegeKolkataIndia

Personalised recommendations