Abstract
This research explores the evolution of reporting in a financial institution and examines whether implementing the Integrated Reporting <IR> Framework enhanced the quality of those disclosures. Research goals are explored through a case study on the sustainability reporting and <IR> practices of CBD, a financial services company based in Australia, and its journey of disclosure. The analysis suggests that the approach proposed by the IIRC does not support disclosure but rather legitimises a company’s activities for the purposes of restoring its reputation. The ‘accountingisation’ of the process makes information more comparable from a financial point of view, but not necessarily from a social or environmental standpoint. We argue that the concept of materiality, highlighted in the IIRC’s Framework, has shifted its focus from stakeholders to shareholders. By aligning its reporting practices with emerging reporting trends guided by the IIRC, this financial institution participated in the evolution of <IR> and ultimately legitimised its operations with shareholders. The research shows that CBD has reached the last stage of a process highlighted in previous studies: definitive acceptance of, and compliance with, a new set of accounting rules that shifts focus from stakeholders to shareholders with the aim of standardising reporting output. Possible future changes in the evolution of the <IR> Framework might influence a company’s approach to reporting.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Adams, C. A. (2015). The international integrated reporting council: A call to action. Critical Perspectives on Accounting, 27(1), 23–28.
Beck, C., Dumay, J., & Frost, G. (2017). In pursuit of a ‘Single Source of Truth’: From threatened legitimacy to integrated reporting. Journal of Business Ethics, 141(1), 191–205.
CBD01. (2004). Corporate social responsibility report. Melbourne. Available at https://www.CBD.com.au/content/dam/CBDrwd/documents/reports/corporate/2004-corporate-responsibility-report.pdf
CBD02. (2011). Annual review. Melbourne. Available at http://cr.CBD.com.au/download-centre
CBD03. (2005). Corporate social responsibility report. Melbourne. Available at https://www.CBD.com.au/content/dam/CBDrwd/documents/reports/corporate/2005-corporate-responsibility-report.pdf
CBD04. (2009). Annual corporate responsibility review. Melbourne. Available at https://www.CBD.com.au/content/dam/CBDrwd/documents/reports/corporate/2009-corporate-responsibilityreview.Pdf
CBD05. (2010). Annual review. Melbourne. Available at http://cr.CBD.com.au/download-centre
CBD06. (2012). Annual review. Melbourne. Available at http://cr.CBD.com.au/download-centre
CBD07. (2013). Annual review. Melbourne. Available at http://cr.CBD.com.au/download-centre
CBD08. (2014). Annual review. Melbourne. Available at http://cr.CBD.com.au/download-centre
CBD09. (2014). Dig deeper. Melbourne. Available at https://www.CBD.com.au/content/dam/CBDrwd/documents/reports/corporate/dig-deeper-2014.pdf
CBD10. (2015). Integrated reporting. Available at http://cr.CBD.com.au/how-we-work/integrated-reporting
CBD11. (2016). Annual review. Melbourne. Available at http://cr.CBD.com.au/how-we-work/integrated-reporting
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.
Dowling, J., & Pfeffer, J. (1975). Organisational legitimacy: Social values and organizational behaviour. Pacific Sociological Review, 18(1), 122–136.
Dumay, J., & Dai, T. (2017). Integrated thinking as a cultural control? Meditari Accountancy Research, 25(4), 574–604.
Dumay, J., & Guthrie, J. (2012). IC and strategy as practice. International Journal of Knowledge and Systems Science, 3(4), 28–37.
Dumay, J., Frost, G., & Beck, C. (2015). Material legitimacy: Blending organisational and stakeholder concerns through non-financial information disclosures. Journal of Accounting & Organizational Change, 11(1), 2–23.
Dumay, J., Bernardi, C., Guthrie, J., & Demartini, P. (2016). Integrated reporting: A structured literature review. Accounting Forum, 40(2016), 166–185.
Eccles, R., & Krzus, M. (2010). One report: Integrated reporting for a sustainable strategy. Hoboken, NJ: Wiley & Sons.
Feng, T., Cummings, L., & Tweedie, D. (2017). Exploring integrated thinking in integrated reporting – An exploratory study in Australia. Journal of Intellectual Capital, 18(2), 330–353.
Flower, J. (2015). The international integrated reporting council: A story of failure. Critical Perspectives on Accounting, 27(1), 1–17.
Higgins, C., Stubbs, W., & Love, T. (2014). Walking the talk(s): Organisational narratives of integrated reporting. Accounting, Auditing & Accountability Journal, 27(7), 1090–1119.
International Integrated Reporting Council (IIRC). (2011). Towards integrated reporting: Communicating value in the 21st century. London: International Integrated Reporting Council.
International Integrated Reporting Council (IIRC). (2012). Integrated reporting prototype framework. London: International Integrated Reporting Council.
International Integrated Reporting Council (IIRC). (2013). The International <IR> Framework. London: International Integrated Reporting Council.
Lawrence, A., & Weber, J. (2014). Chapter 3. In business and society: Stakeholders, ethics, public policy (14th ed.). New York: McGraw-Hill Higher Education.
Merchant, K. A., & Van der Stede, W. (2007). Chapter 3: Action, personnel and cultural controls (pp. 76–94). London: Management Control Systems.
Montecalvo, M., Farneti, F., & de Villiers, C. (2018). The potential of integrated reporting to enhance sustainability reporting in the public sector. Public Money & Management, 38(5), 365–374.
Stubbs, W., & Higgins, C. (2014). Integrated reporting and internal mechanisms of change. Accounting, Auditing & Accountability Journal, 27(7), 1068–1089.
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571–610.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.
Acknowledgment
Federica Casonato, would like to express the deepest appreciation to Macquarie University that accepted her as a visiting student to conduct her research in Sydney, Australia and to all the staff members who contributed directly or indirectly to this book chapter. She would like to acknowledge the assistance of Professor John Dumay who offered her valuable suggestions for this study and provided her with relevant advice. She wishes to express her gratitude to her supervisor at the University of Bologna, Professor Federica Farneti, who supported her during all relevant stages of work and gave her the opportunity to get involved in the research.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Casonato, F., Farneti, F., Dumay, J. (2019). From Sustainability to Integrated Reporting: How the IIRC Framework Affected Disclosures by a Financial Institution in Australia. In: Idowu, S.O., Del Baldo, M. (eds) Integrated Reporting. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-030-01719-4_6
Download citation
DOI: https://doi.org/10.1007/978-3-030-01719-4_6
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-01718-7
Online ISBN: 978-3-030-01719-4
eBook Packages: Business and ManagementBusiness and Management (R0)