Skip to main content
SpringerLink
Log in

Setting the Context for Integrated Reporting in the Public Sector

  • Chapter
  • First Online:
Book cover Towards Integrated Reporting

Part of the book series: SpringerBriefs in Accounting ((BRIEFSACCOUNTING))

Abstract

The central aim of this chapter is to discuss why Integrated Reporting can represent a new frontier for public sector accounting studies. From this perspective, the chapter introduces the reader to the relationships between environmental and sustainability issues and public sector organizations. These points of view have been considered pivotal for an in depth understanding of the value creation process in the public domain. However, to properly understand how public value is created, the role of intangibles must also be considered. The above mentioned reasons pave the way for the adoption of integrated reporting not only as a communication tools but, above all, as a strategic tool which can open the opportunity to experiment with management change. The chapter ends by identifying the contents to be discussed in the following chapters.

This chapter was written by Francesca Manes Rossi.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 49.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 64.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    In the chapter three the process that bring to the birth of a specific international framework addressing this new tool will be discussed.

References

  • Abeysekera I (2013) A template for integrated reporting. J Intellect Capital 14(2):227–245

    Article  Google Scholar 

  • ACCA (Association of Chartered Certified Accountants) (2010) Sustainability reporting matters: what are national governments doing about it? London. UK. Available at http://www.accaglobal.com/content/dam/acca/global/PDF-technical/sustainability-reporting/tech-tp-srm.pdf. Accessed 9 June 2016

  • Adams C (2015) Understanding integrated reporting: The concise guide to integrated thinking and the future of corporate reporting. Do Sustainability, Oxford, UK

    Google Scholar 

  • Adams CA, Frost GR (2008) Integrating sustainability reporting into management practices. Acc Forum 32(4):288–302

    Article  Google Scholar 

  • An Y, Davey H, Eggleton IR (2011) Towards a comprehensive theoretical framework for voluntary IC disclosure. J Intellect Capital 12(4):571–585

    Article  Google Scholar 

  • Andriessen D (2004) Making sense of intellectual capital: designing a method for the valuation of intangibles. Elsevier, Oxford UK

    Google Scholar 

  • Arnaboldi M, Lapsley I (2009) On the implementation of accrual accounting: a study of conflict and ambiguity. European Acc Rev 18(4):809–836

    Article  Google Scholar 

  • Atkinson AA, Waterhouse JH, Wells RB (1997) A stakeholder approach to strategic performance measurement. MIT Sloan Manag Rev 38(3):25–37

    Google Scholar 

  • Aucoin P (1990) Administrative reform in public management: paradigms, principles, paradoxes and pendulums. Governance 3(2):115–137

    Article  Google Scholar 

  • Ball A, Grubnic S, Birchall J (2014) Sustainability accounting and accountability in the public sector. In: Bebbington J, Unerman J, O’Dwyer B (eds) Sustainability accounting and accountability. Routledge, New York, pp 176–196

    Google Scholar 

  • Bartocci L, Picciaia F (2013) The case of the auditor-general of South Africa. In: Busco C, Frigo ML, Riccaboni A, Quattrone P (eds) Integrated reporting: concepts and cases that redefine corporate accountability. Springer Science & Business Media. Springer International Publishing, Switzerland, pp 191–204

    Google Scholar 

  • Benington J (2009) Creating the public in order to create public value? Int J Public Adm 32(3–4):232–249

    Article  Google Scholar 

  • Bebbington J, Larrinaga-González C, Moneva-Abadía JM (2008) Legitimating reputation/the reputation of legitimacy theory. Acc Auditing Accountability J 21(3):371–374

    Article  Google Scholar 

  • Birney A, Clarkson H, Madden P, Porritt J, Tuxworth B (2010) Stepping up: a framework for public sector leadership on sustainability. forum for the future. UK, London

    Google Scholar 

  • Bontis N (1998) Intellectual capital: an exploratory study that develops measures and models. Manag Decis 36(2):63–76

    Article  Google Scholar 

  • Bontis N (2001) Assessing knowledge assets: a review of the models used to measure intellectual capital. Int J Manag Rev 3(1):41–60

    Article  Google Scholar 

  • Bovaird T (2005) Public governance: balancing stakeholder power in a network society. Int Rev Admin Sci 71(2):217–228

    Article  Google Scholar 

  • Bovaird T (2007) Beyond engagement and participation: user and community coproduction of public services. Public Adm Rev 67(5):846–860

    Article  Google Scholar 

  • Bovaird T, Löffler E (2009) Public management and governance. Routledge, New York, NY

    Google Scholar 

  • Broadbent J, Guthrie J (1992) Changes in the public sector: a review of recent “alternative” accounting research. Acc Auditing & Accountability J 5(2):3–31

    Article  Google Scholar 

  • Bronzetti G, Sicoli G (2011) The application of intellectual capital reports in local authorities: Analysis and empirical evidence. Int J Knowl-Based Dev 2(1):85–106

    Article  Google Scholar 

  • Brown HS, de Jong M, Lessidrenska T (2009) The rise of the Global Reporting Initiative (GRI) as a case of institutional entrepreneurship. Environ Politics 18(2):182–200

    Article  Google Scholar 

  • Burns J, Scapens RW (2000) Conceptualizing management accounting change: an institutional framework. Manag Acc Res 11(1):3–25

    Article  Google Scholar 

  • Busco C, Frigo ML, Riccaboni A, Quattrone P (2013) Towards integrated reporting: concepts, elements and principles. In: Busco C, Frigo ML, Riccaboni A, Quattrone P (eds) Integrated reporting: concepts and cases that redefine corporate accountability. Springer Science & Business Media. Springer International Publishing, Switzerland, pp 3–18

    Google Scholar 

  • Cañibano L, Garcia-Ayuso M, Sanchez P (2000) Accounting for intangibles: a literature review. J Acc Lit 19:102–130

    Google Scholar 

  • Chen MC, Cheng SJ, Hwang Y (2005) An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance. J Intellect Capital 6(2):159–176

    Article  Google Scholar 

  • CIPFA (Chartered Institute of Public Finance and Accountancy) and Forum for the Future (2006) Sustainability: a reporting framework for the public services. CIPFA London, UK

    Google Scholar 

  • Cohen S, Vlismas O (2013) Analyzing the relationship between intellectual capital and performance in local governments. Glob Bus Econ Rev 15:1–17

    Article  Google Scholar 

  • Cohen S, Karatzimas S (2015) Tracing the future of reporting in the public sector: introducing integrated popular reporting. Int J Public Sector Manag 28(6):449–460

    Article  Google Scholar 

  • Deegan C, Rankin M, Tobin J (2002) An examination of the corporate social and environmental disclosures of BHP from 1983-1997: a test of legitimacy theory. Acc Auditing Accountability J 15(3):312–343

    Article  Google Scholar 

  • Del Bello A (2006) Intangibles and sustainability in local government reports: An analysis into an uneasy relationship. J Intellect Capital 7(4):440–456

    Article  Google Scholar 

  • Drake MJ, Schlachter JT (2008) a virtue-ethics analysis of supply chain collaboration. J Bus Ethics 82(4):851–864

    Article  Google Scholar 

  • Drucker PF (1994) The theory of the business. Harvard Bus Rev 72(5):95–104

    Google Scholar 

  • Druckman P, Fries J (2010) Integrated reporting: the future of corporate reporting? In: Eccles RG, Cheng B, Saaltzman D (eds) The landscape of integrated reporting. The President & Fellows of Harvard College, Massachusetts, pp 81–85

    Google Scholar 

  • Dumay J, Guthrie J, Farneti F (2010) GRI sustainability reporting guidelines for public and third sector organizations: a critical review. Public Manag Rev 12(4):531–548

    Article  Google Scholar 

  • Dumay J, Guthrie J, Puntillo P (2015) IC and public sector: a structured literature review. J Intellect Capital 16(2):267–284

    Article  Google Scholar 

  • Eccles RG, Krzus MP (2010) One report. Integrated reporting for a sustainable society. Wiley, USA

    Google Scholar 

  • Eccles RG, Krzus MP (with Sidney Ribot) (2015) The integrated reporting movement: meaning, momentum, motives, and materiality. Wiley, New Jersey

    Google Scholar 

  • Eccles RG, Serafeim G (2014) Corporate and integrated reporting: a functional perspective. Working paper 14-094. Harvard Business School

    Google Scholar 

  • Edvinsson L (2002) Corporate longitude. Bookhouse, Stockholm

    Google Scholar 

  • Edvinsson L, Malone M (1997) Intellectual capital. Harper Business, New York

    Google Scholar 

  • Epstein MJ, Buhovac AR (2014) Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers, San Francisco

    Google Scholar 

  • EY—Ernest & Young (2015) Tomorrow’s investment rules 2.0 Emerging risk and stranded assets have investors looking for more from nonfinancial reporting. http://www.ey.com/Publication/vwLUAssets/EY-tomorrows-investment-rules-2/$FILE/EY-tomorrows-investment-rules-2.0.pdf. Accessed 8 May 2016

  • Fasan M (2013) Annual reports, sustainability reports and integrated reports: trends in corporate disclosure. In: Busco C, Frigo ML, Riccaboni A, Quattrone P (eds) Integrated reporting: concepts and cases that redefine corporate accountability. Springer Science & Business Media. Springer International Publishing, Switzerland, pp 41–57

    Google Scholar 

  • Ferenhof HA, Durst S, Zaniboni Bialecki M, Selig PM (2015) Intellectual capital dimensions: state of the art in 2014. J Intellect Capital 16(1):58–100

    Article  Google Scholar 

  • Friedman M (1970) The social responsibility of business is to increase its profits. The New York Times Magazine, 13 Sept 1970

    Google Scholar 

  • Granà F, Ceccacci F (2013) The case of eskom. In: Busco C, Frigo ML, Riccaboni A, Quattrone P (eds) Integrated reporting: concepts and cases that redefine corporate accountability. Springer Science & Business Media. Springer International Publishing, Switzerland, pp 297–311

    Google Scholar 

  • Gray R (2006) Social, environmental and sustainability reporting and organisational value creation? Whose value? Whose creation? Acc Auditing Acc J 19(6):793–819

    Article  Google Scholar 

  • GRI (Global Reporting Initiative) (2005) Sector Supplement for Public Agencies, Amsterdam

    Google Scholar 

  • GRI (Global Reporting Initiative) (2015) Sustainability and reporting Trends in 2025—Preparing the future. GRI’s Reporting 2025 Project: First analysis paper, May 2015. Available at https://www.globalreporting.org/resourcelibrary/Sustainability-and-Reporting-Trends-in-2025-1.pdf. Accessed 10 June 2016

  • Grimmelikhuijsen S, Porumbescu G, Hong B, Im T (2013) The effect of transparency on trust in government: a cross-national comparative experiment. Public Adm Rev 73(4):575–586

    Article  Google Scholar 

  • Grosser K, Moon J (2005) Gender mainstreaming and corporate social responsibility: reporting workplace issues. J Bus Ethics 62(4):327–340

    Article  Google Scholar 

  • Grüber S (2014) Intangible values in financial accounting and reporting: an analysis from the perspective of financial analysts. Fachmedien Wiesbaden, Switzerland, Springer

    Google Scholar 

  • Guthrie J (2001) The management, measurement and the reporting of intellectual capital. J Intellect Capital 2(1):27–41

    Article  Google Scholar 

  • Guthrie J, Dumay J (2015) New frontiers in the use of intellectual capital in the public sector. J Intellect Capital 16(2):258–266

    Article  Google Scholar 

  • Guthrie J, Farneti F (2008) GRI sustainability reporting by Australian public sector organizations. Public Money Manag 28(6):361–366

    Article  Google Scholar 

  • Guthrie J, Olson O, Humphrey C (1999) Debating developments in new public financial management: the limits of global theorising and some new ways forward. Fin Accountability Manag 15(3–4):209–228

    Article  Google Scholar 

  • Guthrie J, Humphrey C, Jones LR, Olson O (2005) International public financial management reform: progress, contradictions, and challenges. IAP. Greenwich, Connetticut

    Google Scholar 

  • Higgins C, Stubbs W, Love T (2014) Walking the talk(s): organisational narratives of integrated reporting. Acc Auditing Accountability J 27(7):1090–1119

    Article  Google Scholar 

  • Hood C (1991) A public management for all seasons? Public Adm 69(1):3–19

    Article  Google Scholar 

  • Hood C (1995) The “New Public Management” in the 1980s: variations on a theme. Acc Organ Soc 20(2):93–109

    Article  Google Scholar 

  • Hoque Z, Moll J (2001) Public sector reform—Implications for accounting, accountability and performance of state-owned entities-an Australian perspective. Int J Public Sector Manag 14(4):304–326

    Article  Google Scholar 

  • IIRC (2013) Consultation draft of the international <IR> framework. IIRC, London

    Google Scholar 

  • Jensen JC, Berg N (2012) Determinants of traditional sustainability reporting versus integrated reporting. An institutionalist approach. Bus Strategy Environ 21(5):299–316

    Article  Google Scholar 

  • KPMG (2012) Applying integrated reporting principles in the public sector. Available at https://home.kpmg.com/content/dam/kpmg/pdf/2013/04/applying-ir-principles.pdf. Accessed 11 June 2016

  • Larrinaga-Gonzalez C (2007) Sustainability reporting: insights from neo-institutional theory. In: Unerman J, Bebbington J, O’Dwyer B (eds) Sustainability accounting and accountability. Routledge. London, pp 150–167

    Google Scholar 

  • Laughlin RC (1991) Environmental disturbances and organizational transitions and transformations: some alternative models. Organ Stud 12(2):209–232

    Article  Google Scholar 

  • Lawrence PR, Lorsch JW (1986) Organization and environment: managing differentiation and integration. Harvard Business School Classics

    Google Scholar 

  • Lev B (2001) Intangibles: management, measurement, and reporting. Brookings Institute Press, Washington DC

    Google Scholar 

  • Lev B, Cañibano L, Marr B (2005) An accounting perspective on intellectual capital. In: Marr B (ed) Perspectives on Intellectual Capital, Oxford, pp 42–55

    Google Scholar 

  • Lewis L (2000) Environmental audits in local government: a useful means to progress in sustainable development. Acc Forum 24(3):296–318

    Article  Google Scholar 

  • Mack J, Ryan C (2007) Is there an audience for public sector annual reports: Australian evidence? Int J Public Sector Manag 20(2):134–146

    Article  Google Scholar 

  • Maditinos D, Chatzoudes D, Tsairidis C, Theriou G (2011) The impact of intellectual capital on firms’ market value and financial performance. J Int Capital 12(1):132–151

    Article  Google Scholar 

  • Manes-Rossi F, Citro F, Bisogno M (2016) Intellectual capital in action: evidence from italian local governments. J Int Capital 17(4) forthcoming

    Google Scholar 

  • Massingham PR, Tam L (2015) The relationship between human capital, value creation and employee reward. J Int Capital 16(2):390–418

    Article  Google Scholar 

  • Matten D, Moon J (2008) “Implicit” and “explicit” CSR: a conceptual framework for a comparative understanding of corporate social responsibility. Acad Manag Rev 33(2):404–424

    Article  Google Scholar 

  • Meritum (2002) Guidelines for managing and reporting on intangibles (intellectual capital report). Vodafore Foundation. Available at http://www.pnbukh.com/files/pdf_filer/MERITUM_Guidelines.pdf. Accessed 12 June 2016

  • Meyer JW (2008) Reflections on institutional theories of organizations. In: Greenwood R, Oliver C, Suddaby R, Sahlin-Andersson K (eds) The Sage handbook of organizational institutionalism. Sage, London, pp 790–811

    Google Scholar 

  • Meynhardt T (2009) Public value inside: What is public value creation? Int J Public Adm 32(3–4):192–219

    Article  Google Scholar 

  • Miller P, Power M (2013) Accounting, organizing, and economizing: connecting accounting research and organization theory. Acad Manag Ann 7(1):557–605

    Article  Google Scholar 

  • Moore MH (1995) Creating public value: strategic management in government. Harvard University Press, USA

    Google Scholar 

  • Mouritsen J, Larsen HT, Bukh PND (2001) Intellectual capital and the ‘capable firm’: narrating, visualising and numbering for managing knowledge. Acc Organ Soc 26(7):735–762

    Article  Google Scholar 

  • Mussari R, Monfardini P (2010) Practices of social reporting in public sector and non-profit organizations: An Italian perspective. Public Manag Rev 12(4):487–492

    Article  Google Scholar 

  • Nahapiet J, Ghoshal S (1998) Social capital, intellectual capital, and the organizational advantage. Acad Manag Rev 23(2):242–266

    Google Scholar 

  • Olson O, Guthrie J, Humphrey C (eds) (1998) Global warning, debating international developments in new public financial management. Cappelen Akademisk, Oslo

    Google Scholar 

  • Osborne SP, Radnor Z, Nasi G (2013) A new theory for public service management? Toward a (public) service-dominant approach. Am Rev Public Adm 43(2):135–158

    Article  Google Scholar 

  • Osborne SP, Radnor Z, Vidal I, Kinder T (2014) A sustainable business model for public service organizations? Public Manag Rev 16(2):165–172

    Article  Google Scholar 

  • Padovani E, Orelli RL, Young DW (2014) Implementing change in a hospital management accounting system. Public Manag Rev 16(8):1184–1204

    Article  Google Scholar 

  • Perego P, Kennedy S, Whiteman G (2016) A lot of icing but little cake? Taking integrated reporting forward. J Cleaner Prod forthcoming. 10.1016/j.jclepro.2016.01.106

  • Petty R, Guthrie J (2000) Intellectual capital literature review: measurement, reporting and management. J Intellect Capital 1(2):155–176

    Article  Google Scholar 

  • Pollitt C, Bouckaert G (2011) Public management reform: a comparative analysis-new public management, governance, and the Neo-Weberian State. Oxford University Press, New York

    Google Scholar 

  • Ramírez Y (2010) Intellectual capital models in Spanish public sector. J Intellect Capital 11(2):248–264

    Article  Google Scholar 

  • Rinaldi L (2013) Stakeholder engagement. In: Busco C, Frigo ML, Riccaboni A, Quattrone P (eds) Integrated reporting: concepts and cases that redefine corporate accountability. Springer Science & Business Media. Springer International Publishing, Switzerland, pp 95–109

    Google Scholar 

  • Robb SWG, Single LE, Zarzeski MT (2001) Non-financial disclosure across Anglo-American countries. J Int Acc Auditing Taxation 10(1):71–83

    Article  Google Scholar 

  • Robertson FA, Samy M (2015) Factors affecting the diffusion of integrated reporting—a UK FTSE 100 perspective. Sustain Acc Manag Policy J 6(2):190–223

    Google Scholar 

  • Rowbottom N, Locke J (2016) The emergence of <IR>. Acc Bus Res 46(1):83–115

    Article  Google Scholar 

  • Schiuma G, Lerro A (2008) Intellectual capital and company’s performance improvement. Measuring Bus Excellence 12(2):3–9

    Article  Google Scholar 

  • Scott WR (2003) Organizations. Relational, natural, and open systems. Pearson. Upper Saddle River. New Jersey

    Google Scholar 

  • Secundo G, Elena-Perez S, Martinaitis Z, Leitner KH (2015) An intellectual capital maturity model (ICMM) to improve strategic management in European universities: A dynamic approach. J Intellect Capital 16(2):419–442

    Article  Google Scholar 

  • Serrano Cinca C, Molinero CM, Queiroz AB (2003) The measurement of intangible assets in public sector using scaling techniques. J Intellect Capital 4(2):249–275

    Article  Google Scholar 

  • Steurer R (2010) The role of governments in corporate social responsibility: Characterising public policies on CSR in Europe. Policy Sci 43(1):49–72

    Article  Google Scholar 

  • Stubbs W, Higgins C (2014) Integrated reporting and internal mechanisms of change. Acc Auditing Accountability J 27(7):1068–1089

    Google Scholar 

  • Talbot C (2011) Paradoxes and prospects of ‘public value’. Public Money Manag 31(1):27–34

    Article  Google Scholar 

  • Thomas JC (2012) Citizen, customer, partner: engaging the public in public management, M. E. Sharpe. New York

    Google Scholar 

  • Thomson I, Bebbington J (2005) Social and environmental reporting in the UK: a pedagogic evaluation. Crit Perspect Acc 16(5):507–533

    Article  Google Scholar 

  • Van Bommel K (2014) Towards a legitimate compromise? An exploration of integrated reporting in the Netherlands. Acc Auditing Accountability J 27(7):1157–1189

    Article  Google Scholar 

  • Walker RG (2009) Public sector consolidated statements—An assessment. Abacus 45(2):171–220

    Article  Google Scholar 

  • Wayne SU (2001) Business and financial reporting: challenges from the new economy. Financial Accounting Series. 219/A

    Google Scholar 

  • Wiewiora A, Keast R, Brown K (2015) Opportunities and challenges in engaging citizens in the co-production of infrastructure-based public services in Australia. Public Manag Rev 18(4):1–25

    Google Scholar 

  • World Bank (2008) Environmental sustainability an evaluation of world bank group support. Washington. http://siteresources.worldbank.org/EXTENVIRONMENT/Resources/environ_eval.pdf. Accessed 4 June 2016

  • Zambon S (2004) Intangibles and intellectual capital: an overview of the reporting issues and some measurement models. In: Bianchi P, Labory S (eds) The economic importance of intangible assets. Ashgate. Aldershot, pp 153–83

    Google Scholar 

  • Zhang Y, Yang K (2009) Citizen participation in the budget process: the effect of city managers. J Budgeting, Acc Fin Manag 21(2):289–317

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Kent Business School, University of Kent, Kent, UK

    Epameinondas Katsikas

  2. Management and Innovation Systems, University of Salerno, Fisciano, Italy

    Francesca Manes Rossi

  3. Department of Management, University of Bologna, Bologna, Italy

    Rebecca L. Orelli

Authors
  1. Epameinondas Katsikas
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Francesca Manes Rossi
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Rebecca L. Orelli
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Rebecca L. Orelli .

Rights and permissions

Reprints and permissions

Copyright information

© 2017 The Author(s)

About this chapter

Cite this chapter

Katsikas, E., Manes Rossi, F., Orelli, R.L. (2017). Setting the Context for Integrated Reporting in the Public Sector. In: Towards Integrated Reporting . SpringerBriefs in Accounting. Springer, Cham. https://doi.org/10.1007/978-3-319-47235-5_1

Download citation

Publish with us

Policies and ethics

Search

Navigation