Abstract
Integrated Reporting is an emerging corporate reporting model amongst the other voluntary corporate reporting practices. However, the impediments may hinder the adoption of integrated reporting practices, and it may be affected by organizational sustainability. Hence, this study aims to examine impediments that affect the adoption of integrated reporting practice and the impact of the adoption or non-adoption of integrated reporting on organizational sustainability. The study adopted a qualitative research approach. Based on the judgmental sampling method, the data was collected through 15 semi-structured interviews from the responsible officers of integrated reporting in public listed companies in Sri Lanka. Data from interviews was analysed using the directed content analysis. The results showed that impediments to integrated reporting practice have occurred through the international integrated reporting framework, external factors, and organizational factors. Furthermore, IR practices’ adoption reinforces the identification of sustainability issues and strengthens the integration of sustainability issues into strategies. These findings contribute to the literature on impediments of integrated reporting and organizational sustainability in the context of developing countries. These findings could be helpful to professional accounting bodies, regulatory bodies, and firms that need to mitigate the impediments to integrated reporting and enhance organizational sustainability. This paper adds to the limited available literature on the impediments of integrated reporting for the emerging economy. Moreover, this study is the first to reveal the impact of adoption/non-adoption of integrated reporting practices on organizational sustainability.
Highlights
Firms tend to practice integrated reporting (IR) in response to the investors’ and other stakeholders’ growing expectations on accountability and transparency
The findings and discussion show the impediments to IR and how the adoption/non-adoption of IR affects organizational sustainability
In understanding the rationale behind the factors which are the main impediments to the adoption of IR in PLC in Sri Lanka, those factors can be divided into three main themes as technical factors, external factors, and organizational factors
Summary
Firms tend to practice integrated reporting (IR) in response to the investors’ and other stakeholders’ growing expectations on accountability and transparency. Organizations produce integrated reports with the primary purpose of explaining their value creation, preservation, and erosion over time. IR can be identified as a powerful tool for sustainability, showing how organizations create sustainable value. The organizations can achieve sustainable development goals through the value creation process [1]. Business 201 [8] and the European Commission emphasized the importance, and the need of IR in the international context and Chartered Accountants of Sri Lanka [9] and Securities Exchange Commission of Sri Lanka [10] highlighted the importance and direction towards the IR in the Sri Lankan context
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