Integrated Reporting (IR) for Sustainability: Business Cases in South Asia (Eco-Efficiency in Industry and Science, 34)

The book presents a rich collection of research studies on the theory and practice of corporate integrated reporting (IR) in South Asia. South Asia is emerging to compete in the world marketplace and one of fast economically growing regions to contribute to the global economy. As the region’s economic development accelerates, balancing economic and environmental development appears as a key sustainability challenge for governments, investors, consumers, and local communities. Companies in South Asia region are therefore increasingly challenged to reduce their environmental impacts and to contribute to sustainable development. This book includes valuable contributions of advanced research, concepts, applications, developments and case studies on corporate IR and sustainability accounting in South Asia and the roles of different professional accounting bodies to strength corporate sustainability and build capacity in the South Asian Region. Foreword by Prof. Mervyn King Foreword by Heshana Kuruppu Preface Acknowledgements Contents Editors and Contributors Abbreviations List of Figures List of Tables 1 South Asia Perspectives on Integrated Reporting for Sustainability: An Introduction 1.1 Why Integrated Reporting for Sustainability in South Asia? 1.2 Academic and Practitioner Views on Integrated Reporting (IR) for Sustainability 1.3 South Asian Views and Definitions of Integrated Reporting (IR) for Sustainability 1.4 Motivations for This Book: Integrated Reporting (IR) for Sustainability 1.5 Structure of This Book 1.6 Summaries References Part I Integrated Reporting for Sustainability: Challenges and Opportunities 2 Integrated Reporting Adoption in Sri Lanka Through an Institutional Theoretical Lens 2.1 Introduction 2.2 Integrated Reporting 2.3 Institutional Theory 2.3.1 Types of Institutional Theories 2.3.2 New Institutional Theory (NIT) 2.3.3 Institutional Work 2.4 Prior Studies on the Use of Institutional Theory as a Theoretical Lens 2.4.1 Non-financial Reporting 2.4.2 Integrated Reporting 2.4.3 Theoretical Factors for Understanding the Adoption of IR 2.5 Methods 2.5.1 Data Collection 2.5.2 Data Analysis 2.6 Findings and Discussion—Isomorphic Pressures and Institutional Entrepreneurs’ Involvement in IR Adoption 2.6.1 Coercive Isomorphism 2.6.2 Mimetic Isomorphism 2.6.3 Normative Isomorphism 2.6.4 Institutional Entrepreneurs and IR Adoption 2.7 Conclusions 2.8 Contributions 2.9 Limitations Appendix 2.1: Profile of Interviewees References 3 Institutional Pressures and Integrated Reporting Adoption in Sri Lanka 3.1 Introduction 3.2 Literature Review 3.3 Methodology 3.3.1 Theoretical Framework 3.3.2 Method 3.4 Findings and Discussion 3.4.1 Coercive Isomorphism 3.4.2 Mimetic Isomorphism 3.4.3 Normative Isomorphism 3.5 Conclusion Appendix 3.1: Interviewee Details References 4 Determinants of Integrated Reporting Adoption in an Emerging Market— Sri Lanka 4.1 Introduction 4.2 Development of IR 4.2.1 IR and Its Evolution 4.2.2 Determinants of IR Implementation 4.3 Institutional Theory 4.4 Methodology 4.5 IR Adoption and Institutional Pressures in Sri Lanka 4.5.1 IR Adoption 4.5.2 Institutional Pressures that Influence IR Adoption in Sri Lanka 4.6 Conclusion References 5 Adapting a National Pandemic Control Model as a Surveillance-Control Mechanism to Facilitate Corporate Sustainability and Integrated Reporting 5.1 Introduction 5.2 Background of the Study 5.3 Sustainability and Integrated Reporting (IR) in Sri Lanka 5.4 Literature Review 5.4.1 Control and Surveillance in an Organizational Context 5.4.2 Hammer and Dance Strategy 5.4.3 COVID Control Measures in Sri Lanka 5.5 Theoretical Framework 5.6 Research Method 5.7 Findings and Discussion 5.7.1 The Outcome of Sri Lanka’s First Wave of COVID-19 Management 5.7.2 Core Factors Impacting Outcomes 5.7.3 Transposition of the LOO Approach to Business and the Proposed Model 5.7.4 Potential Contributions of the Corporate DIT Model to Corporate IR 5.8 Conclusion References Part II Integrated Reporting for Sustainability—Corporate Implementation and Applications 6 Application of Integrated Reporting—A Case Study of Tata Steel 6.1 Introduction 6.1.1 IR Adoption in India 6.2 Literature Review 6.2.1 What is Integrated Reporting? 6.2.2 Contents of an Integrated Report 6.2.3 Integrated Reporting: The Six Capitals 6.2.4 Benefits of Integrated Reporting 6.3 Research Gap 6.4 Research Methodology 6.4.1 Why Tata Steel? 6.4.2 Annual Report Analysis Method 6.5 Findings 6.6 Conclusions 6.7 Limitation of the Study and Scope for Future Research References 7 Benefits and Implementation Challenges of Integrated Reporting: Perspectives of Preparers at Indian Listed Companies 7.1 Introduction 7.2 Literature Review 7.2.1 Need for IR 7.2.2 Who Are Preparers? 7.3 Methodology 7.4 Analysis of Result 7.5 Discussion and Conclusion 7.6 Implications and Avenues for Future Study Appendix 7.1: Framework for the Interview References 8 Incorporating the International Integrated Reporting Framework in the Corporate Reporting Ecosystem: A Case-Based Study from Bangladesh 8.1 Introduction 8.2 A Brief Timeline of IR in Bangladesh 8.2.1 Movements Towards IR Adoption in Bangladesh 8.2.2 Sectoral Analysis of IR in Bangladesh 8.2.3 Leading IR Reporters of Bangladesh and Recent Developments 8.3 Methodology 8.4 IDLC Integrated Report Versus IIRC Framework: Eight Content Elements 8.5 SDGs and the Six Capitals: Carrying Out an Integration 8.6 IIRC’s IR Framework Versus IDLC’s IR: Guiding Principles 8.6.1 Strategic Focus and Future Orientation 8.6.2 Connectivity of Information 8.6.3 Stakeholder Relationships 8.6.4 Materiality 8.6.5 Conciseness 8.7 Discussion 8.7.1 Challenges Towards IR in Bangladesh 8.8 Conclusion References 9 Transformation from a Narrow Capital to a Multi-capital Performance Measurement Model in Value Creation: A Case of a Logistics and Freight Forwarding Company in Sri Lanka 9.1 Introduction 9.2 Literature Review 9.2.1 Narrow Capital Models for Performance Measurement 9.2.2 Failure in the Implementation of Narrow Capital Models in Value Creation 9.2.3 The Six Capitals of the IR Framework in Creating Value 9.2.4 Transformation to a Multi-capital Performance Measurement System in Value Creation 9.2.5 Multi-capital Performance Measurement Systems and Corporate Value Creation 9.3 Theoretical Framework 9.3.1 Enlightened Stakeholder Theory and the Six Capitals 9.4 Research Methodology 9.4.1 Case Study Approach 9.4.2 Case Study Setting 9.4.3 Data Collection 9.4.4 Data Analysis and Validation 9.5 Analysis and Findings 9.5.1 Background to the Application of the Narrow Capital Model 9.5.2 Weaknesses of the Narrow Capital Model at ABC Company 9.5.3 Overcoming the Failures of the Narrow Capital Model Through Multi-capital Model 9.5.4 The Influence of Multi-capital Model on Upgrading Corporate Performance and Value Creation 9.6 Discussion 9.7 Conclusion Annexure 1: Summarized Interview Guide Annexure 2: Questionnaire References 10 DIMO’s Integrated Reporting Journey: From Separation to Integration 10.1 Introduction 10.2 Overview of the Organisation 10.2.1 Historical Review 10.2.2 The Construct of the Organisation 10.2.3 Governance Structure 10.2.4 Leadership Philosophy 10.2.5 Drivers of Corporate Reporting for DIMO 10.3 The Case for Integrated Reporting at DIMO 10.4 Evolution of Corporate Reporting at DIMO 10.4.1 Chronological Presentation of the Evolution 10.4.2 Beginning of a Journey 10.4.3 Association with the International Integrated Reporting Council 10.4.4 Readiness for Integrated Reporting 10.4.5 The Integrated Reporting Journey of DIMO 10.4.6 Accolades and Recognitions 10.5 Integrated Thinking—A Prerequisite 10.5.1 The Corporate Anatomy 10.5.2 Role of Connectivity 10.5.3 Institutionalising Integrated Thinking at DIMO 10.5.4 Management by Outcomes 10.6 Materiality—A Key Determinant of the Content 10.6.1 The Case for Materiality 10.6.2 Definitions of Materiality 10.6.3 Materiality Determination 10.6.4 Conciseness as an Outcome 10.7 Annual Report of DIMO 10.7.1 Articulation of the DIMO Value Creation Story 10.7.2 Linking the Purpose to Value Creation 10.7.3 Fuelling Dreams and Aspirations 10.7.4 Resource-Based Strategy 10.7.5 Value Creation Model and Other Enablers 10.7.6 Benefits of Integrated Reporting 10.8 Challenges and Remedial Action 10.8.1 Challenges from Many Fronts 10.8.2 Leadership Commitment 10.8.3 The Dilemma 10.9 Lessons Learned and the Way Forward References 11 The Role of Integrated Thinking and Reporting in the Sustainable Business Journey: A Case Study of Talawakelle Tea Estates PLC 11.1 Introduction 11.2 Company Overview 11.3 The Evolution of Sustainability Practices and Reporting Mechanisms in TTE PLC 11.4 Role of Integrated Thinking and Reporting in TTE’s Sustainability Journey 11.5 Challenges and Remedial Action Related to the Adaptation to IR 11.6 Key Learning Outcomes and Outlook Related to IR in TTE PLC 11.7 Conclusion References 12 The Aitken Spence Approach to Integrated Reporting 12.1 Introduction 12.2 A Strategic Approach to Sustainability 12.2.1 The Aitken Spence Approach to Sustainability 12.3 Sustainability Reporting of Aitken Spence 12.4 Transitioning to Integrated Reporting 12.5 The Challenges of Integrated Reporting and the Remedial Action Taken 12.6 Lessons Learnt References 13 The Impact of Private Certifications on Social and Environmental Performance and Integrated Reporting: The Case Study of Watawala Plantations PLC in Sri Lanka 13.1 Introduction 13.2 Overview of the Case Organization 13.3 Voluntary Adoption of Social and Environmental Certifications 13.3.1 Impact on Social and Environmental Performances and Reporting 13.4 Challenges and Remedial Actions 13.5 Lessons Learned and the Way Forward References Part III Integrated Reporting for Practitioners—Corporate Experience and Professional Practice 14 Reporting on Key Performance Indicators Related to Non-financial Capitals: Evidence from Sri Lankan Integrated Report Preparers 14.1 Introduction 14.2 Literature Review 14.3 Institutional Theoretical Explanation of the Practice of Integrated Reporting 14.4 Research Design 14.5 Findings 14.6 Discussion and Conclusion References 15 Association of Chartered Certified Accountants Experience as a Professional Accounting Body Promoting Integrated Reporting 15.1 Introduction 15.2 Overview of ACCA 15.3 ACCA’s Multifaceted Advocacy of Integrated Reporting 15.3.1 Strategic Alignment 15.3.2 Incorporating IR in the ACCA Qualification 15.3.3 Undertaking Research on IR 15.3.4 Engaging with Policymakers and Undertaking Public Advocacy 15.3.5 Running Reporting Awards 15.3.6 Preparing ACCA’s Own Integrated Report 15.4 Challenges Faced 15.5 Lessons Learned and Recommendations for Other Organizations References 16 Role of the Institute of Chartered Accountants of Sri Lanka as a Facilitator in Promoting Integrated Reporting in Sri Lanka 16.1 Introduction 16.2 CA Sri Lanka’s Initiatives to Promote Integrated Reporting in Sri Lanka 16.2.1 Integrated Reporting, the CA Sri Lanka Curriculum and CPD Programmes 16.2.2 Initiatives to Educate Preparers on Integrated Reporting 16.2.3 CA Sri Lanka and the IRCSL Guidelines on Integrated Reporting 16.2.4 Collaboration with the IIRC 16.2.5 Recognition of Preparers of Integrated Annual Reports 16.2.6 Integrated Reporting and Corporate Governance 16.3 Challenges and Remedial Actions 16.4 Lessons Learned and the Way Forward References 17 Role of the Chartered Institute of Management Accountants on Supporting, Upholding, and Promoting the Integrated Reporting Concepts in South Asia 17.1 Introduction 17.2 Overview of CIMA 17.3 Role of CIMA in Introducing and Promoting Integrated Reporting in the South Asian Region 17.3.1 Integrated Reporting as a Core Subject Area for Students 17.3.2 Actions Taken to Promote Integrated Reporting 17.4 The Challenges to Integrated Reporting and Remedial Actions 17.5 Lessons Learned and the Way Forward References 18 CMA Sri Lanka’s Journey Towards Promoting Integrated Reporting in Sri Lanka 18.1 Introduction 18.2 Overview of the Institute of Certified Management Accountants of Sri Lanka (CMA) 18.3 CMA Sri Lanka’s Role in Promoting Integrated Reporting (IR) in Sri Lanka and the South Asian Region 18.3.1 ‘CMA Excellence in Integrated Reporting Awards’ Competition 18.3.2 Inclusion of IR in the CMA Sri Lanka Curriculum 18.3.3 CMA’s Role in CPD and Capacity Building Activities 18.4 Challenges Faced and Remedial Actions Taken to Overcome the Challenges 18.4.1 Challenges Faced by CMA Sri Lanka in Promoting IR in Sri Lanka 18.4.2 Remedial Action Taken by CMA Sri Lanka to Overcome These Challenges 18.5 Conclusion and the Way Forward on the Journey Towards Integrated Reporting References Index