V (Valerie) Sydry

Integrated Reporting (IR) has increasingly gained momentum in the corporate reporting landscape since the introduction of the <IR> Framework by the International Integrated Reporting Council in December 2013 (De Villiers et al., 2014; Dumay et al., 2016). IR allows firms to think holistically about how their operations create (or destroy) societal value over time (IIRC, 2013). The creation of an integrated report requires a firm to think about the different capitals it depends on for its inputs and how these are affected and transformed through the business model and activities of the firm. The purpose of IR is to exhibit the relationship between financial and non-financial performance and thereby enhance internal decision-making processes and risk management activities (Frias-Aceituno et al., 2013; Steyn, 2014). IR stimulates firms to adopt a more holistic thinking perspective, which can act as a catalyst to more sustainable outcomes. Some experts argue that it can act as a major driver behind organisational change (Eccles and Krzus, 2010).

Few researchers have studied the relationship between IR and internal change, and as such, managers may not be aware of whether and in what way IR can serve as a tool for organisational change. The purpose of this PhD project is to further explore IR and its potential to drive more sustainable business practices by means of the following three research questions:

1) How can IR act as an internal mechanism for organisational change?

2) What is the role of IR and integrated thinking in adopting a systems thinking perspective of sustainability?

3) How can IR act as an internal mechanism for internal change over time? An ethnographic study to provide a processual account.

Each of these questions will be addressed in this research proposal. Considering the nature and novelty of the IR field, a qualitative approach will be adopted to study this phenomenon. The first question will be answered by conducting an empirical study based on a grounded approach and semi-structured interviews with representatives of Dutch large corporations and experts in the field.

The second question will explore the role of IR and integrated thinking in adopting a systems thinking perspective of sustainability by utilising systems thinking and resilience theory research. This will be a conceptual study.

Turning to the third question, it will be addressed by providing a processual account on IR as an internal change mechanism, which will take place at a firm that is i) fairly mature in the IR process, ii) fairly immature in the IR process, or iii) transitioning from the GRI to the IIRC framework for its reporting structure. The exact scope is yet to be determined.