Integrated reporting vs. sustainability reporting for corporate responsibility in South Africa

Alexandra F. Clayton, Jayne M. Rogerson, Isaac Rampedi

DOI: http://dx.doi.org/10.1515/bog-2015-0021

Abstract


Large corporates have come under increasing pressure to conduct their business in a more transparent and responsible manner. In order for business to fulfil its obligations under the ethic of accountability stakeholders must be given relevant, timely, and understandable information about their activities through corporate reports. The conventional company reports on annual financial performance, sustainability and governance disclosures often fail to make the connection between the organisation's strategy, its financial results and performance on environmental, social and governance issues. Recognising the inherent shortcomings of existing reporting models, there is a growing trend to move towards integrated reporting. South Africa has been one of the most innovative countries in terms of integrated corporate reporting. Since 2010 companies primarily listed on the country's major stock exchange have been required to produce an integrated report as opposed to the former sustainability report. The aim in this study is to review the development of integrated reporting by large corporates in South Africa and assess the impact of the required transition from sustainability reporting to integrated reporting on non-financial disclosure of eight South African corporates using content analysis of annual reports. 

Full Text:

PDF

References


Bebbington, J., Brown, J. and Frame, B., 2007: Accounting Technologies and Sustainability Assessment models. In: Ecological Economics, Vol. 61 (2-3), pp. 224-236.

Bezuidenhout, A., Fig, D., Hamann, R. and Omar, R., 2007: Political Economy. In: Fig, D. editor, Staking Their Claims: Corporate Social and Environmental Responsibility in South Africa. Scottsville: University of KwaZulu-Natal Press, pp. 13-94.

Blowfield, M. and Murray, A., 2011: Corporate Responsibility, New York: Oxford University Press.

Buhr, N., 2007: Histories of and Rationales for Sustainability Reporting. In: Unerman, J., Bebbington, J. and O’Dwyer, B. editors, Sustainability Accounting and Accountability, Abingdon: Routledge, pp. 57-69.

Crane, A. and Matten, D., 2010: Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. Oxford: Oxford University Press.

Dillard, J. 2011: Framing Sustainability within an Ethic of Accountability. In: McNall, S.G., Hershauer, J.C. and Basile, G. editors, The Business of Sustainability, Santa Barbara: Praeger, pp. 107-126.

DiPiazza, S.A. and Eccles, R.G., 2002: Building Public Trust: The Future of Corporate Reporting, New York: John Wiley & Sons.

Eccles, R.G. and Krzuz, M.P., 2010: One Report: Integrated Reporting for a Sustainable Society. New Jersey: John Wiley and Sons Inc.

Eccles, R.G., Serafeim, G. and Armbrester, P., 2012: Integrated Reporting in South Africa, Boston: Harvard Business School

Elkington, J., 2004: Enter the Triple Bottom Line. In: Henriques, A. and. Richardson, J. editors, The Triple Bottom Line: Does it All Add Up, London: Earthscan, pp. 1-16.

Fig, D., 2007: The Context of Corporate Social and Environmental Responsibility. In: Fig, D. editor, Staking Their Claims: Corporate Social and Environmental Responsibility in South Afric, Scottsville: University of KwaZulu-Natal Press, pp. 1-12.

GRI (Global Reporting Initiative), 2011: Sustainability Reporting Guidelines, Version 3.1, Amsterdam: Global Reporting Initiative.

GRI (Global Reporting Initiative), 2013: Carrots and Sticks: Sustainability Reporting Policies Worldwide – Today’s Best Practice, Tomorrow’s Trends, Amsterdam: Global Reporting Initiative.

Gray, R.H and Milne, M.J., 2002: Sustainability Reporting: Who’s Kidding Whom?. In: Chartered Accountants Journal of New Zealand, Vol. 81(6), pp. 66-70

Hamilton, T., 2001: Putting Corporate Responsibility in its Place. In: Geography Compass, Vol. 5(10), pp. 710-722.

Hamilton, T., 2013: Beyond Market Signals: Negotiating Marketplace Politics and Corporate Responsibilities. In: Economic Geography, Vol. 89(3), pp. 285-307.

Hughes, A., Buttle, M. and Wrigley, N., 2007: Organisational Geographies of Corporate Responsibility: A UK – US Comparison of Retailers’ Ethical Trading Initiatives. In: Journal of Economic Geography, Vol. 7, pp. 491-513.

IoDSA (Institute of Directors Southern Africa), 2002: King Report on Corporate Governance for South Africa, Johannesburg: Institute of Directors in Southern Africa.

IoDSA (Institute of Directors Southern Africa), 2009: King Report on Corporate Governance for South Africa, Johannesburg: Institute of Directors in Southern Africa.

IRCSA (Integrated Reporting Committee of South Africa), 2011: Framework for Integrated Reporting and the Integrated Report: Discussion paper. Available from: http://www.sustainabilitysa.org/Portals/0/IRC%20of%20SA%20Integrated%20Reporting%20Guide%20Jan%2011.pdf. [DoA: 26 August 2013].

Jackson, R., 2005: An Introduction to Environmental and Sustainability Reporting. In: Brown, C.S. editor, The Sustainable Enterprise, Sterling: Kogan Page, pp. 86-96.

Jeyaretnam, T.L. and. Niblock-Siddle, K., 2010: Integrated Reporting: A Perspective from Net Balance. In: Eccles, R.G., Cheng, B. and Saltzman, D. editors, The Landscape of Integrated Reporting: Reflections and Next Steps, Boston: Harvard Business School, pp. 33-37.

Jonikas, D., 2013: Conceptual Framework of Value Creation through CSR in a Separate Member of Value Creation Chain. In: Szymańska, D. and Chodkowska-Miszczuk, J. editors, Bulletin of Geography: Socio Economic Series, Vol. 21, Toruń: Nicolaus Copernicus

University Press, pp. 69–78. DOI: http://dx.doi.org/10.2478/bog-2013-0022

Kolk, A., 2010: Trajectories of Sustainability Reporting by MNCs. In: Journal of World Business, Vol. 45, pp. 367-374.

Krumme, G., 2001: Capitalist Information Spaces and the Geography of Corporate Disclosure: Disconnection, Consolidation and Segmentation. Available from: http://faculty.washington.edu/krumme/projects/segmentation.html [DoA: 23 February 2015].

Lambert, J. 2005: A New Framework for Business: Introduction. In: Brown, C.S. editor, The Sustainable Enterprise, Sterling: Kogan Page Limited, pp. 41-43.

Larrinaga-Gonzalez, C., 2007: Sustainability Reporting: Insights from Neoinstitutional theory. In: Unerman, J., Bebbington, J. and O’Dwyer, B. editors, Sustainability Accounting and Accountability. Abingdon: Routledge, pp. 150-167.

Ligteringen, E. and. Arbex, N., 2010: Will Integrated Reporting Make Sustainability Reporting Obsolete?. In: Eccles, R.G., Cheng, B. and Saltzman, D. editors, The Landscape of Integrated Reporting: Reflections and Next Steps, Boston: Harvard Business School, pp. 72-74.

Lozano, R. and Huisingh, D., 2011: Inter-linking Issues and Dimensions in Sustainability Reporting. In: Journal of Cleaner Production, Vol. 19, pp. 99-107.

Marx, B. and Van Der Watt, A., 2011: Sustainability and Integrated Reporting: An Analysis of the Audit Committee’s Oversight Role. In: Journal for New Generation Sciences, Vol. 2 (9), pp. 56-71.

Milne, M.J. and Gray, R., 2007: Future Prospects for Corporate Sustainability Reporting. In: Unerman, J., Bebbington, J. and O’Dwyer, B. editors, Sustainability Accounting and Accountability, Abingdon: Routledge, pp. 184-208.

Milne, M.J. and Gray, R., 2013: W(h)ither Ecology? The Triple Bottom Line, the Global Reporting Initiative, and Corporate Sustainability Reporting. In: Journal of Business Ethics, Vol. 118, pp. 13-29.

O’Riordan, T., 2004: Environmental Science, Sustainability and Politics, In: Transactions of the Institute of British Geographers, Vol. 29(2), pp. 234-247.

Rensburg, R. and Botha, E., 2013: Is Integrated Reporting the Silver Bullet of Financial Communication? A Stakeholder Perspective from South Africa. In: Public Relations Review, DOI: 10.1016/j.pubrev.2013.11.016.

Schulschenk, J., 2012: Interview Summary Report, Pretoria: Ernst and Young South Africa.

Sonnenberg, D. and Hamann, R., 2006: The JSE Socially Responsible Investment Index and the state of sustainability reporting in South Africa. In: Development Southern Africa, Vol. 23(2), pp. 305-320.

SAICA (The South African Institute of Chartered Accountants), 2012a: The Integrated Reporting Committee in South Africa. Available from: http://www.sustainabilitysa.org/IntegratedReporting/TheIntegratedReportingCommitteeofSouthAfrica.aspx. [DoA: 3 February 2014].

SAICA (The South African Institute of Chartered Accountants), 2012b: The International Integrated Reporting Council. Available from: http://www.sustainabilitysa.org/IntegratedReporting/TheInternationalIntegratedReportingCouncil.aspx. [DoA: 3 February 2014].

Thomsen, C., 2013: Sustainability (World Commission on Environment and Development Definition). In: Idowu, S.O., Capaldi, N., Zu, L. and Das Gupta, A. editors, Encyclopedia of Corporate Social Responsibility, Heidelberg: Springer, pp. 2358-2363.

Turk, B.K., Shackleton, C.M. and. Whittington-Jones, L., 2013: Prevalence of Sustainability Reporting Practices of a Sample of Listed Companies on Established and Emerging Stock Exchanges. In: South African Journal of Economic and Management Sciences, Vol. 16(1), pp. 75-82.

White, G.B., 2009: Sustainability Reporting: Managing for Wealth and Corporate Health, New York: Business Expert Press.

White, A.L., 2010: Toward a Holistic Architecture for Corporate Disclosure. In: Eccles, R.G., Cheng, B. and Saltzman, D. editors, The Landscape of Integrated Reporting: Reflections and Next Steps, Boston: Harvard Business School, pp. 29-32.

Wingard, H.C. and Vorster, Q., 2001: Financial Performances of Environmentally Responsible South African Listed Companies. In: Meditari Accountancy Research, Vol. 9, pp. 313-332.








Print ISSN: 1732-4254
Online ISSN: 2083-8298

Partnerzy platformy czasopism