The International Integrated Reporting Council (IIRC) claims that integrated reporting (IR) can enhance corporate accountability, yet critical and interpretative studies have contested this outcome. Insufficient empirical research details how preparers experience accountability while constructing IR; to fill this gap, this study analyses how the preparers’ mode of cognition influences the patterns of accountability associated with IR. A functionalist approach to narratives helps elucidate the role that the IR preparers’ narrative mode of cognition plays on accountability toward stakeholders. The empirical analysis particularly benefits from in-depth interviews with the IR preparers of a global insurer that has used IR since 2013. The preparers’ narrative mode of cognition facilitates dialogue with IR users. It addresses accountability tensions by revealing the company’s value creation process. Preparers’ efforts to establish a meaningful dialogue with a growing variety of stakeholders through broader and plainer messages reveals the potential of IR as a narrative source of a socializing form of accountability. However, financial stakeholders remain the primary addressees of the reports. This study focuses on preparers’ views; further research should integrate users’ accountability expectations. This article offers new insights for dealing with corporate reporting and accountability in a novel IR setting.

Integrated reporting and narrative accountability: The role of preparers

A. Lai
;
R. Stacchezzini
2018-01-01

Abstract

The International Integrated Reporting Council (IIRC) claims that integrated reporting (IR) can enhance corporate accountability, yet critical and interpretative studies have contested this outcome. Insufficient empirical research details how preparers experience accountability while constructing IR; to fill this gap, this study analyses how the preparers’ mode of cognition influences the patterns of accountability associated with IR. A functionalist approach to narratives helps elucidate the role that the IR preparers’ narrative mode of cognition plays on accountability toward stakeholders. The empirical analysis particularly benefits from in-depth interviews with the IR preparers of a global insurer that has used IR since 2013. The preparers’ narrative mode of cognition facilitates dialogue with IR users. It addresses accountability tensions by revealing the company’s value creation process. Preparers’ efforts to establish a meaningful dialogue with a growing variety of stakeholders through broader and plainer messages reveals the potential of IR as a narrative source of a socializing form of accountability. However, financial stakeholders remain the primary addressees of the reports. This study focuses on preparers’ views; further research should integrate users’ accountability expectations. This article offers new insights for dealing with corporate reporting and accountability in a novel IR setting.
2018
integrated report
accountability
Narratives
Report preparers
Mode of cognition
Insurance
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11562/974709
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