Integrated thinking as a cultural control?

CITATION

Dumay, J., & Dai, T. (2017). Integrated thinking as a cultural control? Meditari Accountancy Research, 25(4), 574–604

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ABSTRACT
Purpose – The paper’s purpose is to investigate the concept of integrated thinking as part of the
International Integrated Reporting Council’s (IIRC’s) Integrated Reporting (<IR>) framework. It explores
integrated thinking as a cultural control and analyses how it operates.
Design/methodology/approach – The paper presents a case study of ResBank (a pseudonym), a small
Australian bank, which is participating in the IIRC’s <IR> Pilot Programme Business Network. ResBank
issued its first integrated report in 2012. Using semi-structured interviews, we examine whether integrated
thinking develops as espoused by the IIRC.
Findings – In ResBank’s case, we find that the responsible banking culture that was in place prior to joining
the Pilot Programme is a stronger cultural control, alongside personnel, results and action controls. The
implication for the IIRC is that integrated thinking clashes with the existing organisational culture rather than
driving a new organisational culture.
Practical implications – If integrated thinking is to prevail, it may become a source of inertia rather than
change because it advocates that an entire workforce should think the same way. We also question whether
breaking down silos, as advocated by integrated thinking, is necessary across all organisational functions,
especially concerning material organisational risks and reputation, because these silos foster independent
thinking.
Social implications – The problem with the arguments proposed by the IIRC is that they aim at a onesize-
fits-all approach. Not every organisation has a disconnection between strategy, governance, past
performance and future prospects nor do they all have disconnected departments that need reconnecting.
Therefore, a fundamental problem with <IR> is that the IIRC argues ‘why’ companies need <IR>, not ‘how’
to implement <IR>, and especially not ‘how’ to operationalise integrated thinking.
Originality/value – The paper is a must-read because it contributes to the growing debate on the benefits
of<IR> by examining and critiquing an early adopter’s practice.


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