It is not always bad news

CITATION

Warren, M. (2018). It is not always bad news. Accounting, Auditing & Accountability Journal, 31(5), 1319–1348

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ABSTRACT
Purpose – The purpose of this paper is to challenge the notion that non-financial reporting is mainly about
impression management or is only a superficial response to the hegemonic challenges posed by the
sustainability movement. It focuses on the most recent development in sustainability reporting (integrated
reporting) as an example of how accounting for financial and non-financial information has the potential to
expand the scope of accounting systems, promote meaningful changes to reporting processes and provide
a broader perspective on value creation.
Design/methodology/approach – The research focuses on an African eco-tourism company which
has its head office in South Africa. A case study method is used to highlight differences in the
presentation of an integrated business model according to the case entity’s integrated reports
and how individual preparers interpret the requirement to prepare those reports. Data are collected
using detailed interviews with all staff members involved in the preparation process. These
are complemented by a review of the minutes of the company’s sustainability workshops and
integrated reports.
Findings – A decision by the case organisation to prepare an integrated report gives rise to different forms of
resistance which limits the change potential of the integrated reporting initiative. Resistance does not,
however, preclude reform. Even when individual preparers are critical of the changes to the corporate
reporting environment, accounting for financial and non-financial information expands the scope of
the conventional accounting system which facilitates broader management control and promotes a more
integrated conception of “value”.
Research limitations/implications – Integrated reporting should not be dismissed as only an exercise in
corporate reporting and disclosure; it has a transformative potential which, given time, can enable new ways
of managing business processes and articulating value creation.
Originality/value – This study answers the calls for primary evidence on how the requirement or
recommendation to prepare an integrated report is being interpreted and applied by individual
preparers. The findings add to the limited body of interpretive research on the change potential of
new reporting frameworks. In doing so, the research provides theoretical support for developing
arguments which challenge the conventional position that integrated reporting is little more than an
exercise in impression management.


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