Cerbone, D. and Maroun, W. orcid.org/0000-0001-7448-1220 (2020) Materiality in an integrated reporting setting: Insights using an institutional logics framework. The British Accounting Review, 52 (3). 100876. ISSN 0890-8389
Abstract
Using institutional logics as a theoretical framework and interviews with 20 preparers from 14 large organisations listed on the Johannesburg Stock Exchange (JSE), this paper focuses on examining differences in integrated reporting practices. The results reveal how a finance-centric market and professional logic interact with a stakeholder logic, leading to differences in the materiality determination process. Market-dominated firms have an internally focused approach to setting materiality which emphasises value-relevance for financial capital providers. Where logics are contested, materiality becomes an amalgamation of the factors which are important for shareholders and other stakeholders and essential for demonstrating compliance with codes of best practice. Organisations with market, professional and stakeholder logics aligned have the most sophisticated materiality determination processes. The emphasis shifts from lengthy reporting and compliance to providing a comprehensive account of the value creation process and how the business ensures long-term sustainability. In this way, how logics are instantiated may explain the considerable variation being observed in integrated reports. There are also implications for the propensity of firms either to view integrated reporting as a hegemonic challenge or to internalise it as part of a process of positive organisational change.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Keywords: | Sustainability reporting, Materiality, Institutional logics, Integrated reporting, Stakeholder engagement |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 08 Feb 2024 11:21 |
Last Modified: | 08 Feb 2024 11:21 |
Published Version: | https://www.sciencedirect.com/science/article/pii/... |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.bar.2019.100876 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:208777 |