In Search of a Wider Corporate Reporting Framework: A Critical Evaluation of the International Integrated Reporting Framework

ABSTRACT

We investigate whether the Integrated Reporting (<IR>) Framework is suitable as an overarching framework to enable organisations to engage with and report on the Sustainable Development Goals (SDGs). The investigation is carried out through a thematic analysis of different stakeholders’ opinions expressed in the 359 responses received by The International Integrated Reporting Council (IIRC) for its 2013 Consultation Draft and the 114 survey responses received for the 2020 Consultation Draft. Based on our findings, we argue that for it to be an ‘umbrella’ framework for non-financial reporting (inclusive of reporting on the SDGs), the < IR > Framework should: (1) encourage engagement with secondary stakeholders whose interests are reflected in the SDGs; (2) use terminology, language and concepts consistent with the sustainability discourse; (3) facilitate explanation of value created for the society and present and future generations; and (4) provide specific guidance to incorporate sustainable development impacts, risks and opportunities.

Keywords:

• integrated reporting
• international integrated reporting framework
• sustainability
• the sustainable development goals
• the international integrated reporting council

Disclosure Statement

No potential conflict of interest was reported by the author(s).

Notes

1 Respondents self-selected a stakeholder group from a predefined list in their submission. When a stakeholder group was not selected, or the selection was ambiguous we classified the CL according to our interpretation of the role of the respondent organisation. Then, we re-grouped the stakeholder categories into the nine categories shown in Table 2, to form a meaningful classification system for the purpose of this paper.

2 See also Oprişor (2014)

3 In the Topic Paper 2 on Business Model Considerations, The IIRC (2020d, p. 2) noted: the IIRC has identified four issues related to business model disclosures: 1. Confusion between outputs and outcomes; 2. Limited connection between outcomes and value creation; 3. Imbalanced reporting of outcomes and tendency to promote the positive; and 4. Perception that integrated reporting overlooks ‘impacts’.