ARTICLE REVIEW 1 Essay Example

Article Review on Integrated Reporting

  1. Brief Summary Of Article & Its Relevance to Contemporary Financial & Integrated Accounting

The article puts up a very important argument for the survival of modern businesses. It ascertains that the modern businesses are now focused on conducting reporting that relates to aspects of environmental, social and economic concerns as opposed to just reporting on financial performance in order to push forth the agenda of ethical responsibilities. The study article is based on finding out the degree of integrated reporting for customer-owned bank: Goodbank. It seeks to establish whether such a bank that does not operate under pressures to attract external investment can still engage in integrated reporting mechanism. The research study confirms that the activity involved with integrated reporting does not necessarily arise due to the generation of integrated reports but rather it is a practice that constitutes a significant number of facets. It further provides insights into how internal systems and processess for a company can be all adopted for the purpose of integrated reporting; the immediate involvement of both internal and external stakeholders; the imminent issues involved in these processess as well as fundamental success factors that seek to help with the transitioning of this overall process.

Most importantly, the study has been developed in a way that could provide insightful knowledge on the strategies for integrated reporting that other entities can adopt in the near future. In fact, the study ascertains that customer-owned businesses greatly enable innovative techniques to integrated reporting. The fact that Goodbank was able to clearly and concisely comprehend the aspects related to reporting and recognition of the immediate values concerning integrated reporting could enable other organisations to differentiate their operations from their closest rivals and attain top notch degree of success.

There have been a great number of arguments for and against the adoption of integrated reporting by organisations. The proponents of the reporting indicate that its adoption helps to cover for the overall corporate performance in regards to issues of environmental and social components and, also helps to provide the solution to whether it really improves sustainability of the entire planet. On the other hand, the opponents argue that sustainability reporting are simply an add-on and a supplementary component of corporate reporting, with overall economic aspects always having a direct benefit for disclosure. Thus, a student of contemporary financial accounting my objective is to ascertain whether this recently introduced reporting framework contributes to the overall performance of a company and whether or not it builds up a positive brand reputation for that matter.

  1. Technical Issues of the Study

The problem statement of the study at hand rests with obtaining an in-depth comprehension of Goodbank’s transition to aspects of integrated reporting through the perspective of practice theoretical frameworks.

The study focused on both interviews and document analysis as part of the fundamental research methodologies. The use of semi-structured interviews was meant to provide a significant level of insight into integrated reporting framework as conducted within the customer-owned bank (Lodhia, 2015). Markedly, document analysis availed pertinent information on the overall overview of integrated reporting by the entity and, also it acted to assist with the verification of interview responses gathered and thereafter expound on the pertinent issues that had been raised by the researchers. Interviews were conducted with the presence of fundamental decision makers as well as operational personnel working with the bank; a snowballing approach was later adopted for purposes of identifying additional set of participants in the case where the primary interview were used for purposes of gaining immediate access to fundamental personnel that were directly involved with integrated reporting activities of the bank (Lodhia, 2015).

Data obtained from the interviews was later transcribed and the NVivo software used for the purpose of overall informational data analysis.

The major findings of the study; first, it was ascertained that social and environmental components of the bank are linked to their immediate economic issues and other related business operations (Lodhia, 2015). Second, analysis conducted on its past reports postulated that the bank has all along defined its environmental impacts as both direct and indirect. Third, the analysis concludes that the bank’s immediate social issues relate to the well-being that also involves direct community involvements like partnerships and initiatives, which seek to provide imminent successful projects for the surrounding societies upon where it operates (Lodhia, 2015). Consequently, the findings ascertain that Goodbank’s immediate major level of stakeholders lies in its customers who are termed as socially-progressive customers who remain conscious on matters related to social and environmental responsibilities (Lodhia, 2015). In overall, research findings note that by adopting integrated reporting framework, Goodbank is able to sustain and fairly-incorporate its business model, vision as well as strategies within a responsible banking arena.

  1. Impact of the article such in terms of improved reporting 

The study has successfully confirmed that businesses that majorly customer-owned are in the best position possible to come up with intuitive ways of incorporating integrated reporting to their business model and vision and thereafter, enjoy great levels of success. Practice insights call for businesses to consider in their entirety overall business operations and procedures as opposed to simply incorporating social and environmental-related information with economic data to portray their commitment to integrated reporting. In consequent, practice theoretical frameworks indicate that the immediate components of business operations should be put in place and ensure that they are functioning in a proper and effective manner in order to assure of improvements and further reporting developments. Following this line of reasoning, organisations are called to possess a perfect practical comprehension of integrated reporting to ensure that it improves over time. Certainly, there should be a distinctive set of rules and regulations that should be directed towards expounding on overall integrated reporting practice functionality as a whole.

References

Lodhia, S. (2015). Exploring the Transition to Integrated Reporting Through a Practice Lens: An Australian Customer Owned Bank Perspective, Journal of Business Ethics, 129, 585-598