Integrated Reporting - Implementing a holistic Performance Measurement System to assist decision makers in the evaluation of corporate impacts

Abstract

Abstract

Purpose – The purpose of this paper is to study the possible influence that Integrated Reporting may have on management control systems and whether the former may serve as a driver of change for the latter in today’s knowledge driven and increasingly dynamic economy.

Design/methodology/approach – The first part of the following dissertation will guide us through the stages that have lead the IIRC to develop the guiding principles of Integrated Reporting, why it has picked up momentum and the reported benefits that it can deliver. The second part will involve a literature review and a theoretical framework in order to identify recent findings and gaps that need to be filled in order for management to have a better understanding of the connection between the mentioned reporting system and management control systems. In particular, we focus on the advantages and challenges of effectively integrating sustainability into MCSs. The third section of this thesis will focus on the development of a model useful for management in order to assess the different impacts that corporate actions may have on the different forms of capitals that it influences or is affected by, give guidelines in order to facilitate and achieve an integrated management control system and will cover some case studies. Finally, conclusions will summarise the key findings and identify recommendations for future research.

Originality/value – This paper adds value to the previous research because it serves as a connection between theoretical guidelines, providing a practical instrument for management to apply to their unique business models and have a better awareness of the impacts of their decisions.