Circular Economy 6Rs and Reporting Practices: The Role of Institutional Pressures

The study’s purpose is to explore circular economy (CE) activities concerning integrated reporting practices. Specifically, there is an investigation into how and to what extent integrated reporting supports CE-6Rs-related practices. Additionally, how and the degree to which institutional pressure (coercive, normative, and mimetic) impacts integrated reporting and CE-6Rs practices are probed? The research design entailed searching for CE-6Rs-related concepts in 84 integrated reports through content analysis. The study elicited that in every report, a minimum one-time cited CE-6Rs term. Also, it emerged that coercive, normative, and mimetic isomorphism mechanism substantially impacts CE activities in integrated reporting practices. It is concluded that a combined framework of CE and IR is required, with the aim of value creation and participation in the sustainable development agenda. The research has certain limitations; in particular, most of the integrated reports drawn upon are from 2016 to 2017. Hence, further research should be pursued by undertaking expert surveys, interviews, and case studies that would supplement the findings of this exploratory study and determine whether CE activities are being incorporated into integrated reporting approaches. It is beneficial for the policymaker and first movers to develop circular economy-related activity by organizations that are disclosed in their reporting practices. This will provide well-defined financial and non-financial information to all stakeholders for making investment decisions. The previous studies have only considered the 3R principles of reduce, reuse, and recycle, along with the economic and environmental effects. This research involves considering the social, environmental, and economic concepts of CE-6Rs in unison, thereby supporting a more comprehensive sustainable development agenda.