Theoretical Perspectives on Integrated Reporting: Approaches and Methodologies Used in the Academic Research

The integrated reporting (IR) movement aims to improve the transparency of corporate reporting and provide a comprehensive account of how organisations create value over time. However, the scope and the extent of this promising reporting initiative have been variously interpreted among theorists and practitioners. The issue of IR theorisation appears to be challenging due to the concept’s multidimensional nature and because it requires a bridging of the gap between traditional financial reporting and broader non-financial aspects. This section will discuss the foundations of the prevailing traditional theories, together with those of the most fascinating alternative views, which have been used to explain the emergence and spur the development of this new reporting phenomenon. Shedding light upon the theoretical roots of IR is an essential condition to ensure a more comprehensive, transparent and sustainable approach to corporate reporting and align the ethical behaviour of organisations.