An exploratory investigation into integrated reporting competencies

Abstract

Purpose: The purpose of the study was to explore the competencies needed to put integrated reporting into practice. Design/methodology/approach: The research approach was designed as a generic qualitative inquiry, informed by the process of traditional job analysis. Semi-structured interviews were conducted out with 21 people involved in integrated reporting either as preparers or as consultants. In addition, secondary data analysis was conducted on existing competency frameworks of the IIRC, ACCA, CIMA and SAICA, selected because of updates made for integrated reporting. The primary and secondary data sources were coded and mapped to three competency categories namely: cognitive, functional and foundational competencies. Findings: Integrated reporters fulfil a number of roles, namely as: interpreter of the <IR> Framework, systems architect, nexus of information, storyteller and innovator. Various cognitive, functional and foundational competencies were identified as critical within each of these roles. The bulk of the integrated reporters’ time was spent on their role as nexus of information and storyteller. The integrated reporters’ interpretation of the <IR> Framework was identified as the basis for their approach to presenting a business case for integrated reporting that may or may not be founded on the principle of sustainable value creation. Many reporters spent most of their time acting as custodians and editors of the information collected for the integrated report as well as writing of a specific story, while challenging the board to ensure that the information portrayed was complete. The specific story integrated reporters focussed on appeared to favour the information requirements of shareholders as opposed to the information needs of stakeholders. The ability to innovate is an aspirational role, underpinned by meta-competency. The ability of the integrated reporter to apply meta-competency will be increasingly important, as the integrated reporter spends more time in the role of innovator. Research limitations/implications: The interviewees did not consider if the organisations they work for are successful at integrated reporting, therefore the competencies reflect their personal views of competencies required. As the competencies were compared to competencies set out in published competency frameworks, the limitation was mitigated to some extent. The researcher was involved in preparing the integrated report for a nonlisted organisation and in adjudicating integrated reports for an award at the time of the study. Originality/value: This paper is the first to examine competencies required to put integrated reporting into practice as identified by preparers and consultant on integrated reporting. It makes an important contribution to the academic literature by adding to the limited body of research on integrated reporting and corporate governance in South Africa. The study provides insight into the roles that integrated reporters currently fulfil and how these roles may impact on the implementation of integrated reporting in future.