ABSTRACT:
This research, through the lens of institutionalism and organizational change, aims to investigate the integrated reporting process by one of the pioneer companies which embarked on this new model of corporate reporting, i.e. the Development Bank of Singapore (DBS) Group. In according to previous studies, the process of institutionalization of integrated reporting (<IR>) is not yet completed. Hence, this research intends to assess the foregoing process focusing on some organizational changes by the analysis of the DBS case study. Given these premises, our empirical analysis can contribute to the current literature in threefold ways. Firstly, this case study demonstrates how, in an early adopter, the preparation of <IR> can be considered as necessary by managers taking shape as a reply to societal expectations and company’s survival. After that, the second contribution is to identify the internal mechanisms – led by the adoption of <IR> – that can be considered as drivers to organizational changes. Thirdly, an evaluation on the disclosure quality of the DBS’s <IR> has been carried out by focusing greater attention on the foregoing organizational changes. The DBS Group was selected among the participants involved in the IIRC Pilot Programme, and now part of the <IR> Networks. In more detail, these organizations expressed the will, partly through official notices, to start using <IR> for internal purposes. Therefore, such case study was chosen by considering its significance, namely the potential contribution that it might give to the focus of the empirical analysis. The data collection process was focused on just secondary data. The main data sources were both the integrated reports, particularly that pertinent to the fiscal year 2015, and the corporate website. Our findings show that the adoption of <IR> determines interesting reactions by DBS in terms of mimetic, coercive and normative pressures. Moreover, the LAUGHLIN’s model of organizational change provides an overview about some internal mechanisms of change that can be managed, in order to enhance their influence on the innovation in reporting processes. Finally, with reference to the DBS’s report, the assessment of the quality does not provide a detailed examination, given that it revealed certain gaps concerning some crucial topics, such as the measurement and management of six capitals. This study responds to the call for a more research, with an in- depth insight, at the firm level through an exploration of the innovative reporting initiatives. The preparation of <IR> in the banking industry shows interesting sector-specific topics and needs a deeper understanding of some organizational and operational issues.
KEYWORDS: Integrated Reporting, case study, reporting quality, institutionalism, internal mechanisms change, banking industry.
