Volume 6, Issue 3, September 2018, Page: 85-94
The Paradigm Shift from Financial Reporting to Integrated Reporting
Kazunori Ito, Department of Accounting, Faculty of Commerce, Senshu University, Kawasaki, Japan
Masaki Iijima, Department of Management, Faculty of Management, Aichi Gakuin University, Nagoya, Japan
Received: Sep. 12, 2018;       Accepted: Oct. 12, 2018;       Published: Nov. 1, 2018
DOI: 10.11648/j.jhrm.20180603.11      View  154      Downloads  13
Abstract
In Japan, many companies are preparing integrated reports. Under such circumstances, some companies prepare annual reports as an integrated report. Nevertheless, the views on the essence of the integrated report are not always agreed upon. Some companies are preparing annual reports or sustainability reports as integrated reports. Thus, some researchers insist on the integrated report as being useful for investors. On the other hand, some researchers proposed that the integrated report is useful for stakeholders. This paper discusses the essence of integrated reports and who they might be useful for. The aim of this paper is to propose our opinion about the essence of integrated reports. This paper clarifies some views on the integrated reports and used a literature review methodology to propose our view. As a result of the literature research, it was found that the essence of the integrated report is to disclose not only financial information but also non-financial information. This point is a significant difference from the annual report. In addition, the integrated report is not disclosed only to investors, but was found to be strongly influenced by the idea of the sustainability report in terms of stakeholder engagement. In short, what this paper wanted to point out is that integrated reporting can be used not only as information disclosure to stakeholders but also as information usage for strategy formulation and business management through stakeholder engagement.
Keywords
Paradigm Shift, Integrated Reports, Financial Reports, Sustainability Reports, Inside-Out Approach
To cite this article
Kazunori Ito, Masaki Iijima, The Paradigm Shift from Financial Reporting to Integrated Reporting, Journal of Human Resource Management. Vol. 6, No. 3, 2018, pp. 85-94. doi: 10.11648/j.jhrm.20180603.11
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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