An understanding of materiality in an integrated reporting context: an application of logics
Date
2015
Authors
Cerbone, Dannielle
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Abstract
This study is concerned with the adoption of materiality as a key reporting principle in the
integrated report. This study investigates how preparers are determining which information is
material and ought to be included in their integrated reports. The influence of logics is
observed through an investigation of the different conceptualisations of the materiality concept
by the preparers of integrated reports. Qualitative data was gathered from interviews with
preparers of integrated reports in South Africa. The data was analysed using a grounded
theory approach and the interplay between old and new logics that are shaping materiality in
integrated reporting was identified. The findings of this research indicate that there are three
groups of preparers each embodying different logics. The compliance preparers view
integrated reporting as a compliance exercise. The stakeholder-aware preparers are aware
that the integrated report should communicate with a wide variety of stakeholders and the
interpretive preparer uses the integrated report not only to communicate to stakeholders but
to identify weaknesses with in the entity. The findings also indicate that there are variations in
practices and understandings of materiality and reveal differing organisational priorities which
highlight the extent to which materiality is a social and behavioural phenomenon.
The research adds to the limited body of corporate governance research drawing on an
interpretive epistemology to explore recent reporting developments in a South African context
the findings of this study will be relevant for the current debate about materiality in the
integrated report, especially given the emergence of integrated corporate report.
Keywords: King 3, GRI, Sustainable reporting, South Africa, Materiality, Institutional Logics,
Integrated report.
Description
A research report submitted
In partial fulfilment of the degree of Masters of
Commerce in Accounting,
School of Accountancy, 2015
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Citation
Cerbone, Dannielle (2016) An understanding of materiality in an integrated reporting context: an application of logics, University of the Witwatersrand, Johannesburg, <http://wiredspace.wits.ac.za/handle/10539/22218>