Managerial Integrated Reporting Evidence from practice

Journal title MANAGEMENT CONTROL
Author/s Paola Demartini, Mauro Paoloni, Paola Paoloni, Cristiana Bernardi
Publishing Year 2015 Issue 2014/3
Language Italian Pages 22 P. 37-58 File size 134 KB
DOI 10.3280/MACO2014-003003
DOI is like a bar code for intellectual property: to have more infomation click here

Below, you can see the article first page

If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits

Article preview

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

This study concerns a global player company operating within the Aerospace and Defence field which has first developed and then deployed a managerial integrated reporting, which attempts to combine traditional financial metrics with Intellectual Capital (IC) and Sustainability performance indicators. The qualitative research approach underlying our investigation is Interpretivism. More specifically, the study was conducted in the light of action research. Data were gathered from in-depth interviews with managers as well as from group discussions. The assumption underlying the present research is that intangibles are the mediating variables which allow to better understand the link between sustainable management and corporate financial performance.

Keywords: Intellectual Capital, Corporate Sustainability, Managerial Integrated Reporting.

  1. Ballou B., Casey R., Grenier J., Heitger D. (2012), Exploring the Strategic Integration of Sustainability Initiatives: Opportunities for Accounting Research, Accounting Horizons, 26 (2), pp. 265-288. DOI: 10.2308/acch-50088
  2. Beattie V. and Smith S. J. (2013), Value Creation and Business Models: Refocusing the Intellectual Capital Debate, The British Accounting Review, 45, pp. 243-254. Bieker T. (2003), Sustainability Management with the Balanced Scorecard, International Summer Academy on Technology Studies - Corporate Sustainability, pp.1-17.
  3. British Standards Institution (BSI) (2003), SIGMA – Sustainability Integrated Guidelines for Management.
  4. Burritt R. L., Hahn T., Schaltegger S. (2002), Towards a Comprehensive Framework for Environmental Management Accounting: Links between Business Actors and Environmental Management Accounting Tools, Australian Accounting Review, 12 (2), pp. 39-50.
  5. Crutzen N., Herzig C. (2013), A Review of the Empirical Research in Management Control, Strategy and Sustainability, Studies in Managerial and Financial Accounting, 26, pp. 165-195.
  6. Demartini P., Paoloni M., Paoloni P., Bernardi C., Barbi E., Guidotti M. V., Angelone I. (2013), Intellectual Capital and Sustainability Management, 13th EURAM Conference, 26th-29th June 2013, Istanbul, Turkey.
  7. Demartini P., Paoloni P., Guidotti M.V. and Angelone I. (2012), Managing Intangible Assets, Capabilities and Performance in a company operating in the field of electronics and defence in Jukka Surakka, ed., Proceeding of the 4th European Conference on Intellectual Capital (ECIC), Arcada University of Applied Sciences, Helsinki, Finland, 23-24 April Published by Academic Publishing International Limited Reading UK.
  8. Dumay J. (2010), A Critical Reflective Discourse of an Interventionist Research Project, Qualitative Research in Accounting & Management, 7 (1), pp. 46-70.
  9. Durden C. (2008), Towards a Socially Responsible Management Control System, Accounting, Auditing & Accountability Journal, 21 (5), pp. 671-694. DOI: 10.1108/09513570810872969
  10. Dumay J. (2013), The Third Stage of IC: Towards a New IC Future and Beyond, Journal of Intellectual Capital, 14 (1), pp. 5-9. DOI: 10.1108/11766091011034271
  11. Edvinsson L., Malone M. (1997), Intellectual Capital: Realizing your Company’s True Value by Finding its Hidden Brainpower, New York, Harper Collins.
  12. EFQM - European Foundation for Quality Management (2009), EFQM Transition Guide: How to Upgrade to the EFQM Excellence Model 2010, Brussels.
  13. Epstein M. J., Roy M. J. (2001), Sustainability in Action: Identifying and Measuring the Key Performance Drivers, Long Range Planning, 34 (5), pp. 585-604.
  14. Figge F., Hahn T., Schaltegger S., Wagner M. (2002), The Sustainability Balanced Scorecard. Linking Sustainability Management to Business Strategy, Business Strategy and the Environment, 11(5), pp. 269-284.
  15. Galbreath J. (2010), Drivers of Corporate Social Responsibility: the Role of Formal Strategic Planning and Firm Culture, British Journal of Management, 21, pp: 511-525. DOI: 10.1111/j.1467-8551.2009.00633.x
  16. Gond J. P., Grubnic S., Herzig C., Moon J. (2012), Configuring Management Control Systems: Theorizing the Integration of Strategy and Sustainability, Management Accounting Research, 23 (3), pp. 205-223.
  17. Guthrie J., Ricceri F., Dumay J. (2012), Reflections and Projections: a Decade of Intellectual Capital Accounting Research, The British Accounting Review, 44 (2), p. 68-82. DOI: 10.1108/09513571211196829
  18. Henri J.F., Journault M. (2010), Eco-control: the influence of management control systems on environmental and economic performance, Accounting, Organizations and Society, 35, pp: 63-80.
  19. Herzig C., Viere T., Schaltegger S., Burritt R. L. (2012), Environmental Management
  20. Accounting: Case Studies of South East-Asian Companies, Routledge, London. Hipp C., Grupp H. (2005), Innovation in the Service Sector: the Demand for Service-Specific Innovation Measurement Concepts and Typologies, Research Policy, 34 (4), pp. 517-535.
  21. InCas Projects, http://www.incas-europe.org/index-en.htm.
  22. Jönsson S., Lukka K. (2005), Doing Interventionist Research in Management Accounting, Gothenburg Research Institute, Gothenburg.
  23. Kaplan R. S., Norton D. P. (1992) The Balanced Scorecard – Measures that Drive Performance, Boston, MA, Harvard Business School Press.
  24. Kaplan R. S., Norton D. P. (1996), The Balanced Scorecard: Translating Strategy into Action, Boston, MA, Harvard Business Review Press.
  25. Kaplan R. S., Norton D. P. (2001), The Strategy-Focused Organisation: How Balanced Scorecard Companies Thrive in the New Business Environment, Boston, MA, Harvard Business Review Press.
  26. Leon-Soriano R., Muñoz-Torres M., Chalmeta-Rosaleñ R. (2010), Methodology for Sustainability Strategic Planning and Management, Industrial Management & Data Systems, 110 (2), pp. 249-268.
  27. Lev B. (2001), Intangibles: Management, Measurement and Reporting, Washington D.C., Brookings Institution Press.
  28. Mertins K., Orth R. (2012), Intellectual Capital and the Triple Bottom Line: Overview, Concepts and Requirements for an Integrated Sustainability Management System, Proceedings of the 4th European Conference on Intellectual Capital (ECIC), Arcada University of Applied Sciences, 23-24 April 2012, Helsinki, Finland.
  29. Moon J., Grubnic S., Herzig C., Gond J. P. (2011), Management Control for Sustainability Strategy, Chartered Institute of Management Accountants. Research Executive Summary Series, 7 (12).
  30. Mouritsen J., Larsen H. T. (2005), The 2nd Wave of Knowledge Management: the Management Control of Knowledge Resources through Intellectual Capital Information, Management Accounting Research, 16 (3), pp. 371-394. DOI: 10.1016/j.mar.2005.06.006
  31. Nonaka I., Takeuchi H. (1995), The Knowledge-creating Company, Oxford, Oxford University Press.
  32. O'Connor N.G., Feng E. (2005), Using the Balanced Scorecard to Manage Intangible Assets in A Sino-Foreign Joint Venture, Australian Accounting Review, 15, pp. 22-29.
  33. OECD (1996), The Knowledge-based Economy. (OCDE/GD (96)102). Organization for Economic Co-operation and Development, Paris.
  34. Orth R., Kohl H. (2012), Intellectual Capital and Sustainability Management: Perspectives for an Integrated Reporting and Benchmarking, Proceedings of the 7th International Forum on Knowledge Asset Dynamics – 5th Knowledge Cities World Summit.
  35. Paoloni M., Paoloni P., Demartini P., Guidotti MV. (2010), The Management Control of Intangibles Through Intellectual Capital Information In A High-Technology Company . A Decision - Usefulness Approach, 6th EIASM Interdisciplinary Workshop On Intangibles, Intellectual Capital & Extra-Financial Information, Catania, September 2010.
  36. Paoloni M., Paoloni P., Demartini P., Guidotti MV. and Celli M. (2010), The Choice of Intellectual Capital Statements in System Integration in a Leading High-Tech Company, in Tsui E., ed., 7th International Conference on Intellectual Capital, Knowledge Management and Organisational Learning, The Hong Kong Polytechnic University, China, Academic Publishing Limited, Reading (UK).
  37. Pedrini M. (2010), Managing Corporate Responsibility to Foster Intangible: A Convergence Model, in Kevin J. O’Sullivan, ed, Strategic Intellctual Capital Management in Multinational Organizations: Sustainability and Successful Implications, IGI Global, Hershey, PA.
  38. Perego P., Hartman F. (2009), Aligning Performance Measurement Systems with Strategy: the Case of Environmental Strategy, Abacus, 45 (4), pp. 397-428. DOI: 10.1111/j.1467-6281.2009.00297.x
  39. Perrini F., Russo A., Tencati A., Vurro C. (2011), Deconstrucing the Relationship between Corporate Social and Financial Performance, Journal of Business Ethics, 102, pp. 59-76. DOI: 10.1007/s10551-011-1194-1
  40. Petty R., Guthrie J. (2000), Intellectual Capital Literature Review: Measurement, Reporting and Management, Journal of Intellectual Capital, 1 (2), pp. 155-176.
  41. Reason P., Bradbury H. (2006), Handbook of Action Research: The Concise Paperback Edition, London, SAGE Publications.
  42. Riccaboni A., Leone E. L. (2010), Implementing Strategies through Management Control Systems: the Case of Sustainability, International Journal of Productivity and Performance Management, 59 (2), pp. 130-144.
  43. RobecoSAM (2013), Measuring Intangibles – RobecoSAM’s Corporate Sustainability Assessment Methodology (www.robecosam.com).
  44. Schaltegger S., Bennett M., Burritt R. (2006), Sustainability Accounting and Reporting: Development, Linkages and Reflection, in Schaltegger S., Bennett M., & Burritt R., Eds., Sustainability Accounting and Reporting, Dordrecht, Springer.
  45. Searcy C. (2012), Corporate Sustainability Performance Measurement Systems. A Review and Research Agenda, Journal of Business Ethics, 107, pp. 239-253. DOI: 10.1007/s10551-011-1038-z
  46. Songini L., Pistoni A. (2012), Accounting, Auditing and Control for Sustainability, Management Accounting Research, 23 (3), pp. 202-204. DOI: 10.1016/j.mar.2012.06.002
  47. Songini L., Pistoni A. and Perrone O. (2013), The Integration of Sustainability and CSR into the Firm Strategy: Why and How. A case study of an Italian Large Multinational Company, EURAM 2013 (European Academy of Management) Conference, Istanbul.
  48. Suomala P. (2009), Interventionist Research – Contributing to Management Accounting through Industry - University Collaboration, Research Update, pp. 10-11.
  49. Sveiby K. E. (1997), The New Organisational Wealth: Managing and Measuring Knowledge-Based Assets, Berrett-Koehler, San Franciso, CA.
  50. Sveiby K. E. (2010), Methods for Measuring Intangible Assets. Online at http://www.sveiby.com/articles/IntangibleMethods.htm (updated 27 April 2010).
  51. Van der Woerd F., Van den Brink T. (2004), Feasibility of a Responsive Business Scorecard - A Pilot Study, Journal of Business Ethics, 55, pp. 173-186.
  52. VDI (2006), Sustainable Management in Small and Medium-Sized Enterprises – Guidance Notes for Sustainable Management, Verein Deutscher Ingenieure, VDI Guidance 4070, Beuth, Berlin.

  • Regulatory compliance of financial control systems and its implications for accountants. Some evidence from Italian experience katia Corsi, Daniela Mancini, in MANAGEMENT CONTROL 3/2015 pp.65
    DOI: 10.3280/MACO2015-003005
  • Key determinants of sustainable intellectual capital of enterprises Milica Jovanović, Bojan Petrović, Ivana Janjić, in Economics of Sustainable Development /2021 pp.13
    DOI: 10.5937/ESD2101013J
  • La misurazione della performance sociale nell'esperienza dell'Università di Bologna Federica Farneti, Benedetta Siboni, Carlotta del Sordo, in MANAGEMENT CONTROL 1/2017 pp.135
    DOI: 10.3280/MACO2017-001007

Paola Demartini, Mauro Paoloni, Paola Paoloni, Cristiana Bernardi, Managerial Integrated Reporting Evidence from practice in "MANAGEMENT CONTROL" 3/2014, pp 37-58, DOI: 10.3280/MACO2014-003003