Does the Integrated Reporting’s definition of human capital fit with the HR manager’s perspective?

Titolo Rivista FINANCIAL REPORTING
Autori/Curatori Maurizio Cisi, Francesca Alice Centrone, Laura Corazza
Anno di pubblicazione 2020 Fascicolo 2020/2
Lingua Inglese Numero pagine 28 P. 5-32 Dimensione file 178 KB
DOI 10.3280/FR2020-002001
Il DOI è il codice a barre della proprietà intellettuale: per saperne di più clicca qui

Qui sotto puoi vedere in anteprima la prima pagina di questo articolo.

Se questo articolo ti interessa, lo puoi acquistare (e scaricare in formato pdf) seguendo le facili indicazioni per acquistare il download credit. Acquista Download Credits per scaricare questo Articolo in formato PDF

Anteprima articolo

FrancoAngeli è membro della Publishers International Linking Association, Inc (PILA)associazione indipendente e non profit per facilitare (attraverso i servizi tecnologici implementati da CrossRef.org) l’accesso degli studiosi ai contenuti digitali nelle pubblicazioni professionali e scientifiche

The assessment of the organisation’s ability to create value over time through its human capital (HC) is crucial for every business. Several definitions of HC ex-ist, quite ambiguous and not unique. This fuzziness is impacting, in turn, the busi-ness practice. This study is grounded on the concept of HC, as defined by the Inte-grated Reporting (IR) and it is focused on testing the self-identification of HR managers with the IR definition. With this work, authors want to question the in-clusivity of the definition of HC, as well as, its practical suitability, recurring to a theoretical framework called dialogic-polylogic accounting. A first exploration of the HC definition from the IR framework has been con-ducted, representing the cause-effect links and some reflections on its semantics. Furthermore, the opinion of a purposive sample of key informants HR managers is explored through a qualitative content analysis on 19 semi-structured interviews. Such key informants have a first-hand knowledge about the community of Italian HR managers, and they have no experience in IR representing the voice of ex-cluded, but potential users. Despite an initial sympathetic reaction, the HC practi-tioners stressed an excessive technical rigidity in IR definition, quite distant from their field experience on HC.

Keywords:Human capital definition, Integrated Reporting, human resources, dia-logic-polylogic accounting, non-financial reporting.

Jel codes:M40, M49, Q01

  1. Abeysekera I. (2008), Intellectual capital disclosure trends: Singapore and Sri Lanka, Journal of Intellectual capital, 9(4), pp. 723-737.
  2. Abeysekera I., Guthrie J. (2004), HC reporting in a developing nation, The British Accounting Review, 36(3), pp. 251-268.
  3. Abeysekera I., Guthrie J. (2005), An empirical investigation of annual reporting trends of intellectual capital in Sri Lanka, Critical Perspectives on accounting, 16(3), pp. 151-163. DOI: 10.1016/S1045-2354(03)00059-5
  4. Abeysekera I. (2013), A template for integrated reporting, Journal of Intellectual Capital, 14(2), pp. 227-245. DOI: 10.1108/14691931311323869
  5. Abhayawansa S., Abeysekera I. (2008), An explanation of HC disclosure from the resource-based perspective, Journal of Human Resource Costing & Accounting, 12(1), pp. 51-64. DOI: 10.1108/14013380810872752
  6. Adams C.A. (2015), The international integrated reporting council: a call to action, Critical Perspectives on Accounting, 27, pp. 23-28.
  7. Adams C.A., Potter B., Singh P.J., York J. (2016), Exploring the implications of integrated reporting for social investment (disclosures), The British Accounting Review, 48(3), pp. 283-296.
  8. An Y., Davey H., Eggleton I.R. (2011), Towards a comprehensive theoretical framework for voluntary IC disclosure, Journal of Intellectual Capital, 12(4), pp. 571-585.
  9. Bassi L., Creelman D., Lambert A. (2015), Advancing the HR profession: Consistent standards in reporting sustainable HC outcomes, People-Strategy Journal, 38(2), pp. 71-75.
  10. Beattie V., Smith S.J. (2010), HC, value creation and disclosure, Journal of Human Resource Costing & Accounting, 14(4), pp. 262-285.
  11. Bebbington J., Brown J., Frame B., Thomson I. (2007), Theorizing engagement: the potential of a critical dialogic approach, Accounting, Auditing & Accountability Journal, 20(3), pp. 356-381.
  12. Becker G.S. (1962), Investment in HC: A theoretical analysis, Journal of Political Economy, 70(5, Part 2), pp. 9-49.
  13. Becker G.S. (1964), HC theory. (New York: Columbia University Press).
  14. Becker G.S. (1985), HC, effort, and the sexual division of labour, Journal of Labour Economics, 3(1, Part 2), pp. 33-58.
  15. Bednárová M., Klimko R., Klimko P. (2017), Human capital reporting practices of German and American companies, The International Journal of Digital Accounting Research, 17, pp. 67-91.
  16. Blumberg B., Cooper D.R., Schindler P.S. (2008), Business research methods (Vol. 2). (London: McGraw-Hill Higher Education).
  17. Bowles S., Gintis H. (1975), The problem with HC theory – a Marxian critique, The American Economic Review, pp. 74-82.
  18. Bray M., Ferrier S. (2018), The importance of integrated reporting to HR analytics. -- available at https://www.hrmonline.com.au/innovation/hr-analytics-integrated-reporting/ (accessed on 10 June 2019).
  19. Brown J. (2009), Democracy, sustainability and dialogic accounting technologies: Taking pluralism seriously, Critical Perspectives on Accounting, 20(3), pp. 313-342.
  20. Brown J., Dillard J. (2014), Integrated reporting: On the need for broadening out and opening up, Accounting, Auditing & Accountability Journal, 27(7), pp. 1120-1156.
  21. Brown J., Dillard J. (2015), Opening accounting to critical scrutiny: towards dialogic accounting for policy analysis and democracy, Journal of Comparative Policy Analysis: Research and Practice, 17(3), pp. 247-268.
  22. Choong K. (2008), Intellectual capital: definitions, categorization and reporting models, Journal of Intellectual Capital, 9(4), pp. 609-638.
  23. Coleman J.S. (1988), Social capital in the creation of HC, American Journal of Sociology, 94, pp. 95-120.
  24. Chartered Institute of Management Accountants (CIMA) & Chartered Institute of Personnel and Development (CIPD) (2016), People measurement and reporting: From theory to practice. Better people measures, better decisions, better business. (London, United Kingdom).
  25. Crane A. (2013), Modern slavery as a management practice: Exploring the conditions and capabilities for human exploitation, Academy of Management Review, 38(1), pp. 49-69.
  26. Cuozzo B., Dumay J., Palmaccio M., Lombardi R. (2017), Intellectual capital disclosure: a structured literature review, Journal of Intellectual Capital, 18(1), pp. 9-28.
  27. Denedo M., Thomson I., Yonekura A. (2019), Ecological damage, human rights and oil: local advocacy NGOs dialogic action and alternative accounting practices, Accounting Forum, 43(1), pp. 85-112.
  28. De Villiers C., Sharma U. (2017), A critical reflection on the future of financial, intellectual capital, sustainability and integrated reporting, Critical Perspectives on Accounting (article in press).
  29. Dillard J. (1991), Accounting as a Critical Social Science, Accounting, Auditing & Accountability Journal, 4(1). DOI: 10.1108/09513579110143849
  30. Dillard J., Brown J. (2012), Agonistic Pluralism and Imagining CSEAR into the Future, Social and Environmental Accountability Journal, 32(1), pp. 3-16.
  31. Guthrie J., Ricceri F., Dumay J. (2012), Reflections and projections: A decade of intellectual capital accounting research, The British Accounting Review, 44(2), pp. 68-82.
  32. Haller A., Van Staden C. (2014), The value added statement – an appropriate instrument for Integrated Reporting, Accounting, Auditing & Accountability Journal, 27(7), pp. 1190-1216. DOI: 10.1108/AAAJ-04-2013-1307
  33. Hambrick Donald C. (1981), Strategic Awareness Within Top Management Teams, Strategic Management Journal, 24(3), pp. 263-79.
  34. Hatch N.W., Dyer J.H. (2004), HC and learning as a source of sustainable competitive advantage, Strategic Management Journal, 25(12), pp. 1155-1178.
  35. Homburg C., Klarmann M., Reimann M., Schilke O. (2012), What Drives Key Informant Accuracy?, Journal of Marketing Research, 49(4), pp. 594-608.
  36. Houston M.J., Sudman S. (1975), A Methodological Assessment of the Use of Key Informants, Social Science Research, 4(2), pp. 151-64.
  37. International Integrated Reporting Council, IIRC (2013), The International IR Framework. -- available at http://integratedreporting.org/wp-content/uploads/2015/03/ 13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf (accessed on 13 Mai 2018).
  38. International Integrated Reporting Council, IIRC (2014), Realizing the benefits: The impact of Integrated Reporting -- available at https://integratedreporting.org/wp-content/uploads/2014/09/IIRC.Black_.Sun_.Research.IR_.Impact.Single.pages.18.9.14.pdf (accessed on 15 July 2019).
  39. International Integrated Reporting Council, IIRC (2016), Integrating Reporting IR. Creating Value. The value of HC reporting -- available at https://integratedreporting.org/wp-content/uploads/2015/12/CreatingValueHumanCapitalReporting_IIRC06_16.pdf (accessed on 30 September 2018).
  40. Jacobs K. (2015), HR missing out on integrated reporting benefits -- available at https://www.hrmagazine.co.uk/article-details/hr-missing-out-on-integrated-reporting -benefits (accessed on 5 June 2019).
  41. Krippendorff K. (2003), Content analysis: An introduction to its methodology. (Thousand Oaks, CA: Sage Publications).
  42. Laroche M., Mérette M., Ruggeri G.C. (1999), On the concept and dimensions of HC in a knowledge-based economy context, Canadian Public Policy/Analyse de Politiques, pp. 87-100. DOI: 10.2307/3551403
  43. Lev B., Schwartz A. (1971), On the use of the economic concept of HC in financial statements, The Accounting Review, 46(1), pp. 103-112.
  44. Mahama H., Khalifa R. (2017), Field interviews, The Routledge Companion to Qualitative Accounting Research Methods, p. 321.
  45. Dillard J., Roslender R. (2011), Taking pluralism seriously: Embedded moralities in management accounting and control systems, Critical Perspectives on Accounting, 22(2), pp. 135-147.
  46. Dillard J., Vinnari E. (2019), Critical dialogical accountability: From accounting-based accountability to accountability-based accounting, Critical Perspectives on Accounting, 62, pp. 16-38.
  47. Dillard J., Yuthas K. (2013), Critical dialogics, agonistic pluralism and accounting information systems, International Journal of Accounting Information Systems, 14(2), pp. 113-119.
  48. Dominguez A.A. (2011), The impact of human resource disclosure on corporate image, Journal of Human Resource Costing & Accounting, 15(4), pp. 279-298. DOI: 10.1108/14013381111197225
  49. Doody O., Noonan M. (2013), Preparing and conducting interviews to collect data, Nurse researcher, 20(5).
  50. Dunlosky J., Lipko A.R. (2007), Metacomprehension: A Brief History and How to Improve Its Accuracy, Current Directions in Psychological Science, 16(4), pp. 228-232.
  51. Dumay J., Garanina T. (2013), Intellectual capital research: a critical examination of the third stage, Journal of Intellectual Capital, 14(1), pp. 10-25.
  52. Dumay J., Bernardi C., Guthrie J., Demartini P. (2016), Integrated reporting: a structured literature review, Accounting Forum, 40(3), pp. 166-185.
  53. Dumay J., Bernardi C., Guthrie J., La Torre M. (2017), Barriers to implementing the International Integrated Reporting Framework: A contemporary academic perspective, Meditari Accountancy Research, 25(4), pp. 461-480.
  54. Ferrary M. (2009), A Stakeholder’s Perspective on Human Resource Management, Journal of Business Ethics, 87, pp. 31-43.
  55. Flower J. (2015), The international integrated reporting council: A story of failure, Critical Perspectives on Accounting, 27(1), pp. 1-17.
  56. Fornaciari L., Pesci C. (2018), Global financial crisis and relevance of GRI disclosure in Italy. Insights from the stakeholder theory and the legitimacy theory, Financial Reporting, 1, pp. 67-102.
  57. Fullan M., Rincón-Gallardo S., Hargreaves A. (2015), Professional capital as accountability. Education Policy Analysis Archives, 23, p. 15.
  58. Gallhofer S., Haslam J., Yonekura A. (2015), Accounting as differentiated universal for emancipatory praxis: accounting delineation and mobilisation for emancipation (s) recognising democracy and difference, Accounting, Auditing & Accountability Journal, 28(5), pp. 846-874.
  59. Gamerschlag R. (2013), Value relevance of HC information, Journal of Intellectual Capital, 14(2), pp. 325-345. DOI: 10.1108/14691931311323913
  60. Golden Brian R. (1992), The Past Is the Past – Or Is It? The Use of Retrospective Accounts as Indicators of Past Strategy, Academy of Management Journal, 35(4), pp. 848-60.
  61. Guerci M., Shani A.B.R. (2014), Stakeholder involvement in human resource management practices: Evidence from Italy, Management Revue, pp. 80-102.
  62. Guthrie J., Petty R., Ricceri F. (2007), Intellectual capital reporting: lessons from Hong Kong and Australia, Institute of Chartered Accountants of Scotland.
  63. McCracken M., McIvor R., Treacy R., Wall T. (2018), A study of HC reporting in the United Kingdom, Accounting Forum, 42(1), pp. 130-141.
  64. Marvel M.R., Davis J.L., Sproul C.R. (2016), HC and entrepreneurship research: A critical review and future directions, Entrepreneurship Theory and Practice, 40(3), pp. 599-626.
  65. Melloni G. (2015), Intellectual capital disclosure in integrated reporting: an impression management analysis, Journal of Intellectual Capital, 16(3), pp. 661-680.
  66. Molloy J.C., Barney J.B. (2015), Who captures the value created with HC? A market-based view, Academy of Management Perspectives, 29(3), pp. 309-325.
  67. Norese M.F., Salassa F. (2014), Structuring fragmented knowledge: a case study, Knowledge Management Research & Practice, 12(4), pp. 454-463.
  68. Nyberg A.J., Moliterno T.P., Hale Jr D., Lepak D.P. (2014), Resource-based perspectives on unit-level HC: A review and integration, Journal of Management, 40(1), pp. 316-346. DOI: 10.1177/0149206312458703
  69. Perego P., Kennedy S., Whiteman G. (2016), A lot of icing but little cake? Taking integrated reporting forward, Journal of Cleaner Production, 136, pp. 53-64.
  70. Petty R., Guthrie J. (2000), Intellectual capital literature review: measurement, reporting and management, Journal of Intellectual Capital, 1(2), pp. 155-176. DOI: 10.1108/14691930010348731
  71. Ployhart R.E., Moliterno T.P. (2011), Emergence of the human capital resource: a multilevel model, Academy of Management Review, 36(1), pp. 127-150.
  72. Ployhart R.E., Nyberg A.J., Reilly G., Maltarich M.A. (2014), HC is dead: Long live HC resources!, Journal of Management, 40(2), pp. 371-398.
  73. Roslender R., Stevenson J.E., Kahn H. (2012), Towards recognising workforce health as a constituent of intellectual capital: Insights from a survey of UK accounting and finance directors, Accounting Forum, 36(4), pp. 266-278.
  74. Russ M. (2014), Value creation, reporting, and signaling for HC and human assets: building the foundation for a multi-disciplinary, multi-level theory. (New York: Palgrave Macmillan).
  75. Samudhram A., Sivalingam G., Shanmugam B. (2010), Non-disclosure of HC-based information: theoretical perspectives, Journal of Human Resource Costing & Accounting, 14(2), pp. 106-128.
  76. Schaltegger S. (2012), Sustainability reporting beyond rhetoric: linking strategy, accounting and communication. In Jones S., Ratnatunga J. (Eds.), Contemporary Issues in Sustainability Accounting, Assurance and Reporting, pp. 183-196. (Bingley: Emerald Group Publishing Limited).
  77. Schultz T.W. (1961), Investment in HC, The American economic review, 51(1), pp. 1-17.
  78. Secundo G., Perez S.E., Martinaitis Ž., Leitner K.H. (2017), An Intellectual Capital framework to measure universities’ third mission activities, Technological Forecasting and Social Change, 123, pp. 229-239.
  79. Senasu K., Virakul B. (2015), The Effects of Perceived CSR and Implemented CSR on Job-related Outcomes: An HR Perspective, Journal of East-West Business, 21(1), pp. 41-66. DOI: 10.1080/10669868.2014.995331
  80. Smith A. (1776), An inquiry into the nature and causes of the wealth of nations: Volume One. (London: printed for W. Strahan; and T. Cadell).
  81. Smithson C.W. (1982), Capital, a factor of production, Encyclopedia of Economics, pp. 111-112 (New York: McGraw-Hill).
  82. Stacchezzini R., Florio C., Sproviero A.F., Corbella S. (2019), An intellectual capital ontology in an integrated reporting context, Journal of Intellectual Capital, 20(1), pp. 83-99.
  83. Stubbs W., Higgins C. (2014), Integrated reporting and internal mechanisms of change, Accounting, Auditing & Accountability Journal, 27(7), pp. 1068-1089.
  84. Sun B. (2012), Understanding transformation: Building the business case for integrated reporting. (London: International Integrated Reporting Council).
  85. Sveiby K.E. (2001), A knowledge-based theory of the firm to guide in strategy formulation. Journal of Intellectual Capital, 2(4), pp. 344-358.
  86. Sveiby K.E. (1997), The intangible assets monitor, Journal of Human Resource Costing & Accounting, 2(1), pp. 73-97.
  87. Uliana E., Macey J., Grant P. (2005), Towards reporting HC, Meditari Accountancy Research, 13(2), pp. 167-188.
  88. United Nations Economic Commission for Europe – UNECE (2016), Guide on Measuring HC (New York and Geneva).
  89. Vikalpa R. (2012), Corporate disclosure of intangibles: A comparative study of practices among Indian, US, and Japanese companies, The Journal for Decision Makers, 37(3), pp. 51-72.
  90. Wall A.P., Kirk R.J., Martin G. (2003), Intellectual capital: Measuring the immeasurable. (Oxford: Elsevier).
  91. World Intellectual Capital/Assets Initiative – WICI (2016), WICI Intangible Reporting Framework -- available at http://www.wici-global.com/wirf/WICI_Intangibles _Reporting_Framework_v1.0.pdf (accessed on 12 July 2019).
  92. World Economic Forum – WEF (2017), The Global HC Report 2017. Preparing people for the future of work.
  93. Wright P.M., McMahan G.C. (2011), Exploring human capital: putting ‘human’ back into strategic human resource management. Human Resource Management Journal, 21(2), pp. 93-104.
  94. Zambon S. (2016), Ten years after: the past, the present and the future of scholarly investigation on intangibles and intellectual capital (IC), Journal of Intellectual Capital, 17(1).
  95. Zanda G., Lacchini M., Oricchio G. (1993). La valutazione del capitale umano nell’impresa: modelli qualitativi e quantitativi di logica economico-aziendale. (Torino: Giappichelli).

  • The Human Capital for Value Creation and Social Impact: The Interpretation of the IR’s HC Definition Maurizio Cisi, Francesca Alice Centrone, in Sustainability /2021 pp.6989
    DOI: 10.3390/su13136989
  • Does the Adoption of Planning and Control Tools Influence Performance? Opinions of Grantors and Grantees About Non-profit Projects Giacomo Boesso, Fabrizio Cerbioni, Andrea Menini, in FINANCIAL REPORTING 2/2022 pp.35
    DOI: 10.3280/FR2022-002002

Maurizio Cisi, Francesca Alice Centrone, Laura Corazza, Does the Integrated Reporting’s definition of human capital fit with the HR manager’s perspective? in "FINANCIAL REPORTING" 2/2020, pp 5-32, DOI: 10.3280/FR2020-002001