Business Excellence, Vol. 14 No. 1, 2020.
Preliminary communication
https://doi.org/10.22598/pi-be/2020.14.1.51
DOES EFFICIENCY INCREASE THE APPLICATION OF INTEGRATED REPORTING?
Antonija Petrlić
orcid.org/0000-0001-9750-4923
; University of Rijeka, Faculty of Economics and Business, Croatia
Neda Vitezić
orcid.org/0000-0001-7495-1069
; University of Rijeka, Faculty of Economics and Business, Croatia
Abstract
Continuous stakeholder demands for more detailed and transparent reporting
have led to the development of a new reporting framework. That is the so-called
International Integrated Reporting Framework according to which companies report on
financial and non-financial aspects of business operations. More importantly, they show
the way in which value is created through the established business model in the short,
medium, and long term. Since it is still considered a new tool for socially responsible
reporting, the question arises of its recognizability and level of its implementation and
impact on business operations. Therefore, this paper analytically deals with the overall
concept of integrated reporting and its connection with the principle of efficiency as the
basis of the value-making process. Therefore, the main objective of the paper was to
investigate the current application of the concept of integrated reporting in companies
of the Republic of Croatia and the Republic of Slovenia, in the period from 2011 to
2016, and to determine whether a greater degree of business efficiency influences the
implementation of integrated reporting methods and socially responsible business
operations. The method of online research, descriptive statistics, and non-parametric
method of hypothesis testing were used. Although the results showed a low level of
application of the International Integrated Reporting Framework, the empirical part
shows that a higher level of business efficiency encourages companies to conduct more socially responsible business operations through the presentation of economic,
environmental, and social aspects of business operations.
Keywords
business efficiency; value added; integrated reporting; Croatia; Slovenia.
Hrčak ID:
239239
URI
Publication date:
17.6.2020.
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