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The Business Model in Integrated Reporting: Evaluating Concept and Application

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  • Dale Tweedie
  • Christian Nielsen
  • Nonna Martinov‐Bennie

Abstract

A key feature of the International Integrated Reporting Council's (IIRC) agenda to improve corporate reporting is to encourage companies to use Integrated Reports to disclose their underlying business models. However, extant research suggests that the IIRC's distinctive business model concept is not well understood. This paper aims to unpack and critically evaluate the core features of the IIRC's business model concept. To unpack the IIRC's business model, the paper conducts a structured comparative analysis of the IIRC's model against eight influential alternatives in prior business model research. The paper then evaluates the extent to which Integrated Reporting's distinctive business model is: (1) internally coherent and consistent; and, (2) consistent with the IIRC's broader reporting objectives. The paper identifies tensions in both these areas. Since the IIRC's business model is central to its agenda to improve corporate reporting, these tensions are relevant to both Integrated Reporting research and broader discussions about whether, or how, disclosing business models advances mainstream reporting frameworks.

Suggested Citation

  • Dale Tweedie & Christian Nielsen & Nonna Martinov‐Bennie, 2018. "The Business Model in Integrated Reporting: Evaluating Concept and Application," Australian Accounting Review, CPA Australia, vol. 28(3), pages 405-420, September.
    • Handle: RePEc:bla:ausact:v:28:y:2018:i:3:p:405-420
    DOI: 10.1111/auar.12196
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    References listed on IDEAS

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    4. Mähönen Jukka, 2020. "Integrated Reporting and Sustainable Corporate Governance from European Perspective," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 10(2), pages 1-40, July.
    5. Jukka Mähönen, 2020. "Comprehensive Approach to Relevant and Reliable Reporting in Europe: A Dream Impossible?," Sustainability, MDPI, vol. 12(13), pages 1-38, June.
    6. Thomas Gutmayer & Dannielle Cerbone & Warren Maroun, 2022. "An Evaluation of Business Model Disclosures in Integrated Reports," Australian Accounting Review, CPA Australia, vol. 32(2), pages 220-237, June.
    7. Paola Vola & Lorenzo Gelmini & Lucrezia Songini, 2021. "What does the Business Model tell us about Natural Capital? Insights from African Integrated Reports," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2021(suppl. 1), pages 75-96.
    8. Patrizia Di Tullio & Matteo La Torre & Diego Valentinetti & Michele A. Rea, 2021. "Toward performance measurement systems based on business models," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2021(suppl. 1), pages 97-122.
    9. Nuradhi Kalpani Jayasiri & Sriyalatha Kumarasinghe & Rakesh Pandey, 2023. "12 years of integrated reporting: A review of research," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 2187-2243, June.

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