Social Network Influences on Integrated Reporting adoption and implementation – A UK Perspective

Abstract Purpose This paper sought to investigate social network influences on UK Integrated Reporting (<IR>) adoption and implementation. Design/methodology/approach The study was based on in-depth semi-structured interviews with 36 senior executives actively involved in <IR> within 17 organisations. Findings Main social network influences on adoption externally were report design consultants, and to a lesser extent, external auditors, primarily to legitimize <IR>. Internal influences were board support for <IR>, with the main driver being the mind-set of the CFO/Chairman to drive sustainability throughout the organisation, or to regain societal trust. Social network influences aiding further diffusion at the implementation stage came from three external sources: business networks; report design consultants; and external auditor. Internal influences in driving <IR> diffusion within organisations were identified in five functional areas, with Finance, Sustainability and Communications functions exerting greatest external influence on the diffusion of <IR>. Research Limitations This research study was limited by the small sample of organisations that participated, although significant efforts were made to ensure that the sample incorporated the majority of early adopter UK organisations who demonstrated best practice in <IR>. Therefore, the findings are specific to the research context and do not represent statistical generalisations. Practical implications Empirical evidence identifying social network influences from a practitioner perspective provide recommendations as to how <IR> may be further diffused in the future. Social Implications <IR> creates the potential to significantly improve the long-term health of corporations and the external environment they impact through consideration of the three indivisible and integrated dimensions of sustainable development, the economy, society, and the environment and can contribute to a sustainable society by providing the opportunity for organizations to respond to the UN Sustainable Development Goals. This highlights the significance of research which aims to gain insights into <IR> social network influences which can assist in the adoption and implementation of <IR>. Originality/value This is the first comprehensive study of social network influences on the <IR> adoption and implementation practices in UK. It incorporates recommendations to improve the likelihood of subsequent adoption and diffusion of <IR> based on the findings.