Main Article Content
Abstract
Purpose: This study examines the integration of alternative financial reporting, including environmental, social, and governance (ESG) disclosures, with traditional financial reporting to enhance corporate transparency and foster stakeholder trust. It examines how integrated reporting bridges the gap between economic and non-financial disclosures by identifying key patterns, challenges, and best practices.
Research Design and Methodology: A qualitative approach was employed using a Systematic Literature Review (SLR) method. The study reviewed scholarly articles and industry reports published since 2018 to assess trends, technical and strategic challenges, and recommendations for implementing integrated reporting across various sectors and regions.
Findings and Discussion: The findings suggest that integrated reporting fosters stakeholder trust by offering a comprehensive view of corporate performance and aligning sustainability initiatives with financial outcomes. However, challenges such as inconsistent reporting standards, technological limitations, and data management constraints persist. Investments in data systems, staff training, and proactive communication improve report credibility and consistency. A flexible yet standardized framework is necessary to accommodate diverse regulatory environments.
Implications: This study offers practical recommendations for companies to enhance reporting through technology upgrades and workforce development initiatives. It also highlights the need for global harmonization of ESG reporting standards for regulators and investors. Additionally, it contributes to academic discourse by expanding research on stakeholder theory and integrated reporting, supporting sustainable and transparent corporate governance.
Keywords
Article Details

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References
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- Albu, O. B., & Flyverbom, M. (2019). Organizational transparency: Conceptualizations, conditions, and consequences. Business & Society, 58(2), 268–297.
- Aziz, N. H. A., & Alshdaifat, S. M. (2024). ESG Reporting: Impacts, Benefits and Challenges BT - Sustainable Horizons for Business, Education, and Technology: Interdisciplinary Insights (H. Alshurafat, A. Hamdan, & J. Sands (eds.); pp. 69–76). Springer Nature Singapore. https://doi.org/10.1007/978-981-97-2981-4_5
- Baume, S., & Papadopoulos, Y. (2018). Transparency: from Bentham’s inventory of virtuous effects to contemporary evidence-based scepticism. Critical Review of International Social and Political Philosophy, 21(2), 169–192. https://doi.org/10.1080/13698230.2015.1092656
- Buallay, A. (2019). Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector. Management of Environmental Quality: An International Journal, 30(1), 98–115. https://doi.org/10.1108/MEQ-12-2017-0149
- Camilleri, M. A. (2017). Corporate sustainability and responsibility: creating value for business, society and the environment. Asian Journal of Sustainability and Social Responsibility, 2(1), 59–74. https://doi.org/10.1186/s41180-017-0016-5
- Capelle-Blancard, G., & Petit, A. (2019). Every Little Helps? ESG News and Stock Market Reaction. Journal of Business Ethics, 157(2), 543–565. https://doi.org/10.1007/s10551-017-3667-3
- Christensen, L. T., & Cornelissen, J. (2015). Organizational transparency as myth and metaphor. European Journal of Social Theory, 18(2), 132–149. https://doi.org/10.1177/1368431014555256
- Cort, T., & Esty, D. (2020). ESG standards: Looming challenges and pathways forward. Organization & Environment, 33(4), 491–510. https://doi.org/10.1177/10860266209453
- Dameri, R. P., & Ferrando, P. M. (2022). Value creation disclosure: the international integrated reporting framework revisited in the light of stakeholder theory. Meditari Accountancy Research, 30(3), 739–761. https://doi.org/10.1108/MEDAR-11-2020-1103
- Dasinapa, M. B. (2024). The Integration of Sustainability and ESG Accounting into Corporate Reporting Practices. Advances in Applied Accounting Research, 2(1 SE-), 13–25. https://doi.org/10.60079/aaar.v2i1.167
- Di Tullio, P., La Torre, M., Dumay, J., & Rea, M. A. (2022). Accountingisation and the Narrative (Re)turn of Business Model Information in Corporate Reporting. Journal of Accounting & Organizational Change, 18(4), 592–615. https://doi.org/10.1108/JAOC-09-2020-0144
- Diwan, H., & Amarayil Sreeraman, B. (2024). From financial reporting to ESG reporting: a bibliometric analysis of the evolution in corporate sustainability disclosures. Environment, Development and Sustainability, 26(6), 13769–13805. https://doi.org/10.1007/s10668-023-03249-2
- Dumay, J., Bernardi, C., Guthrie, J., & La Torre, M. (2017). Barriers to implementing the International Integrated Reporting Framework. Meditari Accountancy Research, 25(4), 461–480. https://doi.org/10.1108/MEDAR-05-2017-0150
- Elkins, H., Entwistle, G., & Schmidt, R. N. (2024). Expectations for sustainability reporting from users, preparers, and the accounting profession. International Journal of Disclosure and Governance, 21(1), 143–164. https://doi.org/10.1057/s41310-023-00206-3
- Fometescu, A., Haţegan, C.-D., & Cuc, L. D. (2024). Challenges of Measuring and Reporting ESG Performance. In S. Grima, D. Maditinos, G. G. Noja, J. Stankevičienė, M. Tarczynska-Luniewska, & E. Thalassinos (Eds.), Exploring ESG Challenges and Opportunities: Navigating Towards a Better Future (Vol. 116, pp. 61–82). Emerald Publishing Limited. https://doi.org/10.1108/S1569-375920240000116005
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- Kirchhoff, K. R., Niefünd, S., & von Pressentin, J. (2024). CSRD: The Revision of the Non-Financial Reporting Directive BT - ESG: Sustainability as a Strategic Success Factor (K. R. Kirchhoff, S. Niefünd, & J. von Pressentin (eds.); pp. 45–57). Springer Fachmedien Wiesbaden. https://doi.org/10.1007/978-3-658-45831-7_5
- Lodhia, S. K., & Sharma, U. (2019). Sustainability accounting and reporting: recent perspectives and an agenda for further research. Pacific Accounting Review, 31(3), 309–312. https://doi.org/10.1108/PAR-02-2019-121
- Luque-Vílchez, M., Cordazzo, M., Rimmel, G., & Tilt, C. A. (2023). Key aspects of sustainability reporting quality and the future of GRI. Sustainability Accounting, Management and Policy Journal, 14(4), 637–659. https://doi.org/10.1108/SAMPJ-03-2023-0127
- Mock, M., Gonzálvez-Gallego, N., & Razik, S. (2021). The Role of Integrated Reporting in Enhancing Corporate Transparency and Communication. https://doi.org/10.21272/bel.5(4).76-89.2021
- Muhi, M. A., & Benaissa, M. (2023). The impact of integrated reporting on improving the quality of financial reporting. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., 8(5), 65. https://doi.org/10.26668/businessreview/2023.v8i5.1737
- Nwachukwu, C. (2022). Systematic review of integrated reporting: recent trend and future research agenda. Journal of Financial Reporting and Accounting, 20(3/4), 580–598. https://doi.org/10.1108/JFRA-10-2020-0308
- Oll, J., & Rommerskirchen, S. (2018). What’s wrong with integrated reporting? A systematic review. NachhaltigkeitsManagementForum | Sustainability Management Forum, 26(1), 19–34. https://doi.org/10.1007/s00550-018-0475-x
- Ombai, P., Kiflemariam, A., & Odollo, L. (2024). Financial and Non-Financial Information on Strategy Management Process: A Systematic Literature Review. Journal of Strategic Management, 8(1), 33–64. https://doi.org/10.53819/81018102t2343
- Petrov, S. V. (2023). Analyzing the transparency of corporate non-financial reporting. Economic Analysis: Theory and Practice, 23(1). https://doi.org/10.24891/ea.23.1.150
- Pizzi, S., Caputo, F., & de Nuccio, E. (2024). Do sustainability reporting standards affect analysts’ forecast accuracy? Sustainability Accounting, Management and Policy Journal, 15(2), 330–354. https://doi.org/10.1108/SAMPJ-04-2023-0227
- Pizzi, S., Principale, S., & de Nuccio, E. (2023). Material sustainability information and reporting standards. Exploring the differences between GRI and SASB. Meditari Accountancy Research, 31(6), 1654–1674. https://doi.org/10.1108/MEDAR-11-2021-1486
- Reid, A., Ringel, E., & Pendleton, S. M. (2024). Transparency Reports as Corporate Social Responsibility (CSR) Reports: Motives, Stakeholders, and Strategies. Social Responsibility Journal, 20(1), 81–107. https://doi.org/10.1108/SRJ-03-2023-0134
- Rouf, M. A., Siddique, M. N.-E.-A., & Akhtaruddin, M. (2024). Exploring corporate financial reporting theories: a systematic approach. International Journal of Ethics and Systems, ahead-of-print(ahead-of-print). https://doi.org/10.1108/IJOES-04-2024-0111
- Sari, R., & Muslim, M. (2024). Corporate Transparency and Environmental Reporting: Trends and Benefits. Amkop Management Accounting Review (AMAR), 4(1 SE-Articles), 1–18. https://doi.org/10.37531/amar.v4i1.1448
- Schnackenberg, A. K., & Tomlinson, E. C. (2016). Organizational transparency: A new perspective on managing trust in organization-stakeholder relationships. Journal of Management, 42(7), 1784–1810. https://doi.org/10.1177/0149206314525202
- Songini, L., Pistoni, A., Comerio, N., & Tettamanzi, P. (2023). A decade of integrated reporting studies: state of the art and future research implications. Accounting, Auditing & Accountability Journal, 36(9), 226–252. https://doi.org/10.1108/AAAJ-10-2021-5490
- Speziale, M.-T. (2019). Theoretical Perspectives on Purposes and Users of Integrated Reporting: A Literature Review BT - Integrated Reporting: Antecedents and Perspectives for Organizations and Stakeholders (S. O. Idowu & M. Del Baldo (eds.); pp. 13–60). Springer International Publishing. https://doi.org/10.1007/978-3-030-01719-4_2
- Sutisman, E., Auliyah, I., & Noy, I. (2024). Accounting for Society: Examining the Interplay between Financial Reporting and Social Responsibility. Advances in Applied Accounting Research, 2(1 SE-), 54–70. https://doi.org/10.60079/aaar.v2i1.166
- Valentinov, V. (2023). Sustainability and Stakeholder Theory: A Processual Perspective. Kybernetes, 52(13), 61–77. https://doi.org/10.1108/K-05-2023-0819
- Velte, P., & Stawinoga, M. (2017). Integrated reporting: The current state of empirical research, limitations, and future research implications. Journal of Management Control, 28(3), 275–320. https://doi.org/10.1007/s00187-016-0235-4
- Yuliantini, Y., Saribanon, E., Olfebri, O., Rahmawati, A., & Yulihapsari, I. U. (2024). Digital Marketing and the Presentation of Corporate Financial Statements: An Analysis of the Literature on Transformation and Impact. Atestasi: Jurnal Ilmiah Akuntansi, 7(2), 1072–1090. https://doi.org/10.57178/atestasi.v7i2.912
- Zhang, A. Y., & Zhang, J. H. (2024). Renovation in environmental, social, and governance (ESG) research: the application of machine learning. Asian Review of Accounting, 32(4), 554–572. https://doi.org/10.1108/ARA-07-2023-0201
References
Abed, I. A., Hussin, N., Haddad, H., Almubaydeen, T. H., & Ali, M. A. (2022). Creative accounting determination and financial reporting quality: the integration of transparency and disclosure. Journal of Open Innovation: Technology, Market, and Complexity, 8(1), 38. https://doi.org/10.3390/joitmc8010038
Albu, O. B., & Flyverbom, M. (2019). Organizational transparency: Conceptualizations, conditions, and consequences. Business & Society, 58(2), 268–297.
Aziz, N. H. A., & Alshdaifat, S. M. (2024). ESG Reporting: Impacts, Benefits and Challenges BT - Sustainable Horizons for Business, Education, and Technology: Interdisciplinary Insights (H. Alshurafat, A. Hamdan, & J. Sands (eds.); pp. 69–76). Springer Nature Singapore. https://doi.org/10.1007/978-981-97-2981-4_5
Baume, S., & Papadopoulos, Y. (2018). Transparency: from Bentham’s inventory of virtuous effects to contemporary evidence-based scepticism. Critical Review of International Social and Political Philosophy, 21(2), 169–192. https://doi.org/10.1080/13698230.2015.1092656
Buallay, A. (2019). Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector. Management of Environmental Quality: An International Journal, 30(1), 98–115. https://doi.org/10.1108/MEQ-12-2017-0149
Camilleri, M. A. (2017). Corporate sustainability and responsibility: creating value for business, society and the environment. Asian Journal of Sustainability and Social Responsibility, 2(1), 59–74. https://doi.org/10.1186/s41180-017-0016-5
Capelle-Blancard, G., & Petit, A. (2019). Every Little Helps? ESG News and Stock Market Reaction. Journal of Business Ethics, 157(2), 543–565. https://doi.org/10.1007/s10551-017-3667-3
Christensen, L. T., & Cornelissen, J. (2015). Organizational transparency as myth and metaphor. European Journal of Social Theory, 18(2), 132–149. https://doi.org/10.1177/1368431014555256
Cort, T., & Esty, D. (2020). ESG standards: Looming challenges and pathways forward. Organization & Environment, 33(4), 491–510. https://doi.org/10.1177/10860266209453
Dameri, R. P., & Ferrando, P. M. (2022). Value creation disclosure: the international integrated reporting framework revisited in the light of stakeholder theory. Meditari Accountancy Research, 30(3), 739–761. https://doi.org/10.1108/MEDAR-11-2020-1103
Dasinapa, M. B. (2024). The Integration of Sustainability and ESG Accounting into Corporate Reporting Practices. Advances in Applied Accounting Research, 2(1 SE-), 13–25. https://doi.org/10.60079/aaar.v2i1.167
Di Tullio, P., La Torre, M., Dumay, J., & Rea, M. A. (2022). Accountingisation and the Narrative (Re)turn of Business Model Information in Corporate Reporting. Journal of Accounting & Organizational Change, 18(4), 592–615. https://doi.org/10.1108/JAOC-09-2020-0144
Diwan, H., & Amarayil Sreeraman, B. (2024). From financial reporting to ESG reporting: a bibliometric analysis of the evolution in corporate sustainability disclosures. Environment, Development and Sustainability, 26(6), 13769–13805. https://doi.org/10.1007/s10668-023-03249-2
Dumay, J., Bernardi, C., Guthrie, J., & La Torre, M. (2017). Barriers to implementing the International Integrated Reporting Framework. Meditari Accountancy Research, 25(4), 461–480. https://doi.org/10.1108/MEDAR-05-2017-0150
Elkins, H., Entwistle, G., & Schmidt, R. N. (2024). Expectations for sustainability reporting from users, preparers, and the accounting profession. International Journal of Disclosure and Governance, 21(1), 143–164. https://doi.org/10.1057/s41310-023-00206-3
Fometescu, A., Haţegan, C.-D., & Cuc, L. D. (2024). Challenges of Measuring and Reporting ESG Performance. In S. Grima, D. Maditinos, G. G. Noja, J. Stankevičienė, M. Tarczynska-Luniewska, & E. Thalassinos (Eds.), Exploring ESG Challenges and Opportunities: Navigating Towards a Better Future (Vol. 116, pp. 61–82). Emerald Publishing Limited. https://doi.org/10.1108/S1569-375920240000116005
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.
Garcia-Sanchez, I.-M., Raimo, N., & Vitolla, F. (2021). CEO power and integrated reporting. Meditari Accountancy Research, 29(4), 908–942. https://doi.org/10.1108/MEDAR-11-2019-0604
Kirchhoff, K. R., Niefünd, S., & von Pressentin, J. (2024). CSRD: The Revision of the Non-Financial Reporting Directive BT - ESG: Sustainability as a Strategic Success Factor (K. R. Kirchhoff, S. Niefünd, & J. von Pressentin (eds.); pp. 45–57). Springer Fachmedien Wiesbaden. https://doi.org/10.1007/978-3-658-45831-7_5
Lodhia, S. K., & Sharma, U. (2019). Sustainability accounting and reporting: recent perspectives and an agenda for further research. Pacific Accounting Review, 31(3), 309–312. https://doi.org/10.1108/PAR-02-2019-121
Luque-Vílchez, M., Cordazzo, M., Rimmel, G., & Tilt, C. A. (2023). Key aspects of sustainability reporting quality and the future of GRI. Sustainability Accounting, Management and Policy Journal, 14(4), 637–659. https://doi.org/10.1108/SAMPJ-03-2023-0127
Mock, M., Gonzálvez-Gallego, N., & Razik, S. (2021). The Role of Integrated Reporting in Enhancing Corporate Transparency and Communication. https://doi.org/10.21272/bel.5(4).76-89.2021
Muhi, M. A., & Benaissa, M. (2023). The impact of integrated reporting on improving the quality of financial reporting. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., 8(5), 65. https://doi.org/10.26668/businessreview/2023.v8i5.1737
Nwachukwu, C. (2022). Systematic review of integrated reporting: recent trend and future research agenda. Journal of Financial Reporting and Accounting, 20(3/4), 580–598. https://doi.org/10.1108/JFRA-10-2020-0308
Oll, J., & Rommerskirchen, S. (2018). What’s wrong with integrated reporting? A systematic review. NachhaltigkeitsManagementForum | Sustainability Management Forum, 26(1), 19–34. https://doi.org/10.1007/s00550-018-0475-x
Ombai, P., Kiflemariam, A., & Odollo, L. (2024). Financial and Non-Financial Information on Strategy Management Process: A Systematic Literature Review. Journal of Strategic Management, 8(1), 33–64. https://doi.org/10.53819/81018102t2343
Petrov, S. V. (2023). Analyzing the transparency of corporate non-financial reporting. Economic Analysis: Theory and Practice, 23(1). https://doi.org/10.24891/ea.23.1.150
Pizzi, S., Caputo, F., & de Nuccio, E. (2024). Do sustainability reporting standards affect analysts’ forecast accuracy? Sustainability Accounting, Management and Policy Journal, 15(2), 330–354. https://doi.org/10.1108/SAMPJ-04-2023-0227
Pizzi, S., Principale, S., & de Nuccio, E. (2023). Material sustainability information and reporting standards. Exploring the differences between GRI and SASB. Meditari Accountancy Research, 31(6), 1654–1674. https://doi.org/10.1108/MEDAR-11-2021-1486
Reid, A., Ringel, E., & Pendleton, S. M. (2024). Transparency Reports as Corporate Social Responsibility (CSR) Reports: Motives, Stakeholders, and Strategies. Social Responsibility Journal, 20(1), 81–107. https://doi.org/10.1108/SRJ-03-2023-0134
Rouf, M. A., Siddique, M. N.-E.-A., & Akhtaruddin, M. (2024). Exploring corporate financial reporting theories: a systematic approach. International Journal of Ethics and Systems, ahead-of-print(ahead-of-print). https://doi.org/10.1108/IJOES-04-2024-0111
Sari, R., & Muslim, M. (2024). Corporate Transparency and Environmental Reporting: Trends and Benefits. Amkop Management Accounting Review (AMAR), 4(1 SE-Articles), 1–18. https://doi.org/10.37531/amar.v4i1.1448
Schnackenberg, A. K., & Tomlinson, E. C. (2016). Organizational transparency: A new perspective on managing trust in organization-stakeholder relationships. Journal of Management, 42(7), 1784–1810. https://doi.org/10.1177/0149206314525202
Songini, L., Pistoni, A., Comerio, N., & Tettamanzi, P. (2023). A decade of integrated reporting studies: state of the art and future research implications. Accounting, Auditing & Accountability Journal, 36(9), 226–252. https://doi.org/10.1108/AAAJ-10-2021-5490
Speziale, M.-T. (2019). Theoretical Perspectives on Purposes and Users of Integrated Reporting: A Literature Review BT - Integrated Reporting: Antecedents and Perspectives for Organizations and Stakeholders (S. O. Idowu & M. Del Baldo (eds.); pp. 13–60). Springer International Publishing. https://doi.org/10.1007/978-3-030-01719-4_2
Sutisman, E., Auliyah, I., & Noy, I. (2024). Accounting for Society: Examining the Interplay between Financial Reporting and Social Responsibility. Advances in Applied Accounting Research, 2(1 SE-), 54–70. https://doi.org/10.60079/aaar.v2i1.166
Valentinov, V. (2023). Sustainability and Stakeholder Theory: A Processual Perspective. Kybernetes, 52(13), 61–77. https://doi.org/10.1108/K-05-2023-0819
Velte, P., & Stawinoga, M. (2017). Integrated reporting: The current state of empirical research, limitations, and future research implications. Journal of Management Control, 28(3), 275–320. https://doi.org/10.1007/s00187-016-0235-4
Yuliantini, Y., Saribanon, E., Olfebri, O., Rahmawati, A., & Yulihapsari, I. U. (2024). Digital Marketing and the Presentation of Corporate Financial Statements: An Analysis of the Literature on Transformation and Impact. Atestasi: Jurnal Ilmiah Akuntansi, 7(2), 1072–1090. https://doi.org/10.57178/atestasi.v7i2.912
Zhang, A. Y., & Zhang, J. H. (2024). Renovation in environmental, social, and governance (ESG) research: the application of machine learning. Asian Review of Accounting, 32(4), 554–572. https://doi.org/10.1108/ARA-07-2023-0201