Sensemaking of Financial Institution Actors in the Adoption and Elaboration of Integrated Reporting

Sanches, Simone Leticia Raimundini; Favato, Kelli Juliane; Slewinski, Evelise; Neumann, Marguit

doi:10.7819/rbgn.v22i3.4067

Simone Leticia Raimundini Sanches

State University of Maringá (UEM), Postgraduate Program in Accounting (PCO), Maringá, Brazil. E-mail: slraimundini@uem.br E-mail: kelli.favato@gmail.com E-mail: evelise.sle@gmail.com E-mail: marguitn26@gmail.com

https://orcid.org/0000-0002-7363-2573

Kelli Juliane Favato

State University of Maringá (UEM), Postgraduate Program in Accounting (PCO), Maringá, Brazil. E-mail: slraimundini@uem.br E-mail: kelli.favato@gmail.com E-mail: evelise.sle@gmail.com E-mail: marguitn26@gmail.com

https://orcid.org/0000-0001-8360-8318

Evelise Slewinski

State University of Maringá (UEM), Postgraduate Program in Accounting (PCO), Maringá, Brazil. E-mail: slraimundini@uem.br E-mail: kelli.favato@gmail.com E-mail: evelise.sle@gmail.com E-mail: marguitn26@gmail.com

https://orcid.org/0000-0003-0876-4905

Marguit Neumann

State University of Maringá (UEM), Postgraduate Program in Accounting (PCO), Maringá, Brazil. E-mail: slraimundini@uem.br E-mail: kelli.favato@gmail.com E-mail: evelise.sle@gmail.com E-mail: marguitn26@gmail.com

https://orcid.org/0000-0003-1246-3769

1
. Simone Leticia Raimundini Sanches, PhD in Management, Business School/Federal University of Rio Grande do Sul (EA/UFRGS), Porto Alegre, Brazil.

2
. Kelli Juliane Favato, Master in Accounting, State University of Maringá (UEM), Maringá, Brazil.

3. Evelise Slewinski, Master in Accounting, State University of Maringá (UEM), Maringá, Brazil.

4
. Marguit Neumann, PhD Development Economics, Federal University of Rio Grande do Sul (UFRGS), Porto Alegre, Brazil.

Editor responsável:

Profa. Dra. Natalia Vidal

Contribution of each author

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Contribution Simone Sanches Kelli Favato Evelise Slewinski Marguit Neumann 1. Definition of research problem √ √ √ √ 2. Development of hypotheses or research questions ( empirical studies ) √ √ √ √ 3. Development of theoretical propositions ( theoretical Work ) 4. Theoretical foundation/ Literature review √ √ √ 5. Definition of methodological procedures √ √ 6. Data collection √ √ √ 7. Statistical analysis 8. Analysis and interpretation of data √ √ 9. Critical revision of the manuscript √ √ √ 10. Manuscript Writing √ √ 11. Other (please specify which)

Figures (1)
Tables (6)

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Figure 1
Materiality Matrix Integrated Report 2015.

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Contribution Simone Sanches Kelli Favato Evelise Slewinski Marguit Neumann 1. Definition of research problem √ √ √ √ 2. Development of hypotheses or research questions ( empirical studies ) √ √ √ √ 3. Development of theoretical propositions ( theoretical Work ) 4. Theoretical foundation/ Literature review √ √ √ 5. Definition of methodological procedures √ √ 6. Data collection √ √ √ 7. Statistical analysis 8. Analysis and interpretation of data √ √ 9. Critical revision of the manuscript √ √ √ 10. Manuscript Writing √ √ 11. Other (please specify which)

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Table 1
Sensemaking Properties

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Table 2
Sensemaking properties in IR adoption and preparation process

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Table 3
Interview structure

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Elementos Propriedades do estudo Identity construction Propertied 1: The process of adopting and preparing the IR is based on the construction of the organization identity as to what it “thinks and does”. Retrospective experience Propertied 2: The process of adopting and preparing the IR uses retrospective experiences to understand an organization today and its future. Enactive of Sensible Environments Propertied 3: The process of adopting and preparing the IR is the interpretation of the environment and changes to which the company attributes meaning. Social Propertied 4: The process of adopting and preparing the IR is realized out collective the agents involved in these processes. Ongoing Propertied 5: The process of adopting and preparing the IR is a continuous process of analyzing the creation of value, capital and integration of information. Focused on And by Extracted Cues Propertied 6: The process of adopting and preparing the IR uses reference points (cues) from which ideas can be connected in networks of meaning. Driven by plausibility Propertied 7: The process of adopting and preparing the IR uses guiding principles (such as material, conciseness, requirements) to evaluate the information included. Note. The properties were elaborated according to the literature and, subsequently, adapted during the interpretation of the statements (content analysis stage - section 3) so that they could guide and build the analysis of the result of this study (section 4). In this study, we did not intend to test the properties, but to guide the analysis of the interviews in the context of the Integrated Report. Source: Adapted from Weick (1995, p. 17-60).

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Question Possible element of the weick model (1995) what is your job role in the organization? What are your responsibilities and tasks? And who do you report to? Identity construction; Social. Please, do a general review of your organization’s economic, social and environmental context. Identity construction; Enactive of sensible environments. What does the term Integrated Reporting significant to you and your company? Identity construction; Enactive of sensible environments; Focused on and by extracted cues. How was the Integrated Reporting proposal inserted in the context of your organization? Identity construction; Retrospective experience; Focused on and by extracted cues. How does Integrated Reporting differ from sustainability and financial reporting? Pautado na plausibilidade; Enactive of sensible environments. What are the benefits and challenges of Integrated Reporting? Enactive of sensible environments; Ongoing. Discuss your organization’s transition to Integrated Reporting practice (compared to the model in practice previously), explaining how Integrated Reporting was implemented in your organization. Retrospective experience. Who are the main actors (individuals / sectors) involved in the Integrated Reporting process in your organization? Did these employees start to dedicate only to the Integrated Report process or did they accumulate tasks? Was it necessary the assistance of agents external to the organization, in the consulting function? Identity construction. Identify the key success factors in your organization in the transition to Integrated Reporting. Enactive of sensible environments. Why is the organization committing to Integrated Reporting? What lessons can other organizations learn from their Integrated Reporting experience? Enactive of sensible environments. What are your organization visions for the future of Integrated Reporting? Driven in plausibility. How was the concept of creating value created? What is this concept? Identity construction; Focused on and by extracted cues. How were capitals identified? What are the difficulties? Social How was the process (protocol for) of information connectivity defined? What parts of the organization were involved? Identity construction; Social.

Interviewee	Position
I1	Senior finance analyst
I2	Coordinator within the sector of disclosure management and financial controls
I3	Finance analyst
I4	Institutional communication manager
I5	Accounting consolidation coordinator
I6	Accounting disclosure analyst
I7	Internal controls manager
I8	Manager within the sector of disclosure management and financial controls
I9	Audit committee member
Recording time: 13h30min

Question	Possible element of the weick model (1995)
what is your job role in the organization? What are your responsibilities and tasks? And who do you report to?	Identity construction; Social.
Please, do a general review of your organization’s economic, social and environmental context.	Identity construction; Enactive of sensible environments.
What does the term Integrated Reporting significant to you and your company?	Identity construction; Enactive of sensible environments; Focused on and by extracted cues.
How was the Integrated Reporting proposal inserted in the context of your organization?	Identity construction; Retrospective experience; Focused on and by extracted cues.
How does Integrated Reporting differ from sustainability and financial reporting?	Pautado na plausibilidade; Enactive of sensible environments.
What are the benefits and challenges of Integrated Reporting?	Enactive of sensible environments; Ongoing.
Discuss your organization’s transition to Integrated Reporting practice (compared to the model in practice previously), explaining how Integrated Reporting was implemented in your organization.	Retrospective experience.
Who are the main actors (individuals / sectors) involved in the Integrated Reporting process in your organization? Did these employees start to dedicate only to the Integrated Report process or did they accumulate tasks? Was it necessary the assistance of agents external to the organization, in the consulting function?	Identity construction.
Identify the key success factors in your organization in the transition to Integrated Reporting.	Enactive of sensible environments.
Why is the organization committing to Integrated Reporting? What lessons can other organizations learn from their Integrated Reporting experience?	Enactive of sensible environments.
What are your organization visions for the future of Integrated Reporting?	Driven in plausibility.
How was the concept of creating value created? What is this concept?	Identity construction; Focused on and by extracted cues.
How were capitals identified? What are the difficulties?	Social
How was the process (protocol for) of information connectivity defined? What parts of the organization were involved?	Identity construction; Social.

[1] 1
. Simone Leticia Raimundini Sanches, PhD in Management, Business School/Federal University of Rio Grande do Sul (EA/UFRGS), Porto Alegre, Brazil.

Grounded in Identity Construction	Process of defining the ‘self’ and the ‘collective self’ through interaction with actors. Interaction allows the identity to be continuously reconstructed, so there may be some ambiguity between sensemakers, as they are at different (re)construction stages.
Retrospective	Sensemaking occurs in the present time, but comes from past experiences. It is a reflexive act that depends on values deemed important in the current perception.
Enactive of Sensible Environments	Organizational actors build their own environment by means of stimuli and restrictions resulting from interactions. The organizational environment changes over time.
Social	Collective process, inherent in social interactions, carried out by a social construction of discourse. The construction of meanings or senses is a social and shared process.
Ongoing	The actors participate in the events, given the continuous flow of activities they join, and (re)acting, creating order, and making sense is inevitable.
Focused on and by Extracted Cues	Cues are fragments or structures of simple or known languages by which people attribute a broader sense of what may be happening, and ideas can be connected in networks of meaning.
Driven by Plausibility rather than Accuracy	One does not seek an absolute truth; one seeks a continuous and dynamic truth of a narrative, making it comprehensible. It prioritizes reasonability (acceptable among individuals, a minimum of consensual information) over accuracy.

Identity Construction	Business model, what we think and what we do.
Retrospective Experience	Analyze the past to understand the organization and support its sustainability.
Environment under Construction	Integrated-thinking development.
Collectivity	The actors’ collectivity in the construction of the company’s identity.
Continuity	Integration of information and capitals to create value.
Web of Ideas	Ideas can be connected in networks of meaning for the business model.
Plausibility	Guiding principles (such as materiality, conciseness, reliability) for the information contained in the IR.

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Sensemaking of Financial Institution Actors in the Adoption and Elaboration of Integrated Reporting

Abstract

Purpose:

Design/methodology/approach:

Findings:

Originality/value:

Contribution	Simone Sanches	Kelli Favato	Evelise Slewinski	Marguit Neumann
1. Definition of research problem	√	√	√	√
2. Development of hypotheses or research questions ( empirical studies )	√	√	√	√
3. Development of theoretical propositions ( theoretical Work )
4. Theoretical foundation/ Literature review	√	√	√
5. Definition of methodological procedures	√		√
6. Data collection	√	√	√
7. Statistical analysis
8. Analysis and interpretation of data	√	√
9. Critical revision of the manuscript	√	√		√
10. Manuscript Writing	√	√
11. Other (please specify which)

Elementos	Propriedades do estudo
Identity construction	Propertied 1: The process of adopting and preparing the IR is based on the construction of the organization identity as to what it “thinks and does”.
Retrospective experience	Propertied 2: The process of adopting and preparing the IR uses retrospective experiences to understand an organization today and its future.
Enactive of Sensible Environments	Propertied 3: The process of adopting and preparing the IR is the interpretation of the environment and changes to which the company attributes meaning.
Social	Propertied 4: The process of adopting and preparing the IR is realized out collective the agents involved in these processes.
Ongoing	Propertied 5: The process of adopting and preparing the IR is a continuous process of analyzing the creation of value, capital and integration of information.
Focused on And by Extracted Cues	Propertied 6: The process of adopting and preparing the IR uses reference points (cues) from which ideas can be connected in networks of meaning.
Driven by plausibility	Propertied 7: The process of adopting and preparing the IR uses guiding principles (such as material, conciseness, requirements) to evaluate the information included.