The Internal Integrated Reporting and The Value Creation: a Case Study Approach

Purpose - The aim of the research is to analyse the impacts of using the Integrated Report for internal purposes: this requires, therefore, a change of perspective, that is, a transition from the external to the internal stakeholders as special players, as the reviewed players. The option to create value for investors can therefore be extended to other types of stakeholders as well, such as investor relations, senior management, corporate services, subsidiary companies, employees. Some of the new concepts introduced by the International <IR> Framework can make internal communication more transparent and can improve the effectiveness of the efforts made towards achieving the strategic goals. Design/methodology/approach - We propose an approach based on case studies method. Case studies were selected based on the population of participants in the IIRC Pilot Programme, especially companies that expressed the will, partly through official notices, to start using IR for internal purposes. So, they were selected based on their significance, i.e. the potential contribution that each selected case study could give to the focus of the research. The following companies were thus selected: Etica SGR, Generali Group, and Vancity. The interviews concerned a number of main issues and had been designed to highlight the topics of Integrated Reporting, both external and internal. The researchers' efforts were focused on trying to find similarities and differences between the three case studies. Originality/value - A review of the integrated reports may suggest that the companies that are pioneer in bringing to life the integrated reporting internally use such innovative tool for the following reasons: telling investors, in a more accurate and transparent way, about the value-creation process by integrating their accounting results and highlighting the creation of the value; pulling down any internal barriers between departments; responding to the increasing need for internal corporate governance and transparent external communication to the community about the actual management of intellectual capital as well; creating a consistent connection between the internal rewarding incentive system (Performance Management), the intangible value drivers and the related performance indicators (KPIs), which provide an integrated overview of the organisation's internal and external performance. Practical implications - The outcomes of the application could provide useful tips on how to prepare and use the internal integrated reporting since the analysis of case studies, also conducted in comparative terms, it could allow an initial outline of the framework, encourage studies on this area of interest and represent a useful empirical reference for organizations such as the International Integrated Reporting Council (IIRC), International Federation of Accountants (IFAC), Chartered Institute of Management Accountants (CIMA), the Institute of Internal Auditors (IIA), etc.