This study aims to summarise the findings of the perceptions of Chief Executive Officers (CEOs), Chief Financial Officers (CFOs) and senior executives of South African listed…
Abstract
Purpose
This study aims to summarise the findings of the perceptions of Chief Executive Officers (CEOs), Chief Financial Officers (CFOs) and senior executives of South African listed companies on the perceived benefits and implementation challenges as a result of implementing integrated reporting (IR) requirements, as well as motives for preparing an integrated report; it is performed two years into the South African IR regime,. South African-listed companies are among the first in the world to be subject to compliance with IR requirements in terms of stock exchange listing requirements. IR, as a novel and evolutionary step in corporate reporting, along with the influence that integrated thinking and IR principles will have on companies, has been the subject of global debate in recent years.
Design/methodology/approach
The research instrument used in the study comprised a self-administered Web-based survey aimed at CEOs and CFOs of all South African listed companies. The survey was validated by a pre-trail and data analysed by a statistician to ensure reliability.
Findings
The study revealed that listed companies, in a mandated regulatory regime implemented in a short period with reference to a highly prescriptive draft framework, attach value to the IR process primarily from the perspective of their corporate reputation, investor needs and stakeholder engagement and relations. This strengthens the business case for voluntary IR as a reporting regime. Advancement of corporate reputation appears to be a key motive to compile an integrated report, secondary to compliance as a primary motive. This indicates the perceived corporate legitimising effect of producing an integrated report. Furthermore, managers are more motivated by the legitimising aspect of advancing corporate reputation and stakeholder needs in compiling the integrated report than satisfying investor needs. This results in a disconnect between the perceived audience of the report by managers and the intended audience of the report as providers of capital as envisioned by the IIRC, which should be a matter for future consideration. Better resource allocation decisions and cost reductions are not indicated as an outcome of IR in the study. Furthermore, substantial changes to management information systems, with associated costs, would be required by companies to satisfy the requirements of the report content. The study revealed that the anticipated benefit of a company reconsidering its business model and encouraging sustainable product development is not perceived to be a material outcome in companies that implement IR, nor is assessing economic value creation and strategy considered a key motive for companies to compile an integrated report.
Research limitations/implications
Further validation of the survey by statistical methods in addition to the pre-trial of the survey was not considered viable by the statistician in view of the limited amount of data. This may be viewed as a potential limitation of the study. Statistical analysis must also be interpreted with caution given the limited amount of data available for analysis. Other limitations include the fact that certain industries are too heavily represented instead of there being a mix of industries representing the entire market listed on the JSE, and that a substantial proportion of the companies are large listed companies and Socially Responsible Investment (SRI) Constituents. As a result, the results may not be representative of the overall market listed on the JSE.
Practical implications
Managers are more motivated by the legitimising aspect of advancing corporate reputation and stakeholder needs in compiling the integrated report than satisfying investor needs, while the intended audience of the report in the framework is the providers of financial capital. This needs to be considered in the future development of regulations and frameworks. Furthermore, policymakers and regulators should exercise caution in the early stages of IR, when there is still a lack of evidence to support significant short-term changes in reconsidering the business model as well as sustainable product development that could be convincingly attributed to mandatory IR. It is, therefore, critical that policymakers, government and regulators strive towards creating a wider enabling environment to advance sustainable product development and sustainable business models. This can include establishing incentives to encourage the development of sustainable products, or other incentives that serve to align business objectives with national and global objectives and frameworks. Industry bodies can play a significant role in developing universal industry standards in this regard. Consideration should further be given to implementing regulatory mechanisms for advancing and possibly enforcing responsible investment practices as a measure to fully engage business in the critical shift towards sustainable business practices.
Originality/value
The study is significant from a global perspective because IR and integrated thinking form a new and globally developing concept and the potential benefits and expected outcomes from an organisational perspective thereof for companies are currently the subject of continued global debate. This study aims to provide valuable insights into and understanding of the perceived organisational benefits of implementing IR requirements, as well as serves to highlight the challenge areas experienced in South African companies by compliance with IR requirements. The study also contributes towards the debate of motives of managers for producing an integrated report and how this will affect future directions.
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Criminal proceedings can only follow the commission of an offence, made so by statute. If an act is not unlawful, it matters little with what motives a person commits it or the…
Abstract
Criminal proceedings can only follow the commission of an offence, made so by statute. If an act is not unlawful, it matters little with what motives a person commits it or the consequences; he is outside the law, i.e. criminal law; civil law might have a remedy, but criminal law does not. Even when a criminal offence is committed, it may contain ingredients without which, what would otherwise be a punishable act, becomes guiltless. Most qualifications to guilt are of longstanding, used by parliamentary draftsmen in a wide range of statutes and have acquired reasonably precise judicial meaning. Most relate to intention—wilfully, intentionally, knowingly—and in a few, judicial extension of the popular meaning and usage of the term has occurred to prevent an innocent stance being simulated by a guilty party. “Knowledge” is such an example. The term has been deliberately widened to cover persons who “shut their eyes” to an offence; where a person deliberately refrains from making enquiries, the results of which he would not care to know, this amounts to having such knowledge— constructive knowledge.
Investigates the differences in protocols between arbitral tribunals and courts, with particular emphasis on US, Greek and English law. Gives examples of each country and its way…
Abstract
Investigates the differences in protocols between arbitral tribunals and courts, with particular emphasis on US, Greek and English law. Gives examples of each country and its way of using the law in specific circumstances, and shows the variations therein. Sums up that arbitration is much the better way to gok as it avoids delays and expenses, plus the vexation/frustration of normal litigation. Concludes that the US and Greek constitutions and common law tradition in England appear to allow involved parties to choose their own judge, who can thus be an arbitrator. Discusses e‐commerce and speculates on this for the future.
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Pre‐employment medical examinations with appropriate testing are required in many industries—a basic tenet of Occupational Medicine—and it has long been a recommendation of many…
Abstract
Pre‐employment medical examinations with appropriate testing are required in many industries—a basic tenet of Occupational Medicine—and it has long been a recommendation of many in community medicine and environmental health for those food handlers whose close contact with open food, aspects of its preparation, processing, sale, exposure for sale, make their personal health important and in prevention of diseases and may constitute a health hazard to food consumers. Epidemiological studies have revealed too many instances of a human source of disease, especially in milk and water, for this to be denied or under‐estimated. Food poisioning outbreaks caused by a carrier, of chronic or limited duration, enable those investigating such outbreaks to see there could be advantages in medical screening of certain employees especially in certain areas of food trades. The main problem is to decide the extent of the discipline and who should be subject to it. The fact that by far the majority of the examinations and tests will prove negative should not be seen as removing the need for the service. After all, there are a number of similar circumstances in public health. Meat inspection, for example, in which a 100% inspection of all food animals slaughtered for human food is now fully established, it is not suggested that inspections should in any way be reduced despite the fact that a number of the diseases, eg., tuberculosis, no longer occurs as it once did, which was the prime cause of meat inspection being brought into being. Other areas where routine medical examinations reveal satisfactory health with only a few isolated cases requiring attention, is the school medical service. Here, the “de‐bunkers” have had some success, but if children are not regularly examined at vulnerable age levels and especially in between where the occasion demands, there is no question that much will be missed and ill‐health progress to a chronic state.
The growing range of EEC Directives and Regulations for food products, some of which have never been subject to statutory control in this country, with compositional standards…
Abstract
The growing range of EEC Directives and Regulations for food products, some of which have never been subject to statutory control in this country, with compositional standards, and in particular, prescribed methods of analysis — something which has not featured in the food legislative policies here — must be causing enforcement authorities and food processors to think seriously, if as yet not furiously. Some of the prescribed methods of analysis are likely to be less adaptable to modern processing methods of foods and as Directives seem to be requiring more routine testing, there is the matter of cost. Directive requirements are to some extent negotiable — the EEC Commission allow for regional differences, e.g., in milk and bread — but it has to be remembered that EEC Regulations bind Member‐states from the date of notification by the Commission, over‐riding the national law. Although not so frequently used for food legislation, they constitute one of the losses of sovereign power, paraded by the anti‐market lobby. Regulations contain usual clauses that they “shall enter into force on the day following publication in the Official Journal of the European Communities” and that they “shall be binding in their entirety and directly applicable in all Member States”.
This Food Standards Committee Report has been with us long enough to have received careful appraisal at the hand of the most interested parties — food law enforcement agencies and…
Abstract
This Food Standards Committee Report has been with us long enough to have received careful appraisal at the hand of the most interested parties — food law enforcement agencies and the meat trade. The purposes of the review was to consider the need for specific controls over the composition and descriptive labelling of minced meat products, but the main factor was the fat content, particularly the maximum suggested by the Associaton of Public Analysts, viz., a one‐quarter (25%) of the total product. For some years now, the courts have been asked to accept 25% fat as the maximum, based on a series of national surveys; above that level, the product was to be considered as not of the substance or quality demanded by the purchaser; a contention which has been upheld on appeal to the Divisional Court.
Much to the relief of everyone, the general election has come and gone and with it the boring television drivel; the result a foregone conclusion. The Labour/Trade Union movement…
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Much to the relief of everyone, the general election has come and gone and with it the boring television drivel; the result a foregone conclusion. The Labour/Trade Union movement with a severe beating, the worst for half a century, a disaster they have certainly been asking for. Taking a line from the backwoods wisdom of Abraham Lincoln — “You can't fool all the people all the time!” Now, all that most people desire is not to live easy — life is never that and by the nature of things, it cannot be — but to have a reasonably settled, peaceful existence, to work out what they would consider to be their destiny; to be spared the attentions of the planners, the plotters, provocateurs, down to the wilful spoilers and wreckers. They have a right to expect Government protection. We cannot help recalling the memory of a brilliant Saturday, but one of the darkest days of the War, when the earth beneath our feet trembled at the destructive might of fleets of massive bombers overhead, the small silvery Messerschmits weaving above them. Believing all to be lost, we heaped curses on successive Governments which had wrangled over rearmament, especially the “Butter before Guns” brigade, who at the word conscription almost had apoplexy, and left its people exposed to destruction. Now, as then, the question is “Have they learned anything?” With all the countless millions Government costs, its people have the right to claim something for their money, not the least of which is the right to industrial and domestic peace.
Hobhouse LJ, Millett LJ and Otton LJ
This case, when it arose at first instance, was considered last year in the pages of this Journal (see ‘SIB Court Action against forex trader’, Vol. 5(4), Journal of Financial…
Abstract
This case, when it arose at first instance, was considered last year in the pages of this Journal (see ‘SIB Court Action against forex trader’, Vol. 5(4), Journal of Financial Regulation and Compliance, December 1997, p. 361.
A re‐opening of negotiations for Britain, either unilaterally or with other States, to enter the European Economic Community appears distinctly likely in the coming year. It is…
Abstract
A re‐opening of negotiations for Britain, either unilaterally or with other States, to enter the European Economic Community appears distinctly likely in the coming year. It is more than four years since we discussed, in these columns, the subject of the Common Market and its possible effects on food standards and legislation generally, if Britain linked its economic fortunes and future with the Community. The main obstacles at the time were a chariness to accept the full implications of the Treaty of Rome and the agricultural policy of France. In fact, one gained the impression from all the reports that but for the intransigence of France, we might have joined in 1963.
Few will complain that 1974 has not been an eventful year; in a number of significant respects, it has made history. Local Government and National Health Services reorganizations…
Abstract
Few will complain that 1974 has not been an eventful year; in a number of significant respects, it has made history. Local Government and National Health Services reorganizations are such events. This is indeed the day of the extra‐large authority, massive monoliths for central administration, metropolitan conurbations for regional control, district councils corresponding to the large authorities of other days; and in a sense, it is not local government any more. As in other fields, the “big batallions” acquire greater collective power than the total sum of the smaller units, can wield it more effectively, even ruthlessly, but rarely appearing to take into account the masses of little people, the quiet people, who cannot make themselves heard. As expected, new names of authorities are replacing the old; new titles for departments and officers, ambitious and high‐sounding; a little grandiose for the tongues of ordinary folk. Another history‐making event of 1974, in the nature of a departmental transfer but highly significant for the course of future events as far as work in the field is concerned, was handing over of the personal health services—health of expectant mothers, babies, children, domiciliary midwifery, the school health services and their mainly medical and nursing personnel—from local health authorities to the newly created area health authorities. The public health departments over fifty years and more had created them, built them up into the highly efficient services they are. If anything can be learned from the past, new authorities are always more expensive than those they replace; they spend freely and are lavish with their accommodation and furnishings. In their first few months of existence, the new bodies have proved they are no exception. News of their meetings and activities in many areas is now scanty; even local newspapers which usually thrive on Council news—or quarrels—seem to have been caught on the wrong foot, especially in the small towns now merged into larger units. The public are relatively uninformed, but this doubtless will soon be rectified.