Social capital and integrated reporting Losing legitimacy when reporting talk is not supported by actions

摘要

Purpose To present the continuation of a case study by Beck et al. (2017) on an Australian bank (CBD) during the period 2004-2013 by examining whether integrated reporting affects relational capital and helps to repair an organisations' reputation. Both studies examine how a bank rocked by a major scandal in 2004 has attempted to repair its legitimacy through integrated reporting (). The paper aims to discuss these issue. Design/methodology/approach This study is a post facto analysis based on the original research from Beck et al. (2017). The research process involved a case study approach with an analysis framed by impression management theory to investigate whether the information in CBD's integrated reports is consistent with other information available to investors. Findings The authors find there is a gap between what CBD discloses in its integrated reports and what is publicly available in other media. CBD's talk and actions are not aligned, and that asymmetry translates into a decline of trust in CBD. The bank's integrated reports reveal how management discloses or withholds information to protect their own interests and at their own discretion. These conclusions indicate that the integrated reporting paradigm is being co-opted by IM strategies to improve legitimacy through trust, reputation and social capital.