The implementation of sustainability reporting in a small and medium enterprise and the emergence of integrated thinking

Abstract

Purpose–This study aims to examine the process through which sustainability is integrated into theorganizational practices of accounting.Design/methodology/approach–Action research, drawing on the lens of neo-institutional theory, isused to explore the integration process of sustainability in an Italian company.Findings–The results show how different factors and organizational dynamics contribute to the initiationof both sustainability reporting and the progressive diffusion of sustainability practices in this organization,within the small- and medium-sized enterprise (SME) category. In addition, signs of integrated thinking wereidentified while charting the process of sustainability reporting and its institutionalization within thecompany.Research limitations/implications–The study shows that the idea of integrated thinking was rootedin organizational culture prior to the International Integrated Reporting Council (IIRC) framework and themomentum it gave to integrated reporting. In this sense, this research provides evidence to confirm theexistence of an alternate narrative in relation to the one offered by the IIRC framework.Practical implications–The present study contributes to understanding how SMEs can integratesustainability into their accounting systems. Managers working in these organizations may learn from thisexperience.Originality/value–On the one hand, this study further the knowledge of sustainability integrationprocesses within an organizational practice, especially in the case of SMEs. On the other hand, the study is,perhaps, thefirst to identify signs of integrated thinking on the journey through the sustainabilityinstitutionalization process