Embedding integrated thinking in internal corporate reporting. The case of Generali Group

Purpose – The aim of the research is to analyse the use of the Integrated Reporting framework for internal corporate communication purposes by means of the a so called “Internal Integrated Report”. This approach requires a change of perspective, that is, a transition from the external to the internal stakeholders as key recipients of the integrated report. By increasing internal connectivity and fostering integrated thinking the Internal Integrated Report helps ensuring that the entity operates in a systematic way with the common strategic objective of creating value for its investors. 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. Therefore this paper focuses on identifying the key features of an Internal Integrated Report, its key internal stakeholders (such as investor relations, senior management, corporate services, subsidiaries, employees). Design/methodology/approach –The paper adopts an approach based on case studies method. A case study was selected based on the population of participants in, in the IR networks, especially on companies that disclosed the will, partly through official announcements, to start using IR for internal purposes. Generali Group is clearly a first mover in implementing IR and it was thus selected and analyzed. The research was carried out through semi-structured in-depth interviews performed during the period 2014-2015 and they had been designed to highlight the topics of Internal Integrated Reporting.. Interview data is supplemented by analyzing other sources of information including annual reports, newspaper articles, internal reports and other company’s announcements Originality/value – An assessment of the process of internal integrated reporting 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 stakeholders, in a more accurate and transparent way, about the value-creation process of a specific department 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 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 a unique case study 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