Integrated thinking as a cultural control?

Purpose: The paper's purpose is to investigate the concept of integrated thinking as part of the International Integrated Reporting Council's (IIRC) Integrated Reporting (<IR>) framework. It explores integrated thinking as a cultural control and analyses how it operates.Methodology: To do so we conduct a case study of bankmecu, a small Australian bank, which is participating in the IIRC's <IR> Pilot Programme Business Network and which issued its first integrated report in 2012. Using semi-structured interviews we examine whether integrated thinking lives up to the rhetoric espoused by the IIRC.Findings: In bankmecu's case we find that a pre-existing responsible banking culture already in place is a stronger cultural control, alongside personnel, results and action controls. The implication for the IIRC is that integrated thinking appears to be a utopian ideal, clashing with the existing organisational culture rather than driving a new organisational culture.Practical implications: Additionally, if integrated thinking is to prevail it may become a source of inertia rather than change because it advocates that an entire workforce should think the same. We also question if breaking down silos, as advocated by integrated thinking, is necessary across all organisational functions, especially concerning material organisational risks and reputation, because these silos foster independent thinking.Policy implications: The problem with the rhetorical arguments proposed by the IIRC is that they aim at a one size fits all approach. Not every organisation has a disconnection between strategy, governance, past performance and future prospects, nor do they all have disconnected departments that need reconnecting. Therefore, a fundamental problem with <IR> is that the rhetoric argues "why" companies need <IR>, not "how" to implement <IR>, and especially not "how" to operationalize integrated thinking.Originality: The paper is a must read because of the growing debate on the benefits of Integrated Reporting by examining and critiquing early adopter's practice alongside the IIRC's rhetoric.Dr. John DumayAssociate Professor of AccountingDepartment of Accounting & Corporate GovernanceAustralasian Editor of the Journal of Intellectual CapitalFaculty of Business and EconomicsRoom 329E4A Eastern RoadMacquarie UniversityNSW 2109 AustraliaT: +61 2 9850 1927M: +61 412 507 376Google Scholar Profile<http://scholar.google.com.au/citations?hl=en&user=zKFxle4AAAAJ&view_op=list_works&authuser=1> Staff Profile<http://www.businessandeconomics.mq.edu.au/contact_the_faculty/all_fbe_staff/john_dumay> FaceBook<https://www.facebook.com/DrJohnDumay>Connect with LinkedIn<https://www.linkedin.com/profile/view?id=63128071&trk=nav_responsive_tab_profileD:-Data20059486%20Documents\888poker> SSRN<http://ssrn.com/author=1210748>[https://upload.wikimedia.org/wikipedia/en/6/65/The_Logo_of_Macquarie_University.png]