Reconsidering Integrated Reporting in Public Sector Organisations: Challenges for Territorial Governments

The past three decades have seen the development and implementation of new reporting formats, including social, sustainability, and integrated reports to respond to the increasing demand for accountability within public sector organisations (PSOs). This chapter examines the case of integrated reporting (IR), which has emerged as a widely recognised standard for assessing value creation. Despite this, evidence suggests that its adoption remains sluggish within the public sector, particularly among territorial governments, that is, administrative bodies responsible for political direction and service provision within a defined geographical area, such as local, provincial, or regional authorities. The research focuses on how the characteristics of PSOs (with a focus on territorial governments) influence IR and what are the challenges it faces within this type of organisations. The key components of the IR framework are assessed through a deductive analysis in relation to the distinctive features of traditional public administration settings. The implications of the findings are discussed to provide suggestions for future research and practice.