THEORETICAL INSIGHTS ON INTEGRATED REPORTING AND EXTERNALITIES

Externalities are the main source of most of the conflicts between businesses and public. There are several ways to address the externalities problems in economic literature such as; property rights, contractual arrangements and government regulation. Integrated reporting could improve the proposed solutions to externalities in economic literature by providing case specific information and consistent metrics for measurement. This paper views integrated reporting as a tool to overcome the externalities problems by reviewing theoretical background, pointing out issues regarding integrated reporting and providing directions for future research