Integrated Reporting in OMXS30 companies - An Analysis of Human Capital Disclosures

Background and Problem: Sustainability reporting is a growing interest in today’s organizations and it is essential to report on non-financial matters. Many of the existing frameworks have been criticized for being used only of symbolical reasons which is why the concept of integrated reporting and the <IR> framework have been developed. One of the cornerstones in the <IR> framework is human capital which is one of the most valuable assets in an organization. Traditionally, employee costs have only been treated as an expense and there have been limited disclosures in corporate reports. In the current business world it is instead seen as an investment in human resources. Since previous studies have shown an increase of human capital disclosures when corporate reports become integrated, integrated reporting might be the solution to this problem. Purpose: The purpose of this study is to examine if there are differences in human capital disclosures between integrated reports and separate annual and sustainability reports in companies listed at OMXS30. Delimitations: This study’s empirical examination is limited to include the companies listed at Stockholm OMX30. Only corporate reports issued for the year 2014 are treated. Methodology: For this study a self-constructed disclosure scoreboard with human capital- related items has been used to collect data from the companies’ corporate reports. Also additional information beyond the pre-determined items has been collected to extend the data collection. Empirical Results and Conclusion: The results show that human capital seems to be a subject that is relatively little reported about. The integrated reporting companies do not disclose more information compared to non-integrated reporting companies. However, the results show that integrated reporting companies seem to have a more future-oriented focus and that the disclosures are more dispersed throughout the reports. It can be concluded that company sector and size do not affect the amount or type of information. 

Investigation of managerial capabilities and challenges of a core plant role

The competiveness within the global market has forced large manufacturing companies to reorganize their global operations. To act proficiently abroad is therefore no longer a choice but an important prerequisite. In global production networks, there are different plant roles that serve different purposes. One of the important roles within these networks is the core plant role. There are limited amount of the researches done regarding the core plant role. There is also a lack of consistency regarding the definition of the core plant role. It is also evident that there is a knowledge gap regarding the managerial aspects of this plant role both in the academia and in the industry. Managing a core plant requires certain capabilities. It is important to target this knowledge gap since global manufacturing is becoming a common norm for large enterprises and the importance of the core plant role is getting more evident. There is also a lack of understanding towards the challenges that a core plant must deal with both within the organization and globally towards the other plants within the manufacturing network. To address this knowledge gap further, two research questions were created ―What key capabilities are required in order to manage the core plant role?” (RQ1) and ―What are the main challenges in managing the core plant role?” (RQ2). Case study was chosen as the research method for this study since it is the most appropriate method when investigating a phenomenon in its own context. Interviews were the main research technique used to collect data. 18 semi-structured interviews were conducted in eight different cases. A literature review was conducted and was the foundation for the interview guide used in the interviews and for the data analysis. The results show that various capabilities are important for the management of the core plant role. Proximity to R&D and knowledge were the most emphasized factors. For the main challenges in terms of managing a core plant, the communication, cooperation and coordination where the most challenging aspects. Based upon finding, two frameworks have been proposed a concluding generalization and contribution of this research study. The study provides a generalization based upon data that has been collected from companies from different industries. These findings are a contribution towards both the large enterprises operating globally and the academia.