Evaluating integrated thinking in management disclosures in annual reports: Evidence from the United Kingdom (UK) listed organisations

Abstract

Purpose: Integrated thinking adopts a thorough, multi-capital approach to decision-making and operations, including using tools to assist in adopting integrated thinking, to drive value creation and informed decision-making. This study develops and applies a schematic to evaluate the levels of integrated thinking among organisations, focusing on LSE-listed companies from 2014 to 2022. Design/methodology/approach: A longitudinal mixed-method approach was used. Content analysis of corporate reports assessed the adoption of ten integrated thinking principles. Quantitative analysis tested the alignment of integrated thinking scores with ESG ratings, CDP scores, and financial performance measures like ROA. The study also incorporated cross- industry, financial performance and firm size comparisons to identify industry-specific trends. Findings: The schematic identifies principles such as integrated awareness, integrated intelligence, continuous improvement, and external communication. Findings show increased integrated thinking across industries, with pharmaceuticals, mining, and energy achieving the highest scores. Lower adoption was observed in rental and sports betting. The framework highlights gaps in boundary-setting (P9) and integrated intelligence (P8) but reflects improved leadership alignment and external communication practices. Research limitations/implications: The study relies on public reports, which may not fully reflect internal integrated thinking practices. Further testing with case studies and interviews can enhance the robustness of the findings. Practical implications: The proposed schematic provides stakeholders with a practical tool for assessing integrated thinking across organisations. It can guide improvements in governance, stakeholder engagement, and multi-capital integration while addressing industry- specific challenges. Social implications: By emphasising the interconnectedness of capitals and stakeholder needs, the study supports efforts to integrate sustainability and value creation into leadership and organisational structures, emphasising long-term societal and environmental benefits. Originality/value: This research advances integrated thinking by offering a developed schematic and empirical insights, contributing to the literature and practice of corporate governance and sustainability reporting.