Exploring the Transition to Integrated Reporting Through a Practice Lens: An Australian Customer Owned Bank Perspective Sumit Lodhia Received: 2 October 2013 / Accepted: 16 April 2014 Ó Springer Science+Business Media Dordrecht 2014 Abstract This article explores the transition to integrated reporting by a customer-owned bank (referred to as Goodbank) and identifies the drivers of this transition, thereby providing insights for other businesses seeking to engage in such reporting. Practice theory provides a theo- retical lens for this study. A case study approach encom- passing in-depth interviews and documents analysis enabled the data to be collected for this research. This study finds that a customer-owned business context enables innovative approaches to reporting. An understanding of reporting and recognition of the potential value of inte- grated reporting, basic guidelines for such a practice, and organisational ethical values and goals based on a combi- nation of economic, social and environmental consider- ations matched by an organisational structure that embeds economic, social and environmental responsibilities rather than treating these as separate silos, enabled Goodbank to transition to integrated reporting and differentiate itself from its competitors and other organisations. Keywords Environmental Á Economic Á Financial Á Integrated reporting Á Practice Á Social Á Stakeholders Á Sustainability Introduction Recent economic, environmental and social controversies and debates such as the global financial crisis (Boddy 2011), the increasing threat of climate change (Smith 2013), biodiversity loss and poverty (IIRC 2011) suggest that present forms of corporate reporting do no adequately provide an ethical account of business performance. In addition to making a profit and increasing shareholder wealth, businesses have ethical obligations to a range of stakeholders related to their economic, social and envi- ronmental responsibilities (Brown and Forster 2013; Has- nas 2013). A new reporting paradigm has been envisaged, whereby economic, social and environmental issues are integrated to provide a more holistic view of business’s performance, ensuring that ethical responsibilities are the forefront of business activity. Whilst not specifically focused on ethical issues, integrated reporting undoubtedly addresses business ethics and ensures that corporate activity is cognisant of all aspects of business performance rather than a simple financial focus. This article explores the transition to integrated report- ing by a customer-owned mutual bank, referred to as Goodbank in this article. One would not expect businesses with such a structure to be the leaders in reporting prac- tices, largely due to the lack of market pressures to attract external funding. However, this study finds that the cus- tomer-owned bank context actually provides the necessary foundations for Goodbank to transition to integrated reporting. Thus, the drivers of the bank’s transition to an integrated reporting practice will be determined so that its success factors as well as challenges are identified. This will have implications for other organisations and inform their integrated reporting practice. This study uses practice theory to examine how inte- grated reporting develops as a practice in Goodbank. Schatzki (2001, 2002, 2005) provides the theoretical lens to explore the development of integrated reporting in Good- bank due to its emphasis on the meshing of various activities which in turn lead to the formation of practice. It is highlighted that the transition to integrated reporting is S. Lodhia (&) University of South Australia, Adelaide, Australia e-mail: Sumit.lodhia@unisa.edu.au 123 J Bus Ethics DOI 10.1007/s10551-014-2194-8