4. Leonardo: All that Glitters Is not Gold

Given that <IR> is a relatively recent phenomenon, insights are needed to understand how it works in practice and, as a consequence, to ascertain if it could eventually become the corporate reporting norm as advocated by the IIRC. Adams (2015, p. 23) encourages “academics to engage with the [<IR>] process and to contribute to the development of new forms of accountings to help ensure [the <IR> Framework’s] potential is reached”. In response, this and the following chapter seek to provide insights into two organisations that have embarked on the journey towards <IR>. The two case studies contribute to the ongoing debate on <IR> by providing examples of how, and for what reasons, <IR> becomes part of a wider reporting eco-system and the conditions needed for its success (or lack thereof). To date, <IR> research has mainly adopted a top-down ostensive approach rather than a critical bottom-up performative stance based upon its implementation. Therefore, the case studies presented here seek to showcase how two different organisations attempted to operationalise <IR> and the journeys they went through to get there, as well as to derive insights into what new issues will potentially impact on <IR> practice in the future. The first case study delivers insights into a former subsidiary of the Finmeccanica Group that attempted to innovate its strategic management reporting system by moving from IC reporting to integrated thinking, and subsequently helping its holding company adopt <IR>. Following a major company restructure on 1 January 2016, the subsidiary is now one of five divisions of Leonardo S.p.A., a high-tech multinational company operating in the aerospace, defence, and security sector headquartered in Italy. The five divisions comprise helicopters, aircraft, aerostructures, electronics, and cybersecurity. Access to the data about the subsidiary’s integrated thinking and reporting journey was given on the proviso of anonymity. Therefore, it has been given the fictional name Omega.