Developing a Water Disclosure Index: An Integrative Perspective

This chapter focuses on the research methodology of an integrative perspective in developing and testing a water disclosure index. The problem that motivated this study is that various water accounting (reporting) frameworks may lead to disclosure inconsistencies and incomparability. Furthermore, integrated reporting (IR) is central to this study by incorporating its principles into the new index. However, its value is still questionable. Against this background, the study’s main objective was to evaluate whether the concept of IR and an integrative approach are associated with improved water disclosure in the food, beverage, and tobacco industry. The secondary objectives were firstly to develop a new water disclosure index, and secondly, to test whether there were differences in the water disclosure quality of selected companies between IR-adopted companies versus those still using traditional stand-alone sustainable reporting (non-IR). A post-positivistic research paradigm was selected to reach the objective, which embraces the mixed-method data handling approach. Data were collected and analyzed from reports of 49 selected food, beverage, and tobacco companies listed in Australia, South Africa, and globally. Within the context of the stakeholder and legitimacy theories, this study confirmed that an integrative approach is associated with improved water reporting practices.