scholarly journals Why “Less is More” in Non-Financial Reporting Initiatives: Concrete Steps Towards Supporting Sustainability

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
Georgina Tsagas ◽  
Charlotte Villiers
Keyword(s):  
Financial Reporting ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Integrated Reporting ◽  
Less Is More ◽  
Csr Reporting ◽  
Corporate Reporting ◽  
Long Run ◽  
The Individual ◽  
Key Aspects

AbstractCalls are repeatedly made on corporations to respond to the challenges facing the planet from a sustainable development perspective and governments take solace in the idea that corporations' transparency on their corporate activity in relation to sustainability through voluntary reporting is adequately addressing the problem. In practice, however, reporting is failing to deliver truly sustainable results. The article considers the following questions: how does the varied reporting landscape in the field of non-financial reporting impede the objectives of fostering corporations' sustainable practices and which initiative, among the options available, may best meet the sustainability objectives after a decluttering of the landscape takes place?The article argues that the varied corporate reporting landscape constitutes a key obstacle to fostering sustainable corporate behaviour, insofar as the flexible and please all approach followed in the context of corporate sustainability reporting offers little to no real incentive to companies to behave more sustainably and ultimately pleases none in the long run. The case made is that “less is more” in non-financial reporting initiatives and hence the article calls for a revision of key aspects of the European Non-Financial Reporting Directive, which, as is argued, is more likely to achieve the furtherance of sustainable corporate behaviour. Although the different reporting requirements offer the benefits of focussing on different corporate goals and activities, targeting different audiences and allowing for a level of flexibility that respects the individual risks to sustainability associated with each industry, the end result is a landscape that lacks overall consistency and comparability of measurements and accountabilities, making accountability more, rather than less, difficult to achieve.The article acknowledges the existence of several variances relating to the notion of sustainability per se, which continues to remain a contested concept and variances between companies and industries in relation to how each is operating sustainably or unsustainably respectively. Such variances have so far inhibited the legislator from easily outlining through tailored legislation the individual risks to global sustainability in an all-encompassing manner. The end product is a chaotic system of financial reporting, CSR reporting, non-financial reporting and integrated reporting and little progress to increase comparability and credibility in order for companies to be held accountable and to behave in ways that do not harm the planet. A “clean up” of the varied initiatives in the terrain of non-financial reporting is recommended.

It is not always bad news

2018 ◽  
Vol 31 (5) ◽  
pp. 1319-1348 ◽  
Author(s):  
Mary-Anne McNally ◽  
Warren Maroun
Keyword(s):  
Impression Management ◽  
Financial Reporting ◽  
Value Creation ◽  
Sustainability Reporting ◽  
Management Control ◽  
Financial Information ◽  
Accounting System ◽  
Integrated Reporting ◽  
Content Type ◽  
Corporate Reporting

Purpose The purpose of this paper is to challenge the notion that non-financial reporting is mainly about impression management or is only a superficial response to the hegemonic challenges posed by the sustainability movement. It focuses on the most recent development in sustainability reporting (integrated reporting) as an example of how accounting for financial and non-financial information has the potential to expand the scope of accounting systems, promote meaningful changes to reporting processes and provide a broader perspective on value creation. Design/methodology/approach The research focuses on an African eco-tourism company which has its head office in South Africa. A case study method is used to highlight differences in the presentation of an integrated business model according to the case entity’s integrated reports and how individual preparers interpret the requirement to prepare those reports. Data are collected using detailed interviews with all staff members involved in the preparation process. These are complemented by a review of the minutes of the company’s sustainability workshops and integrated reports. Findings A decision by the case organisation to prepare an integrated report gives rise to different forms of resistance which limits the change potential of the integrated reporting initiative. Resistance does not, however, preclude reform. Even when individual preparers are critical of the changes to the corporate reporting environment, accounting for financial and non-financial information expands the scope of the conventional accounting system which facilitates broader management control and promotes a more integrated conception of “value”. Research limitations/implications Integrated reporting should not be dismissed as only an exercise in corporate reporting and disclosure; it has a transformative potential which, given time, can enable new ways of managing business processes and articulating value creation. Originality/value This study answers the calls for primary evidence on how the requirement or recommendation to prepare an integrated report is being interpreted and applied by individual preparers. The findings add to the limited body of interpretive research on the change potential of new reporting frameworks. In doing so, the research provides theoretical support for developing arguments which challenge the conventional position that integrated reporting is little more than an exercise in impression management.

Compliance in Sustainability Reporting

2019 ◽  
pp. 38-65
Author(s):  
Svetlana Snezhko ◽  
Ali Coskun
Keyword(s):  
Sustainable Development ◽  
Best Practices ◽  
Financial Reporting ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Positive Trend ◽  
Reporting Practices ◽  
Main Achievement ◽  
Corporate Reporting ◽  
Sustainability Reports

The research is aimed at assessing the benefits of compliance for corporate sustainability and sustainable development. The main achievement of the research is the outcome of the survey on companies' public reports to identify the trends and measure the progress achieved in disclosing information on compliance. There are both business and public drivers for disclosure of compliance information in non-financial reporting. Best practices in disclosing information on compliance by the company-leaders were revealed. There is a positive trend in the expansion of information on compliance in sustainability reports in recent years. Some problematic areas in reporting on compliance were identified. The outcomes of the research call for companies to disclose information on compliance in a more explicit way. The results may be valid for the improvement of corporate reporting practices.

Environmental Corporate Reporting under eu Law: Historic Achievement or Just a Moderate Step Forward?

2017 ◽  
Vol 14 (1) ◽  
pp. 41-75
Author(s):  
Janja Hojnik
Keyword(s):  
Financial Reporting ◽  
Sustainability Reporting ◽  
Legal Aspects ◽  
The State ◽  
Eu Law ◽  
Integrated Reporting ◽  
Missed Opportunities ◽  
Corporate Reporting ◽  
The Future ◽  
State Of Affairs

This article deals with legal aspects of sustainable reporting in the eu. It explores the state of affairs in sustainability reporting regulation and points out recent increased support for integrated reporting by the eu institutions, which lead to the newly adopted Directive 2014/95/eu that obliged the Member States to adopt implementing regulation by 6 December 2016. Consequently large companies within its scope need to adjust their reporting as of their 2017 financial year. The article assesses its achievements as well as points out some missed opportunities of the Directive by deliberating legal alternatives for more effective regulation of non-financial reporting in the future.

Sustainability Reporting and Financial Reporting

2013 ◽  
pp. 167-194
Author(s):  
Teresa Cunha Pinto ◽  
Ana Maria Bandeira
Keyword(s):  
Financial Reporting ◽  
Sustainability Reporting ◽  
Integrated Reporting ◽  
Actual Case ◽  
Business World ◽  
Integrated Method ◽  
Corporate Reporting ◽  
Current State ◽  
History Of ◽  
A Company

In the business world, there are issues such as globalisation, environmental awareness, and the rising expectations of public opinion which have a specific role in what is required from companies as providers of information to the market. This chapter refers to the current state of corporate reporting (financial reporting and sustainability reporting) and demonstrates the need for evolution to a more integrated method of reporting which meets the stakeholders’ needs. This research offers a reflection on how this development can be achieved, which notes the ongoing efforts by international organisations in implementing the diffusion and adoption, as well as looking at the characteristics which are needed for this type of reporting. It also makes the link between an actual case of a company that is one of the world references in sustainable development and integrated reporting. Whether or not the integrated reporting is the natural evolution of the history of financial and sustainability reporting, it still cannot yet claim to be infallible. However, it may definitely be concluded that a new approach is necessary to meet the needs which are continuously developing for a network of stakeholders.

Tamed Transparency: How Information Disclosure under the Global Reporting Initiative Fails to Empower

2010 ◽  
Vol 10 (3) ◽  
pp. 74-96 ◽  
Author(s):  
Klaus Dingwerth ◽  
Margot Eichinger
Keyword(s):  
Financial Reporting ◽  
Voluntary Disclosure ◽  
Information Disclosure ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Reporting Scheme ◽  
Corporate World ◽  
Four Levels ◽  
The Relationship

In this contribution, we explore the tensions that seem inherent in the claim that transparency policies “empower” the users of disclosed information vis-àvis those who are asked to provide the information. Since these tensions are particularly relevant in relation to voluntary disclosure, our analysis focuses on the Global Reporting Initiative (GRI) as the world's leading voluntary corporate non-financial reporting scheme. Corporate sustainability reporting is often hailed as a powerful instrument to improve the environmental performance of business and to empower societal groups, including consumers, in their relations with the corporate world. Yet, our analysis illustrates that the relationship between transparency and empowerment is conflictual at all four levels of activity examined in this article: in the rhetoric and policies of the GRI as well as in the actual reporting practice and in the activities of intermediaries in response to the organization's disclosure standard.

scholarly journals The Common Good Balance Sheet, an Adequate Tool to Capture Non-Financials?

2019 ◽  
Author(s):  
Christian Felber ◽  
Vanessa Campos ◽  
Joan Ramon Sanchis
Keyword(s):  
Organizational Performance ◽  
Financial Reporting ◽  
Common Good ◽  
Information Needs ◽  
Balance Sheet ◽  
Validity And Reliability ◽  
Integrated Reporting ◽  
The Common Good ◽  
Corporate Reporting ◽  
The Common

In relation to organizational performance measurement, there is a growing concern about the creation of value for people, society and the environment. The traditional corporate reporting does not adequately satisfy the information needs of stakeholders for assessing an organization’s past and future potential performance. Practitioners and scholars have developed new non-financial reporting frameworks from a social and environmental perspective, giving birth to the field of Integrated Reporting (IR). The Economy for the Common Good (ECG) model and its tools to facilitate sustainability management and reporting can provide a framework to do it. The present study is the first one that empirically validates such metrics on a sample of 206 European firms. Consequently, it allows knowledge to advance as it checks their statistical validity and reliability.

Consequences of corporate sustainability reporting: evidence from an emerging market

2020 ◽  
Vol 62 (3) ◽  
pp. 243-265
Author(s):  
RMNC Swarnapali
Keyword(s):  
Financial Reporting ◽  
Firm Value ◽  
Stock Exchange ◽  
Emerging Market ◽  
Earnings Quality ◽  
Corporate Sustainability ◽  
Market Value ◽  
Sustainability Reporting ◽  
Content Type ◽  
Sustainability Disclosure

Purpose The purpose of this paper is to discover whether corporate sustainability disclosure has a potential impact on the market value and earnings quality of firms in an emerging market. Design/methodology/approach The data were collected from 220 companies listed in the Colombo Stock Exchange (CSE) in Sri Lanka during the period 2012-2016. Firm value proxies by Tobin’s Q, while earnings quality proxies by discretionary accruals (DAC). The study is premised on value-enhancing theory for firm value and transparent financial reporting perspective for earnings quality. Regression analyses are executed on the panel data to achieve the study objectives. Findings The results reveal a positive relationship between sustainability reporting (SR) and firm market value, accepting the value-enhancing theory while rejecting the value-destroying theory. This finding suggests that investors pay a premium in the financial markets for firms that perform in an environmentally and socially responsible manner, compared to firms that do not perform in a similar manner. In the same vein, the results reveal that sustainability disclosure and DAC are negatively and significantly associated, resulting in high-quality earnings. The result is consistent with the transparent financial reporting hypothesis, which is also in line with the managers’ integrity motivation. Originality/value This is the first study investigating the consequences of SR that is specific to the Sri Lankan context. Owing to the sparse studies on consequences of SR, this study contributes significantly to the extant literature by broadening the geographical coverage to include a developing country setting.

scholarly journals The Role of Disability and Accessibility in Corporate Sustainability Reporting

2020 ◽  
Vol 15 ◽  
Author(s):  
Christian Vogelauer ◽  
David M. Herold ◽  
Elmar Fuerst
Keyword(s):  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Social Dimension ◽  
Management Tool ◽  
Critical Elements ◽  
Corporate Reporting ◽  
The Social ◽  
Sustainability Reports ◽  
Flexible Management

Abstract Although companies increasingly focus on the social dimension in corporate sustainability, there seems to be a lack of understanding how and to what extent disability and accessibility frameworks and activities are integrated in corporate sustainability reports. In this article, we aim to close this gap by (a) analysing the disability and accessibility (D&A) activities from the largest 50 companies in Europe based on their corporate sustainability reports, and (b) advancing a simplified conceptual framework for D&A that can be used in corporate reporting. In particular, we provide an overview about corporate D&A reporting and associated activities according to three identified areas: (a) workforce, (b) workplace, and (c) products and services. Our findings are twofold: First, the majority of the companies address D&A in their corporate sustainability reports mainly under the diversity umbrella, but lack a detailed debate about the three identified areas. Second, we found that existing frameworks for D&A are hardly used because either they are not focused on corporate reporting or seem too difficult or complicated to complete. Thus, our framework not only represents a first opportunity to foster the implementation of a D&A framework within the social dimension of corporate sustainability reports, but also presents a holistic yet flexible management tool that takes into account the most critical elements while shaping implementation, directing evaluation and encouraging future planning of D&A initiatives. As such, this study contributes to and extends the limited amount of research of D&A activities in the social dimension in corporate sustainability reporting.

Thinking through the integration of corporate reporting: exploring the interplay between integrative and integrated thinking

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicholas McGuigan ◽  
Ellen Haustein ◽  
Thomas Kern ◽  
Peter Lorson
Keyword(s):  
Integrated Reporting ◽  
Content Type ◽  
Individual Level ◽  
Site Analysis ◽  
Corporate Reporting ◽  
The Individual ◽  
International Integrated Reporting Council ◽  
The Mind ◽  
Consensus Decision Making ◽  
Academic Debate

Purpose This paper aims to introduce an analytical focus on an individual’s integrative thinking capacity to further understand integrated thinking within the organisation. Integrated thinking is an elusive concept, gaining in prominence through its use by the International Integrated Reporting Council (IIRC), without specific guidance or a commonly understood framework. To date, the academic debate on integrated thinking addresses the organisational level only. However, thinking is a process occurring within the mind of an individual and therefore the prerequisites for integrated thinking at the individual level needs to be considered. Critical reflection is, therefore, provided on the interplay between integrative and integrated thinking. Design/methodology/approach This paper draws on conceptual systems theory and case site analysis to reflect how integrative thinking can be encouraged and supported within the individual and how integrated thinking can hence be fostered within organisations. Findings The paper analyses and discusses four sites of integrative thinking: the Athenian democracy; the Minangkabau community; the Quakers and consensus decision-making; and the Apis Mellifera and the hive mind. The findings from these different sites illustrate that integrative thinking can be supported by specific structural, organisational and individual contexts and stimuli. Originality/value Extending the context of integrated thinking analysis outside of the organisation and analysing these sites through components of integrative thought, this article provides further insights into how integrated thinking can be fostered within different organisations. The implications of these findings for accounting and professional institutions, organisations and the ongoing professional development of accountants are discussed.

scholarly journals Measuring the Readability of Sustainability Reports: A Corpus-Based Analysis Through Standard Formulae and NLP

2016 ◽  
Vol 57 (1) ◽  
pp. 52-85 ◽  
Author(s):  
Nils Smeuninx ◽  
Bernard De Clerck ◽  
Walter Aerts
Keyword(s):  
Natural Language Processing ◽  
Language Processing ◽  
Financial Reporting ◽  
Sustainability Reporting ◽  
Important Variable ◽  
Syntactic Variation ◽  
Corporate Reporting ◽  
Language Variety ◽  
Sustainability Reports ◽  
The Impact

This study characterises and problematises the language of corporate reporting along region, industry, genre, and content lines by applying readability formulae and more advanced natural language processing (NLP)–based analysis to a manually assembled 2.75-million-word corpus. Readability formulae reveal that, despite its wider readership, sustainability reporting remains a very difficult to read genre, sometimes more difficult than financial reporting. Although we find little industry impact on readability, region does prove an important variable, with NLP-based variables more strongly affected than formulae. These results not only highlight the impact of legislative contexts but also language variety itself as an underexplored variable. Finally, the study reveals some of the weaknesses of default readability formulae, which are largely unable to register syntactic variation between the varieties of English in the reports and demonstrates the merits of NLP in report readability analysis as well as the need for more accessible sustainability reporting.

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