Sustainability reporting: An overview of the recent development
-
Author(s)Inten MeutiaLink to ORCID Index: http://orcid.org/0000-0002-2418-0283
,
Zulnaidi YaacobLink to ORCID Index: http://orcid.org/0000-0002-1222-1949
,
Shelly F. KartasariLink to ORCID Index: http://orcid.org/0000-0001-9572-6573
-
DOIhttp://dx.doi.org/10.21511/afc.03(1).2020.03
-
Article InfoVolume 3 2020-2021, Issue #1, pp. 23-39
- Cited by
- 2415 Views
-
819 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study aims to provide an extensive overview of the current state of sustainability reporting through the review studies on sustainability reports (SR) in the accounting literature for the period 2015–2020. A structured literature review (SLR) methodology is used to investigate how the SR literature develops and focuses. The study uses keywords such as “sustainability report” and “sustainability reporting” to identify studies that are relevant to a given topic. A total of 44 published studies were found. This study identifies the main directions of SR research in the 2015–2020 period and discusses several important aspects of research, namely methodology, research methods, and the theory used. To enrich the results, this study defines the scope, country of research, topics and sectors studied. The study provides insight into future SR research used by researchers to develop SR research. Several things are proposed that can be used as a guide for future SR research, such as sustainability in SMEs and the public sector. Ensuring sustainability is one of the research topics that can be a direction for researchers in the future. Theories such as contingency and source credibility can be an alternative to explaining the reality of sustainability reporting.
- Keywords
-
JEL Classification (Paper profile tab)Q56, M40
-
References73
-
Tables4
-
Figures9
-
- Figure 1. Literature review research methodology
- Figure 2. Year of publication
- Figure 3. Research methodology
- Figure 4. Research method
- Figure 5. Research theories
- Figure 6. The scope of studies
- Figure 7. Country category
- Figure 8. Country of origin
- Figure 9. Research sector
-
- Table 1. Number of sustainability studies in each journal
- Table 2. Methodology and research method in studies
- Table 3. Theories in studies
- Table 4. Research topics
-
- Adams, C. A., & Frost, G. R. (2008). Integrating sustainability reporting into management practices. Accounting Forum, 32(4), 288-302.
- Adams, C. A., Muir, S., & Hoque, Z. (2014). Measurement of sustainability performance in the public sector. Sustainability Accounting, Management and Policy Journal, 5(1), 46-67.
- Aggarwal, P., & Singh, A. K. (2019). CSR and sustainability reporting practices in India: an in-depth content analysis of top-listed companies. Social Responsibility Journal, 15(8), 1033-1053.
- Al-Shaer, H., & Zaman, M. (2019). CEO Compensation and Sustainability Reporting Assurance: Evidence from the UK. Journal of Business Ethics, 158(1), 233-252.
- Alvesson, M., & Sandberg, J. (2011). Generating Research Questions Through Problematization. Academy of Management Review, 36(2), 247-271.
- Amidjaya, P. G., & Widagdo, A. K. (2019). Sustainability reporting in Indonesian listed banks: Do corporate governance, ownership structure and digital banking matter? Journal of Applied Accounting Research, 21(2), 231-247.
- An, Y., Davey, H., Harun, H., Jin, Z., Qiao, X., & Yu, Q. (2019). Online sustainability reporting at universities: the case of Hong Kong. Sustainability Accounting, Management and Policy Journal, 11(5), 887-901.
- Anessi-Pessina, E., Barbera, C., Sicilia, M., & Steccolini, I. (2016). Public sector budgeting: a European review of accounting and public management journals. Accounting, Auditing & Accountability Journal, 29(3), 491-519.
- Anunciação, P. F., Brasil, D. X., Marques, J. A., Matias, A. P. N., & Garcia, C. P. (2017). Sustainability Reporting. International Journal of Sustainable Economies Management, 5(4), 10-24.
- Arayssi, M., Dah, M., & Jizi, M. (2016). Women on boards, sustainability reporting and firm performance. Sustainability Accounting, Management and Policy Journal, 7(3), 376-401.
- Archel, P., Husillos, J., Larrinaga, C., & Spence, C. (2009). Social disclosure, legitimacy theory and the role of the state. Accounting, Auditing & Accountability Journal, 22(8), 1284-1307.
- Argento, D., Grossi, G., Persson, K., & Vingren, T. (2019). Sustainability disclosures of hybrid organizations: Swedish state-owned enterprises. Meditari Accountancy Research, 27(4), 505-533.
- Bae, S., Masud, M., & Kim, J. (2018). A Cross-Country Investigation of Corporate Governance and Corporate Sustainability Disclosure: A Signaling Theory Perspective. Sustainability, 10(8), 2611.
- Bebbington, J., & Unerman, J. (2018). Achieving the United Nations Sustainable Development Goals. Accounting, Auditing & Accountability Journal, 31(1), 2-24.
- Bebbington, J., Larrinaga-González, C., & Moneva-Abadía, J. M. (2008). Legitimating reputation/the reputation of legitimacy theory. Accounting, Auditing & Accountability Journal, 21(3), 371-374.
- Bebbington, J., Russell, S., & Thomson, I. (2017). Accounting and sustainable development: Reflections and propositions. Critical Perspectives on Accounting, 48, 21-34.
- Boiral, O., Heras-Saizarbitoria, I., & Brotherton, M. C. (2019). Assessing and Improving the Quality of Sustainability Reports: The Auditors’ Perspective. Journal of Business Ethics, 155(3), 703-721.
- Bowen, H. R. (2013). Social responsibilities of the businessman. University of Iowa Press.
- Bracci, E., Papi, L., Bigoni, M., Gagliardo, E. D., & Bruns, H.-J. (2019). Public value and public sector accounting research: a structured literature review. Journal of Public Budgeting, Accounting & Financial Management, 31(1), 103-136.
- Byun, H., & Kim, T. H. (2017). Identity Claims and Diffusion of Sustainability Report: Evidence from Korean Listed Companies, 2003–2010. Journal of Business Ethics, 140(3), 551-565.
- Carroll, A. B. (2009). A History of Corporate Social Responsibility. In A. Crane, D. Matten, A. McWilliams, J. Moon, & D. S. Siegel (Eds.), The Oxford Handbook of Corporate Social Responsibility (Vol. 1). Oxford University Press.
- Crifo, P., Escrig-Olmedo, E., & Mottis, N. (2019). Corporate Governance as a Key Driver of Corporate Sustainability in France: The Role of Board Members and Investor Relations. Journal of Business Ethics, 159(4), 1127-1146.
- Dienes, D., Sassen, R., & Fischer, J. (2016). What are the drivers of sustainability reporting? A systematic review. Sustainability Accounting, Management and Policy Journal, 7(2), 154-189.
- Dissanayake, D., Tilt, C., & Qian, W. (2019). Factors influencing sustainability reporting by Sri Lankan companies. Pacific Accounting Review, 31(1), 84-109.
- Dong, S., Xu, L., & McIver, R. (2020). China’s financial sector sustainability and “green finance” disclosures. Sustainability Accounting, Management and Policy Journal, 12(2), 353-384.
- Drempetic, S., Klein, C., & Zwergel, B. (2020). The Influence of Firm Size on the ESG Score: Corporate Sustainability Ratings Under Review. Journal of Business Ethics, 167(2), 333-360.
- Dumay, J., Bernardi, C., Guthrie, J., & Demartini, P. (2016). Integrated reporting: A structured literature review. Accounting Forum, 40(3), 166-185.
- Dumay, J., Guthrie, J., & Farneti, F. (2010). GRI sustainability reporting guidelines for public and third sector organizations: A critical review. Public Management Review, 12(4), 531-548.
- Farneti, F., Casonato, F., Montecalvo, M., & de Villiers, C. (2019). The influence of integrated reporting and stakeholder information needs on the disclosure of social information in a state-owned enterprise. Meditari Accountancy Research, 27(4), 556-579.
- Frynas, J. G., & Yamahaki, C. (2016). Corporate social responsibility: review and roadmap of theoretical perspectives. Business Ethics: A European Review, 25(3), 258-285.
- Gazzola, P., Amelio, S., Papagiannis, F., & Michaelides, Z. (2019). Sustainability reporting practices and their social impact to NGO funding in Italy. Critical Perspectives on Accounting.
- Grossi, G., & Steccolini, I. (2014). Accounting for public governance. Qualitative Research in Accounting and Management, 11(2), 86-91.
- Hahn, R., & Kühnen, M. (2013). Determinants of sustainability reporting: a review of results, trends, theory, and opportunities in an expanding field of research. Journal of Cleaner Production, 59, 5-21.
- Hahn, T., Figge, F., Pinkse, J., & Preuss, L. (2018). A Paradox Perspective on Corporate Sustainability: Descriptive, Instrumental, and Normative Aspects. Journal of Business Ethics, 148(2), 235-248.
- Higgins, C., Tang, S., & Stubbs, W. (2020). On managing hypocrisy: The transparency of sustainability reports. Journal of Business Research, 114, 395-407.
- Hsueh, J. W. J. (2018). Governance Structure and the Credibility Gap: Experimental Evidence on Family Businesses’ Sustainability Reporting. Journal of Business Ethics, 153(2), 547-568.
- Hussain, N., Rigoni, U., & Orij, R. P. (2018). Corporate Governance and Sustainability Performance: Analysis of Triple Bottom Line Performance. Journal of Business Ethics, 149(2), 411-432.
- Ismaeel, M., & Zakaria, Z. (2020). Perception of preparers of sustainability reports in the Middle East: Contrasting between local and global. Meditari Accountancy Research, 28(1), 89-116.
- Jamil, A., Mohd Ghazali, N. A., & Puat Nelson, S. (2020). The influence of corporate governance structure on sustainability reporting in Malaysia. Social Responsibility Journal, ahead-of-p(ahead-of-print).
- Journeault, M., Levant, Y., & Picard, C.-F. (2020). Sustainability performance reporting: A technocratic shadowing and silencing. Critical Perspectives on Accounting, 74, 102145.
- Kaelbling, L. P., Littman, M. L., & Moore, A. W. (1996). Reinforcement Learning: A Survey. The SAGE Handbook of Organizational Research Methods.
- Kaur, A., & Lodhia, S. (2018). Stakeholder engagement in sustainability accounting and reporting: A study of Australian local councils. Accounting, Auditing and Accountability Journal, 31(1), 338-368.
- Khlif, H., & Achek, I. (2017). Gender in accounting research: a review. Managerial Auditing Journal, 32(6), 627-655.
- Klußmann, C., Sassen, R., & Gansel, E. (2019). Structural key factors of participatory sustainability reporting for universities. International Journal of Sustainability in Higher Education, 20(6), 1080-1098.
- Kolk, A. (2004). A decade of sustainability reporting: Developments and significance. International Journal of Environment and Sustainable Development, 3(1).
- KPMG & UNEP. (2006). Carrots and Sticks for Starters: Current trends and approaches in Voluntary and Mandatory Standards for Sustainability Reporting.
- KPMG. (2008). Sustainability Report Study. Business and the Environment, 19(3), 182-198.
- Lanis, R., & Richardson, G. (2012). Corporate social responsibility and tax aggressiveness: a test of legitimacy theory. Accounting, Auditing & Accountability Journal, 26(1), 75-100.
- Larrinaga, C., Luque-Vilchez, M., & Fernández, R. (2018). Sustainability accounting regulation in Spanish public sector organizations. Public Money and Management, 38(5), 345-354.
- Larrinaga-Gonzalez, C. (2007). Sustainability reporting: insights from neo-institutional theory. In J. Unerman, B. O’dwyer, & J. Bebbington (Eds.), Sustainability Accounting and Accountability. London: Routledge.
- Li, Y., Zhang, J., & Foo, C.-T. (2013). Towards a theory of social responsibility reporting. Chinese Management Studies, 7(4), 519-534.
- Lynch, M., Lynch, N., & Casten, D. (2014). The Expanding Use of Sustainability Reporting. The CPA Journal, 84(3).
- Majoch, A. A. A., Hoepner, A. G. F., & Hebb, T. (2017). Sources of Stakeholder Salience in the Responsible Investment Movement: Why Do Investors Sign the Principles for Responsible Investment? Journal of Business Ethics, 140(4), 723-741.
- Massa, L., Farneti F., & Scappini, B. (2015). Developing a sustainability report in a small to medium enterprise: process and consequences. Meditari Accountancy Research, 23(1), 62-91.
- Massaro, M., Dumay, J., & Guthrie, J. (2016). On the shoulders of giants: undertaking a structured literature review in accounting. Accounting, Auditing and Accountability Journal, 29(5), 767-801.
- Meutia, I., Mustika, S., & Adam, M. (2018). Cultural Relevance to Sustainability Reporting in Asian and European Banking. Journal of Accounting, Business and Finance Research, 4(1), 9-19.
- Michelon, G., Patten, D. M., & Romi, A. M. (2019). Creating Legitimacy for Sustainability Assurance Practices: Evidence from Sustainability Restatements. European Accounting Review, 28(2), 395-422.
- Millar, E., & Searcy, C. (2020). The presence of citizen science in sustainability reporting. Sustainability Accounting, Management and Policy Journal, 11(1), 31-64.
- Milne, M. J., & Gray, R. (2013). W(h)ither Ecology? The Triple Bottom Line, the Global Reporting Initiative, and Corporate Sustainability Reporting. Journal of Business Ethics, 118, 13-29.
- Montecalvo, M., Farneti, F., & de Villiers, C. (2018). The potential of integrated reporting to enhance sustainability reporting in the public sector. Public Money and Management, 38(5), 365-374.
- Ong, T., & Djajadikerta, H. G. (2018). Corporate governance and sustainability reporting in the Australian resources industry: an empirical analysis. Social Responsibility Journal, 16(1), 1-14.
- Petcharat, N., & Zaman, M. (2019). Sustainability reporting and integrated reporting perspectives of Thai-listed companies. Journal of Financial Reporting and Accounting, 17(4), 671-694.
- Rezaee, Z. (2016). Business sustainability research: A theoretical and integrated perspective. Journal of Accounting Literature, 36, 48-64.
- Safari, M., & Areeb, A. (2020). A qualitative analysis of GRI principles for defining sustainability report quality: an Australian case from the preparers’ perspective. Accounting Forum, 44(4), 344-375.
- Sassen, R., & Azizi, L. (2018). Assessing sustainability reports of US universities. International Journal of Sustainability in Higher Education, 19(7), 1158-1184.
- Schnepp, G. J., & Bowen, H. R. (1954). Reviewed Work: Social Responsibilities of the Businessman by Howard R. Bowen. The American Catholic Sociological Review, 15(1), 42.
- Sepasi, S., Braendle, U., & Rahdari, A. H. (2019). Comprehensive sustainability reporting in higher education institutions. Social Responsibility Journal, 15(2), 155-170.
- Shabana, K. M., Buchholtz, A. K., & Carroll, A. B. (2017). The Institutionalization of Corporate Social Responsibility Reporting. Business and Society, 56(8), 1107-1135.
- Soh, D. S. B. (2014). Sustainability Reporting and Assurance: A Historical Analysis on a World-Wide Phenomenon. Social and Environmental Accountability Journal, 34(2), 125-125.
- Spence, C., Husillos, J., & Correa-Ruiz, C. (2010). Cargo cult science and the death of politics: A critical review of social and environmental accounting research. Critical Perspectives on Accounting, 21(1), 76-89.
- Stocker, F., de Arruda, M. P., de Mascena, K. M. C., & Boaventura, J. M. G. (2020). Stakeholder engagement in sustainability reporting: A classification model. Corporate Social Responsibility and Environmental Management, 27(5), 2071-2080.
- Talbot, D., & Boiral, O. (2018). GHG Reporting and Impression Management: An Assessment of Sustainability Reports from the Energy Sector. Journal of Business Ethics, 147(2), 367-383.
- Usmani, M., Davison, J., & Napier, C. J. (2020). The production of stand-alone sustainability reports: visual impression management, legitimacy and “functional stupidity.” Accounting Forum, 44(4), 315-343.
-
The role of accounting in sustainable development
Inna Makarenko 
,
Alex Plastun
doi: http://dx.doi.org/10.21511/afc.01(2).2017.01
Accounting and Financial Control Volume 1, 2017 Issue #2 pp. 4-12 Views: 7823 Downloads: 4774 TO CITEIdeology of Sustainable Development and Sustainable Development Goals influence the transformation of business processes in the companies. Professional accountants are important part of this transformation. In this paper the role of accounting in Sustainable Development Goals achievement is discussed. Different approaches to structuring the role of professional accountants in Sustainable Development are investigated. Among them are types of roles that perform accountants, their professional functions, skills and competencies in the corporate environment. As the result a holistic vision of the role of accounting in sustainable development in the new economic conditions is provided.
-
Standardization of sustainability reporting: rationale for better investment decision-making
Henry Mynhardt , Inna Makarenko ,
Alex Plastun
doi: http://dx.doi.org/10.21511/pmf.06(2).2017.01
Public and Municipal Finance Volume 6, 2017 Issue #2 pp. 7-15 Views: 2354 Downloads: 354 TO CITE АНОТАЦІЯThe role of sustainability reporting in investment decision-making is not clear and obvious. Despite the steady increase of such statements in corporate annual reports, the relationship between the sustainability reporting and the financial performance of companies is not always positive. The main problems of sustainability reporting nowadays are insufficient comparability of reporting, accuracy (lack of materiality, reliability and validity of indicators), lack of common approaches for its verification.
Synthesis of standardization and regulation features of sustainability reporting, which is provided in this paper in different dimensions (countries, regulators standards), allows to identify long-term trends of this reporting to ensure its quality during investment decision-making in traditional and responsible financial markets.
-
Sustainability reporting in the light of corporate social responsibility development: economic and legal issues
Victor Sukhonos ,
Inna Makarenko
doi: http://dx.doi.org/10.21511/ppm.15(1-1).2017.03
Problems and Perspectives in Management Volume 15, 2017 Issue #1 (cont.) pp. 166-174 Views: 1723 Downloads: 731 TO CITE АНОТАЦІЯIndependent audit assurance of sustainability reporting is the basis for increasing the credibility of the stakeholders, its transparency and reliability; it is a means of implementing legal liability of the company and the evidence of achievement of its legitimacy to the public. The bases for providing such assurance are the standards of implementation of audit tasks in the sphere of sustainable development. Comparative analysis of international practice as for assurance regarding the SR with local realities, based on the reporting database of Ukrainian GRI companies for the 2005-2014 years, witnessed the initial phase of such practices among Ukrainian companies, and the need to strengthen regulatory efforts to determine the legal status of SR auditing standards in Ukraine, ensuring a legal environment and the development of corporate social responsibility initiatives.
