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This research aims to analyse the links and potential limiting and supporting factors between sustainability actions and sustainability reporting. Comparing companies involved in sustainability actions and those whose reporting practices lack a formal reporting system, this analysis focuses on Italian small and medium-sized enterprises (SMEs) in th...
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... coding activity that resulted from the application of the factors proposed in the literature in this study made it possible to highlight the significant trends among the focal SMEs and to shed light on important differences between companies that adopt substantial sustainability practices without any socioenvironmental reporting and companies that engage in both substantial action and reporting processes (see Table 4 for the results overview). Accordingly, our analysis and presentation of the predominant factors, their role in sustainability action and reporting, and the differences between the two groups of focal SMEs have allowed us to deepen the understanding of the singular and distinct processes among SMEs and to significantly extend the explanation of the mechanisms linking sustainability action and communication processes. ...Citations
... The implementation of sustainability is also supported by internal corporate governance mechanisms, such as board independence and the presence of CSR committees, which positively influence ESG disclosures (Galeone et al. 2024;Galli et al. 2023). By adopting disclosure practices, companies seek to fulfil the interests of stakeholders, which can affect their competitiveness and economic performance. ...
... In the theory of CSR, Corporate Social Responsibility Communication and Reporting (CSRD) is developing to include environmental risk management by financial institutions, recognizing the importance of transparency with respect to stakeholders (Galli et al. 2023;Maletič et al. 2015). Social media has been a tool used by banks to build legitimacy and navigate public expectations, with an increase in the dissemination of information on sustainability, especially by large companies. ...
... Theme Authors/Articles Objective 1 Sustainability disclosure practices (Crowther and Lauesen 2016;Galli et al. 2023;Maletič et al. 2015) Analyze sustainability disclosure practices 2 Disclosure practice regarding the circular economy (Geissdoerfer et al. 2017;Mazzucchelli et al. 2022) Analyze the relationship between sustainability disclosure practices and the circular economy aspect 3 Sustainability disclosure practices in the financial technological aspect (Campanella et al. 2023;Dwivedi et al. 2021;Galeone et al. 2024;Yadav et al. 2024;Zhang-Zhang et al. 2020) Analyze the relationship between sustainability disclosure practices in financial technology 4 Sustainability disclosure practices from the perspective of green banks (Boros et al. 2023;J. Chen et al. 2022;Mehta and Handriana 2024) Analyze the relationship between sustainability disclosure practices in the aspect of green banks Transparency in the disclosure of sustainability information is vital, and many banks have adopted effective systems for reporting these practices. ...
The objective of this study is to present an overview of sustainability reporting in the financial industry between 2016 and 2024, carrying out a systematic review of the literature on the topic in the banking sector. The theoretical framework addresses the integration of sustainability from the perspectives of stakeholders, agency and legitimacy theories, highlighting the interrelationship between financial practices and social responsibility. The research used quantitative and qualitative methods, focusing on a systematic review of the literature, analyzing databases such as Scopus and Web of Science in 116 articles. The results showed an annual publication growth rate of 29.68%, with an emphasis on environmental and social sustainability practices. The dissemination of knowledge about sustainability in the banking sector remains low. The central themes included sustainability disclosure, circular economy and FinTechs. Limitations in regulations and the lack of adequate regulations in developing countries, especially in Latin America and Africa, make it difficult to effectively implement these practices, highlighting the need for greater supervision and awareness. This study highlights that the sustainability disclosure in the banking context is a topic that still lacks sufficient exploration.
... Despite the significance of sustainability disclosures, the literature on their determinants specific to SMEs is limited (Guerrero-Baena et al., 2024;Massa et al., 2015;Mio et al., 2020). Some studies focused on the determinants of sustainability activities in SMEs without specifically considering reporting (Knight et al., 2019;Moneva & Hernández-Pajares, 2018;Segarra-Blasco et al., 2024), while others presented determinants of disclosure as secondary findings (Galli et al., 2023;Gholami et al., 2022). Mio et al. (2020) empirically demonstrated that company size, environmental sensitivity of the industry, board size and ownership determine the quality of EU SMEs' sustainability (i.e. ...
... In attempting to analyse the determinants of SMEs' sustainability reporting practices, this paper argues that stakeholder theory, which is widely used in the sustainability reporting literature (Benameur et al., 2024) and is sometimes applied to SME analyses (Appiah-Kubi, 2024;Guerrero-Baena et al., 2024;Paiva et al., 2023), may not be the best fit for explaining SMEs' decisions to disclose non-financial information (Calace, 2014;Galli et al., 2023;Karim et al., 2013;Rodríguez-Gutiérrez et al., 2021;Singh et al., 2021). Stakeholder engagement motivations may be the primary reasons for sustainability reporting among best practice companies, as noted by Guerrero-Baena et al., 2024. ...
This paper evaluates the influencing factors and disparities between web‐based and annual report channels for environmental, social and governance (ESG) disclosures by small and medium‐sized enterprises (SMEs). In contrast to the prevalent use of case‐studies in the context of SMEs, a quantitative study was conducted by performing a content analysis of the websites and annual reports of 100 manufacturing SMEs in Italy. Based on the collected evidence, SMEs exhibited a higher level of web‐based disclosures compared to annual reports. These disclosure channels appear to be independent of each other, with financial resources significantly influencing the quality of annual reports (i.e. profitability as a proxy) and size impacting information available on websites (i.e. turnover as a proxy). Both channels may be explained by the resource‐based view, while agency characteristics (such as having a Big Four external auditor or board size) have a relevant effect on the overall voluntary ESG disclosure score.
... На основу дефиниција и класификације greenwashing-a може се рећи да се он креће од нивоа у којима ниво акције надмашује ниво комуникације, према нивоу који се односи на случајеве двосмислености у саопштавању посвећености ESG перформансама и долази до нивоа потпуно лажне и недозовољене комуникације (Balluchi et al., 2020;Galli et al., 2023;Torelli, 2023). Оно што спаја наведено је настојање компанија да заташкају ("оперу") негативно понашање или, у најмању руку, понашање које није тако позитивно као што се приказује заинтересованим странама. ...
Abstract. Participants in the capital market, regulators, and other stakeholders worldwide are increasingly calling for transparent measurement and disclosure of information regarding the environmental, social, and governance (ESG) aspects of company operations. As a result, the number of companies reporting on environmental, social, and governance matters (ESG reporting) is growing. However, concerns are also rising that the absence of requirements for standardized, timely, and comparable ESG metrics allows companies to make exaggerated claims and conceal their true ESG performance, known as greenwashing. Greenwashing is the deliberate and selective disclosure of information by a company to create a positive image in the eyes of stakeholders, deliberately revealing information that may be beneficial for the company but harmful to society. Due to the increase in the number of ESG reports and the absence of a global governing body to ensure the accuracy of ESG information, an increasing number of researchers are studying the impact and consequences of inaccurate ESG reporting. Based on this, the paper aims to address whether and to what extent greenwashing is present in ESG reporting and how to prevent companies from using greenwashing in their reporting. The main conclusion of the research is that standardization is necessary in the disclosure and verification of ESG information to prevent fragmentation, ensure greater comparability, reliability, and transparency, and reduce the complexity of ESG reporting. All of this would result in a reduction in the risk of greenwashing.
... In addition, another study found a relationship between sustainable performance and sustainability reporting (Galli et al., 2023;Lehenchuk et al., 2023;Sharma & Kumar, 2023). The results show a positive correlation between the level of disclosure and the level of environmental performance. ...
Sustainability reporting refers to the study of disclosing information about an organisation's social, environmental and economic performance to meet stakeholder expectations regarding sustainability. This article aims to discover (1) how research on sustainability reporting grows yearly. (2) What are the trends and gaps in the study of sustainability reporting? and (3) Who are the most influential writers in the study of sustainability reporting, and how do they collaborate? ChatGPT was used to answer the objectives of this research. The ChatGPT AI chatbot can significantly assist in assessing and reviewing research on sustainability reporting. The method used is a combination of Chatbot AI ChatGPT and bibliometric analysis. While data analysis uses VOSviewer, Publish or Perish, and biblioMagika® software. The results of the study show that there is a significant increase in studies regarding sustainability reporting. Researchers collaborate through various academic activities, such as joint research, writing joint articles, and conferences. In principle, these results should be applicable across research domains. From these findings, the theoretical implication is adding to the sustainability reporting literature, with a bibliometric analysis approach using chatGPT. There are advantages to idea generation and data identification. However, technologically the synthesis of literature is still weak. The researcher's expertise in communicating with AI ChatGPT is a key factor in determining the quality of the output. This new technology needs to consider its implications, especially its ethical implications.
... The literature on management and assurance of environmental data tends to focus on larger firms (Farooq and De Villiers, 2017;Kaenzig et al., 2011;Park and Brorson, 2005), and generally suggests that management information systems are employed. Galli et al. (2023) report that recording accurate data is a particular challenge faced by SMEs in reporting on their sustainability performance. SMEs are less able to finance sustainability reporting through investment in IT systems, resulting in poor quality data and insufficiently trained accounting practitioners to interpret the information. ...
... This challenge emphasises the practical constraints SMEs face, as the absence of necessary technological resources can impede their ability to effectively measure, track and report on sustainability-related metrics. The issues around technological resources and data management capabilities (Galli et al., 2023;Garengo and Biazzo, 2013;Jasch, 2003) have been documented. Addressing this gap is going to be important in creating an enabling environment that empowers SMEs to actively participate in sustainability reporting. ...
Purpose
This research investigates the feasibility, benefits and challenges of environmental sustainability reporting by Small- and Medium-Sized Enterprises (SMEs).
Design/methodology/approach
The authors develop an abridged SME environmental sustainability reporting framework based on the environmental aspects of the Global Reporting Initiative (GRI) Standards for Sustainability Reporting. The authors collect the views of 203 SME accounting practitioners on our proposed reporting framework using a survey questionnaire.
Findings
The authors find that the greatest perceived benefit for firms adopting environmental sustainability reporting is that it leads to an improvement in company image. Lack of knowledge, resources and data capturing tools impede implementation of environmental sustainability reporting for both SMEs and accounting practitioners. While SMEs are not yet required to implement environmental sustainability reporting, the research discusses implications for policy makers and practitioners for adopting environmental sustainability reporting in the SME context.
Research limitations/implications
The main limitation of this study is that environmental sustainability reporting for SMEs is in its infancy. A longitudinal survey, or re-examining this survey over time, could be beneficial to assess the long-term benefits and costs of implementing sustainability reporting.
Practical implications
The findings of this study have practical implications for the future development of SME environmental sustainability reporting in the EU and for regulators considering sustainability reporting regulations with a specific focus on SMEs.
Originality/value
The study reconstructs the GRI environmental guidelines into a framework for SMEs and provides empirical evidence on the accountant’s sustainability reporting role.
... Precisely in these sectors, different dynamics in the propensity to change were found due to both endogenous and exogenous factors (Kouloukoui et al., 2019;Kumar et al., 2020). The comparison of endogenous and exogenous pressure factors for increased reporting of nonfinancial performance is a topic that is still being discussed (Dienes et al., 2016;Galli et al., 2023;Nazari et al., 2015;Talbot et al., 2021), both concerning the theoretical perspectives of analysis and the timely identification of more or less impactful variables depending on their interrelations and the contexts (e.g., de Villiers & Dimes, 2021;Hahn & Kühnen, 2013). ...
... Eisenhardt & Graebner, 2007; Landrum & T A B L E 1 Factors and their main references. Coordination Crews, 2010; Kamble et al., 2018; Stranieri et al., 2019; Zaid et al., 2020.Source: Adapted from:Galli et al., 2023. ...
This study seeks to examine the interconnections and potential influencing factors between firms' sustainability initiatives and the pressures exerted by industry associations for sustainability reporting. Given the reluctance of many firms to disclose their sustainability efforts, particular attention is directed toward the Italian meat and cured meat industry, with a focus on uncovering the drivers that link firms' sustainability actions to the level of engagement by industry associations in promoting sustainability reporting. Employing a multiple case study design, this research adopts a qualitative and interpretative methodology, leveraging semi‐structured interviews to elucidate pertinent strengths and weaknesses associated with both external and internal factors, as well as managerial strategies. Encompassing various stages of the supply chain, from genetic selection and animal husbandry to processing and distribution, this study aims to bridge a gap in the existing literature on sustainability reporting by shedding light on firms' approaches to both reporting and action. Furthermore, it offers novel insights into the often‐overlooked meso‐level factors influencing firms' propensity for sustainability reporting, including the role played by trade associations.
... With reference to highly regulated contexts in terms of disclosure of sustainability performance, large part of small and medium-sized family businesses will be affected within a few years by institutional obligations that will impose minimum information requirement. In Fig. 1 these drivers have been distinguished between (e.g., Dienes et al., 2016;Hahn and Kühnen, 2013;Galli et al., 2023): (1) the macro-level ones (e.g., Corporate Social Responsibility Directive (CSRD) for the European context), (2) the meso level ones (e.g., requests for information as part of the supply chains of large companies or companies affected by these reporting requirements and due diligence) and, (3) the internal micro-level drivers (such as those linked to an endorsement with regard to issues related to the sustainability orientation of the family firm or to the quest for legitimacy). Finally, it is therefore considered that a proactive engagement in the communication of these performances is potential source of maintenance of the competitive advantage and precondition therefore for attempting to preserve family socioemotional wealth over the time (see blue arrow in Fig. 1). ...
... Future research can focus on understanding the motivations behind 'greenhushing' and developing strategies to mitigate it. This may involve exploring how family firms can strike a balance between preserving their confidentiality and contributing to the broader sustainability discourse (Galli et al., 2023) as also proposed in this framework in Fig.1. This discussion could advance the literature with respect to 'the reason why' family firms should have more exposure with respect to this disclosure of demonstrable efforts undertaken. ...
Purpose
The deeper understanding of the disclosure of external and internal dynamics of family firms necessarily places the issue of sustainability as one of the most pressing needs from both a research and managerial perspective. Therefore, this perspective article contributes to the debate of sustainability performance disclosure in family firms, proposing a research agenda.
Design/methodology/approach
This study has organized the discussion around those elements that most significantly impact the propensity to disclose, with a specific focus on the interconnections and interrelations within them. The proposed research agenda is developed around three key elements: “how” firms disclose, “the reason why” they do it and “what” disclose of their performance(s).
Findings
To better understand “how” family firms should disclose their performance, it is suggested to engage in proactive stakeholder engagement to preserve long-term socioemotional wealth. “The reason why” for disclosure is still associated with the legitimization of family firms from an economic, social and environmental point of view. Finally, the “what” depends on several factors, such as the regulatory framework and the market involved.
Practical implications
This paper contains suggestions for family firm managers, consultants and policymakers that are approaching corporate social responsibility (CSR) and non-financial reporting or sustainability disclosure overall, providing an overview of relevant factors influencing this transition process.
Originality/value
This paper suggests a logical framework to combine these three elements of the debate as strictly interrelated to foster the sustainability performance disclosure of family firms.
... Sustainability reporting (SR) has become a trending issue in the contemporary business environment (Galli et al., 2023) with SMEs increasingly recognizing its significance. Small and medium enterprises often initiate SR in response to stakeholder pressures (Carmo & Miguéis, 2022). ...
... The collaboration between developed and developing world research organizations can be termed the "North-South" divide. Galli et al. (2023) analyses the links and potential limiting and supporting factors between sustainability actions and sustainability reporting. Comparing companies involved in sustainability actions and those whose reporting practices lack a formal reporting system. ...
... Poor Communication: Poor communication entails the practice of organization not communicating their strategy at all, communicating irregularly, or shared it only with specific organizational levels. This is consistent with the study of Galli, et al. (2023) who discloses that Italian small and medium-sized enterprises (SMEs) are of limited or absence communication on effectively implemented sustainability practices. Moreover, Yulianita et al. (2021) exposes that the main barriers to the implementation of sustainability reporting are caused by lack of knowledge and understanding of sustainability reporting; lack of special team in charge of carrying out sustainability reporting; and finally, lack of communication with various stakeholder groups regarding the determination of social and environmental programs to be implemented. ...
This study examines the challenges and barriers of sustainability reporting faced by reporting entities in the Nigerian context. To conduct the literature review more systematically, the systematic review method was employed. Therefore, this study reveals that firms are still facing significant barriers and challenges in reporting sustainability such as lack of knowledge and understanding of sustainability reporting; lack of integration of sustainability performance with incentives; lack of sustainability communication with various stakeholder groups, lack of standardization in reporting sustainability; lack of collective efforts for sustainability. The study further, suggested that firms’ sustainability initiatives are being delayed due to lack of government policies regarding the determination of social and environmental programs which was also part of the hurdles to effective sustainability reporting. It was concluded that those barriers and challenges to sustainability reporting can be group into individual factors which include managers’ mind set and willpower and managers’ knowledge and skills; institutional factors such as Global Reporting Initiative (GRI) guidelines/standards, sustainability reporting award schemes, and stakeholder pressure; and finally the organizational factors which comprise top management support, employee support and resistance, technical issues with data, organizational reputation, and organizational culture. Therefore, the responsibility for promoting sustainability issues lies with the collective efforts of both organizations and institutions such as responsible investors, NGOs, consumers, governments, and stock exchanges. If these are achieved, would provide effective sustainability reporting in the future.
... There are several types of Crowdfunding (Ribeiro-Navarrete et al., 2021;Xu & Ge, 2017). Based on the findings of Lambert and Schwienbacher (Al-Mulla et al., 2022;Galli et al., 2023) ), categorize firstCrowdfunding Donation based which is donation based because there is no reward in a physical or financial form, which is referred to as stock Crowdfunding. Secondly, called passive investment with high risk offers some form of reward to attract investors, owners crowdfunding This only focuses on raising capital but does not use other potential sources of support crowdfunding(Amoozad Mahdiraji et al., 2023;Astuti et al., 2021;Bagheri et al., 2019). ...
This study aims to describe and illustrate quantitative bibliometrics. Validity and relational techniques were used to generate outcome findings and map research themes, impacts, directions, and collaboration trends. Topic classification is also included to review results from different types of analysis. The theme of the Scopus publication is SMEs Crowdfunding. This began to be heavily researched in 2019 and peaked in 2020. From the analysis, it is stated that SMEs Crowdfunding is widely discussed in relation to various research themes. One of the interesting ones is related to women entrepreneurship. SMEs have difficulty accessing funding, so the emergence of Crowdfunding is an alternative financing. Bibliometric analysis is used to examine bibliographic data collected from the Scopus database. SMEs have difficulty accessing funding, so the emergence of Crowdfunding is one of the financing alternatives. Bibliometric analysis is used to test bibliographic data collected from the Scopus database.
