Sustainability Accounting and Accountability
Abstract
Sustainability accounting and accountability is fundamental in the pursuit of low-carbon and less unsustainable societies. Highlighting that accounting, organisations and economic systems are intertwined with sustainability, the book discusses how sustainability accounting and accountability broaden the spectrum of information used in organisational decision-making and in evaluating organisational success. The authors show how sustainability accounting can prove to be transformative, but only if critical questions are sufficiently addressed. This new and completely rewritten edition provides a comprehensive overview of sustainability accounting and accountability. Relevant global context and key concepts are outlined providing the reader with the conceptual resources to engage with the topic. Drawing on the most recent research and topical practical insights, the book discusses a wide variety of sustainability accounting and accountability topics, including management accounting and organisational decision-making, sustainability reporting frameworks and practices, as well as ESG-investments, financial markets and risk management. The book also highlights the role accounting has with key sustainability issues through dedicated chapters on climate, water, biodiversity, human rights and economic inequality. Each chapter is supplemented with practical examples and academic reading lists to allow in-depth engagement with the key questions. Sustainability Accounting and Accountability walks the reader through a spectrum of themes which are essential for all accountants and organisations. It helps the reader to understand why our traditional accounting techniques and systems are not sufficient for navigating the contemporary sustainability challenges our societies are facing. This key book will be an essential resource for undergraduate and postgraduate instructors and students, as an entry point to sustainability accounting and accountability, as well as being a vital book for researchers. © 2022 Matias Laine, Helen Tregidga and Jeffrey Unerman. All rights reserved.
... In this sense, if a standard, mandatory structure is available and relevant specific contextual aspects are not incorporated into it because they do not fit into the context experienced in other countries or companies, RS will fail to be transparent for not reliably or fully depicting the companies' context (Laine, Tregidga, & Unerman, 2021). Consequently, information users' decisions based on incomplete or misleading information may affect social well-being since imposing corporate responsibility for natural resource management and social impacts may affect organizational performance and the entire society and economy. ...
... The premise of IFRS is that standardization can provide comparability between companies over time, meet the demands of the most critical stakeholders, and mitigate the practice of camouflaging, adulterating, or omitting information about the actual impacts of corporate activities (greenwashing and bluewashing). However, the demand and interests of users of accounting information are heterogeneous and cannot be based on a supposed homogeneity between developed and developing countries (Neu et al., 1998;Laine, Tregidga, & Unerman, 2021). ...
... Individuals and groups inside and outside organizations have different perceptions, values, and knowledge originating from different contexts. Hence, it implies that neither stakeholders nor information is uniform or homogeneous (Michell et al., 1997;Neu et al., 1998;Laine, Tregidga, & Unerman, 2021). ...
The concept of transparency is widely used in accounting literature; its general use has caused information confusion and opacity when it concerns sustainability reports though. Given the complexity of measuring sustainability information, the use of this construct may not be the most appropriate. Researchers may be using the concept of transparency in a way aligned with its use in financial accounting, regardless of its particularities. Hence, we critically analyze whether scholars share the same understanding of the transparency concept within the scope of sustainability reports and the implications of this construct for accounting. This literature review comprises studies published from 2018 to 2022. The main result reveals that the studies presented different understandings regarding the transparency of sustainability reports. Given the complexity surrounding sustainability information, other alternative concepts could contribute to understanding these reports. The objective is to present a reflection and encourage such a discussion, considering that expectations about the scope of transparency can be mistaken. Contributions are concerned with encouraging a discussion in the academic community, reporting organizations, and regulators about some key aspects.
... However, this did not include the interests of all the stakeholders that contribute to the value of a company. In the 1970s, companies initially started to shift focus to social issues, such as human resources, fair practices, and the impact on the broader communities (Laine et al., 2022). Environmental events in the 1980s, such as the Chernobyl disaster, the Exxon oil spill, and the publication of the Brundtland report, introduced discussions around environmental issues in sustainability that led to the practice of voluntary disclosure relating to environmental issues in the 1990s (Laine et al., 2022). ...
... In the 1970s, companies initially started to shift focus to social issues, such as human resources, fair practices, and the impact on the broader communities (Laine et al., 2022). Environmental events in the 1980s, such as the Chernobyl disaster, the Exxon oil spill, and the publication of the Brundtland report, introduced discussions around environmental issues in sustainability that led to the practice of voluntary disclosure relating to environmental issues in the 1990s (Laine et al., 2022). In the late 1990s, the concept of triple bottom line (TBL) reporting emerged with Elkington (1999) explaining that TBL aims to report on an organization's economic, social, and environmental impacts. ...
... In the 2000's the Global Reporting Initiative (GRI) was introduced, which is still regarded as the most established sustainability reporting framework among companies (Laine et al., 2022). According to Kolk (2004), the guidance of the GRI has provided the much needed impetus within sustainability reporting by providing improved "quality, rigor, and utility of sustainability reporting in the 2000s by developing sets of performance indicators on environmental, social, and economic factors". ...
Introduction: Sustainability reporting has become increasingly important to stakeholders, and therefore, there is a growing need for a global set of standards for sustainability reporting. The International Sustainability Standards Board (ISSB) has recently published new sustainability standards under the International Financial Reporting Standards (IFRS) Foundation. The consolidation of integrated reporting into the IFRS Foundation creates the problem of whether there is still a need for principles in the future of sustainability reporting and how these principles will be applied in the standard setting of the ISSB in future. This study provides insights into the similarities and differences between the Framework and the ISSB's draft IFRS S1 standard and clarifies the role that could play in the future of sustainability reporting within the context of the newly issued IFRS S1 standard.
Methods: The study uses thematic content analysis on the two frameworks and comment letters submitted to the ISSB as part of the standard-setting process to understand the relevance of integrated reporting in sustainability reporting and to identify important principles contained within that can contribute to the ISSB standard-setting process in future.
Results: The study identified that there is a largely positive sentiment toward in developing sustainability standards within the IFRS Foundation. The study also identified important aspects where can play a significant role in standard development, such as the connectivity of information, integrated thinking, and the six capitals that can assist organizations in understanding the significant sustainability-related risks and opportunities.
Conclusion: The research points out pertinent sustainability principles that could be useful for the ISSB in future standard settings. Furthermore, the research adds to the existing literature on and can act as an impetus for further research on the use of principles in the standard-setting processes of the ISSB.
... According to Renzio & Wehner (2017), financial openness is critical for promoting fiscal discipline and mitigating corruption risks, as stakeholders access detailed information about government spending and revenues. However, true transparency requires regulatory compliance and efforts to ensure that financial data is presented in a format understandable to nonexpert stakeholders (Laine et al., 2021). Overly technical reports can limit public comprehension, weakening their oversight capabilities. ...
Purpose: This study aims to evaluate the implementation of public sector accounting systems and standards, such as SAP and IPSAS, to improve financial transparency and accountability. The research investigates the contextual and systemic factors that support or hinder the successful adoption of these frameworks and offers insights into how institutional readiness, digitalization, and stakeholder engagement influence reporting outcomes. Research Design and Methodology: A systematic literature review (SLR) approach was employed to synthesize findings from prior studies. Institutional theory served as the conceptual framework, emphasizing coercive, mimetic, and normative pressures affecting policy implementation. The review focused on identifying key trends, challenges, and comparative insights related to financial reporting in different jurisdictions. Findings and Discussion: The findings reveal that adopting international public sector accounting standards has enhanced transparency and fiscal accountability in regions with robust institutional support. However, significant challenges remain, including bureaucratic resistance, resource limitations, and a lack of public financial literacy. Digital reporting technologies like XBRL are crucial in accelerating financial disclosures but require adequate training and infrastructure. The discussion highlights disparities in reporting outcomes due to differences in institutional readiness and underscores the need for tailored approaches to address local governance constraints. Implications: The study provides practical and managerial recommendations, emphasizing the importance of continuous training, modernization of IT infrastructure, and enhanced public access to simplified financial reports. Collaboration with independent auditors and civil society organizations is also suggested to strengthen accountability mechanisms. Future research should explore empirical data and sector-specific factors to enhance the understanding of financial reporting reforms further.
... With increasing global concerns such as climate change and resource scarcity, companies face growing pressure from stakeholders to be transparent about their environmental footprint. Environmental social accounting offers a structured approach to addressing these concerns, ensuring businesses can contribute meaningfully to global sustainability goals (Laine et al., 2021). One of the primary roles of environmental social accounting is to increase transparency and accountability in CSR initiatives. ...
Purpose: This study examines the integration of Corporate Social Responsibility (CSR) into environmental social accounting to promote corporate sustainability and community welfare. The goal is to assess how CSR practices contribute to long-term corporate value while ensuring transparency in reporting social and environmental impacts. Research Design and Methodology: The research employs systematic literature review methodology, analyzing academic papers, reports, and case studies on CSR and environmental social accounting. The review identifies frameworks and practices that help companies measure and report CSR outcomes effectively. Findings and Discussion: The study highlights the effectiveness of CSR integration in enhancing corporate reputation, stakeholder trust, and sustainability efforts. It also identifies challenges in reporting consistency, mainly due to the lack of standardized frameworks, which can lead to discrepancies in evaluating CSR performance. The role of technology in improving CSR reporting accuracy and transparency is emphasized. Implications: The research offers practical insights for businesses integrating CSR into their operations. It suggests adopting standardized reporting frameworks and digital tools for better data collection. These steps will enhance CSR’s impact on corporate performance and community welfare, fostering long-term sustainability.
... The economic and political need to create and establish globally recognised standards for financial reporting has forced companies to make their economic performance much more transparent. In contrast, the process of revealing the socio-ecological contributions of companies is still in its infancy (Laine et al. 2022). Unlike the development of established financial reporting standards, the process of sustainability reporting is largely initiated and driven by private-sector institutions and associations. ...
An intact, species-rich natural environment forms the basis for human life. It provides clean water, nourishment and sufficient space for a wide variety of activities and experiences. However, while the services provided by functioning ecosystems are recognised in environmental reports, the factor of natural capital has to date hardly played any role in economic calculations and company balance sheets.
It is vital that public and corporate reporting systems take account of natural assets and ecosystem services because this is the only way to ensure that they are given sufficient consideration in political and economic decision-making processes. The introduction of this new and transparent form of economic reporting is also being called for and supported internationally by the United Nations, the World Bank and the European Commission.
Against this background, our article looks at the question of how biodiversity and ecosystem services can be incorporated into economic reporting at governmental and corporate level. It was written as part of the project “Appreciating biodiversity – modernising economic accounting in Germany” (Bio-Mo-D), whose aim is to provide a range of actors from business, politics and society at large with information to enable them to make integrated, ecologically sustainable decisions – and thus to demand and support a greater appreciation of nature, measurable via key indicators on biological diversity and ecosystem services.
In the following, we first provide an overview of information sources and data products for ecosystem accounts available at national level in Germany. We focus on Germany, but in an EU and global context. The results of these accounting systems, which can be integrated into political and economic decision-making, should be easily understood by the general public and provide a basis for scientific analyses. As “flow” variables, information on ecosystem services contributes to societal well-being by improving decision-making processes, in particular, by demanding and supporting a greater appreciation of nature, measurable via biodiversity and ecosystem service indicators.
A new paradigm is emerging both in companies globally and within European regulations, namely the explicit consideration of nature and its services as the basis for holistic corporate reporting, management and financing. As impacts on biodiversity and ecosystems, as well as interdependencies between ecosystem services, can be highly specific, depending on the sector, company activity and location, more detailed, sector-specific information will be needed in the future – ideally also from national accounting. Finally, we look at which institutions and actors can influence the field of action and discuss how the process of expanding economic reporting to include natural capital can be viewed as a “social innovation”.
We postulate that ecosystem data and indicators are relevant to economic policy because they open up room for manoeuvre and can be used to identify solution pathways. They help national authorities and institutions as well as lower tier authorities identify potential conflicts of interest when planning areas relevant to nature conservation, to justify decisions on the conservation of natural capital and to communicate these to stakeholders and the wider public.
... The CSEAR community is more broadly concerned with embeddedness of organisations in society and nature 10 and some scholars have thus contested the notion that "sustainability" can be assessed on an organisational level Milne, 2002, Gray 2010). Instead, it is argued that an organisation should be understood as a small part in a larger ecosystem (Gray, 2010) and that it cannot be assumed that the aggregation of "good" (incremental) performance will altogether be "sustainable" (Gray, 2006(Gray, , 2010Gray & Milne, 2002;Laine et al., 2021;Milne & Gray, 2013;Milne et al., 2006). Unless there is some kind of normative goal, threshold, or boundary (Thomas & McElroy, 2016;Gray, 2017, Thurm, 2017, sustainability accounting/reporting is like a journey without destination (Milne et al., 2006;Gray, 2006). ...
... Additionally, the university's dedication to sustainable procurement practices has resulted in greater utilization of sustainable products and services, aligning with its broader sustainability objectives and promoting responsible consumption. Moreover, the university's social accounting practices have shed light on its meaningful community engagement efforts and positive social impact, thereby strengthening its ties with the local community and enhancing its reputation as a socially responsible institution (Laine, Tregidga, & Unerman, 2021; University of Manchester, 2022). ...
Sustainability has emerged as a critical factor in higher education management, with institutions striving to incorporate environmentally responsible practices and social consciousness into their operations. Accounting practices play a vital role in supporting and measuring the success of sustainability initiatives in these institutions. This research paper aims to review the role and impact of accounting practices in enhancing sustainability in higher education management. The study begins with a comprehensive literature review, examining the relationship between sustainability and accounting practices in educational institutions. It explores financial, managerial, and environmental accounting tools to promote sustainability. Case studies and examples of successful sustainability initiatives are presented to highlight effective practices. The paper also identifies challenges and barriers faced while implementing sustainable accounting practices. Finally, it provides best practices and recommendations, offering policy insights for higher education institutions seeking to enhance sustainability through accounting. This research contributes to a deeper understanding of the interplay between accounting practices and sustainability in higher education. It offers valuable insights for institutional leaders and policymakers seeking positive change.
... Nordic firms seem to have been front-runners in sustainability reporting since sustainability reporting gained attention in the 1990s. The Norwegian company Hydro (previously Norsk Hydro) was the first company in the world to report its environmental performance in its environmental report in 1989 (Laine et al., 2021). However, sustainability reporting has remained a voluntary CSR activity until the last decade. ...
Corporate social responsibility (CSR) initiatives have increasingly been adopted for legitimacy purposes. Sustainability reporting practices have also been widely debated. In this study, we investigate whether sustainability reporting practices, such as sustainability reports, Global Reporting Initiative (GRI) Standards, and external assurance, are associated with environmental performance. We study a sample of 210 Nordic-incorporated listed firms from 2002 to 2020 across Denmark, Finland, Norway, and Sweden. The baseline model with ordinary least squares regression shows that issuing sustainability reports and reporting under GRI Standards are positively associated with environmental performance whilst external assurance is insignificant. However, we find that environmentally non-certified and CSR awards non-receiving firms have all considered sustainability reporting practices positively related to environmental performance. Employing the substantive versus symbolic approach to legitimacy, we argue that firms with inadequate environmental commitment or reputation might be under immense pressure to achieve corporate legitimacy and may thus use sustainability reporting practices as a substantive approach to legitimacy. Our findings have important policy relevance in the context of the increasing focus on sustainability reporting standards in Europe and other countries. We suggest that quality-enhancing sustainability reporting practices which may curtail firms' symbolic behaviour should be required under mandatory regimes. Meanwhile, firms’ existing practices and initiatives should be considered to provide complementary effects related to environmental performance.
... At the center of attention is the output of nonfinancial reporting (see A in Figure 1). Nonfinancial reporting includes a range of practices in which organizations provide and substantiate information about nonfinancial matters to stakeholders through formalized means of communication (Hahn, 2022;Laine et al., 2021). For instance, they can do so as an element in regular annual reports, a standalone nonfinancial report, or include nonfinancial information in an integrated report (Endenich et al., 2022). ...
The relationship between nonfinancial reporting and real sustainable change within and beyond organizations is fraught with complication. Furthermore, all facets of the relationship have not been examined equally. The contributions of this special issue made substantive progress in this regard and draw our focus to several remaining complications-in particular, the societal impacts of nonfinancial reporting. With this introduction, we seek to move the conversation forward by proposing a framework that disentangles the linkages between nonfinancial reporting and real sustainable change at multiple levels of analysis. We highlight the distinction between sustainability-related outputs and outcomes that typically materialize at the firm level, and eventually lead to sustainable impact at the societal level. Future research should advance this distinction and scrutinize the impact of real sustainable change beyond firm-level outputs, study the organizational change processes from antecedents to impacts, and examine the interrelationships between different instruments to foster real sustainable change.
... All these circumstances, together with the financial costs, mean that more and more hotel chains are committed to implementing and incorporating sustainability actions in their management. Sustainability reports play a key role in enhancing the trust that forms the basis of (moral) legitimacy in society (Du et al., 2010;Merkelsen, 2011) and should not be seen as "greenwashing" that ends up undermining business (Baviera- Puig et al., 2014;Laine et al., 2021). ...
Nowadays, online information provided by corporate websites has a great impact on the hotel industry performance. According to existing studies, it is very likely that customers' and investors' decisions may change after consulting these portals. The environmental commitment of hotel companies is usually demonstrated to stakeholders by obtaining environmental quality certifications and eco-labels issued by specialised entities in compliance with certain requirements. However, the question of how to use the sustainable indicators that are usually scattered on the web or in company reports is a problem that requires further research. The main objective of this study is to develop a robust and reliable model to assess the sustainability of hotel chains based on the information gathered from their websites and corporate reports. A literature review is carried out and specialists are consulted to determine the critical factors that affect hotel sustainability. Once the criteria based on non-financial indicators have been chosen, they are organised in a hierarchy according to their orientation. To achieve the objective of the study, a hybrid model is proposed that includes two multi-criteria decision-making approaches, namely the Analytic Hierarchy Process (AHP) and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method. AHP is used to weight the criteria, and the ranking of the alternatives is provided through TOPSIS. Subsequently, a sensitivity analysis is performed to determine the critical indicators. Finally, a numerical example is carried out with a case study of the largest Spanish hotel chains to illustrate the function and applicability of the proposed method. With the results obtained, it has been possible to establish a ranking or selection of hotel chains for the case study, since the hybrid AHP-TOPSIS method provides reliable and robust results for any qualitative or quantitative evaluation criterion, which is of great interest for the different actors involved.
The chapter aims to deepen whether environmental, social, and governance (ESG)–related regulation really improves ESG corporate processes toward substantive accountability. To this aim, it employs a theoretical framework derived from Habermas’ theory of communicative action (Habermas, J., The Theory of Communicative Action, Vol. 1, Reason and the Rationalization of Society. Polity Press, Cambridge, 1984). It examines the current and upcoming regulation (broadly conceived as a mixture of hard and soft laws) to discuss whether it provides adequate ground for an ESG-based holistic management of the firms able to assure greater accountability toward value creation. Methodologically, it embraces a quite novel approach, allowing the development of a praxis-oriented methodology for practitioner-based research, namely, Accidental Ethnography (AccE). The analysis offers critical conclusions and basis for further inquiry of special relevance to practice and for policymaking.
An information system (IS) is an organic system that integrates personnel, technology, data, and other resources for information collection, processing, storage, transmission, and utilization, supporting organizational decision making, management, and business development. Against the backdrop of sustainable development being integrated into the strategic goals of enterprises, the impact of accounting information systems (AISs) on corporate sustainability performance has garnered significant attention. This study employs the IS success model as its theoretical underpinning and incorporates both the quality of AISs and sustainability performance into the research framework. Likert scales were adopted to collect data, and structural equation modeling was conducted to test our hypotheses. The findings reveal that information quality and service quality exert a notably positive influence on intention to use and satisfaction. Meanwhile, system quality only positively impacts intention to use. There exists an interactive relationship between intention to use and satisfaction. Satisfaction positively contributes to corporate sustainability performance, whereas intention to use only positively affects environmental performance. This research offers a theoretical foundation and practical guidelines for enterprises aiming to optimize their AISs and enhance sustainability performance.
The primary concern of research in the area of fraud risk relevant to sustainability reporting lies in understanding the potential for fraudulent or misleading reporting practices and developing strategies and tools to identify and prevent such behaviors. Taking into consideration that significant research has yet to be conducted on fraud risk models associated with sustainability reporting, this study represents an innovative contribution. It uses a mixed-methods approach to design a fraud risk model based on sustainability reporting. Given its type and approach, this research does not posit any hypotheses involving thematic analysis and the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method. This study is exploratory and applied, aiming to design a model through a mixed-methods methodology. Therefore, the research is hypothesis-free and instead utilizes a qualitative sample of experts and academics in the field of accounting from Iran and Denmark. The DEMATEL technique identifies key external and internal factors that significantly impact sustainability reporting, including comprehensive internal controls, strong governance and oversight, training and awareness, the utilization of technology, and data analytics. The influence of stakeholders, third-party audits, and the credibility of sustainability reports emerges as particularly significant in this context, exceeding the impact of other factors. These findings underscore that stakeholders, third-party audits, and report credibility to play a more prominent role in shaping sustainability performance compared to other considerations. This would imply that such variables remain key drivers in the perceptiveness and effectiveness of sustainability performance.
Corporations are major contributors to the triple planetary crisis. In response to these challenges, the United Nations Global Compact, launched in 2000, encouraged corporations to align their business practices with principles of sustainability and sustainable development. The 2015 Paris Agreement further reinforced corporate commitments to environmental sustainability, recognizing that corporations possess substantial resources and expertise that can be effectively mobilized to address global environmental crises. Corporate environmental leadership has become increasingly critical as businesses face growing pressure from stakeholders to demonstrate environmental responsibility. This chapter examines the interconnected concepts of environmental leadership and corporate environmentalism, exploring their distinct yet complementary aspects in advancing an organization’s commitment to sustainability. Corporate environmentalism operationalizes the environmental leadership vision of corporations through specific policies, practices, and initiatives aimed at minimizing environmental impact, such as environmental management systems, the circular economy, and the integration of the environmental, social, and governance (ESG) framework into corporate strategies. ESG has evolved into a critical set of criteria for evaluating a corporation’s operations, offering a comprehensive sustainability framework. This chapter also discusses strategic solutions to environmental leadership challenges within organizations, as well as the global impact of environmental leadership initiatives across various industries, demonstrating environmental, economic, and social benefits.
This research explores the critical role of environmental accounting in mitigating environmental pollution risks and improving disclosure practices. Environmental pollution has become a significant global concern, amplified by industrial activities and mismanagement of natural resources. As stakeholders increasingly demand corporate responsibility, environmental accounting has emerged as a pivotal tool for organizations to quantify their environmental impacts, integrate eco-ethics into their financial systems, and enhance transparency in environmental risk disclosures. This study examines how environmental accounting frameworks can aid in reducing corporate pollution by identifying the cost of pollution-related activities and aligning them with financial decision-making processes. Additionally, the research investigates the regulatory frameworks that promote environmental transparency and the challenges that companies face in implementing these practices. Case studies on corporate environmental accounting demonstrate both the potential and limitations of current practices. The research concludes with recommendations on the strategic integration of environmental accounting to foster sustainability and risk mitigation. These findings underscore the importance of consistent environmental disclosure in enhancing corporate accountability and in reducing environmental risks.
For a long time, ecological monitoring across Australia has utilised a wide variety of different methodologies resulting in data that is difficult to analyse across place or time. In response to these limitations, a new systematic approach to ecological monitoring has been developed in collaboration between the Terrestrial Ecosystem Research Network and the Australian Department of Climate Change, Energy, the Environment and Water - the Ecological Monitoring System Australia (EMSA). A qualitative approach involving focus groups and semi-structured interviews was undertaken to review perceptions of the introduction of the EMSA protocols amongst Natural Resource Management practitioners and other key stakeholders. We found that environmental management stakeholders recognise there will be many advantages from the standardisation of ecological monitoring. However, key concerns emerged regarding the capacity needed to implement the standard protocols, the utility of the resultant data for regional projects, and the scope for adaptive co-management under the EMSA. Stakeholders emphasised the need for autonomy and flexibility, so their participation in protocol development can facilitate regional adoption of the standards. Respondents’ concerns about a perceived lack of genuine consultation and acknowledgement of feedback revealed the importance of clear communication at all stages of an environmental management project aiming to standardise practices. Our findings indicate that reflexivity will be vital to address the complexity involved in standardisation of ecological monitoring. Formal processes of social learning will need to be integrated into environmental management approaches to account for the increasing complexity of socio-ecological systems as they are challenged by global change.
The study contributes to the existing literature by examining the relationship between family‐controlled firms (FCFs), politically connected firms (PCFs), and sustainability reporting quality (SRQ) in Malaysia. The study utilizes panel regression techniques to test the hypotheses. The study's findings revealed that FCFs have a significant negative effect on SRQ. On the other hand, PCFs show a positive significant effect on SRQ. Moreover, the study uncovers a significant and positive interacting effect of PCFs in the relationship between FCFs and SRQ. The implication of this is that politically connected family‐controlled firms (PCFCFs) exhibit higher levels of sustainability performance and disclosure quality. The study offers valuable implications for regulators, scholars, and practitioners. Policymakers can use the insights from this paper to develop regulations and guidelines that encourage family‐controlled firms to improve the quality of their sustainability disclosures. Furthermore, the study provides a foundation for further research in this domain to confirm the result of the present investigation.
Purpose
The purpose of this paper is to examine prominent issues and contributions from extant research and explore the literature on the services provided by Knowledge-Intensive Public Organizations (KIPOs) and its pursuit to achieve the United Nations (UN) 2030 Sustainable Development Goals (SDGs) (hereafter referred to as the UN 2030 SDGs agenda) amidst the challenges represented by COVID-19 pandemic. It emphasizes the crucial role of accounting in dealing with techniques and social and moral practices concerned with the sustainable utilization of resources. This paper also provides an overview of the other papers presented in this JPBAFM Special Issue and draws from their findings to scope out future impactful research opportunities in this area.
Design/methodology/approach
The design consists of a review and examination of the prior relevant literature and the other papers published in this JPBAFM Special Issue.
Findings
The paper identifies and summarizes three key research themes in the extant literature: the growth in the types of KIPO; the rise in the research approaches to study the provision of public services by KIPO in pursuit of the UN 2030 SDG agenda and the consequent call for developments in the accounting field; and unintended consequences during COVID-19 pandemic. It draws upon work within these research themes to set out four broad areas for future impactful research.
Research limitations/implications
The value of this paper rests with collating and synthesizing several important research themes on the nature and unintended consequences of the UN 2030 SDG agenda, and the challenges represented by COVID-19 pandemic in the governance, management and accounting for KIPO and in prompting future extensions of this work through setting out areas for further innovative research within the field.
Practical implications
The research examined in this paper and the future research avenues proposed are highly relevant to the health sector, the judiciary, museums, research centers and the UN. The focus on accounting and accountability towards a broader spectrum of stakeholders calls for new avenues of study in the accounting field. They also offer important insights into matters of management, accounting, accountability, sustainability accounting and control more generally.
Social implications
The research examined in this paper and the future research avenues proposed are highly relevant to the health sector, the judiciary, museums, universities, research centers and the UN. They also offer important insights into matters of management, accounting, accountability, sustainability accounting and control more generally.
Originality/value
This paper adds to vibrant existing streams of research in the area of KIPO by bringing together authors from different areas of accounting research for this JPBAFM Special Issue. In scoping out an agenda for impactful research approaches used to study the provision of public services by KIPO, this paper also draws attention to underexplored issues pertaining to extents such as the “lived experience” of personnel in the KIPO and envisioning what a future system of governance, management and accounting of SDG might look like.
This chapter will examine the value of accounting for sustainability, as well as how its implementation supports sustainability and financial literacy in modern business operations. In order to increase transparency and accountability, the chapter will explore the crucial components of assessing sustainability and the necessity of related financial reporting disclosures. Businesses have become more aware of the importance of incorporating sustainability into their accounting procedures because of an increased emphasis on aspects relating to the environmental, social, and governance (ESG). This chapter intends to shed light on how businesses can track their sustainability performance and inform stakeholders of important information. By promoting financial literacy and sustainable practices, the chapter will help achieve the book's main goal of increasing knowledge regarding the dynamic relationship between sustainability and business today.
As environmental, social, and governance (ESG) reporting has become a mainstream channel for companies to communicate their commitment to sustainability issues, the need for reliable and transparent ESG reports is increasing. However, research on ESG assurance is still in its early stages. ESG assurance poses more challenges than traditional financial auditing due to the diverse subjects and types of information in ESG reports. This paper proposes using artificial intelligence (AI) technologies and exogenous data as solutions. It discusses how AI can enhance the efficiency and effectiveness of ESG assurance by assessing vast and extensive data. This paper also explores AI’s application throughout the general ESG assurance process and contributes to the discussion on providing high-quality ESG assurance services. Additionally, it provides practical implications for auditors, regulators, and stakeholders.
The purpose of this study is to discuss the benefits and challenges associated with adopting International Public Sector Accounting Standards from a global perspective and analyze the impact of adopting international public sector accounting standards on economic sustainability. This study is based on the collection and analysis of previous studies dealing with international public sector accounting standards. The study results indicate that adopting international accounting standards for the public sector has a role in improving the preparation of financial statements on a reliable and transparent basis, thereby enhancing economic growth and contributing to the sustainability promoted by IPSAS. The implications of this study imply that it may contribute to enhancing the understanding of policymakers and academics in the public sector on how the adoption of international accounting standards for the public sector can improve economic sustainability globally.
Including social and environmental concerns in decision-making processes and business operations is essential for organizations. Management control systems are crucial in integrating sustainability issues into decision-making processes. Thus, this study aims to analyze international publications about the relationship between management control systems and sustainability, identifying trends in evolution and future research opportunities. Based on bibliometric techniques, the outputs obtained in the Web of Science (n = 139) and Scopus (n = 73) databases were analyzed in the bibliometrix R package to map and systematically review the literature. After removing duplicates, we obtained a final output of 157 articles. The analysis of these publications draws attention to the relevance and emergence of these topics in academic and business circles and concludes that this area of knowledge has gained relevance in the last five years of research. The originality of this study lies in its ability to offer valuable insights that can shape future research agendas. By focusing specifically on how management control systems support or hinder sustainability initiatives, the study fills a gap in existing literature, which often treats these subjects separately. Future research can focus on the challenges of integrating sustainability into accounting frameworks and the role of technology in accounting for sustainability. The continuous study of these topics is essential to enable professionals and organizations to face contemporary challenges, ensure ethics and transparency, promote sustainability and responsibility, and ensure long-term success in a world increasingly aware of environmental and social issues.
This editorial delves into Brazil's status regarding the adoption of accounting standards for sustainability and explores the emerging research agenda on this subject. Public sector sustainability reporting has recently sparked international debate and has carved out its niche as an emergent research agenda within broader topics such as "accounting reform" or "adoption of accounting standards" in the public sector. While aligning with accounting standards in the public sector echoes past phenomena like Brazil's experience with implementing IPSAS international accounting standards, this movement faces unique challenges, such as a lack of consensus and understanding on the topic, as well as the imperative to involve other epistemic communities throughout various phases of the change. This study also highlights research opportunities, particularly given that the adoption process is still nascent.
The purpose of this study is to analyze and test the influence of managerial ownership, foreign ownership, and liquidity on the disclosure of sustainability reporting, this study was conducted on non-financial companies listed on the Indonesia Stock Exchange for the period 2020-2021. The purposive sampling method was used as a sampling technique with 52 selected companies from all non-financial companies listed on the Indonesia Stock Exchange in 2020-2021. The data is processed by regression analysis of panel data with the Eviews 12 program. The results of this study show that foreign ownership and liquidity have a significant effect on the disclosure of sustainability reports. While managerial ownership has no effect whatsoever on the disclosure of sustainability reports.
L'objectif de cette étude est d'examiner si la fidélité des informations présentées dans les rapports de responsabilité sociale d'entreprise (RSE) en conformité avec les lignes directrices de la Global Reporting Initiative (GRI) diffère de celle des informations présentées dans des rapports qui ne sont pas conformes, mais qui mentionnent les lignes directrices de la GRI, ainsi que de celle des informations présentées dans des rapports qui ne s’y réfèrent aucunement. Nos résultats montrent que les rapports de RSE en conformité avec la GRI fournissent des informations plus neutres et complètes que ceux ne se référant pas aux lignes directrices de la GRI. En outre, les entreprises publiant des rapports RSE qui mentionnent les lignes directrices de la GRI sans s’y conformer semblent le faire pour accroitre leur légitimité.
uku ini juga memperkenalkan isu-isu kontemporer, seperti Teori Pelaporan Keberlanjutan yang menyoroti dampak lingkungan dan sosial. Teori Akuntansi Positif membawa aspek analitis, sementara Teori Akuntansi dan Etika merenungkan integritas dalam praktik akuntansi. Buku ini adalah panduan mendalam yang menggabungkan akademis dan praktis, menguraikan konsep-konsep teori akuntansi dengan jelas dan memberikan wawasan tentang implikasi dalam pengambilan keputusan. Bagi pembaca yang ingin memahami dasar-dasar teori akuntansi dan dampaknya dalam berbagai konteks, buku ini menjadi sumber pengetahuan tak ternilai.
The main goal of the paper is to point out that the implementation of blockchain accounting requires careful planning and the application of blockchain technologies in business processes to achieve the SDGs (Sustainable Development Goals) of a business entity. Although blockchain technology brings numerous advantages, there are still challenges in its application in accounting, including regulatory aspects, standardization, integration with existing systems and data protection. The paper emphasizes that blockchain technology in accounting is not a solution in itself, but is part of a broader strategy aimed at achieving the SDGs of a business entity. The main conclusion of the paper is that the implementation of blockchain accounting in order to achieve the SDGs of a business entity requires good planning, adaptation of business processes and cooperation with relevant interested entities.
Sustainability has become increasingly critical to the development of modern companies. As it emphasizes the generation of value across three dimensions—economics, the environment, and society—sustainable development underscores its significance. Based on the value that a company delivers at a particular stage of the sustainable development process, this study proposes revenue as a measure to quantify stakeholder interest. Utilizing a fixed effects model with 2211 listed companies in 11 years, this study explores how organizations’ economic, environmental, and social inputs influence the creation of sustainability value on these three pillars, alongside the impact of four major digital technologies (artificial intelligence, blockchain, cloud computing, and big data). The study reveals that companies’ contributions in these dimensions significantly enhance the output of values. Each of the four digital technologies exerts a distinct moderating influence. We provide a thorough look at the “input-output” relationship of sustainable value creation. Our research highlights the varying effects on sustainable development of companies’ contributions to the economy, the environment, and society, as well as companies’ adoption of digital technologies.
Carbon accounting is primarily a process for measuring, reporting, and allocating greenhouse gas emissions from human activities, thus enabling informed decision-making to mitigate climate change and foster responsible resource management. There is a noticeable upsurge in the academia regarding carbon accounting, which engenders complexity due to the heterogeneity of practices that fall under the purview of carbon accounting. Such plurality has given rise to a situation where diverse interpretations of carbon accounting coexist, often bereft of uniformity in definition and application. Consequently, organisations need a standardised, comprehensive, and sequentially delineated carbon accounting framework amenable to seamless integration into end-to-end manufacturing systems. This research commences with the progressive evolution of the conceptual definition of carbon accounting. Then, it delves into the current state of carbon accounting in manufacturing systems and supply chains, revealing gaps and implementation issues warranting future scholarly exploration.
This paper explores the current state of the social impact measurement (SIM) field to better understand common practices in measuring the post-intervention social impact of a program or project and to identify strategies to improve measurement in practice. This study employed a systematic literature review. Articles were manually coded deductively and inductively in NVivo to complete a descriptive and thematic analysis of the literature. The thematic analysis provided an in-depth understanding of the SIM field. We found that similarities existed across the definitions of social impact (e.g., environmental impact is part of social impact). Additionally, social return on investment (SROI) is the most common measurement model and theory of change was identified as a core concept across SIM literature. Strategies are presented for practitioners to consider when measuring social impact, including: (i) engage stakeholders throughout the process, (ii) mobilize existing operational data, (iii) increase measurement capacity, and (iv) use both qualitative and quantitative data. This study reveals the nuances of SIM based on academic literature published across the globe over the span of a decade. It places emphasis on the post-intervention stage and identifies strategies to improve the application of measurement models in practice. Lastly, it outlines future research directions.
Even with the benefits of sustainability and climate change reporting, there is limited information on how municipalities are reporting on performance for external stakeholders in comparison with private sector organizations. The purpose of this research was to gain an understanding of the current state of sustainability and climate change reporting at the local level and to investigate the extent to which municipalities across Ontario, Canada, report. We used content analysis to identify the presence or non-presence of information on the websites of 38 municipalities and analyzed the results using descriptive statistics. Our analysis showed that the sample municipalities were not widely reporting on sustainability or climate change performance. Also, we identified a gap between the number of plans and reports produced by sample municipalities, with the latter being less common, indicating a need for an improved evaluation of plan implementation. Further, we found that a provincial regulation that required municipalities to make their energy conservation and demand management plans public did not guarantee publication of the plan on a municipality’s website. This study contributes to the growing field of sustainability and climate change planning and reporting by local governments and offers empirical evidence specific to Ontario, Canada.
L'articolo analizza l'evoluzione della disciplina sulla rendicontazione di sostenibilità a livello internazionale e comunitario ponendo l'accento sugli elementi qualificanti il processo di repor-tistica e sulla sua standardizzazione. Particolare attenzione viene dedicata alle finalità dei bilanci di sostenibilità, al principio della "materialità" che deve guidarne la definizione dei contenuti, agli stakeholder "elettivi" e all'evoluzione in corso. Alla luce dell'orientamento comunitario, l'analisi si focalizza sulla figura dello stakeholder sindacato, portatore di diritti e di interessi nei confronti delle aziende e del loro approccio alla sostenibilità. Il sindacato assume il ruolo di stakeholder-soggetto del processo di dialogo e coinvolgimento nella redazione del bilancio nonché partner del cambiamento.
The objective of this research is to uncover how accounting practices related to social and environmental aspects in the Bakaru hydropower plant are carried out. The informants in this study consisted of employees and local communities around the company. They have a good understanding of the issues under study. Data is collected through observation and recording of documentation in various situations in the field. The collected data were analyzed using a qualitative approach using the theory of critical communicative action from Jürgen Habermas. This approach is used to examine the real practice of social and environmental accounting. The results showed that the Corporate Social Responsibility (CSR) program at the Bakaru hydropower plant is in line with the view of how natural relationships should be carried out, in accordance with the concept of truth proposed by Jurgen Habermas. That is, companies are responsible for the impact of their operations, and this is based on the expectations of various interested parties. The company has also achieved a level of compliance in this regard, by implementing CSR through disclosure to the public. However, there is a problem in the budget allocation for CSR programs every year, because the implementation of these programs does not run effectively. In this case, the Bakaru hydropower plant does not fully meet claims of authenticity or honesty, and most of the programs carried out are still assistance and do not have a focus on sustainability in terms of reporting, prevention, and maintenance of environmental activities.
This study aims to investigate and examine the role of accountability in strengthening business sustainability from an Islamic perspective. This research methodology uses qualitative methods and uses literature and documentation study techniques. The research data came from secondary data sources, based on literature studies, and were analyzed descriptively and qualitatively with emphasis on the use of scientific logic. The results of the study found that Islam is a system of life that regulates all aspects of life both in ritual matters such as faith (aqidah) and worship, as well as covering mu’amalah, activities that regulate the way of life of fellow human beings to meet the needs of everyday life issues such as government politics, economics, education, and social systems, including related to how accountability must be realized in a business or company. The accountability mechanism that is carried out must prioritize the principle of trust, especially in working with both subordinates who are given the mandate and superiors who give the mandate and are carried out as worship to Allah SWT. At the level of society and the state, Islam also regulates how accountability must be realized in the administration of the state by a leader or caliph. A leader will be held accountable both horizontally and vertically. Therefore, the results of this research are expected to be used by stakeholders including the government, legislators, academics, practitioners in both profit and non-profit organizations, and other interested parties, especially regarding the role of accountability in strengthening business sustainability in an Islamic perspective.
This research aimed to analyze the economic and financial performance of fertilizer agribusiness companies, listed on the Brasil, Bolsa, Balcão - B3 S.A (B3), from 2016 to 2021, gauging the main variations and identifying trends. With the application of analysis tools in the financial statements and with the analysis of economic and financial indexes, the reflexes caused by the pandemic in the studied
companies were evaluated. The data was collected from Comissão de Valores Mobiliários (CVM) website and evaluated using the main indicators, divided into the following groups: Capital Structure Indexes, Liquidity and Profitability. It was identified that the companies in this segment had a significant influence on their indicators with the Covid-19 pandemic, achieving good results and showing a noticeable picture of economic recovery during that period. Although the current scenario is positive for the
companies, the high instability of raw material supply for the fertilizer industry is evident, since the
main suppliers are concentrated in a small number of countries. With these findings, future studies are
recommended in order to deepen the analysis of the object companies, such as working capital indexes,
inventory turnover, and the impacts arising from the sale of the studied company FHER3 to the
Russian multinational EuroChem.
Agricultural insurance is characterized as an important risk management tool foragricultural production. Such a tool contributes to minimize the damage caused by adverse climaticphenomena, characteristic of rural productions. In view of the above, the study was carried out withthe objective of characterizing scientific publications that address the topic of agricultural insurance.To this end, a scientometric analysis was carried out in the Web of Science database, guided by certainsearch criteria. The analyzed portfolio comprised 283 articles, published until the date of March 23,2021. The data obtained were analyzed using bibliometric and sociometric procedures, operationalizedusing the VosViewer and Ucinet softwares. The results obtained demonstrated the intensification ofhe theme over time, with 66.08% of the articles being published in the lastseven years. The results also pointed out the most relevant journals, as well as the featured authors andtheir collaboration networks. It was also found that the approaches that predominate in studies onagricultural insurance can be grouped into four clusters, namely: pricing; use of agricultural insurance;risk management, and; agricultural insurance as a risk management tool. Therefore, the researchcontributions concern the description of the panorama of scientific publications that deal withagricultural insurance, as well as the identification of patterns of behavior from which this field ofresearch has been developing in the scientific field.
The olive production chain in Rio Grande do Sul is at an early stage, so studies are still incipient. Therefore, the question was: what would it be necessary to study about olive production chain? The study is justified by scope of topics that can be explored when it comes to an emerging production chain, however, it is necessary to be clear about what can reflect benefits to science, production, and society. In view of the questioning, the general objective was to identify relevant issues to be studied in olive production chain, which was divided into following specific objectives: identifying political, economic, and legal aspects of the OPC; identifying social aspects related to OPC; knowing technological aspects of OPC; verifying environmental aspects of OPC. The study was built on the foundations of the PESTEL Analysis. In-depth interviews were carried out with two olive
growers and a researcher. The interviews also had participation of an olive researcher, who acted as mediator between interviewer and the interviewees. As main results, the following themes were identified: tax returns on government incentives; impact of olive growing on GDP; reflexes of increased rigor of inspection of olive growing products; sensory analysis of olive oils and table olives;
consumer market development; evaluation of dissemination channels; promotion of rural tourism; production of new cultivars; improvement of harvesting system; development of early or late cultivars; reduction of fertilization costs; reduction of production alternation; better use of waste; impacts on landscape modification.
Purpose: We reviewed the scholarly literature that examines the role of sustainable practices for employee health and the environment. The study also examined the negative impact of the workplace on the wellbeing of employees and its indirect effect on Sustainable Development Goals (SDGs). Design/methodology/approach: This was a literature review with data from the Scopus scholarly database. We found 65 results from 2008 to 2022. After eliminating duplicates and other search fields, we were left with 30 final documents. Findings: The study provided evidence that sustainable practices in the workplace increase the wellbeing of employees and reduce pollution in the environment, while also benefiting company viability. Research limitations/implications: Using other database sources besides Scopus and Web of Science could yield additional results. Practical implications: The study highlighted the need for organizations to develop sustainable HRM practices to minimize the negative effects on employee wellbeing and capitalize on the savings that are generated through sustainable initiatives. This finding could contribute to better corporate practices and the further development of research in this field. Originality/value: The HRM literature revealed the importance of having employee wellbeing practices which increase work productivity and engagement. This also empirically proved the positive impact of companies that implement sustainable HRM practices. This research provided a theoretical model that depicts the interrelation between corporate viability, employee wellbeing, and sustainable human resource management.
Abstract: Brazil occupies a strategic position in livestock, classified as an agricultural commodity, the price cattle fed presents risks derived from domestic and foreing markets, environmental, sanitary, and economic events. The study aimed to measure the optimal hedge ratio and its efficiency in mitigating financial risks of livestock in the state of Mato Grosso, Brazil. For that, it used the minimum variance method, for spot prices it adopted the quotations from the Mato Grosso Institute of Agricultural
Economics futures prices were obtained from Brasil, Bolsa and Balcão, the analyzed period comprises November 1, 2016 and October 31, 2021. Futures prices were higher than spot prices, thus characterizing a weakening of the basis, the variability of the difference was more intense in the years 2017, 2020 and 2021, as a consequence of the Carne Fraca operation and the COVID-19 pandemic. Of the fifteen measurements of the optimal hedge ratio, only three showed statistical significance (t test) in risk mitigation, whit futures contracts having low efficiency for livestock in Mato Grosso.
Achieving the United Nations (UN) sustainable development goals (SDGs) at country and local levels—and ensuring “no one is left behind”—requires that nation states commit to solving complex social and societal challenges through collaborative, democratic means. Technocratic and bureaucratic procedures alone are insufficient. In addition to satisfying international actors, governments must discharge integrated democratic accountability through inclusive stakeholder engagement with and between diverse and locally embedded social actors and institutions. Democratic accountability requires recognizing and preserving social complexity and plurality mediated through public dialogues between actors and institutions. Concurrently, global initiatives like the SDGs offer opportunities for the UN's member states to show their sincerity to international principles and standards while engaging with local practices that promote democratic means of resolution and policy implementation. This research analyzes how public sector audit can potentially support and hold a government accountable for its international pledges to SDGs, including stakeholder engagement. In India, the public sector auditor has proactively undertaken a performance audit on that government's “preparedness to implement SDGs.” This research demonstrates how the government is held accountable for its policies and actions on SDGs, through analyzing the interrelated actions of India's two key democratic institutions—the Supreme Audit Institution and Public Accounts Committee. We make recommendations for improving state accountability for SDGs through national level policies, mechanisms and processes of stakeholder engagement and dialogues. At an international level, we argue for the UN to develop more effective mechanisms to hold governments accountable for policies and progress on their SDG commitments. Such mechanisms could include regular progress and performance audits and monitoring both nationally and internationally. These could contribute to improved leadership and integrated policy‐making across layers and levels within a nation state. We also highlight the areas for further research.
The environment is in crisis. Climate science and biodiversity loss indicators, for example, illustrate the extent of environmental degradation and the concerns with the sustainability of Earth, or perhaps more specifically, the ability of Earth to sustain (human) life. There is also an increasing recognition of the environmental crisis as urgent, as an emergency, yet whether we are acting sufficiently to the environmental crisis is still up for debate. These debates have become more evident in light of the COVID-19 pandemic, creating a context within which to consider what it means to respond to a crisis and how the environment might feature in any post-COVID recovery. In this essay, we first outline and reflect on crisis, urgency and (in)action through a consideration of the environmental crisis and the COVID-19 crisis before moving to our main focus – the implications for environmental accounting. Specifically, we suggest that the construction of environmental accounting as accounting for the long-term, an attempt to contrast it with and overcome the problems with short-term conventional accounting, potentially contributes to the construction of the environment as lacking urgency and potentially enables its marginalisation. We argue that in order to make the most of accounting’s potential as a constitutive force, capable of participating in transforming preferences, decisions and behaviour in organisations and societies, environmental accounting needs to be about the short-term. We contribute to the ongoing discussions on how accounting needs to change if it is to recognise the urgent nature of the environmental crisis.
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