SUSTAINABILITY REPORTING AS STRATEGIC CRISIS RESPONSE MECHANISM: AN INNOVATIVE APPROACH

Most companies have been severely affected by various business risks due to the COVID-19 outbreak. Their limited resources during this adverse period have forced them to be more concerned with their companies' survival than making sustainability initiatives that incur extra costs. Consequently, companies have faced a challenge in reporting imposed-sustainability statements. According to Wenzel et al. (2020) and Zharfpeykan and Ng (2021), companies can innovatively improvise the regular sustainability reporting to become a strategic tool to portray to stakeholders how companies respond to and address sustainable matters during a crisis period. Thus, this paper presents the concept of sustainability reporting as a strategic crisis response mechanism and proposes a model and matrix that maps the stakeholder engagement disclosure strategy with quality disclosure. Moreover, the paper discusses how this reporting can be influenced by internal governance mechanisms. The paper further suggests the moderating role of enterprise risk management (ERM) in this relationship. This concept can potentially guide managerial decisions on ideal sustainability practices that may not impair companies' capacity to survive during future crises. It may act as an effective instrument in meeting stakeholders' expectations of companies to perform their roles as good corporate citizens during a crisis. © 2023 The Authors.

Environmental reporting by Indonesian agricultural companies around the spread of the COVID-19 epidemic

The purpose of this article is to see if there was a change in the amount of environmental reporting by agricultural firms after the COVID-19 epidemic spread in Indonesia. This study also examines the difference in the degree of environmental reporting between companies that publish sustainability reporting and those that do not in the period pre- and post-COVID-19. In addition, determinant factors for the extent of environmental reporting are also explored. This study utilizes 23 companies as a sample, i.e., the Indonesia Stock Exchange-listed agricultural enterprises in 2019 and 2020. The paired sample t-test results show that environmental reporting rose following the spread of the COVID-19 pandemic compared to reporting levels before the pandemic. In addition, the environmental reporting of companies that publish sustainability reporting is significantly higher than that of those that do not. This finding implies that despite the hard time facing COVID-19, the companies keep maintaining incentives to care more about the environment, which is marked by increased environmental reporting. Meanwhile, the factor that affects the amount of environmental exposure is the firm's size. Hence, a company's level of environmental reporting will increase as its assets grow in size.

Sustainability Reporting Ecosystem: A Once-in-a-Lifetime Overhaul during the COVID-19 Pandemic

The preparation of sustainability reports, which a negligible number of organisations had been doing until recently, will soon be the new reality for many more organisations. This research aims to present changes during the COVID-19 pandemic in the ecosystem of sustainability reporting pronouncements, especially those used by organisations. In our research, we compare important information about two different periods and the content demands in reporting on sustainability. Changes in the ecosystem are fundamental and unique. Based on the analysis of events and documents, the current research shows the changes in the ecosystem and the future dynamics in the ecosystem, including the principle standard setters (i.e., International Sustainability Standards Board and European Financial Reporting Advisory Group, EFRAG). The research shows that although the changes occurred during the COVID-19 pandemic, they did not significantly impact the ecosystem's development or slow down or stop their development. The COVID-19 pandemic did not affect the speed or dynamics of changes. In the last few years, EFRAG and the European Union established their position and gained a significant influence in sustainability reporting, with EFRAG at the forefront. The European Sustainability Reporting Standards will be mandatory for organisations doing business in the European Union. At the same time, we do not expect that the IFRS Sustainability Disclosure Standards will be directly endorsed for use in the European Union. The paper presents a new perspective on examining sustainability via developing organisations' reporting demands within the framework of the uncertain environment caused by COVID-19. In this context, our research also contributes to the literature. The study also has a potential practical impact on organisations and management since it illuminates a wide range of selected sustainability viewpoints and their reporting.

Approach to the Impact of Digital Technologies on Sustainability Reporting through Structural Equation Modeling and Artificial Neural Networks

The motivation for study derives from the requirements imposed by the European Union Corporate Sustainability Reporting Directive, which increases the sustainability reporting scope and the need for companies to use emerging digital technologies. The research aim is to evaluate the digital transformation impact of the European Union companies on sustainability reporting expressed through three sustainable performance indicators (economic, social, and ecological) based on a conceptual model. The data were collected from Eurostat for 2011–2021. The study proposes a framework for sustainable performance analysis through linear regression models and structural equations. Additionally, a hierarchy of digitization indicators is created by modeling structural equations, depending on their impact on sustainability performance indicators, which is validated using neural networks. The results indicate that the company's digital transformation indicators positively influence economic and social performance and lead to an improved environmental protection (a decrease in pollution), proving the established hypotheses' validity. The proposed model can be the basis for companies to create their dashboards for analyzing and monitoring sustainable performance. This research can be the basis of other studies, having a significant role in establishing economic and environmental strategies to stimulate an increase of companies that carry out sustainability reporting.

Online sustainability disclosure practices in the university context. The role of the board of directors

PurposeThe study aims to examine the impact of corporate governance in terms of certain board characteristics on the level of universities' voluntary sustainability disclosure.Design/methodology/approachA content analysis based on a comprehensive disclosure index – that also accounts for the impact that COVID-19 exerted on the social dimension of university activities – is performed on a sample of Italian public universities' websites for the year 2020. An ordinary least squares regression model is estimated to test the association between universities' board characteristics, namely, board size, board independence and board gender diversity (including the presence of a female rector), and online sustainability disclosure.FindingsThis study provides evidence that websites represent a valid tool used by universities to highlight their social performance and demonstrate their commitment to dealing with the pandemic's social and economic disruption by supporting their stakeholders. Board gender diversity and female Rector's presence are crucial factors that positively impact voluntary sustainability disclosure levels.Practical implicationsPolicymakers and regulators can benefit from the study's findings. Using the results of this study, they may reflect on the need to regulate sustainability reporting in universities. In addition, findings may offer policymakers inspiration for regulating the presence of women on university boards.Originality/valueThis study offers novel contributions to existing literature analysing the university's voluntary sustainability disclosure practices through alternative communication tools such as websites. Moreover, it provides novel insight into the role of the board gender diversity in university sustainability disclosure practices.

Determinants of environmental disclosure of mining industry near the COVID-19 outbreak: Some Indonesian evidence

In their business operations, mining companies that process natural resources must deal with environmental degradation. The companies shall do environmental preservation to mitigate global warming due to business processes and make an environmental responsibility report to ensure a sustainable business. Whether the COVID-19 pandemic affects environmental responsibility is the focus of this study. The pandemic disrupts all sectors, including the mining industry. Therefore, this study investigates the level of environmental reporting made by mining companies before and after the COVID-19 outbreak. In addition, this study also investigates the determinants of the level of environmental reporting disclosed in either the annual report or sustainability report. Thirty-seven companies listed on the Indonesia Stock Exchange in the mining sector in 2019 and 2020 were used as a sample. Results from the Wilcoxon signed rank analysis suggest that the level of environmental disclosure increased following the epidemic's spread, contrasted to levels prior to the outbreak. The multiple regression analysis reveals that public ownership and size are likely to enhance environmental disclosure. Meanwhile, leverage tends to reduce environmental disclosure. The analysis offers perspective on the capital market authority agency's new strategy aimed at enhancing aspects that could influence environmental responsibility disclosure.

The irrelevance of R&D intensity in the ESG disclosure? Insights from top 10 listed companies on global Islamic indices

This study investigates the potential influence of several pertinent factors including R&D intensity, directors' education, and firm size towards ESG disclosure. This study utilised samples from top 10 companies listed in 6 (six) different Global Islamic Indices with a three-year observation period (2017–2019) resulting in 99 observations. Global Islamic listed companies have rarely been studied in ESG-related issues. The pre-COVID-19 pandemic period was chosen to avoid the potential effects of pandemic on the subject of this study. Multiple linear regression analysis was employed to test the hypotheses. It was found that all the independent variables simultaneously influence the ESG disclosure, while partially directors' education are influencing the variable, and both R&D intensity and firm size do not influence the ESG disclosure. Confirming the agency theory, it is argued that the board characteristics are important in predicting overall board performance in carrying out their monitoring responsibilities, in this case, monitoring and encouraging companies to disclose more ESG information in their sustainability reports. This study signifies the role of directors even within the Islamic listed companies that the more highly educated the members of the board, they will tend to disclose more ESG information on their sustainability reports. This study contributes to the existing ESG disclosure and sharia-based investing literature by utilizing global-based indices instead of local indices in Muslim-majority countries, mirroring the current uptrend in world-wide sharia investing and the call for companies to be more sustainable in doing their business. © 2023 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license.

Relationship Between Green Innovation and Sustainability and Moderating Role of Foreigners: Evidence from Saudi Listed Companies

This paper investigates the effect of the presence of non-Saudi members on the board and committees and the relationship between green innovation and sustainability reporting. I rely on the ISO 26000 and CSR guidelines as an index of sustainability measures. Based on a sample of Saudi listed firms, for the period 2017–2020, I run a multiple regression to test the moderating role of the effect of foreigners' presence on the link between green innovation and sustainability reporting. The main issue of the paper is to address whether the presence of foreign members on the board of directors affects the firm's decision to voluntarily respond to major stakeholders' demands for increased sustainability reporting in Saudi Arabia. I found that the last appearance of COVID-19 affected the level of sustainability reporting, which led to the impact on the results of the relationship between the variables as well. By using a hierarchical moderated regression analysis, my findings confirm that green innovation has a crucial role in promoting sustainability, but the presence of foreigners in different committees has no effect on the relationship. © 2023, The Author(s), under exclusive licence to Springer Nature Singapore Pte Ltd.

Missing voices in GRI standards? Distinct material concerns of Latin American stakeholders revealed by COVID-19

PurposeThis paper aims to explore the extent to which global reporting initiative (GRI) standards reflect the material concerns of stakeholders in developing countries, with particular reference to Latin America.Design/methodology/approachThe main dataset was a sample of 120 media articles that discussed corporate conduct related to COVID-19 from both developing (Chile, Mexico and Peru) and developed (Australia, UK and the USA) countries. Concerns evident from those articles were compared and then mapped to applicable GRI standards to identify relevant disclosures and gaps. Findings were triangulated by drawing on two additional datasets: Latin American GRI-related academic literature (in Spanish) and submissions to GRI standards.FindingsMedia analysis reveals significant differences between developing and developed country concerns, as well as gaps in GRI disclosure requirements in relation to customers, labour standards and corporate interactions with non-government organisations and governments. Analysis of Latin American literature corroborates the concerns raised in media articles regarding employment. Additionally, it points out country-specific issues and calls for increased reporting of corruption. Analysis of the GRI standards development process reveals marked underrepresentation of developing countries, which may contribute to the observed deficiencies in the GRI standards.Originality/valueThis paper contributes to the (surprisingly rare) research concerning the quality of GRI standards and responds to calls for greater attention to developing countries in the SEA literature by showing that GRI standards may not fully meet the needs of users in the developing country context of Latin America. The paper also contributes to practice via specific recommendations for improvement to GRI standards and the standard-setting process and provides a summary of the key findings from Spanish-language Latin American literature.

The COVID-19 pandemic: opportunity or challenge for climate change risk disclosure?

PurposeThe purpose of this paper is to reflect on how climate change risk reporting might evolve in various world regions in the post COVID-19 pandemic era.Design/methodology/approachUsing a multiple-case study approach and adopting an institutional theory lens, we assess whether the pandemic is likely to strengthen or weaken institutional pressures for climate change risk disclosures and predict how climate-related risk reporting will evolve post-pandemic.FindingsThe authors find that climate change risk reporting is likely to evolve differently according to geographical location. The authors predict that disclosure levels will increase in regions with ambitious climate policy and where economic stimulus packages support sustainable economic recovery. Where there has been a weakening of environmental commitments and economic stimulus packages support resource intensive business, climate change risk reporting will stagnate or even decline. The authors discuss the scenarios for climate change risk reporting expected to play out in different parts of the world.Originality/valueThe authors contribute to the nascent literature on climate change risk disclosure and identify future directions in the wake of the COVID-19 pandemic.

Circular Economy Disclosure in Sustainability Reporting: The Effect of Firm Characteristics

The circular economy is increasingly establishing itself as a model capable of overcoming the current linear economy of production and consumption recognized as unsustainable by society. Its relevance has also attracted the attention of academics, interested not only in the implementation methods of the circular economy, but also in the ways in which companies communicate information about them. However, although in recent years some scholars have begun to investigate the circular economy disclosure (CED), research on this topic is still in an embryonic state. In fact, in the academic literature there are only a few studies related to the CED and its drivers. This study aims to fill this gap by investigating, under the lens of stakeholder theory, the effect of firm characteristics on the level of CED. To this end, it firstly involves the use of a manual content analysis of the sustainability reports drawn up by 88 international companies to measure the level of CED and, secondly, a regression model to test the impact of the firm characteristics. Empirical results demonstrate a positive effect of firm size, financial leverage and firm profitability on the level of CED. The results have important practical implications for firms and policymakers.

Reporting on Sustainable Development Goals in the European Union: what drives companies' decisions?

Purpose>This paper aims to identify the changes in the share of large public interest entities (PIEs) in European Union (EU) Member States providing Sustainable Development Goal (SDG) reporting prior to (2017) and after (2019) the implementation of Directive 2014/95/EU and the factors that influence their decisions to provide SDG reporting in 2019.Design/methodology/approach>The authors use the multilevel theory of social change in organizations as the theoretical background. The sample consists of 341 PIEs based in the EU Member States, for which reports published in 2017 and 2019 are available in the global reporting initiative sustainability disclosure database. The authors analyzed the data using the statistical significance test of equal proportions and the logistic regression model.Findings>The study findings allow to identify a significant positive change in the share of companies providing a reference to SDGs in 2019 compared with 2017. The research confirms that companies' engagement in United Nations Global Compact and previous experience in sustainability reporting positively influences the decision to report on SDGs in 2019. Contrary to the expectations, industry, size, SDG implementation score, future orientation of government and corporate governance score do not seem to be relevant factors influencing PIEs' disclosures.Originality/value>The paper adds to the understanding of the differences in SDG reporting within the EU, which is seen as a frontrunner in implementing the 2030 Agenda and the SDGs.

Enforcing Double Materiality in Global Sustainability Reporting for Developing Economies: Reflection on Ghana’s Oil Exploration and Mining Sectors

While the development of globally accepted sustainability reporting standards initiated by the IFRS Foundation has largely engaged stakeholders in developed economies, the stakes for developing economies could be compromised without an explicit consideration of their sustainability issues within this standard-setting framework. This paper examines the need to develop global sustainability reporting standards based on the principle of double materiality to warrant that both the target towards carbon net-zero by 2050 under the Paris Agreement and the subsequent promise to accelerate under COP26 are achieved with efficacy. Adopting a multiple-case study approach, this paper reveals the limitations of existing sustainability reporting in the absence of double materiality in a developing economy. Specifically, the analyses reveal limited climate-related disclosures among selected cases in Ghana. Available disclosures connote increasing GHG emissions over the period under consideration. This study also shows weak disclosure comparability across the companies following similar reporting standards. Overall, it argues that enforcement of double materiality to embrace sustainability issues impacting both developed and developing economies is necessary for an effective transformation towards a low-carbon global economy. It contributes to the existing body of knowledge by elucidating double materiality as a pertinent interdisciplinary concept and devising a holistic framework for the emerging global sustainability reporting system to underscore governance accountability for external costs to the environment. Global sustainability reporting standards with a myopic focus on conventional financial matters in the absence of double materiality remain a disclosure system with implausible impact on climate change.

ESG: new concept for old problems

A socially responsible business must base its actions on ethical management and consider issues such as the quality of life of its employees, the relationship with stakeholders, and the reduction of negative impacts of operational activities on the community and the environment. [...]our society no longer depends only on the government but also on businesses that work well and meet their needs, ranging from job creation, equitable growth, protection of natural resources, and defense of consumer interests. According to the authors, if strategically implemented, CE can play a prominent role in the agendas of emerging and developing countries, encouraging collaboration and stakeholder engagement. In "Construction and validation of a corruption perception scale at the citizen level", Kelmara Mendes Vieira, Monize Sámara Visentini, and Ricardo Teixeira Cunha propose and validate a Corruption Perception Scale (CPS), composed of five individual-level dimensions (knowledge, behavior, reflexes, control, and attitude), which position the citizen as the protagonist in the analysis of the phenomenon.

The COVID-19 pandemic: opportunity or challenge for climate change risk disclosure?

Purpose: The purpose of this paper is to reflect on how climate change risk reporting might evolve in various world regions in the post COVID-19 pandemic era. Design/methodology/approach: Using a multiple-case study approach and adopting an institutional theory lens, we assess whether the pandemic is likely to strengthen or weaken institutional pressures for climate change risk disclosures and predict how climate-related risk reporting will evolve post-pandemic. Findings: The authors find that climate change risk reporting is likely to evolve differently according to geographical location. The authors predict that disclosure levels will increase in regions with ambitious climate policy and where economic stimulus packages support sustainable economic recovery. Where there has been a weakening of environmental commitments and economic stimulus packages support resource intensive business, climate change risk reporting will stagnate or even decline. The authors discuss the scenarios for climate change risk reporting expected to play out in different parts of the world. Originality/value: The authors contribute to the nascent literature on climate change risk disclosure and identify future directions in the wake of the COVID-19 pandemic. © 2022, Emerald Publishing Limited.

Getting Serious About People Over Profit: Addressing Burnout by Establishing Meaning and Connection

Interventions to promote healthy sleep may reduce physician burnout susceptibility.5 An extensive study of physicians reported sleep-related impairment in 40% of attending physicians and 51% of house staff physicians.6 There was large correlation between sleeprelated impairment and interpersonal disengagement, work exhaustion, and overall burnout.6 After adjustment for other variables, high sleep impairment levels increased the odds of self-reporting a clinically significant medical error by 96%.6 Besides medical errors, sleep-related impairment and occupational distress have also been associated with unsolicited patient complaints. Activities that enhance social supports (e.g., peer support programs and Balint groups) and add meaning to work (e.g., professional development time, mentorship, time to develop connections with patients, etc.) are likely to provide some benefit, as they support physicians' capacity to maintain perspective, sense of purpose, and enhance sense of control over their situation.9,10 One study showed such a group normalized struggles, reduced isolation, and provided new strategies for navigating challenging interactions.11 In another study, self-facilitated physician small-group meetings improved burnout, symptoms of depression, and job satisfaction.12 Although rates of burnout among physicians have grown, physicians are resilient when compared to other occupational groups. A recent review found the rate of burnout among nurses working in hospitals ranged widely from 5% to 50%, based on specialty differences and geographical regions.14 More specifically, the review indicated the overall prevalence of emotional exhaustion was 34.1%, of depersonalization 12.6%, and of lack of personal accomplishment 15.2%.15 This same review took COVID-19 into account and noted nurse burnout risk factors as younger age, decreased social support, low family and colleague readiness to cope with COVID-19 outbreak, increased perceived threat of COVID-19, longer working time in quarantine areas, working in a high-risk environment, working in hospitals with inadequate and insufficient material and human resources, increased workload, and lower level of specialized training regarding COVID-19.15 Burnout has many consequences in nurses. Emotional exhaustion is negatively associated with the quality and safety of care, patient satisfaction, nurses' organizational commitment, and productivity.14 Nurse burnout has been a significant factor in predicting medication-associated errors.16 Protective factors in nurses include belief in readiness to cope with COVID-19 outbreaks, willingness to participate in frontline work, prior training and experience in COVID-19 patients' management, safe practices, and increased social support.15 Empathy and nursing organizational climate have been found to be protective against burnout, suggesting this could be targeted in managerial interventions.17 Nursing surveys of three types of work engagement (i.e., vigor, dedication, and absorption) and resiliency suggested some protection from burnout.18 Mindfulness-based interventions could potentially have a protective effect for burnout in nurses.19 (See Table 2 for an overview of how burnout impacts feelings about careers in nurses and physicians.) COVID-19 PANDEMIC AS ACCELERANT TO THE BURN Healthcare workers were already hurting before 2020 and the start of the COVID-19 pandemic.

SUSTAINABILITY REPORTING HARMONIZATION IN THE HOTEL INDUSTRY – WHAT IS NEXT?

The aim of this study is to examine the degree of external de facto harmonization of environmental and social information published in sustainability reports. Hotels sustainability reports are analyzed for data matching the GRI Standards indicators. C-index was used to calculate the degree of harmonization. Findings show that there is a low degree of harmonization of environmental and social information and differences in applying sustainability reporting frameworks. This is the first study examining the sustainability reporting harmonization in the hotel industry Findings also suggest a strong need for industry-specific standards and/or reporting formats.

The impact of financial distress, sustainability report disclosures, and firm size on earnings management in the banking sector of Indonesia, Malaysia, and Thailand

Research Question: Does financial distress, sustainability report disclosures, and firm size have an effect on earnings management? Motivation: Researchers want to know the effect of financial distress, sustainability report disclosures, and firm size on earnings management. Idea: The purpose of this paper is to determine the impact of Financial Distress (FD), Sustainability Report (SR), and Firm Size (FS) on earnings management in the banking sector of Indonesia, Malaysia and Thailand. Data: The data for this research is taken from the financial reports, annual reports, and sustainability reports issued by the companies from 2019 to 2020. The populations in this study are banking companies listed on the Indonesian, Malaysian, and Thailand Stock Exchanges. The samples used are 43 public banking companies in Indonesia, 10 public banking companies in Malaysia, and 8 public banking companies in Thailand. Tools: This study uses a regression model made with E-Views 10. Findings: The results show that financial distress has a significant influence on earnings management, sustainability reports have no influence on earnings management, and firm size has an influence on earnings management, but only in Malaysia's and Thailand's banking companies. Contribution: The results of this study are expected to provide ideas and reference materials regarding financial distress, disclosure of corporate sustainability reports, firm size, and earnings management practices. For companies, especially from the banking sector, this study is expected to provide information that they must be careful in reporting financial statements that will be published considering that banking companies are a business entity that receives and safeguards money owned by the public and lends out this money in the form of loans or credits. Banks are the main financial institutions in the financial system that drive the economy in a country. If a banking company experiences a financial crisis, it will have a wide impact on the financial system and economic sector in a country. The results of this study are also expected to help investors make investment decisions in a company and the results of this study are expected to help creditors in making funding decisions in a company.

Convergence of Global Sustainability Reporting Standards: Need of the Hour

Effective sustainability reporting is considered to be a meaningful and effective medium of communicating with stakeholders about how companies are performing on the basis of their objectives. In this challenging and dizzyingly fast-changing sustainability reporting landscape, another most notable occurrence is the acceleration of efforts to converge toward a single and uniform sustainability reporting standard. The five organisations namely SASB, CDP, GRI, CDSB and IIRC that are involved in the setting of global standards relating to sustainability reporting have expressed their intention to work jointly to develop a single set of sustainability reporting standards. New initiatives from the World Economic Forum and IFRS Foundation support the case for globally accepted sustainability reporting standards. Moreover, the COVID-19 pandemic has highlighted the importance of sustainable and resilient business models to support the economic recovery strategies of companies, along with an insightful reporting to provide stakeholders with a clear understanding of those models. The pandemic has also raised awareness of the inextricable links between the environment, society and the regulatory and policy environment. These developments are directed towards an urgent need for a more robust sustainability reporting framework. It is expected that the application of these standards will be compulsory irrespective of its size- big or small or irrespective of its nature- private or public throughout the globe. The exact timeline for implementation of these standards remains a difficult issue to ascertain, but it is expected that it would be within a few years.

Sustainability in Small and Medium-Sized Enterprises: A Systematic Literature Review and Future Research Agenda

Main aim: This paper examines the main topics of research in the literature studying the topic of sustainability in small and medium-sized enterprises (SME), and aims at presenting a future research agenda. Method: We conducted a systematic literature review based on articles published between 2000 and 2020. From an initial set of 88 papers taken from WoS in the period under analysis, 42 papers were effectively analyzed. Main results: The results of an in-depth reading reveal four clusters representing the main topics of research in the field: sustainability and SMEs’ performance;green and environmental management issues;social and cultural issues and their impact on sustainability policies;values, skills, and capabilities. Key findings suggest that the following angles of research appear to be underexplored: theoretically grounded research;research using large samples;articles examining sustainability reporting;research looking into non-manufacturing sectors;work examining settings in developing countries;research undertaking international comparisons;articles exploring the complementarity between the literature on sustainability in SMEs and on family-owned businesses;and the influence of the social and cultural context on SMEs’ engagement with sustainability. Main contribution: This paper offers insights to academia, practitioners, and policy makers to help SMEs engaging with sustainability and may assist also the latter to develop strategies to improve SMEs’ social and environmental reporting. Given the current pandemic crisis, and the urgency for sustainable business practices, we expect to contribute to expanding knowledge in this field of research.