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“A new direction? The “mainstreaming” of sustainability reporting”

“A new direction? The “mainstreaming” of sustainability reporting” The purpose of this paper is to analyse the current developments to “mainstream” and standardise sustainability reporting and the consequences of those changes. Those changes give rise to the colonisation of sustainability reporting through the adoption of financial reporting concepts.Design/methodology/approachThis research draws on critical theory, particularly the work of Foucault, to understand the dynamics of accounting change. This approach provides an alternative to the current narrative that the concepts that underpin reporting are universal and timeless.FindingsIt is suggested that if the aim of mandatory sustainability reporting is to promote companies adopting sustainable business models, then it must properly reflect the context of the company. Both transactive and relationship information is critical to providing an account that can be used to judge the performance of the corporation beyond its production of short-term net positive cash flows.Practical implicationsThe design of standard setting arrangements for sustainability reporting needs to recognise that it may be unhelpful to simply adopt financial reporting concepts for the purposes of directing corporate behaviour towards sustainable development.Social implicationsContinuing to adopt a view of the corporation as a nexus of contracts with no clear accountability to stakeholders is likely to stymie efforts to deal with the environmental and social crisis facing people and planet.Originality/valueWhilst other works have considered the development of sustainability reporting, to the best of the author’s knowledge, this is the first study to consider the impacts of “mainstreaming” it within mandatory corporate reporting. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Sustainability Accounting Management and Policy Journal Emerald Publishing

“A new direction? The “mainstreaming” of sustainability reporting”

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References (125)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2040-8021
eISSN
2040-8021
DOI
10.1108/sampj-06-2021-0201
Publisher site
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Abstract

The purpose of this paper is to analyse the current developments to “mainstream” and standardise sustainability reporting and the consequences of those changes. Those changes give rise to the colonisation of sustainability reporting through the adoption of financial reporting concepts.Design/methodology/approachThis research draws on critical theory, particularly the work of Foucault, to understand the dynamics of accounting change. This approach provides an alternative to the current narrative that the concepts that underpin reporting are universal and timeless.FindingsIt is suggested that if the aim of mandatory sustainability reporting is to promote companies adopting sustainable business models, then it must properly reflect the context of the company. Both transactive and relationship information is critical to providing an account that can be used to judge the performance of the corporation beyond its production of short-term net positive cash flows.Practical implicationsThe design of standard setting arrangements for sustainability reporting needs to recognise that it may be unhelpful to simply adopt financial reporting concepts for the purposes of directing corporate behaviour towards sustainable development.Social implicationsContinuing to adopt a view of the corporation as a nexus of contracts with no clear accountability to stakeholders is likely to stymie efforts to deal with the environmental and social crisis facing people and planet.Originality/valueWhilst other works have considered the development of sustainability reporting, to the best of the author’s knowledge, this is the first study to consider the impacts of “mainstreaming” it within mandatory corporate reporting.

Journal

Sustainability Accounting Management and Policy Journal – Emerald Publishing

Published: Oct 13, 2022

Keywords: Critical theory; Financial reporting; Accountability; Sustainability reporting; Decision usefulness; Objective of reporting

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