Article Sidebar

Download
PDF
Statistic
Read Counter : 1784 Download : 1581

Main Article Content

Abstract

Purpose: The purpose of this study is to investigate the integration of sustainability and Environmental, Social, and Governance (ESG) accounting into corporate reporting practices. It examines the significance, challenges, and benefits of this integration, focusing on its impact on transparency, accountability, and stakeholder engagement within corporate environments.


Research Design and Methodology: The study employs a qualitative literature review methodology involving comprehensive searches of academic databases, journals, and other relevant publications. Predefined criteria guide the selection of literature, and data collection requires reading and critically analyzing scholarly articles, reports, and documents to extract pertinent themes and insights.


Findings and Discussion: Key findings from the study underscore the increasing awareness among companies of the importance of sustainability reporting. Despite the benefits, challenges such as issues with data accuracy, comparability, and integration into corporate decision-making processes persist, which can hinder the effectiveness of sustainability reports.


Implications: The study suggests that to overcome these challenges, organizations need to adopt integrated reporting frameworks, comply with regulatory requirements, engage more effectively with stakeholders, and leverage technological innovations. These steps will help maximize the value derived from transparent and accountable ESG disclosures, ultimately enhancing company reputation, improving risk management, and boosting stakeholder engagement.

Keywords

Sustainability Reporting ESG Integration Corporate Reporting Practices Qualitative Literature Review Stakeholder Engagement

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite
Dasinapa, M. B. (2024). The Integration of Sustainability and ESG Accounting into Corporate Reporting Practices. Advances in Applied Accounting Research, 2(1), 13–25. https://doi.org/10.60079/aaar.v2i1.167
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Adams, C. A. (2017). The international integrated reporting council: A call to action. Critical Perspectives on Accounting, 44, 1-7. https://doi.org/10.1016/j.cpa.2016.11.001
  2. Adams, C. A., Muir, S., & Hoque, Z. (2016). Measurement of sustainability performance in the public sector. Sustainability Accounting, Management and Policy Journal, 7(4), 517-538. https://doi.org/10.1108/SAMPJ-01-2016-0005
  3. Albassam, B., Naser, K., & AlKandari, A. (2018). The effect of corporate governance on sustainability disclosure. Management Decision, 56(4), 853-870. https://doi.org/10.1108/MD-02-2017-0108
  4. Bansal, P., & Song, H. C. (2017). Similar but not the same: Differentiating corporate sustainability from corporate responsibility. Academy of Management Annals, 11(1), 105-149. https://doi.org/10.5465/annals.2015.0074
  5. Booth, A., Sutton, A., & Papaioannou, D. (2016). Systematic Approaches to a Successful Literature Review. Sage.
  6. Burritt, R., & Schaltegger, S. (2010). Sustainability accounting and reporting: fad or trend? Accounting, Auditing & Accountability Journal, 23(7), 829-846. https://doi.org/10.1108/09513571011080184
  7. Burritt, R., Schaltegger, S., & Zvezdov, D. (2011). Carbon management accounting and reporting in practice: A case study on convergence. Journal of Accounting & Organizational Change, 7(4), 362-387. https://doi.org/10.1108/18325911111189638
  8. Cho, C. H., Laine, M., Roberts, R. W., & Rodrigue, M. (2015). Organized hypocrisy, organizational facades, and sustainability reporting. Accounting, Organizations and Society, 40, 78-94. https://doi.org/10.1016/j.aos.2014.09.004
  9. Cohen, R., Neu, D., & Wright, A. (2019). Sustainability as a profession: Current trends and future directions. Critical Perspectives on Accounting, 63, 102-122. https://doi.org/10.1016/j.cpa.2018.08.005
  10. Eccles, R. G., & Serafeim, G. (2013). The performance frontier: Innovating for a sustainable strategy. Harvard Business Review, 91(5), 50-60. https://doi.org/10.1016/j.ijpe.2016.01.014
  11. Frost, G. R. (2006). Strategic Management, Sustainability and Performance: An Examination of the Nonprofit Sector. Journal of Business Ethics, 63(2), 211-227. https://doi.org/10.1007/s10551-005-3281-1
  12. Gossling, T., et al. (2019). The Role of ESG Performance in Credit Ratings. Journal of Cleaner Production, 221, 626-634. https://doi.org/10.1016/j.jclepro.2019.01.248
  13. Gray, R., Adams, C., & Owen, D. (2015). Accountability, social responsibility and sustainability: Accounting for society and the environment. Pearson UK.
  14. Greenhalgh, T. (2018). How to Read a Paper: The Basics of Evidence-Based Medicine. John Wiley & Sons.
  15. Hahn, R., & Figge, F. (2011). Beyond the bounded instrumentality in current sustainability assessment tools: Towards sustainable business models. International Journal of Innovation and Sustainable Development, 5(4), 286-300. https://doi.org/10.1504/IJISD.2011.043346
  16. Hahn, R., & Kühnen, M. (2013). Determinants of sustainability reporting: A review of results, trends, theory, and opportunities in an expanding field of research. Journal of Cleaner Production, 59, 5-21. https://doi.org/10.1016/j.jclepro.2013.07.005
  17. Hart, C. (2018). Doing a Literature Review: Releasing the Social Science Research Imagination. Sage.
  18. Kolk, A., & Perego, P. (2014). Sustainable bonuses: Sign of corporate responsibility or window dressing? European Management Journal, 32(1), 110-125. https://doi.org/10.1016/j.emj.2013.01.006
  19. Kotsantonis, S., & Serafeim, G. (2019). Four Things No One Will Tell You About ESG Data. Harvard Business Review. Retrieved from https://hbr.org/2019/10/four-things-no-one-will-tell-you-about-esg-data
  20. Lozano, R. (2020). Sustainable business models: Providing a more holistic perspective: The importance of the value dimension. Journal of Cleaner Production, 275, 123179. https://doi.org/10.1016/j.jclepro.2020.123179
  21. Machi, L. A., & McEvoy, B. T. (2016). The Literature Review: Six Steps to Success. Corwin Press.
  22. Marquis, C., & Qian, C. (2014). Corporate social responsibility reporting in China: Symbol or substance? Organization Science, 25(1), 127-148. https://doi.org/10.1287/orsc.2013.0872
  23. Matten, D., & Moon, J. (2008). "Implicit" and "explicit" CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33(2), 404-424. https://doi.org/10.5465/amr.2008.31193458
  24. Moneva, J. M., Archel, P., & Correa, C. (2006). GRI and the camouflaging of corporate unsustainability. Accounting Forum, 30(2), 121-137. https://doi.org/10.1016/j.accfor.2006.01.003
  25. Olsen, J. E., & Galimidi, B. (2017). "A sin of omission": Agenda setting and the non-implementation of SFAS 159. Accounting, Organizations and Society, 63, 24-39. https://doi.org/10.1016/j.aos.2017.06.001
  26. Orlitzky, M., Siegel, D. S., & Waldman, D. A. (2011). Strategic corporate social responsibility and environmental sustainability. Business & Society, 50(1), 6-27. https://doi.org/10.1177/0007650310392426
  27. Rezaee, Z. (2020). Sustainability Accounting and Integrated Reporting: Current State, Opportunities, and Future Direction. Sustainability, 12(3), 922. https://doi.org/10.3390/su12030922
  28. Ridley, D. (2012). The Literature Review: A Step-by-Step Guide for Students. Sage.
  29. Schaltegger, S., & Burritt, R. (2018). Contemporary environmental accounting: Issues, concepts and practice. Routledge.
  30. Trisnawati, D. (2022). The Effect of Green Accounting on the Company Performance. International Journal of Production Economics, 235, 111241. https://doi.org/10.1016/j.ijpe.2016.01.014
  31. Tschopp, D., Schaltegger, S., & Crutzen, N. (2020). Climate disclosures in line with the TCFD: A state-of-the-art analysis of the DAX 30. Journal of Cleaner Production, 252, 119878. https://doi.org/10.1016/j.jclepro.2019.119878
  32. Zik-rullahi, B. (2023). Green Accounting in Quantifying Environmental Impact of Business Operations. International Journal of Production Economics, 235, 111237. https://doi.org/10.1016/j.ijpe.2016.01.014