3,499
Views
0
CrossRef citations to date
0
Altmetric
Management

Challenges and opportunities in sustainability reporting: a focus on small and medium enterprises (SMEs)

ORCID Icon, ORCID Icon & ORCID Icon
Article: 2298215 | Received 10 Aug 2023, Accepted 06 Dec 2023, Published online: 14 Feb 2024

References

  • Abdullah, A., Saraswat, S., & Talib, F. (2023). Barriers and strategies for sustainable manufacturing implementation in SMEs: A hybrid fuzzy AHP-TOPSIS framework. Sustainable Manufacturing and Service Economics, 2, 1. https://doi.org/10.1016/j.smse.2023.100012
  • Adams, C. A., & Frost, G. R. (2008). Integrating sustainability reporting into management practices. Accounting Forum, 32(4), 288–17. https://doi.org/10.1016/j.accfor.2008.05.002
  • Akomea-Frimpong, I., Asogwa, I. E., & Tenakwah, E. J. (2022). Systematic review of sustainable corporate governance of SMEs: Conceptualisation and propositions. Corporate Ownership and Control, 19(3), 74–91. https://doi.org/10.22495/cocv19i3art5
  • Albuquerque, F., Barreiro-Rodrigues, M. A., Gomes dos Santos, P., & Morais, A. I. (2022). The reporting of non-financial information by SMEs: Assessing the answers to the project of the revised directive 2014/95/EU. In Modern regulations and practices for social and environmental accounting (pp. 2090–2109). IGI Global. https://doi.org/10.4018/978-1-7998-9410-0.ch00510.4018/978-1-7998-9410-0.CH005
  • Anyigbah, E., Kong, Y., Edziah, B. K., Ahoto, A. T., & Ahiaku, W. S. (2023). Board characteristics and corporate sustainability reporting: Evidence from Chinese listed companies. Sustainability, 15(4), 3553. https://doi.org/10.3390/su15043553
  • Ardra, S., & Barua, M. K. (2022). Halving food waste generation by 2030: The challenges and strategies of monitoring UN sustainable development goal target 12.3. Journal of Cleaner Production, 380, 135042. https://doi.org/10.1016/j.jclepro.2022.135042
  • Arena, M., & Azzone, G. (2012). A process-based operational framework for sustainability reporting in SMEs. Journal of Small Business and Enterprise Development, 19(4), 669–686. https://doi.org/10.1108/14626001211277460
  • Băndoi, A., Bocean, C. G., Del Baldo, M., Mandache, L., Mănescu, L. G., & Sitnikov, C. S. (2021). Including sustainable reporting practices in corporate management reports: Assessing the impact of transparency on economic performance. Sustainability, 13(2), 940. https://doi.org/10.3390/su13020940
  • Bhukya, R., & Justin, P. (2023). Social influence research in consumer behavior: What we learned and what we need to learn? – A hybrid systematic literature review. Journal of Business Research, 162, 113870. https://doi.org/10.1016/j.jbusres.2023.113870
  • Boix-Fayos, C., & De Vente, J. (2023). Challenges and potential pathways towards sustainable agriculture within the European Green Deal. Agricultural Systems, 207, 103634. https://doi.org/10.1016/j.agsy.2023.103634
  • Bosi, M. K., Lajuni, N., Wellfren, A. C., & Lim, T. S. (2022). Sustainability reporting through environmental, social, and governance: A bibliometric review. Sustainability, 14(19), 12071. https://doi.org/10.3390/su141912071
  • Bouraima, M. B., Alimo, P. K., Agyeman, S., Sumo, P. D., Lartey-Young, G., Ehebrecht, D., & Qiu, Y. (2023). Africa’s railway renaissance and sustainability: Current knowledge, challenges, and prospects. Journal of Transport Geography, 106, 103487. https://doi.org/10.1016/j.jtrangeo.2022.103487
  • Bruce, E., Keelson, S., Amoah, J., & Egala, S.B. (2023). Social media integration: An opportunity for SMEs sustainability. Cogent Business & Management, 10, 2173859. https://doi.org/10.1080/23311975.2023.2173859
  • Brusca, I., Labrador, M., & Larran, M. (2018). The challenge of sustainability and integrated reporting at universities: A case study. Journal of Cleaner Production, 188, 347–354. https://doi.org/10.1016/j.jclepro.2018.03.292
  • Chigbu, U.E., Atiku, S.O. & Plessis, C.C.D. (2023). The science of literature reviews: Searching, identifying, selecting, and syntesising. Publication, 11(2), 1–16. https://doi.org/10.1016/j.mex.2022.101895
  • Choi, F. D. S., & Meek, G. K. (2011). International accounting (7th ed.). Prentice-Hall.
  • Christensen, H. B., Hail, L., & Leuz, C. (2021). Mandatory CSR and sustainability reporting: Economic analysis and literature review. Review of Accounting Studies, 26(3), 1176–1248. https://doi.org/10.1007/s11142-021-09609-5
  • Costa, R., Menichini, T., & Salierno, G. (2022). Do SDGs really matter for business? Using GRI sustainability reporting to answer the question. European Journal of Sustainable Development, 11(1), 113. https://doi.org/10.14207/ejsd.2022.v11n1p113
  • Daub, C.-H. (2007). Assessing the quality of sustainability reporting: An alternative methodological approach. Journal of Cleaner Production, 15(1), 75–85. https://doi.org/10.1016/j.jclepro.2005.08.013
  • De Micco, P., Rinaldi, L., Vitale, G., Cupertino, S., & Maraghini, M. P. (2021). The challenges of sustainability reporting and their management: The case of Estra. Meditari Accountancy Research, 29(3), 430–448. https://doi.org/10.1108/MEDAR-09-2019-0555
  • Deloitte. (2021). Reporting of non-financial information (p. 4). Deloitte. https://www2.deloitte.com/content/dam/Deloitte/be/Documents/audit/DT-BE-reporting-of-non-financial-info.pdf.
  • Dissanayake, D. (2021). Sustainability key performance indicators and the global reporting initiative: Usage and challenges in a developing country context. Meditari Accountancy Research, 29(3), 543–567. https://doi.org/10.1108/MEDAR-08-2019-0543
  • Engert, S., Rauter, R. & Baumgartner, R.J. (2016). Exploring the integration of corporate sustainability into strategic management: A literature review. Journal of Cleaner Production, 112, 2833–2850. https://doi.org/10.1016/j.jclepro.2015.08.031
  • ESGPRO. (n.d.). ESG reporting frameworks: Comparing the GRI and the SASB. ESGPRO. https://esgpro.co.uk/esg-reporting-frameworks-comparing-the-gri-and-the-sasb/.
  • Farisyi, S., Musadieq, M.A., Utami, H.N., & Damayanti, C.R. (2022). A systematic literature review: Determinants of sustainability reporting in developing countries. Sustainability, 14, 10222. https://doi.org/10.3390/su141610222
  • Farooq, M. B., & De Villiers, C. (2019). Understanding how managers institutionalise sustainability reporting: Evidence from Australia and New Zealand. Accounting, Auditing & Accountability Journal, 32(5), 1240–1269. https://doi.org/10.1108/AAAJ-06-2017-2958
  • Gherardi, L., Linsalata, A. M., Gagliardo, E. D., & Orelli, R. L. (2021). Accountability and reporting for sustainability and public value: Challenges in the public sector. Sustainability, 13(3), 1097. https://doi.org/10.3390/su13031097
  • GRI. (2022). Global reporting initiatives. Global Reporting. Retrieved July 4, 2023, from https://www.globalreporting.org/.
  • Gutiérrez, P.B., Baena, M.D.G., Vílchez, M.L., & Polo, F.C. (2021). An approach to using the best-worst method for supporting sustainability reporting decision-making in SMEs. Journal of Environmental Planning and Management, 64(14), 2618–2640. https://doi.org/10.1080/09640568.2021.1876003
  • Hahn, R., & Kuhnen, 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
  • Hegab, H., Shaban, I., Jamil, M., & Khanna, N. (2023). Toward sustainable future: Strategies, indicators, and challenges for implementing sustainable production systems. Sustainable Materials and Technologies, 36, e00617. https://doi.org/10.1016/j.susmat.2023.e00617
  • Herzig, C., & Schaltegger, S. (2006). Corporate sustainability reporting. An overview. In S. Schaltegger, M. Bennett, & R. Burritt (Eds.), Sustainability accounting and reporting (pp. 301–324). Springer Netherlands. https://doi.org/10.1007/978-1-4020-4974-3_13
  • Higgins, C., Milne, M.J. & Gramberg, B.V. (2015). The uptake of sustainability reporting in Australia. Journal of Business Ethics, 129, 445–68. https://doi.org/10.1007/s10551-014-2171-2
  • Hongming, X., Ahmed, B., Hussain, A., Rehman, A., Ullah, I., & Khan, F. U. (2020). Sustainability reporting and firm performance: The demonstration of Pakistani firms. SAGE Open, 10(3), 215824402095318. https://doi.org/10.1177/2158244020953180
  • Jiménez, E., de la Cuesta-González, M., & Boronat-Navarro, M. (2021). How small and medium-sized enterprises can uptake the sustainable development goals through a cluster management organization: A case study. Sustainability, 13(11), 5939. https://doi.org/10.3390/su13115939
  • Kassem, E., & Trenz, O. (2020). Automated sustainability assessment system for small and medium enterprises reporting. Sustainability, 12(14), 5687. https://doi.org/10.3390/su12145687
  • Kaur, A., & Lodhia, S. K. (2019). Key issues and challenges in stakeholder engagement in sustainability reporting: A study of Australian local councils. Pacific Accounting Review, 31(1), 2–18. https://doi.org/10.1108/PAR-11-2017-0092
  • KPMG. (2023). Key global trends in sustainability reporting. Retrieved April 21, 2023, from https://kpmg.com/xx/en/home/insights/2022/09/survey-of-sustainability-reporting-2022.html.
  • Krawczyk, P. (2021). Non-financial reporting—Standardization options for SME sector. Journal of Risk and Financial Management, 14(9), 417. https://doi.org/10.3390/jrfm14090417
  • Kumar, S., et al. (2023). Barriers to adoption of industry 4.0 and sustainability: A case study with SMEs. International Journal of Computer Integrated Manufacturing, 36(5), 657–677. https://doi.org/10.1080/0951192X.2022.2128217
  • Kurniawan, P. S. (2018). An implementation model of sustainability reporting in village-owned enterprise and small and medium enterprises. Indonesian Journal of Sustainability Accounting and Management, 2(2), 90. https://doi.org/10.28992/ijsam.v2i2.49
  • Kwak, K., Kim, D., & Heo, C. (2023). Sustainable innovation in a low- and medium-tech sector: Evidence from an SME in the footwear industry. Journal of Cleaner Production, 397, 136399. https://doi.org/10.1016/j.jclepro.2023.136399
  • Lai, A., & Stacchezzini, R. (2021). Organisational and professional challenges amid the evolution of sustainability reporting: A theoretical framework and an agenda for future research. Meditari Accountancy Research, 29(3), 405–429. https://doi.org/10.1108/MEDAR-02-2021-1199
  • Legendre, S., & Coderre, F. (2013). Determinants of GRI G3 application levels: The case of the fortune global 500: Determinants of GRI G3 application levels. Corporate Social Responsibility and Environmental Management, 20(3), 182–192. https://doi.org/10.1002/csr.1285
  • Maione, G. (2023). An energy companýs journey toward standadized sustainability reporting: Addressing governance challenges. Transforming Government People, Process and Policy, 17(4), 1750–6166. https://doi.org/10.1108/TG-05-2023-0062
  • Manninen, K. & Huiskonen, J. (2022). Factors influencing the implementation of an integrated corporate sustainability and business strategy. Journal of Cleaner Production, 343, 131036. https://doi.org/10.1016/j.jclepro.2022.131036
  • Martínez, E.O., & Hernández, S.M. (2021). European SMEs and non-financial information on sustainability. Intenational Journal of Sustainable Development & World Ecology, 29(2), 112–124. https://doi.org/10.1080/13504509.2021.1929548
  • Mousa, R., & Ozili, P. K. (2022). A futuristic view of using XBRL technology in non-financial sustainability reporting: The case of the FDIC. Journal of Risk and Financial Management, 16(1), 1. https://doi.org/10.3390/jrfm16010001
  • Oduro, S., Bruno, L., & Maccario, G. (2021). Corporate social responsibility (CSR) in SMEs: What we know, what we don’t know, and what we should know. Journal of Small Business & Entrepreneurship. Advance online publication. https://doi.org/10.1080/08276331.2021.1951064
  • Oprean-Stan, C., Oncioiu, I., Iuga, I. C., & Stan, S. (2020). Impact of sustainability reporting and inadequate management of ESG factors on corporate performance and sustainable growth. Sustainability, 12(20), 8536. https://doi.org/10.3390/su12208536
  • Ortiz-Martínez, E., & Marín-Hernández, S. (2020). European financial services SMEs: Language in their sustainability reporting. Sustainability, 12(20), 8377. https://doi.org/10.3390/su12208377
  • Petrescu, A.G., Bîlcan, F.R., Petrescu, M., Oncioiu, I.H., Türkes, M.C., & Căpusneanu, S. (2020). Assessing the benefits of the sustainability reporting practices in the top romanian companies, Sustainability, 12(3470), 1–31. https://doi.org/10.3390/su12083470
  • Permatasari, P., & Kosasih, E. (2021). Sustainability reporting guideline for small medium enterprises (SMEs): Case study from 25 SMEs in Indonesia. RSF Conference Series: Business, Management and Social Sciences, 1(2), 10–20. https://doi.org/10.31098/bmss.v1i2.256
  • Pizzi, S., Principale, S., & de Nuccio, E. (2022). Material sustainability information and reporting standards. Exploring the differences between GRI and SASB. Meditari Accountancy Research, 31(6), 1654–1674. https://doi.org/10.1108/MEDAR-11-2021-1486
  • Pommier, B., & Engel, A. M. (2021). Sustainability reporting in the hospitality industry. Research in Hospitality Management, 11(3), 173–175. https://doi.org/10.1080/22243534.2021.2006937
  • Rivera, A.C., et al. (2022). How to conduct a systematic literature review: A quick guide for computer science research. MethodsX, 9, 101895. https://doi.org/10.1016/j.mex.2022.101895
  • Rossi, A., & Luque-Vílchez, M. (2021). The implementation of sustainability reporting in a small and medium enterprise and the emergence of integrated thinking. Meditari Accountancy Research, 29(4), 966–984. https://doi.org/10.1108/MEDAR-02-2020-0706
  • Ruiz-Palomino, P., Bañón Gomis, AJ., & Ruiz Amaya, C. (2011). Morals in business organizations: An approach based on strategic value and strength for business management. Cuadernos de Gestión. 11, 15–31. https://doi.org/10.5295/cdg.100221pr
  • Ruiz-Palomino, P., Ruiz, C., & Martínez, R. (2011). The cascading effect of top management´s ethical leadership: Supervisors or other lower-hierarchical level individuals? African Journal of Business Management, 5(12), 4755–4764, https://doi.org/10.5897/AJBM10.718
  • Santos, P. G. D., Albuquerque, F., Rodrigues, M. A. B., & Morais, A. I. (2022). The views of stakeholders on mandatory or voluntary use of a simplified standard on non-financial information for SMEs in the European Union. Sustainability, 14(5), 2816. https://doi.org/10.3390/su14052816
  • SASB Standards. (n.d.). How do GRI and SASB Standards work together? Do companies report on both sets of standards? Retrieved July 4, 2023 from https://help.sasb.org/hc/en-us/articles/360052463951-How-do-GRI-and-SASB-Standards-work-together-Do-companies-report-on-both-sets-of-standards.
  • Saunders, M.N.K. & Rojon, C. (2011). On the attributes of a critical literature review. An International Journal of Theory, Research and Practice, 4(2), 156–162. https://doi.org/10.1080/17521882.2011.596485
  • Saygili, E., Uye Akcan, E., & Ozturkoglu, Y. (2023). An exploratory analysis of sustainability indicators in Turkish small- and medium-sized industrial enterprises. Sustainability, 15(3), 2063. https://doi.org/10.3390/su15032063
  • Shalhoob, H., & Hussainey, K. (2023). Environmental, social and governance (ESG) disclosure and the small and medium enterprises (SMEs) sustainability performance. Sustainability, 15(1), 200. https://doi.org/10.3390/su15010200
  • Siew, R. Y. J., Balatbat, M. C. A., & Carmichael, D. G. (2013). A review of building/infrastructure sustainability reporting tools (SRTs). Smart and Sustainable Built Environment, 2(2), 106–139. https://doi.org/10.1108/SASBE-03-2013-0010
  • Singh, M. P., Chakraborty, A., Roy, M., & Tripathi, A. (2021). Developing SME sustainability disclosure index for Bombay Stock Exchange (BSE) listed manufacturing SMEs in India. Environment, Development and Sustainability, 23(1), 399–422. https://doi.org/10.1007/s10668-019-00586-z
  • Smith, J. A., Reid, G. C., & Cardao-Pito, T. (2022). Call for papers: Accounting and accountability in small- to medium-sized enterprises (SMEs). European Journal of Management Studies, 27(3), 341–345. https://doi.org/10.1108/EJMS-11-2022-112
  • Sohns, T. M., Aysolmaz, B., Figge, L., & Joshi, A. (2023). Green business process management for business sustainability: A case study of manufacturing small and medium-sized enterprises (SMEs) from Germany. Journal of Cleaner Production, 401, 136667. https://doi.org/10.1016/j.jclepro.2023.136667
  • Srisathan, W.A., Ketkaew, C., & Naruetharadho, P. (2020). The intervention of organizational sustainability in the effect of organizational culture on open innovation performance: A case of Thai and Chinese SMEs. Cogent Business & Management, 7: 1717408. https://doi.org/10.1080/23311975.2020.1717408
  • Steinhöfel, E., Galeitzke, M., Kohl, H., & Orth, R. (2019). Sustainability reporting in German manufacturing SMEs. Procedia Manufacturing, 33, 610–617. https://doi.org/10.1016/j.promfg.2019.04.076
  • Stolowy, H., & Paugam, L. (2023). Sustainability reporting: Is convergence possible? Accounting in Europe, 20(2), 139–165. https://doi.org/10.1080/17449480.2023.2189016
  • Tauringana, V. (2021). Sustainability reporting challenges in developing countries: Towards management perceptions research evidence-based practices. Journal of Accounting in Emerging Economies, 11(2), 194–215. https://doi.org/10.1108/JAEE-01-2020-0007
  • Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management, 14, 207–222. https://doi.org/10.1111/1467-8551.00375
  • Tiwari, K., Shadab Khan, Mohd., & Bharti, P. K. (2018). Sustainability accounting and reporting for supply chains in india-state-of-the-art and research challenges. IOP Conference Series: Materials Science and Engineering, 404, 012022. https://doi.org/10.1088/1757-899X/404/1/012022
  • Verboven, H., & Vanherck, L. (2016). Sustainability management of SMEs and the UN Sustainable Development Goals. NachhaltigkeitsManagementForum, 24(2), 165–178. https://doi.org/10.1007/s00550-016-0407-6
  • Waterhouse-Coopers, P. (2023). ESG in Indonesia: Access to Finance 2023 (p. 29). Oxford Business Group. https://www.pwc.com/id/en/esg/esg-in-indonesia-2023.pdf.
  • Xin, Y., Khan, R. U., Dagar, V., & Qian, F. (2023). Do international resources configure SMEs’ sustainable performance in the digital era? Evidence from Pakistan. Resources Policy, 80, 103169. https://doi.org/10.1016/j.resourpol.2022.103169
  • Yadegaridehkordi, E., Foroughi, B., Iranmanesh, M., Nilashi, M., & Ghobakhloo, M. (2023). Determinants of environmental, financial, and social sustainable performance of manufacturing SMEs in Malaysia. Sustainable Production and Consumption, 35, 129–140. https://doi.org/10.1016/j.spc.2022.10.026
  • Zharfpeykan, R., & Askarany, D. (2023). Sustainability reporting and organisational factors. Journal of Risk and Financial Management, 16(3), 163. https://doi.org/10.3390/jrfm16030163
  • Zimon, G., Arianpoor, A., & Salehi, M. (2022). Sustainability reporting and corporate reputation: The moderating effect of CEO opportunistic behavior. Sustainability, 14(3), 1257. https://doi.org/10.3390/su14031257
  • Zrnic, A., Dubravka, P. S., & Crnkovic, B. (2020). Recent trends in sustainability reporting: Literature review and implications for future research. Ekonomski Vjesnik/Econviews, XXXIII(1/2020), 271–283.