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1 – 10 of 20Giuseppe Nicolò, Giovanni Zampone, Giuseppe Sannino and Serena De Iorio
Recent regulatory changes in Europe have promoted non-financial reporting practices (e.g., Directive, 2014/95/EU) and gender diversity in decision-making positions. Special…
Abstract
Purpose
Recent regulatory changes in Europe have promoted non-financial reporting practices (e.g., Directive, 2014/95/EU) and gender diversity in decision-making positions. Special attention is devoted to promoting the gender balance on corporate boards as a key mechanism to enhance corporate governance effectiveness and better address multiple stakeholders' needs. With this in mind, this study intends to examine the impact of boardroom gender diversity on Environmental Social Governance (ESG) disclosure practices in the European listed firms' context.
Design/methodology/approach
The study applies different panel data models on an extended sample of 1,392 firms from 21 European Union (EU) countries for six years (2014–2019).
Findings
Findings allow to spotlight the positive role exerted by the presence of women directors on the boards in enhancing ESG disclosure, both at the overall and specific (individual ESG scores) level.
Research limitations/implications
Policymakers and regulators might consider the study's evidence as a stimulus to continue in promoting strategic actions and reforms that foster gender equality and balance in corporate decision-making positions.
Practical implications
Creating a heterogeneous and diversified board of directors may support implementing a “sustainable corporate governance” recently claimed by the EC.
Originality/value
The study contributes to the literature by disentangling the links between gender diversity and ESG disclosure over a period that covers a long season of European regulations and measures that affected both non-financial reporting practices and the board of directors' composition. Accordingly, it can contribute to enhancing the practical and theoretical understanding of the pivotal role that gender diversity may exert in strengthening corporate governance and, in turn, corporate transparency and accountability behaviours about non-financial issues.
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Gianluca Vitale, Sebastiano Cupertino and Angelo Riccaboni
Focusing on the Agri-Food and Beverage sector, the paper investigates the direct effect of worldwide mandatory non-financial disclosure on several financial dimensions as well as…
Abstract
Purpose
Focusing on the Agri-Food and Beverage sector, the paper investigates the direct effect of worldwide mandatory non-financial disclosure on several financial dimensions as well as its moderating effects on the relationship between sustainability and financial performance.
Design/methodology/approach
The authors performed fixed-effect regressions on a sample of 180 global listed companies, considering a period of eight years. The authors also tested the moderating effects of non-financial disclosure regulation on the relationship between sustainability and financial performance.
Findings
The authors found a positive direct impact of mandatory non-financial disclosure on Operating Return on Asset, Return on Equity and Return on Sales. The analysis also highlighted the negative moderating effects of non-financial reporting regulation on the relationship between sustainability issues and financial performance. As for the Cost of Debt, the authors found mixed results.
Research limitations/implications
This study considers a short-term perspective focusing on a limited sample composed of companies playing a key role in the global agri-food system.
Practical implications
The paper identifies which financial performance dimensions are positively or negatively affected by mandatory non-financial disclosure. Accordingly, managers can rearrange corporate activities to deal with further reporting normative requirements concurrently preserving financial performances and fostering corporate sustainability.
Social implications
This study recommends fostering mandatory non-financial disclosure to increase corporate transparency fostering the sustainability transition of the Agri-Food and Beverage industry.
Originality/value
The paper highlights global mandatory non-financial disclosure effects on financial performance considering a sector that is cross-cutting impactful on plural sustainability issues.
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Josef Baumüller and Karina Sopp
This paper outlines the development of the principle of materiality in the European accounting framework, from the Modernization Directive (2003/51/EC) to the NFI Directive…
Abstract
Purpose
This paper outlines the development of the principle of materiality in the European accounting framework, from the Modernization Directive (2003/51/EC) to the NFI Directive (2014/95/EU) and on to the proposals for a Corporate Sustainability Reporting (CSR) Directive (2021/0104 (COD)). The authors highlight how the requirements for corporate reporting in terms of sustainability matters have changed, underlining the main issues that require further attention by practitioners, researchers and legislators.
Design/methodology/approach
This paper is based upon a historic analysis of European Union (EU) regulations in the field of non-financial and sustainability reporting and how these have changed over time. A conceptual comparison of different reporting concepts is presented, and changes in their relevance to the EU accounting framework are discussed as part of the historic analysis. Implications from corporate practice are derived from previous empirical findings from the EU Commission's consultations.
Findings
The proposed change from non-financial to sustainability reporting within the EU affects more than simply the terminology used. It implies that a different understanding is needed of both the purposes of company reporting on sustainability matters and the aims of carrying out such reporting. This change was driven by the need and desire to appropriately interpret the principle of materiality set forth in the NFI Directive. However, the recent redefinition in the shift within the EU Commission's proposals presents considerable challenges–and costs–in practice.
Research limitations/implications
Future research on the conceptualization and operationalization of ecological and social materiality, as well as on the use of this information by different stakeholder groups, is necessary in order to (a) help companies that are applying the reporting requirements in practice, (b) support the increased harmonization of the reports published by these companies and (c) fully assess the costs and benefits associated with the increase in reporting requirements for these companies.
Practical implications
Companies have to establish relevant reporting processes, systems and formats to fulfil the increasing number of reporting requirements.
Originality/value
This paper outlines the historic development of the principle of materiality regarding mandatory non-financial or sustainability reporting within the EU. It outlines a shift in rationales and political priorities as well as in implications for European companies that need to fulfil the reporting requirements. In consequence, it describes appropriate interpretations of this principle of materiality under current and upcoming legislation, enabling users to apply this principle more effectively.
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Marco Papa, Mario Carrassi, Anna Lucia Muserra and Monika Wieczorek-Kosmala
To determine whether to entrust the European Union (EU) to create a new nonfinancial reporting framework or endorse the extant reporting framework developed by the Global…
Abstract
Purpose
To determine whether to entrust the European Union (EU) to create a new nonfinancial reporting framework or endorse the extant reporting framework developed by the Global Reporting Initiative (GRI), this study aims to explore whether the mandatory implementation of the EU Directive positively impacted the GRI-based environmental disclosure.
Design/methodology/approach
The authors compared the pre- and post-EU Directive environmental disclosure of 16 Italian environmentally sensitive companies. The authors used an extended coding scheme and developed a unique scoring system to compare the quantitative and qualitative changes in environmental disclosure.
Findings
The analysis showed that the quantity of environmental disclosure increased after the mandatory EU Directive adoption. The most significant change was observed regarding the disclosure topics explicitly required by the Italian legislature. Additionally, disclosure of soft information continued to prevail over that of hard information in the post-Directive period. While the Directive boosted the level of adherence to GRI standards, Italian companies disclosed information that could be easily mimicked (soft) instead of objective measures that could be verified (hard). In light of this evidence, the endorsement of extant GRI standards could be a valuable option for enhancing the comparability and transparency of environmental disclosure.
Originality/value
This study used an original extended coding system and proposed related environmental disclosure indexes that allow monitoring changes in environmental disclosure over time. To the authors’ best knowledge, this study is one of the few that justifies the significant impact of regulation (here the EU Directive) on the increase in environmental disclosure and that uses hard and soft information typology to examine the quality of environmental disclosure.
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In the aftermath of the COVID-19 pandemic, supply chains have become important policy tools to ensure the security and resilience of regional trading blocs of major economies. The…
Abstract
In the aftermath of the COVID-19 pandemic, supply chains have become important policy tools to ensure the security and resilience of regional trading blocs of major economies. The US government’s focus on supply chains for selected strategic industries and the EU Commission’s renewed efforts to strengthen its supply chains using ‘sustainability standards’ coincides with the global trend in the shift towards digital and low-carbon economies. Furthermore, the rising tensions between the US and China, with no signs of reconciliation over key issues of contention, have emphasized the need for more credibility and trust in global supply chains. However, such policies also have the potential to serve as new barriers to participation in supply chains by less-developed economies which are not yet prepared to meet the high-level sustainability criteria which aim for higher protection of the environment and labor rights. There also seems to be an apparent shift in paradigm supporting the interventionist role of government that emphasize the need for more discretion for policy objectives that pursue societal and democratic values, not to mention national security interests. The current rules of international trade, however, do not sufficiently address these new issues and need to be realigned in order to meet the new demands. The current ‘rules of the game’ need to be reinforced in order to accommodate the rising need of countries for increased consideration of issues of sustainability and competitiveness.
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This paper aims to draw attention to a broad range of experimental institutional initiatives which operate in the absence of a global antitrust regime. The purpose of this paper…
Abstract
Purpose
This paper aims to draw attention to a broad range of experimental institutional initiatives which operate in the absence of a global antitrust regime. The purpose of this paper is to offer food for thought to scholars in other fields of international trade law facing challenges from divergent national regimes.
Design/methodology/approach
Taking inspiration from political science literature on institutions, this paper crafts a broad analytical lens which captures various organisational forms (including networks), codes (including soft law) and culture (including epistemic communities). The strength and shortcomings of traditional “bricks and mortar” institutions such as the European Union (EU) and General Agreement Tariffs and Trade/World Trade Organisation are first examined. Then, the innovative global network of International Competition Network (ICN) is analysed.
Findings
It highlights the value of the global antitrust epistemic community in providing a conducive environment for extensive recourse to “soft law”. Examples from the EU and the ICN include measures which find expression in enforcement tools and networks. These initiatives can be seen as experimental responses to the challenges of divergent national antitrust regimes.
Research limitations/implications
It is desktop research rather than empirical field work.
Practical implications
To raise awareness outside the antitrust scholarly community of the variety of experimental institutional initiatives which have evolved, often on a soft law basis, in response to the challenges experienced by national enforcement agencies and businesses operating in the absence of a global antitrust regime.
Originality/value
It offers some personal reflections on the ICN from the author’s experience as a non-governmental advisor. It draws attention to the ICN’s underappreciated range of educational materials which are freely available on its website to everyone. It submits that the ICN template offers interesting ideas for other fields of international trade law where a global regime is unrealisable. The ICN is a voluntary virtual network of agencies collaborating to agree ways to reduce clashes among national regimes. Its goal of voluntary convergence is portrayed as standardisation rather than as absolute congruence. Even if standardisation of norms/processes is too ambitious a goal in other fields of international trade law, the ICN model still offers inspiration as an epistemic community within an inclusive and dynamic forum for encouraging debate and creating a culture of learning opportunities where familiarity and trust is fostered.
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Angela Wroblewski and Rachel Palmén
This chapter provides the background and relevant policy context information necessary to understand the approach to development and implementation of tailored gender equality…
Abstract
This chapter provides the background and relevant policy context information necessary to understand the approach to development and implementation of tailored gender equality plans provided by the TARGET project. It describes the development of European gender equality polices in research and innovation (R&I) since the 1980s and experiences with early structural change projects. TARGET refers to these experiences and aims at providing an innovative approach to overcome challenges towards gender equality, especially for research organisations located in countries that have been classified as rather inactive when it comes to gender equality policies in R&I. The chapter closes with an outline of the structure of the book and its individual chapters.
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Moisés Simancas Cruz, Juan Israel García Cruz, Carlos Alberto Greifemberg and María Pilar Peñarrubia Zaragoza
The quality of tourist accommodation establishments is a recurring theme in public strategies for planning and managing tourist destinations. The applying standards as a way to…
Abstract
Purpose
The quality of tourist accommodation establishments is a recurring theme in public strategies for planning and managing tourist destinations. The applying standards as a way to achieve quality. This strategy consists of legally regulating a series of minimum physical standards by using measureable parameters, as well as the desired characteristics or levels of amenities, which vary according to the type of provision required. The purpose of this study is to analyze the strengths and weaknesses of applying strategies that regulate standards for accommodations in coastal tourism areas in the Canary Islands (Spain).
Design/methodology/approach
The authors used an explanatory case study methodology. An “inter-case” comparison has been chosen, because the object of analysis (public policy applying tourism standards) has changed over time; furthermore, a content analysis approach was selected so that the subject of this research is the process of implementing this kind tourism policy. The result is a systematization of the process in stages.
Findings
Quantifiable criteria that exclusively consider the physical or operational parameters of a tourist establishment are no longer sufficient to provide quality service that meets the needs and expectations of customers. It is not enough to set standards for surface area parameters or essential amenities when organizing new tourist developments, but rather it is the qualitative aspect that must be addressed. At the same time, quality tourist accommodation establishment is not obtained merely by reducing density, which constitutes the significant standard.
Research limitations/implications
This paper evidence is presented that may influence the quality of accommodation perceived by the client, which increases their level of satisfaction and, in turn, the degree of trust and, therefore, fidelity, understood as the future decision to repeat or not the tourist experience. There are also issues related to the approach that the quality of accommodation establishments has a direct effect on the visitor’s perception of the destination, which cannot be merely physical, mensurable in square metres.
Practical implications
The relationship between urban standards and quality is no longer linear. This determines that the regulated tourist accommodations (defined by sectoral regulations) it is common to set a required plot size in m2 based on the number of bed places offered by the establishment is no longer valid. Today, tourists rate accommodation establishments by the prestige of their brand or the diversity of services and experiences (entertainment, sensations, emotions, etc.) they provide. These experiences play such an important role in producing customer satisfaction and loyalty to a hotel that guests are willing to pay more for their stay, with the understanding that they will be able to experience certain emotions. It has been evidenced that the main reason for setting physical quality parameters that can be measured by a rating system for accommodation establishments, to provide a basic reference for customers, is no longer necessary, given the amount of easily accessible real-time information freely available through multiple independent channels based on the 2.0 paradigm, information technologies and communication, as well as applications and virtual platforms.
Social implications
Applying this public strategy of classifying or rating tourist accommodations on a territorial scale has some strengths and weaknesses. However, it is not easy to find a comprehensive evaluation of the impact of such strategies because, among other issues, the public administration seems disinterested in measuring the consequences of their decisions, instead focussing on whether the formal legal requirements are being complied with. Moreover, whenever such assessments have been carried out, the discussion has been limited to the effectiveness of the implementation. This is why, beyond such purely mechanical responses, there are currently no studies or technical reports that specifically examine the positive or negative effects of such approaches. Evidently, these circumstances make any work analyzing this material relevant and timely. Likewise, the main reason for setting physical quality parameters that can be measured by a rating system for accommodation establishments, to provide a basic reference for customers, is no longer necessary, given the amount of easily accessible, real-time information freely available through multiple independent channels based on the 2.0 paradigm, information technologies and communication, as well as applications and virtual platforms.
Originality/value
The paper determines that the impact of the strategies of set a required plot size in square metres based on the number of bed places offered by the establishment is limited. Applying this public strategy of classifying or rating tourist accommodations on a territorial scale has some strengths and weaknesses. However, it is not easy to find a comprehensive evaluation of the impact of such strategies because, among other issues, the public administration seems disinterested in measuring the consequences of their decisions, instead focussing on whether the formal legal requirements are being complied with. Moreover, whenever such assessments have been carried out, the discussion has been limited to the effectiveness of the implementation. This is why, beyond such purely mechanical responses, there are currently no studies or technical reports that specifically examine the positive or negative effects of such approaches. Evidently, these circumstances make any work analyzing this material relevant and timely.
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Juan D. Borrero and Shumaila Yousafzai
The shift toward a circular economy (CE) represents a collaborative endeavor necessitating the presence of efficient frameworks, conducive contexts and a common comprehension…
Abstract
Purpose
The shift toward a circular economy (CE) represents a collaborative endeavor necessitating the presence of efficient frameworks, conducive contexts and a common comprehension. This research serves as a pivotal stride towards this goal, presenting an exclusive prospect for the investigation and fusion of these frameworks, with particular emphasis on the Quintuple Helix Model (5HM), into a unified theoretical framework that underscores the core principles of the CE. This study is centered on three pivotal questions aimed at decoding the CE transition in specific regional settings.
Design/methodology/approach
Adopting an abductive approach firmly anchored in a two-stage qualitative process, this study specifically merges the foundational principles from institutional theory, entrepreneurship literature and CE frameworks to provide insights into the dynamics of circular ecosystems, with a specific focus on the Huelva region in Spain.
Findings
The findings demonstrate significant potential in the CE, ranging from the integration of product and service systems to innovations in eco-industrial practices. Yet, a notable deficiency exists: the absence of institutional entrepreneurs, highlighting the essential role that universities can play. As recognized centers of innovation, universities are suggested to be key contributors to the transformation toward a CE, aligning with their societal and economic responsibilities.
Practical implications
This study highlights the importance of managing relationships with entities like SMEs and policymakers or academia for effective CE adoption. Policymakers can refine strategies based on the research’s insights, while the impact of university-driven circular ecosystems on sustainable societies is another crucial area for research.
Originality/value
The sustainability models cited in CE literature may not be comprehensive enough to prevent problem shifting, and it can be argued that they lack a sound theoretical and conceptual basis. Furthermore, the connections between sustainability objectives and the three levels of the CE operating system remain vague. Additionally, there is insufficient information on how regions foster the involvement of the environment in fivefold helix cooperation and how this impacts the CE.
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With the aim of monitoring the existing regulations that are applicable to community of owners facing delinquency, in view of the importance of this issue for the achievement of…
Abstract
Purpose
With the aim of monitoring the existing regulations that are applicable to community of owners facing delinquency, in view of the importance of this issue for the achievement of the Urban Agenda, the present study aims to analyse the most stringent and controversial measures available for the community of owners facing delinquency from a comparative perspective.
Design/methodology/approach
The present work addresses the recent legislative amendments that have taken place at national level in this field in several countries and analyses to what extent they have addressed the delinquency problem faced by community of owners.
Findings
The current paper shows that, in the end, legal certainty, the prospective legal and economic effects on mortgage lending and constitutional concerns are the underlying reasons behind the reluctance to implement some stringent measures to face delinquency. It also shows that recent amendments concerning alternative dispute resolution mechanisms are a missed opportunity.
Social implications
Community of owners plays a key role in cities for the achievement of the Urban Agenda, so the periodical contributions from co-owners are paramount to the proper implementation of urban regeneration, energy efficiency and accessibility policies. To this end, the paper analyses existing regulations that are applicable to community of owners facing delinquency, which may increase in the coming years due to the current socioeconomic context.
Originality/value
This paper builds on existing research and goes one step further by addressing the recent legislative amendments that have taken place recently at national level in this field. These measures may serve as an inspiration to other EU legal systems.
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