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1 – 10 of 416This paper aims to contribute to the development of the European Union (EU) regulatory environment for sustainability reporting by analyzing how materiality is defined in the…
Abstract
Purpose
This paper aims to contribute to the development of the European Union (EU) regulatory environment for sustainability reporting by analyzing how materiality is defined in the Non-Financial Reporting Directive (NFRD) and Corporate Sustainability Reporting Directive (CSRD) and by examining the added value and challenges of legalizing reporting and materiality requirements from both regulatory and practical company perspectives. It provides insights on whether this is reflected by EU pharmaceutical companies and to what extent companies report information on their materiality analysis process.
Design/methodology/approach
Doctrinal analysis was used to examine regulatory instruments. Qualitative document analysis was used to analyze companies’ reports. The added value and challenges were examined using a governance approach. It focused on legalizing reporting and materiality requirements, with a brief extension to corporate management and organization studies.
Findings
Materiality has evolved from a vague concept in the NFRD toward double materiality in the CSRD. This was reflected by the industry, but reports revealed inconsistencies in materiality definitions and reported information. Challenges include lack of self-reflection and company-centric perceptions of materiality. Companies should explain how they identify relevant stakeholders and how input is considered in decision-making.
Practical implications
Managers must consider how they conduct materiality assessments to meet society’s expectations. The underlying processes should be explained to increase the credibility of reports. Sustainability reporting should be seen as a corporate governance tool.
Originality/value
This work contributes to the literature on materiality in sustainability reporting and to the debate on the need for a holistic, society-centric approach to enhance the sustainability of companies.
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Marcelo de Souza Bispo and Silvia Gherardi
This paper aims to offer a perspective to interpret qualitative data drawing on the introduction of the notion of “embodied practice-based research”.
Abstract
Purpose
This paper aims to offer a perspective to interpret qualitative data drawing on the introduction of the notion of “embodied practice-based research”.
Design/methodology/approach
Drawing on a comprehensive literature review to support a meta-theoretical approach, we developed a theoretical essay.
Findings
The body is not only a field of studies but a mean of study as well. The embodied practice-based research is an inquiry style to access the tacit texture of social action and cognition.
Practical implications
Embodied practice-based research may impact qualitative researchers’ education and the way to report methodological proceedings and data report.
Originality/value
The core contribution of the paper is the introduction of a new research style able to change how researchers’ bodies may be used in qualitative management research.
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Othmar Manfred Lehner and Orthodoxia Kyriacou
Current accounting practice tends to split environmental complexities into quantifiable, codified elements, producing codified simplifications of the “complex” in pursuit of…
Abstract
Purpose
Current accounting practice tends to split environmental complexities into quantifiable, codified elements, producing codified simplifications of the “complex” in pursuit of environmental externalities. This has led to standardization, but has done little to motivate organizations to engage in more environmentally-aware behavior that transcends the coercive dimensions of codification. The work of Alexander von Humboldt (1769–1859) can bring new insights and perspectives to social and environmental accounting (SEA). In discussing Humboldt's philosophy of understanding the interconnectedness between people, their contexts (cultures) and their environment, the authors contribute to the emerging SEA literature on notions of interconnectedness and the web of accountabilities. The authors also explore how a Humboldtian approach may help break through the current epistemological boundaries of SEA by combining accurate measurement with imagery to make the “complex” manageable whilst embracing interconnectedness and hermeneutics.
Design/methodology/approach
In this conceptual paper, the authors humbly draw on Humboldt's legacy and explore the underlying philosophical assumptions of Humboldtian science. The authors then contrast these with current SEA approaches in the literature and derive new insights into their intentionality and practical use.
Findings
Re-examining Humboldt's pioneering work enables us to pinpoint what might be missing from current SEA approaches and debates. Humboldt upheld an “ethics of precision,” which included both measurement accuracy and qualitative relevance, and combined hands-on scientific fieldwork with the aesthetic ideals and interconnectedness of the age of Romanticism. Drawing on Humboldtian science, the authors propose focusing on the interconnectedness of nature and humanity, embracing the qualitative and hermeneutical and including aesthetics and emotion in environmental visualizations.
Originality/value
The paper elucidates why and how Humboldtian science might inform, guide and enhance the emancipatory potential of SEA in the 21st century. Specifically, the authors discuss Humboldt's approach of linking accurate measurement with imagery to convey a sense of interconnectedness.
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Matteo Pozzoli, Francesco Paolone, Elbano de Nuccio and Riccardo Tiscini
This paper aims to investigate materiality judgement providing insights, critiques and future research paths in light of the open debate on the role of materiality in corporate…
Abstract
Purpose
This paper aims to investigate materiality judgement providing insights, critiques and future research paths in light of the open debate on the role of materiality in corporate financial disclosure, highlighting potential connections and implications with sustainability and intellectual capital (IC) reporting.
Design/methodology/approach
The research presents an overview of the analysis of financial materiality, including new stimuli from recent studies and regulatory requirements for financial and non-financial reporting. Accordingly, this study used a systematic literature review (SLR) based on a combination of content, text and bibliometric analysis of materiality in accounting research studies, collecting data from the Scopus database as one of the most relevant repositories.
Findings
The SLR identified four relevant research trends, concerning: (1) the relevance of materiality principles in corporate disclosure; (2) financial reporting practices and materiality; (3) theories and approaches in defining financial materiality and (4) the existence of quantitative and qualitative thresholds in the materiality judgement.
Research limitations/implications
The results provide theoretical and practical implications when comprehending the development of the concept of financial materiality in financial statements and whether they can be appropriate in reporting IC as well. We identified future research paths.
Practical implications
From a practical perspective, this study is useful for companies implementing financial materiality based on stakeholder engagement and improving their transparency in financial and non-financial reporting practices.
Social implications
The research investigates if the process for assessing materiality is in line with the expectations of all stakeholders involved in financial and non-financial reporting.
Originality/value
This research is the first to investigate the scientific basis and applicability of the concept of financial materiality to sustainability and IC reporting.
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