Accounting for ‘ESG’ under Disruptions: A Systematic Literature Network Analysis

Abstract

Corporations and small/medium enterprises (SMEs) are subject to a variety of external and internal pressures that often lead to changes in their corporate governance structures and accounting/reporting systems. The environment in which these organizations are collocated has undergone a deep process of change, due to the COVID-19 pandemic, climate change, the blockchain, and the energy industry crisis. Business activities represent a critical and a vital component of human existence across the globe—one that is not restricted to a financial standpoint—and their impact on societal, environmental and animal conditions is now undisputed. However, these activities are frequently coupled with allegations of their being the actual causes of those disruptions and collapses that persist in escaping the scrutiny of international governments. For the effective delivery of sustainable business activities, the concepts of governance and accountability are crucial, and the future of the inhabitants of planet Earth is arguably dependent on the ability of corporations (through their entire value chain) to govern themselves well and to demonstrate accountability to their many stakeholders. This should be achieved through the adoption of good governance standards which are well accepted, and that are globally harmonised with ‘Environmental, Social and Governance’ (ESG) reporting tools that are able to strategically assess and evaluate risk exposure and provide forward-looking information. In this critical context, few studies have actually examined these issues thoroughly, and, because the findings of those studies have been contradictory, there is still no definitive understanding of the causes of weak accounting and reporting tools for ESG dynamics under conditions of disruption. A systematic literature network analysis (SLNA) is used in this study to examine the evolution of the ESG reporting research domain based on existing relationships (e.g., aggregation, cross-citations and isolation) among authors contributing to the field. The findings demonstrate the current state of the art, disclosing interesting and timely future research directions. Furthermore, this study employs a novel approach known as SLNA to conduct the analyses, confirming its efficacy as a tool for dynamic analysis also within the field of sustainability accounting research.

Which factors can be used to persuade managers to start workplace physical activity programmes and what motivates employees to participate? A Hungarian study on goals, effects and motivations

“…2.2.2 Effects on group cohesion, interactions and atmosphere. The "S" (social) from environmental, social and governance (ESG)which is increasingly in the spotlight these days, a keyword (Comoli et al, 2023) can also be linked here. "S" is about human rights, the organisation's relationships with people and the organisation's policies and actions that impact individuals.…”

Accounting, ESG dynamics and the pandemic: when the quality of disclosure becomes crucial to sustainable success

“…After having defined the concept of “disruptive event”, we analysed the extant literature concerning the disclosure of non-financial information, its importance in such circumstances and the influence of corporate governance mechanisms (Arvidsson and Dumay, 2022). Since mere financial information, which currently represents the basis for accounting activities, is no longer considered sufficient, further investigating the disclosure of non-financial information in general, and the notion of sustainability, was deemed appropriate for the scope of our study, which explores, in particular, the effects of the COVID-19 pandemic on economic activities (Bhaskar et al , 2021; Comoli et al , 2023). After synthesizing the extant literature on the linkages between disruptive events and corporate disclosure, particularly in terms of non-financial information, bringing out the actual ability of ESG disclosure to lead a change in the sustainability transition, we introduce the <IR> role in this regard, with a focus on its “quality” and usefulness as a confirmed, even if perfectible, cutting-edge tool for ESG information disclosure.…”

“…From another perspective, all the mentioned disruptions might be traced back both to financial and non-financial circumstances, which nowadays are better defined as ESG (“Environmental, Social and Governance”) issues. Due to the expected increase in disruptions over time (Comoli et al , 2023), international institutions, organizations and managers of large corporations should have an intelligence-gathering process, a decision-making model and a contingency plan to deal with disruptive events.…”

“…Accounting and reporting practices, as key business activities for a sustainable strategic competitive advantage, are challenged to provide more quality information, which should go beyond its financial nature. Value creation and preservation, in fact, appear to reside increasingly in what is “non-financial”, such as attention towards the environment and social impacts on communities, and throughout the value chain, making financial information no longer sufficient (Tregidga and Laine, 2022; Comoli et al , 2023) either for market endogenous disruption anticipation, such as financial crises or for exogenous ones, i.e. viral pandemics and natural disasters.…”

“…Despite the relevance of the topic, literature that specifically explored the impact of the COVID-19 outbreak on non-financial reporting (NFR), from a governance perspective, is reported to be quite scant (Khan, 2022; Alodat et al , 2023) and contradictory (Comoli et al , 2023). Hence, further investigating these aspects might shed light on more effective corporate governance structures and NFR frameworks for supporting a greater awareness by companies towards sustainability.…”