| Title: | Sustainable CSR : Legal and Managerial demands of the new EU legislation (CSRD) for the future corporate governance practices |
|---|
| Authors: | ID Primec, Andreja (Author)
ID Belak, Jernej (Author) |
|---|
| Files: |  Primec-2022-Sustainable_CSR__Legal_and_Manager.pdf (1,04 MB)
MD5: C694427B3929EEB97B2D7AB58015AB30
 https://doi.org/10.3390/su142416648
|
|---|
| Language: | English |
|---|
| Work type: | Scientific work |
|---|
| Typology: | 1.01 - Original Scientific Article |
|---|
| Organization: | EPF - Faculty of Business and Economics
|
|---|
| Abstract: | Despite its short-term use, non-financial reporting is an important measure, as demonstrated by numerous theoretical studies and empirical research. However, the mandatory nature of non-financial reporting and public pressure have persuaded company management to address non-financial issues alongside financial ones. Companies from countries with a more prolonged culture and tradition have been more successful in this respect than the companies from “younger” transition countries. Overall, non-financial reporting has raised the level of social responsibility in companies. However, things are far from ideal. Many uncertain situations, e.g., environmental, health, energy, etc., bring new challenges. They require not only non-financial, but also sustainable solutions. Therefore, it is unsurprising that the disclosure of non-financial information has also been renamed sustainability reporting (regarding designation in legal acts). In the presented research, we analyze how Slovenian companies comply with the current legislation (NFRD) requirements and whether their non-financial reports are qualitatively and quantitatively adequate. We are interested in what changes the new legislative proposal (CSRD) requires from them. Are the efforts of the legislator going in the right direction? Will companies be better prepared for environmental and social risks, and therefore better manage for sustainability once the CSRD is in place? The results suggest that the qualitative part of the non-financial reporting is the weakest. This gap in the quality of (required) non-financial reporting is also the subject of the presented research, which shows the (non)quality of the present non-financial reporting and therefore justifies the development of further requirements. Thus, CSRD introduces mandatory and uniform reporting standards based on double materiality, unification of the system of sanctions, external audit, etc. Therefore, our expectations that the new directive will contribute to more sustainability-oriented corporate governance are legitimate and justified. Since the CSRD harmonized sustainability reporting in the EU, this applies to Slovenia and all member states. |
|---|
| Keywords: | sustainability reporting, governance factors, legal framework, Directive 2014/95/EU, CSRD proposal |
|---|
| Publication status: | Published |
|---|
| Publication version: | Version of Record |
|---|
| Submitted for review: | 27.10.2022 |
|---|
| Article acceptance date: | 07.12.2022 |
|---|
| Publication date: | 12.12.2022 |
|---|
| Publisher: | MDPI |
|---|
| Year of publishing: | 2022 |
|---|
| Number of pages: | Str. 1-28 |
|---|
| Numbering: | Letn. 14, Št. 24, št. članka 16648 |
|---|
| PID: | 20.500.12556/DKUM-89263  |
|---|
| UDC: | 005.9 |
|---|
| ISSN on article: | 2071-1050 |
|---|
| COBISS.SI-ID: | 136291843 |
|---|
| DOI: | 10.3390/su142416648 |
|---|
| Publication date in DKUM: | 01.07.2024 |
|---|
| Views: | 507 |
|---|
| Downloads: | 48 |
|---|
| Metadata: |    |
|---|
| Categories: | Misc.
|
|---|
|
:
|
Copy citation |
|---|
| | | | Average score: | (0 votes) |
|---|
| Your score: | Voting is allowed only for logged in users. |
|---|
| Share: |  |
|---|
Hover the mouse pointer over a document title to show the abstract or click
on the title to get all document metadata. |
