The circular economy transition increasingly points to the need for a change in corporate culture, namely toward sustainability. This change can be supported by improving relations with relevant stakeholders, engaging comprehensively with them, and creating strong awareness about issues such as ecosystem protection, health-related safeguards, and the careful use of resources. In this regard, through stakeholder engagement and a review of traditional business models, the circular economy can contribute to transforming the corporate culture to ensure the concurrent enhancement of economic, social, and environmental dimensions. This study verified the role of stakeholder engagement in establishing and strengthening the sustainability culture in a company transitioning toward a circular economy. The case study research methodology was applied, referencing a single firm—operating in the oil and energy industry—representing one of the best practices in the international context, even if some efforts are still required to reduce downstream emissions. The findings underline the contributing role played by stakeholder engagement in establishing values and principles compliant with environmental protection and community wellbeing. Thus, this study contributes to the existing stakeholder engagement literature and sheds light on the practical implications and emerging issues.

The transition from the linear economy to the circular one is an epochal challenge for firms. It requires rethinking of the ways to create value according to circular business models. In this context, adoption of a stakeholder engagement strategy based on principles such as involvement, dialogue, and effective fulfillment of stakeholders’ expectations is becoming increasingly relevant. This study analyzes the role of stakeholder engagement with respect to the success of circular business models by identifying the main factors that deserve attention in order to ensure an effective shift toward the circular economy.

The United Nations 2030 Agenda has emphasized the potential of digital technology to enhance sustainability performance, assuming that digital transformation can enable firms’ convergence toward the Sustainable Development Goals. Despite this, the literature is unclear regarding whether there is a positive relationship between digitalization and sustainability, as the effects of digital transformation are controversial. The main goal of this study was to assess the hypothesis that digital technology contributes to the achievement of Sustainable Development Goals within the UN 2030 Agenda. To test this hypothesis, a textual analysis was performed to assess Italian firms’ digitalization efforts; the obtained results were then related to the selected firms’ ESG scores using a regression analysis. The analysis focused on Italian FTSE MIB listed firms for the period 2016–2019. The findings show a positive relation between digitalization and Sustainable Development Goals, highlighting the relevance of digital technology in implementing the sustainability agenda.

Purpose The purpose of this paper is to use a theoretical and empirical model to investigate the adoption of the integrated reporting (IR) framework as a strategic choice to signal intellectual capital (IC) to equity investors, with specific reference to the pharmaceutical industry. Design/methodology/approach The choice of drafting an integrated report is modelled as a means for managers to strategically disclose price-relevant information related to IC. The voluntary disclosure model developed by Verrecchia (1983) is used, also introducing the role of financial analysts to derive a directly reproducible empirical equation. Findings Theoretically, as IR requires managers to exert an effort in reporting activity, this work shows that in equilibrium, only firms with sufficient IC have decided to adopt IR, resulting in rational investors’ willingness to pay more only for the forecasted earnings of integrated reporters. This theory is tested in the pharmaceutical sector, where the modelling choice is probably more valid, with mixed results. Research limitations/implications When compliant with the International Integrated Reporting Council’s (IIRC) standards, IR provides the means to disclose IC in a perfectly verifiable way. Furthermore, since the IIRC has only recently been established, the conclusions have only been tested on a limited data set. Originality/value This work connects the value relevance of IR to IC by adopting an equilibrium approach, which, in turn, provides specific indications of how to build a consistent empirical test of the theory.

The purpose of this study is to investigate the value-relevance of corporate sustainability disclosure through integrated reporting. Sustainability disclosure is subject to managers’ discretion. Besides, it is often hardly verifiable. In this respect, integrated reporting could provide the means for a verifiable disclosure, otherwise, in the jargon of game theory, it could be considered as a cheap talk. This paper investigates which of these hypotheses is most likely to occur in reality. In order to do this, a simple theoretical framework is introduced, where sustainability of corporate performances is modelled as a tail-risk for shareholders. Costless signaling games (cheap talk) and persuasion games are reviewed within this context, in order to derive competing theories of sustainability disclosure’s value relevance through integrated reporting. These alternative theories are tested empirically consistent with the theoretical framework presented, in order to identify key-parameters. In this respect, a systematic textual analysis (artificial intelligence) of integrated reports was employed as to build a synthetic measure of sustainability disclosure. The application of this methodology on a sample of European listed companies showed that sustainability disclosure through integrated reporting has no effect on market-valuations, confirming the null hypothesis of integrated reporting resulting in a cheap talk’s babbling equilibrium.

The purpose of this paper is to explore the change experienced by the Italian listed companies through the implementation of integrating reporting. The objective of this study is to shed light on the company's moving reasons towards integrating reporting and on its effects on the company's thinking approach.This paper builds on multi-source data gathered through web-site visits, company materials and interviews, according to an interpretive case study approach.The authors found that the process of change experienced by the selected companies deserves consideration for at least two reasons: on the one hand, as a transition from a stand alone to an integrated thinking approach; on the other hand, as a transition from an implicit to a more explicit approach to sustainability.The paper is, to the best of the knowledge, the first one to explore the process of change experienced by the Italian listed companies through the implementation of integrated reporting.

Risk Management in Telecommunications CompaniesMarket globalisation and the ongoing world economic crisis have implied great troubles for a lot of companies, especially in terms of economic recession, difficulties in international partnerships, credit crunch, and more complexity in combining the global development with the needs of adaptation to the local context (Hong, Song 2010;Westjohn et al. 2012). All these factors have emphasised new types of risks and the difficulty to face them correctly in order to continuously develop the company's strategy.The global competition implies the enlargement of firm relations and the change in critical success factors (Brondoni 2010). Consequently, risk management

In December 2013, the International Integrated Reporting Council (IIRC) published the International Integrated Reporting Framework. The aim of the Framework is to provide the guiding principles and the content elements of an integrated report. The integrated report constitutes an evolutionary step in the corporate’s financial and non-financial communication, moving from the social responsibility reporting to the integrated reporting. This practice is at the beginning in Europe and especially in Italy, where only a few listed companies have decided to face the multitude of challenges the integrated report implies. Considering the relevance of such a new form of communication, the paper examines the main steps carried out by an Italian listed company moving towards the integrated report. The research has been conducted by adopting a qualitative case study approach, by focusing on Sabaf S.p.a, an Italian listed medium sized company belonging to the Star Segment. This company has been selected, because it was one of the first adopters of the integrated report among the Italian listed companies. The study is built on data gathered through sites visits, structured interviews and company materials. The paper examines Sabaf’s transition from the corporate social responsibility report to the integrated report, aiming at answering the following research question: Why has Sabaf moved to integrated reporting? Which are Sabaf’s main steps towars the integrated report? How is the Sabaf’s integrated reporting process going? The findings should be of interest to a number of parties including standard setters, firms, financial advisors, auditors and users of non-financial statements.