Comprehensive Approach to Relevant and Reliable Reporting in Europe: A Dream Impossible?

Abstract

<jats:p>Corporate reporting and governance are interlinked: Accounting and reporting inventions created the modern company, and without the modern company there is no entity from which to report. Due to its raison d’etre, reporting remained finance-centered, to protect financial capital providers. From the 1970’s, the question of the interests of ‘stakeholders’ emerged, with attempts of ‘social reporting’, ‘corporate social responsibility’, ‘environmental’, and ‘social and environmental’ and finally ‘integrated’ accounting and reporting. These trends are reflected also in the European Union legal framework, both in regulation of especially financial intermediaries and the ‘non-financial’ reporting. This article is based on an extensive literature review, research conducted in the Sustainable Market Actors for Responsible Trade (SMART) project, and socio-legal and economic empirical research based conceptual analysis of the impact of these reporting systems and their relationship to financial accounting and reporting. The result of the research is that sustainability is reduced to focus on institutional investors and other members in the investment supply chain, and climate change issues only, and new regulatory solutions are required. Based on the most recent developments in EU law and in European jurisdictions, possible paths forward are envisaged to encourage sustainability in reporting and assurance, and through that, in governance. As an outcome a set of regulatory reform proposals are given based on the SMART recommendations.</jats:p>

Mapping corporate social responsibility practices at the international level: systematic review and content analysis approach

“…These are instruments produced by organizations to set out the behavioral expectations of their own members (Perez et al, 2019). In addition, instruments may be open, such that compliance is completely discretionary with no obligations for the producing organization or the enterprise (Mähönen, 2020). Dankova et al (2015) distinguish ICSRIs based on the type of activity involved in their application.…”

Kurumsal ve Finansal Raporlamanın Geleceği Üzerine Değerlendirmeler

“…Temelleri on beşinci yüzyılın sonlarından gelen ve bugünkü konsolide biçimine yirminci yüzyılın ilk yarısından itibaren kavuşan geleneksel finansal raporlamanın, modern toplumu ve ekonomiyi kavrayamadığı ifade edilmektedir (Mähönen, 2020). Finansal raporlamanın geleceğini etkileyecek bu durumun işletme paydaşlarının karar verme süreçlerinde ihtiyaç duydukları bilgilerin neler olduğunun ve teknolojik değişimin iyi okunduğu ölçüde değişebileceği belirtilmektedir.…”

Sustainable Value Creation Within Planetary Boundaries—Reforming Corporate Purpose and Duties of the Corporate Board

“…The financial risks of unsustainability, directly impacting on the productivity of business, underline that this is necessary also from a conservative economic point of view [52,53]. We know it is inadequate to rely solely on the strengthening of compartmentalized specific legislation on environment, product safety and labor, both national and international [54], or on sustainability reporting as a driver for change [55,56]. We also know that competing social norms are insufficient, and that we cannot rely on self-regulation or voluntary improvement [57,58].…”

“…Such experts may, depending on the laws of each Member State, be natural or legal persons or companies or firms. Our reform proposals for EU company law are accompanied by reform proposals for accounting and auditing law (Sections 6.2.3-6.2.4 [18]), as Jukka Mähönen outlines in his contribution to this Special Issue [56].…”