Corporate accountability and stakeholder connectivity. A case study

Abstract

Purpose This paper aims to investigate how relational connectivity can enhance accountability through non-financial reporting regulation in Europe. The paper contributes to the mandatory disclosure literature and provides practical implications for the application of the EU Directive 2014/95/EU. Design/methodology/approach A case study research methodology is used, analyzing how a listed Italian insurance company embraces a dialogic communication approach with stakeholders along 2018. Findings From a theoretical standpoint, this paper enhances the scholarly understanding of the relevance and role of the concept of relational connectivity as a mean for effectively enhancing accountability, providing some prerequisites for effectively implementing relational connectivity. From a practical perspective, results address the criticism related to the directive 2014/95/EU guidelines in effectively helping the organization toward enhancing accountability. Through a case study, results show how companies can achieve in practice the goal of enhancing corporate accountability. Originality/value The paper is original, as it addresses the topic of relational connectivity applied to the EU Directive 2014/95/EU. Results contribute to the development of the understanding of the mandatory disclosure in a dialogic perspective. Additionally, the paper addresses a case study showing how the analyzed company used relational connectivity to engage an effective dialogue with stakeholders.

Rebuilding trust: sustainability and non-financial reporting and the European Union regulation

“…The studies published in this special issue contribute to research and practice by offering novel, empirical and theoretical contributions into how the EU Directive is leading changes in NFR practices in Europe. Combined, they provide a contemporary multifaceted view on the EU Directive and mandatory NFR through different methodological approaches, including qualitative research and case study methods (Masiero et al, 2020), an interpretive study (Biondi et al, 2020), surveys (Krasodomska et al, 2020;Tarquinio and Posadas, 2020), quantitative archival content analysis (Doni et al, 2020), a social experiment (Quick and Inwinkl, 2020) and semiotic analysis (Di Tullio et al, 2020). These studies also cover a wide range of topics that go beyond examining the contents of corporate reports, and extend to investigating the broader social and political ground of the EU Directive.…”

“…This contributes to uncovering novel theoretical explanations of NFR, such as the psychological underpinnings of practitioners' understanding (Krasodomska et al, 2020), semiotic choices veiled in corporate reporting legitimation strategies (Di Tullio et al, 2020) and the political rationale of reporting standards and frameworks (Biondi et al, 2020). This special issue is structured to highlight the main topics covered by the studies, which are: practitioners' and academics' understanding of NFI and reporting (Krasodomska et al, 2020;Tarquinio and Posadas, 2020); changes in reporting standards and the content of corporate reports (Doni et al, 2020) and accountability (Masiero et al, 2020); the effects on report users, such as the impact of NFR assurance on investment decisions (Quick and Inwinkl, 2020) and the semiotic elements underpinning legitimation strategies to comply with the law (Di Tullio et al, 2020); and the political rationales underlying the reporting frameworks and standards to comply with the EU Directive, such as the International Integrated Reporting Framework (IIRF) (Biondi et al, 2020).…”

“…The studies published in this special issue investigate the EU Directive and mandatory NFR practice from the perspective of the different social actors who are involvedacademics (Tarquinio and Posadas, 2020), accounting practitioners (Krasodomska et al, 2020), companies (Unerman and Bennett, 2004;Di Tullio et al, 2020;Doni et al, 2020;Masiero et al, 2020), assurance providers and investors (Quick and Inwinkl, 2020) and standard setters (Biondi et al, 2020). Thus, by offering new answers to the research questions coming from the EU Directive, this special issue demonstrates that, in practice, there is a polyphonic voice coming from different social actors involved in the EU Directive.…”

Non-Financial Disclosure Assurance: Critical Insights from the Italian Financial Services Sector

“…Legitimacy is a resource upon which organisations depend for survival but is also a tool that may be manipulated by organisations (Deegan, 2002;Woodward, Edwards, & Birkin, 2001). Consequently, the management of sustainability reports and their publication is crucial in enhancing trust from a wide range of stakeholders (Masiero et al, 2019;Mio & Venturelli, 2013).…”

“…The implications of Directive 2014/95/EU in terms of trust are multiple as disclosure of social and environmental aspects can steer the process of company legitimation from its stakeholders. Companies disclosing NFI can demonstrate their performance to stakeholders, who may compare NFDs with those from other companies (Masiero, Arkhipova, Massaro, & Bagnoli, 2019).…”