Skip to main navigation menu Skip to main content Skip to site footer

Vol. 9 No. 4 (2023)
December 2023

Articles

Voluntary corporate social responsibility reporting and assurance practices among United Nations Global Compact member companies

https://doi.org/10.15678/IER.2023.0904.02

Published 2023-12-29 — Updated on 2023-12-29

  • Kjartan Sigurðsson
    • ,
  • Magdalena Wójcik-Jurkiewicz
    • ,
  • Paweł Zieniuk

Kjartan Sigurðsson
University of Akureyri

Magdalena Wójcik-Jurkiewicz
Krakow University of Economics

Paweł Zieniuk
Krakow University of Economics

Abstract

Objective: The research aimed to identify practices applied by European companies regarding corporate social responsibility reporting and their relationship with the membership of companies in the United Nations Global Compact (UNGC) international organization.

Research Design & Methods: In total, the research sample consisted of 935 companies from 34 European countries. To evaluate the statistical significance of the relationship between the selected variables, we used quantitative methods, including the Pearson chi-square test.

Findings: On a large research sample, our research confirmed the impact of membership in the UNGC on non-financial reporting practices, such as: preparing integrated reports, reporting on sustainable development goals (SDGs), using the Organisation for Economic Cooperation and Development (OECD) guidelines for multinational enterprises, International Organization for Standardization (ISO) 26000 corporate social responsibility guidelines, and decisions on external assurance of sustainability reporting.

Implications & Recommendations: Conducted research has practical implications. Because the UNGC is an important factor in regard to social change towards corporate social responsibility (CSR) reporting practices, it requires further promotion in European Union (EU) member states. New company membership in UNGC can contribute to the development of CSR reporting.

Contribution & Value Added: The article contributes to the literature on sustainability reporting because it provides new insights into the CSR reporting practices by public interest entities located in the EU countries.

Keywords

non-financial reporting, sustainability reporting, corporate social responsibility, assurance, Global Reporting Initiative

(PDF) Save

Author Biography

Kjartan Sigurðsson

PhD in Business Administration (2020, Reykjavik University, Iceland); Associate Professor at University of Akureyri (Iceland). His research interests include CSR and sustainability, business development and strategy, innovation management and entrepreneurship, and social innovation.

Magdalena Wójcik-Jurkiewicz

PhD in Economics (2006, University of Economics in Katowice, Poland); Assistant Professor at Krakow University of Economics (Poland). Her research interests include CSR, ESG and sustainability reporting, and management, management accounting, and assurance on non-financial reporting.

Paweł Zieniuk

PhD in Finance (2017, Krakow University of Economics, Poland), Statutory Auditor (2016, Polish Chamber of Statutory Auditors); Assistant Professor at Krakow University of Economics (Poland). His research interests include financial and management accounting, CSR and sustainability reporting, financial audit and assurance on non-financial reporting.

References

  1. Aguilera, R.V., Rupp, D.E., Williams, C.A., & Ganapathi, J. (2007). Putting the S Back in Corporate Social Responsibility: A Multilevel Theory of Social Change in Organizations. The Academy of Management Review, 32(3), 836-863. https://doi.org/10.2139/ssrn.567842
  2. Aragòn-Correa, J.A., Marcus, A.A., & Vogel, D. (2020). The effects of mandatory and voluntary regulatory pressures on firms ‘ environmental strategies: A review and recommendations for future research. Academy of Management Annals, 14(1), 339-365. https://doi.org/10.5465/annals.2018.0014
  3. Baumann-Pauly, D., & Scherer, A. (2013). The organizational implementation of corporate citizenship: An assessment tool and its application at UN Global Compact participants. Journal of Business Ethics, 117(1), 1-17. https://doi.org/10.1007/s10551-012-1502-4
  4. Berliner, D., & Prakash, A. (2014). The United Nations Global Compact: An Institutionalist Perspective. Journal of Business Ethics, 122(2), 217-223. https://doi.org/10.1007/s10551-014-2217-5
  5. Berniak-Woźny, J., & Wójcik-Jurkiewicz, M. (2022). The Impact of the Concept of Human Rights in Business on CSR Reporting. In Bachnik, K., Kaźmierczak, M., Rojek-Nowosielska, M., Stefańska, M., & Szumniak-Samolej, J. (Eds.), Corporate Social Responsibility and Sustainability: from Values to Impact (pp. 178-188). New York: Routledge.
  6. Blowfield, M., & Frynas, J.G. (2005). Editorial: Setting New Agendas: Critical Perspectives on Corporate Social Responsibility in the Developing World. International Affairs, 81(3), 499-513. https://doi.org/10.1111/j.1468-2346.2005.00465.x
  7. Cetindamar, D., & Husoy, K. (2007). Corporate Social Responsibility Practices and Environmentally Responsible Behavior: The Case of the United Nations Global Compact. Journal of Business Ethics, 76(2), 163-176. https://doi.org/10.1007/sl0551-006-9265-4
  8. Dumitru, M., Dyduch, J., Gușe, R.G., & Krasodomska, J. (2017). Corporate Reporting Practices in Poland and Romania – An Ex-ante Study to the New Non-financial Reporting European Directive. Accounting in Europe, 14(3), 279-304. https://doi.org/10.1080/17449480.2017.1378427
  9. Garriga, E., & Melé, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of Business Ethics, 53, 51-71. https://doi.org/10.1023/B:BUSI.0000039399.90587.34
  10. Giannarakis, G., Andronikidis, A., Zopounidis, C., Sariannidis, N., & Tsagarakis K.P. (2023), Determinants of Global Reporting Initiative report: A comparative study between USA and European companies. Sustainable Production and Consumption, 35, 376-387 https://doi.org/10.1016/j.spc.2022.11.014
  11. Hemmati, M. (2002). Multi-stakeholder Processes for Governance and Sustainability: Beyond Deadlock and Conflict. London/Sterling, VA: Earthscan.
  12. Janney, J.J., Dess, G., & Forlani, V. (2009). Glass Houses? Market Reactions to Firms Joining the UN Global Compact. Journal of Business Ethics, 90(3), 407-423. https://doi.org/10.1007/s10551-009-0052-x
  13. Katsikas, E., Manes Rossi, F., & Orelli, R.L. (2017). Principles, Concepts and Elements of Integrated Reporting. In: Towards Integrated Reporting. SpringerBriefs in Accounting. Springer, Cham. https://doi.org/10.1007/978-3-319-47235-53
  14. Kell, G., & Levin, D. (2002). The Evolution of the Global Compact Network: An Historic Experiment in Learning and Action. The Academy of Management Annual Conference, Denver, August 11-14
  15. Krasodomska, J., Zieniuk, P., & Kostrzewska, J. (2022). Reporting on Sustainable Development Goals in the European Union : What Drives Companies ‘ Decisions?. Competitiveness Review. https://doi.org/10.1108/CR-12-2021-0179
  16. McKinsey (2004). Assessing the Global Compact ‘s Impact, London: McKinsey & Company.
  17. Orzes, G., Moretto, A.M., Ebrahimpour, M., Sartor, M., Moro, M., & Rossi, M. (2018). United Nations Global Compact: Literature review and theory-based research agenda. Journal of Cleaner Production, 177, 633-654. https://doi.org/10.1016/j.jclepro.2017.12.230
  18. Post, J.E. (2013). The United Nations Global Compact: A CSR milestone. Business and Society, 52(1), 53-63. https://doi.org/10.1177/0007650312459926
  19. Powell, W.W., & DiMaggio, P.J. (1991). The New Institutionalism in Organizational Analysis. The University of Chicago Press.
  20. Prieto-Carron, M., Lund-Thomsen, P., Chan, A., Muro, A., & Bhushan, C. (2006). Critical Perspectives on CSR and Development: What we know, what we don ‘t know, and what we need to know. International Affairs, 82(5), 977-87. https://doi.org/10.1111/j.1468-2346.2006.00581.x
  21. Rasche, A., Waddock, S., & Mcintosh, M. (2012). The United Nations Global Compact: Retrospect and prospect. Business and Society, 52(6), 6-30. https://doi.org/10.1177/0007650312459999
  22. Rawhouser, H., Cummings, M., & Newbert, S.L. (2019). Social Impact Measurement: Current Approaches and Future Directions for Social Entrepreneurship Research. Entrepreneurship Theory and Practice, 43(1), 82-115. https://doi.org/10.1177/1042258717727718
  23. Rieth, L., Zimmer, M., Hamann, R., & Hanks, J. (2007). The UN Global Compact in sub-Saharan Africa: Decentralization and effectiveness. Journal of Corporate Citizenship, 7(28), 99-112.
  24. Rosati, F., & Faria, L.G.D. (2019). Business contribution to the sustainable development agenda: organizational factors related to early adoption of SDG reporting. Corporate Social Responsibility and Environmental Management, 26(3), 588-597. https://doi.org/10.1002/csr.1705
  25. Schembera, S. (2016). Implementing corporate social responsibility: Empirical insights on the impact of the UN Global Compact on its business participants. Business & Society, 57(5), 783-825. https://doi.org/10.1177/0007650316635579
  26. Scherer, A.G., & Palazzo G. (2007). Toward a political conception of corporate social responsibility: Business and society seen from a Habernasian perspective. Academy of Management Review, 32(4), 1096-1120. https://doi.org/10.5465/amr.2007.26585837
  27. Sethi, S.P., & Schepers, D.H. (2014). United Nations Global Compact: the promise-performance gap. Journal of Business Ethics, 122(2), 193-208. https://doi.org/10.1007/s10551-013-1629-y
  28. Stern, S., Seligmann, E., & Herrhausen, A. (2004). Gesellschaft für Internationalen Dialog, The Partnership Principle: New Forms of Governance in the 21st Century, London: Archetype Publications.
  29. Szymczyk, J. (2020). Changes in Marketing Strategies in the Fashion Sector Caused by the COVID-19 Pandemic. Humanitas University ‘s Research Papers; XXI, 215-229. https://doi.org/10.5604/01.3001.0014.8091
  30. Underdal, A. (2002). One Question, Two Answers. In E.L. Miles, A. Underdal, S. Andresen, J. Wettestad, J.B. Skjærseth & E.M. Carlin (Eds.), Environmental Regime Effectiveness: Confronting Theory with Evidence, Cambridge, MA: MIT Press
  31. United Nations (1999). Press release: Secretary-General proposes Global Compact on Human Rights, Labor, Environment, in address to World Economic Forum in Davos. Retrieved from http://wwwO.un.org/News/Press/docs/1999/19990201.sgsm6881 on April 1, 2023.
  32. Utting, P., & Zammit, A. (2006). Beyond Pragmatism: Appraising UN-Business Partnerships, Markets, Business and Regulation Programme Paper number 1; Geneva: United Nations Research Institute for Social Development
  33. Voegtlin, C., & Pless, N.M. (2014). Global Governance: CSR and the Role of the UN Global Compact. Journal of Business Ethics, 122(2), 179-191. https://doi.org/10.1007/s10551-014-2214-8
  34. Williams, O.F. (2014). The United Nations Global Compact: What Did It Promise?. Journal of Business Ethics, 122(2), 241-251. https://doi.org/10.1007/s10551-014-2219-3
  35. Witte, J.M., & Reinicke, W. (2005). Business Unusual: Facilitating United Nations Reform through Partnerships, New York: United Nations Publications.
  36. Young, O.R. (2004). Regime Consequences: Methodological Challenges and Research Strategies, New York: Kluwer Academic Publishers.

Downloads

Download data is not yet available.

Similar Articles

1 2 3 4 5 6 7 8 9 10 11 12 > >> 

You may also start an advanced similarity search for this article.