Rebuilding trust: sustainability and non-financial reporting and the European Union regulation
ISSN: 2049-372X
Article publication date: 10 August 2020
Issue publication date: 31 August 2020
Abstract
Purpose
This paper introduces the special issue “Rebuilding trust: Sustainability and non-financial reporting, and the European Union regulation”. Inspired by the studies published in the special issue, this study aims to examine the concept of accountability within the context of the European Union (EU) Directive on non-financial disclosure (hereafter the EU Directive) to offer a critique and a novel perspective for future research into mandatory non-financial reporting (NFR) and to advance future practice and policy.
Design/methodology/approach
The authors review the papers published in this special issue and other contemporary studies on the topic of NFR and the EU Directive.
Findings
Accountability is a fundamental concept for building trust in the corporate reporting context and emerges as a common topic linking contemporary studies on the EU Directive. While the EU Directive acknowledges the role of accountability in the reporting practice, this study argues that regulation and practice on NFR needs to move away from an accounting-based conception of accountability to promote accountability-based accounting practices (Dillard and Vinnari, 2019). By analysing the links between trust, accountability and accounting and reporting, the authors claim the need to examine and rethink the inscription of interests into non-financial information (NFI) and its materiality. Hence, this study encourages research and practice to broaden mandatory NFR practice over the traditional boundaries of accountability, reporting and formal accounting systems.
Research limitations/implications
Considering the challenges posed by the COVID-19 crisis, this study calls for further research to investigate the dialogical accountability underpinning NFR in practice to avoid the trap of focusing on accounting changes regardless of accountability. The authors advocate that what is needed is more timely NFI that develops a dialogue between companies, investors, national regulators, the EU and civil society, not more untimely standalone reporting that has most likely lost its relevance and materiality by the time it is issued to users.
Originality/value
By highlighting accountability issues in the context of mandatory NFR and its linkages with trust, this study lays out a case for moving the focus of research and practice from accounting-based regulations towards accountability-driven accounting change.
Keywords
Acknowledgements
The authors would like to thank the Editor-in-Chief Charl de Villiers for having promoted and encouraged this special issue, and for his constant assistance. They would also like to thank all the reviewers for their valued contribution in developing the special issue. The authors are also grateful for the financial support from the Jan Wallander and Tom Hedelius Foundation, Sweden.
Citation
La Torre, M., Sabelfeld, S., Blomkvist, M. and Dumay, J. (2020), "Rebuilding trust: sustainability and non-financial reporting and the European Union regulation", Meditari Accountancy Research, Vol. 28 No. 5, pp. 701-725. https://doi.org/10.1108/MEDAR-06-2020-0914
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited