IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v10y2020i1p13-d325138.html
   My bibliography  Save this article

Sustainability Performance Indicators and Non-Financial Information Reporting. Evidence from the Italian Case

Author

Listed:
  • Domenico Raucci

    (Department of Economic Studies, “G. d’Annunzio” University, 65127 Pescara, Italy)

  • Lara Tarquinio

    (Department of Economic Studies, “G. d’Annunzio” University, 65127 Pescara, Italy)

Abstract

Non-financial reporting is a growing topic, and the adoption of the EU Directive 2014/95/EU on non-financial information (NFI) is increasing the use of this reporting. One of the most distinctive elements of guidelines and standards that are widely used to draw-up reports on NFI is sustainability performance indicators (SPIs). SPIs can provide a significant value-added to non-financial corporate communication, and they are useful tools to support internal decision-making processes. The purpose of this study is to examine the effects produced on SPIs disclosure by the entry into force of the Italian Decree implementing the Directive on NFI. Content analysis method is used to analyze indicators disclosed by Italian companies before and after the adoption of the Decree. Findings show that each category of SPIs was largely used by the companies of our 2012 sample, but a reduction of the quantity of indicators disclosed was documented in 2017. Therefore, after the introduction of mandatory disclosure of NFI, companies seem to focus only on indicators considered more “relevant” according to the Directive. This research represents one of the preliminary analysis on the adoption of the Directive in Italy and on its first effects on NFI reporting practices.

Suggested Citation

  • Domenico Raucci & Lara Tarquinio, 2020. "Sustainability Performance Indicators and Non-Financial Information Reporting. Evidence from the Italian Case," Administrative Sciences, MDPI, vol. 10(1), pages 1-17, February.
    • Handle: RePEc:gam:jadmsc:v:10:y:2020:i:1:p:13-:d:325138
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/10/1/13/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/10/1/13/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nazim Hussain, 2015. "Impact of Sustainability Performance on Financial Performance: An Empirical Study of Global Fortune (N100) Firms," Working Papers 1, Department of Management, Università Ca' Foscari Venezia.
    2. Angelo Riccaboni & Emilia Luisa Leone, 2010. "Implementing strategies through management control systems: the case of sustainability," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 59(2), pages 130-144, January.
    3. James Guthrie & Federica Farneti, 2008. "GRI Sustainability Reporting by Australian Public Sector Organizations," Public Money & Management, Taylor & Francis Journals, vol. 28(6), pages 361-366, December.
    4. Olivier Boiral, 2013. "Sustainability reports as simulacra? A counter-account of A and A+ GRI reports," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 26(7), pages 1036-1071, September.
    5. Kansal, Monika & Joshi, Mahesh & Batra, Gurdip Singh, 2014. "Determinants of corporate social responsibility disclosures: Evidence from India," Advances in accounting, Elsevier, vol. 30(1), pages 217-229.
    6. Selena Aureli & Elisabetta Magnaghi & Federica Salvatori, 2019. "The Role of Existing Regulation and Discretion in Harmonising Non-Financial Disclosure," Accounting in Europe, Taylor & Francis Journals, vol. 16(3), pages 290-312, September.
    7. Dominique Diouf & Olivier Boiral, 2017. "The quality of sustainability reports and impression management," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 30(3), pages 643-667, March.
    8. Najul Laskar & Santi Gopal Maji, 2018. "Disclosure of corporate sustainability performance and firm performance in Asia," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 26(4), pages 414-443, October.
    9. Francesca Manes-Rossi & Adriana Tiron-Tudor & Giuseppe Nicolò & Gianluca Zanellato, 2018. "Ensuring More Sustainable Reporting in Europe Using Non-Financial Disclosure—De Facto and De Jure Evidence," Sustainability, MDPI, vol. 10(4), pages 1-20, April.
    10. Adams, Carol A. & Frost, Geoffrey R., 2008. "Integrating sustainability reporting into management practices," Accounting forum, Elsevier, vol. 32(4), pages 288-302.
    11. Angeloantonio Russo & Antonio Tencati, 2009. "Formal vs. Informal CSR Strategies: Evidence from Italian Micro, Small, Medium-sized, and Large Firms," Journal of Business Ethics, Springer, vol. 85(2), pages 339-353, April.
    12. Michaela Bednárová & Roman Klimko & Eva Rievajová, 2019. "From Environmental Reporting to Environmental Performance," Sustainability, MDPI, vol. 11(9), pages 1-12, May.
    13. Robinson, John, 2004. "Squaring the circle? Some thoughts on the idea of sustainable development," Ecological Economics, Elsevier, vol. 48(4), pages 369-384, April.
    14. Max Baker, 2010. "Re‐conceiving managerial capture," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 23(7), pages 847-867, September.
    15. Bebbington, Jan & Kirk, Elizabeth A. & Larrinaga, Carlos, 2012. "The production of normativity: A comparison of reporting regimes in Spain and the UK," Accounting, Organizations and Society, Elsevier, vol. 37(2), pages 78-94.
    16. Amanda Ball & David L. Owen & Rob Gray, 2000. "External transparency or internal capture? The role of third‐party statements in adding value to corporate environmental reports1," Business Strategy and the Environment, Wiley Blackwell, vol. 9(1), pages 1-23, January.
    17. Ilinitch, Anne Y. & Soderstrom, Naomi S. & E. Thomas, Tom, 1998. "Measuring corporate environmental performance," Journal of Accounting and Public Policy, Elsevier, vol. 17(4-5), pages 383-408.
    18. Patrycja Hąbek & Radosław Wolniak, 2016. "Assessing the quality of corporate social responsibility reports: the case of reporting practices in selected European Union member states," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 399-420, January.
    19. Vanessa Prieto‐Sandoval & Carmen Jaca & Javier Santos & Rupert J. Baumgartner & Marta Ormazabal, 2019. "Key strategies, resources, and capabilities for implementing circular economy in industrial small and medium enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1473-1484, November.
    20. Rob Gray, 2006. "Does sustainability reporting improve corporate behaviour?: Wrong question? Right time?," Accounting and Business Research, Taylor & Francis Journals, vol. 36(S1), pages 65-88.
    21. Alan Murray & Keith Skene & Kathryn Haynes, 2017. "The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context," Journal of Business Ethics, Springer, vol. 140(3), pages 369-380, February.
    22. Belen Fernandez-Feijoo & Silvia Romero & Silvia Ruiz, 2014. "Effect of Stakeholders’ Pressure on Transparency of Sustainability Reports within the GRI Framework," Journal of Business Ethics, Springer, vol. 122(1), pages 53-63, June.
    23. Zahir Dossa & Katrin Kaeufer, 2014. "Understanding Sustainability Innovations Through Positive Ethical Networks," Journal of Business Ethics, Springer, vol. 119(4), pages 543-559, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Umberto Lucia & Debora Fino & Giulia Grisolia, 2022. "A thermoeconomic indicator for the sustainable development with social considerations," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2022-2036, February.
    2. Imperiale, Francesca & Pizzi, Simone & Lippolis, Stella, 2023. "Sustainability reporting and ESG performance in the utilities sector," Utilities Policy, Elsevier, vol. 80(C).
    3. Yubin Qian & Ya Sun, 2021. "The Correlation Between Annual Reports’ Narratives and Business Performance: A Retrospective Analysis," SAGE Open, , vol. 11(3), pages 21582440211, July.
    4. Camelia-Daniela Hategan & Ruxandra-Ioana Pitorac & Nicoleta-Daniela Milu, 2021. "Assessment of the Mandatory Non-Financial Reporting of Romanian Companies in the Circular Economy Context," IJERPH, MDPI, vol. 18(24), pages 1-17, December.
    5. Mărioara Beleneși & Victoria Bogdan & Dorina Nicoleta Popa, 2021. "Disclosure Dynamics and Non-Financial Reporting Analysis. The Case of Romanian Listed Companies," Sustainability, MDPI, vol. 13(9), pages 1-23, April.
    6. Irina Bogataya & Elena Evstafyeva & Denis Lavrov & Ekaterina Korsakova & Natalya Mukhanova & Svetlana Solyannikova, 2022. "Disclosure of Information in Risk Reporting in the Context of the Sustainable Development Concept," Sustainability, MDPI, vol. 14(4), pages 1-21, February.
    7. Sabrina Spallini & Virginia Milone & Antonio Nisio & Patrizia Romanazzi, 2021. "The Dimension of Sustainability: A Comparative Analysis of Broadness of Information in Italian Companies," Sustainability, MDPI, vol. 13(3), pages 1-22, January.
    8. Camelia Oprean-Stan & Ionica Oncioiu & Iulia Cristina Iuga & Sebastian Stan, 2020. "Impact of Sustainability Reporting and Inadequate Management of ESG Factors on Corporate Performance and Sustainable Growth," Sustainability, MDPI, vol. 12(20), pages 1-31, October.
    9. Zaheer Alam & Yasir Bin Tariq, 2023. "Corporate Sustainability Performance Evaluation and Firm Financial Performance: Evidence from Pakistan," SAGE Open, , vol. 13(3), pages 21582440231, July.
    10. Salvatore Loprevite & Domenico Raucci & Daniela Rupo, 2020. "KPIs Reporting and Financial Performance in the Transition to Mandatory Disclosure: The Case of Italy," Sustainability, MDPI, vol. 12(12), pages 1-24, June.
    11. Irena Jindřichovská & Dana Kubíčková & Mihaela Mocanu, 2020. "Case Study Analysis of Sustainability Reporting of an Agri-Food Giant," Sustainability, MDPI, vol. 12(11), pages 1-19, June.
    12. Theerasak Nitlarp & Theeraya Mayakul, 2023. "The Implications of Triple Transformation on ESG in the Energy Sector: Fuzzy-Set Qualitative Comparative Analysis (fsQCA) and Structural Equation Modeling (SEM) Findings," Energies, MDPI, vol. 16(5), pages 1-26, February.
    13. Anca Băndoi & Claudiu George Bocean & Mara Del Baldo & Lucian Mandache & Leonardo Geo Mănescu & Cătălina Soriana Sitnikov, 2021. "Including Sustainable Reporting Practices in Corporate Management Reports: Assessing the Impact of Transparency on Economic Performance," Sustainability, MDPI, vol. 13(2), pages 1-20, January.
    14. Cecília Carmo & Cristiana Ribeiro, 2022. "Mandatory Non-Financial Information Disclosure under European Directive 95/2014/EU: Evidence from Portuguese Listed Companies," Sustainability, MDPI, vol. 14(8), pages 1-23, April.
    15. Julia Bettina Leicht & Maximilian Leicht, 2022. "Changes in the climate-related disclosure of German listed companies during the first years of the new reporting standard," Future Business Journal, Springer, vol. 8(1), pages 1-12, December.
    16. Lara Tarquinio & Stefanía C. Posadas & Deborah Pedicone, 2020. "Scoring Nonfinancial Information Reporting in Italian Listed Companies: A Comparison of before and after the Legislative Decree 254/2016," Sustainability, MDPI, vol. 12(10), pages 1-22, May.
    17. He-Boong Kwon & Jooh Lee & Laee Choi, 2023. "Dynamic interplay of environmental sustainability and corporate reputation: a combined parametric and nonparametric approach," Annals of Operations Research, Springer, vol. 324(1), pages 687-719, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Salvatore Loprevite & Domenico Raucci & Daniela Rupo, 2020. "KPIs Reporting and Financial Performance in the Transition to Mandatory Disclosure: The Case of Italy," Sustainability, MDPI, vol. 12(12), pages 1-24, June.
    2. Alan Murray & Keith Skene & Kathryn Haynes, 2017. "The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context," Journal of Business Ethics, Springer, vol. 140(3), pages 369-380, February.
    3. Chiba, Soumaya & Talbot, David & Boiral, Olivier, 2018. "Sustainability adrift: An evaluation of the credibility of sustainability information disclosed by public organizations," Accounting forum, Elsevier, vol. 42(4), pages 328-340.
    4. Renato Camodeca & Alex Almici & Umberto Sagliaschi, 2018. "Sustainability Disclosure in Integrated Reporting: Does It Matter to Investors? A Cheap Talk Approach," Sustainability, MDPI, vol. 10(12), pages 1-34, November.
    5. Laura Sierra-Garcia & Maria Antonia Garcia-Benau & Helena Maria Bollas-Araya, 2018. "Empirical Analysis of Non-Financial Reporting by Spanish Companies," Administrative Sciences, MDPI, vol. 8(3), pages 1-17, July.
    6. Silvia Ruiz-Blanco & Silvia Romero & Belen Fernandez-Feijoo, 2022. "Green, blue or black, but washing–What company characteristics determine greenwashing?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4024-4045, March.
    7. Silvia Ruiz & Silvia Romero & Belen Fernandez‐Feijoo, 2021. "Stakeholder engagement is evolving: Do investors play a main role?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1105-1120, February.
    8. Michelon, Giovanna & Pilonato, Silvia & Ricceri, Federica, 2015. "CSR reporting practices and the quality of disclosure: An empirical analysis," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 33(C), pages 59-78.
    9. Olivier Boiral & Iñaki Heras-Saizarbitoria & Marie-Christine Brotherton & Julie Bernard, 2019. "Ethical Issues in the Assurance of Sustainability Reports: Perspectives from Assurance Providers," Journal of Business Ethics, Springer, vol. 159(4), pages 1111-1125, November.
    10. Oluyomi A. Osobajo & Adekunle Oke & Ama Lawani & Temitope S. Omotayo & Nkeiruka Ndubuka-McCallum & Lovelin Obi, 2022. "Providing a Roadmap for Future Research Agenda: A Bibliometric Literature Review of Sustainability Performance Reporting (SPR)," Sustainability, MDPI, vol. 14(14), pages 1-20, July.
    11. Anca Băndoi & Claudiu George Bocean & Mara Del Baldo & Lucian Mandache & Leonardo Geo Mănescu & Cătălina Soriana Sitnikov, 2021. "Including Sustainable Reporting Practices in Corporate Management Reports: Assessing the Impact of Transparency on Economic Performance," Sustainability, MDPI, vol. 13(2), pages 1-20, January.
    12. Sabrina Spallini & Virginia Milone & Antonio Nisio & Patrizia Romanazzi, 2021. "The Dimension of Sustainability: A Comparative Analysis of Broadness of Information in Italian Companies," Sustainability, MDPI, vol. 13(3), pages 1-22, January.
    13. Jonas Wanner & Christian Janiesch, 2019. "Big data analytics in sustainability reports: an analysis based on the perceived credibility of corporate published information," Business Research, Springer;German Academic Association for Business Research, vol. 12(1), pages 143-173, April.
    14. Lara Tarquinio & Stefanía C. Posadas & Deborah Pedicone, 2020. "Scoring Nonfinancial Information Reporting in Italian Listed Companies: A Comparison of before and after the Legislative Decree 254/2016," Sustainability, MDPI, vol. 12(10), pages 1-22, May.
    15. Savu Rovanto & Max Finne, 2023. "What Motivates Entrepreneurs into Circular Economy Action? Evidence from Japan and Finland," Journal of Business Ethics, Springer, vol. 184(1), pages 71-91, April.
    16. Carlos Larrinaga & Adriana Rossi & Mercedes Luque-Vilchez & Manuel Núñez-Nickel, 2020. "Institutionalization of the Contents of Sustainability Assurance Services: A Comparison Between Italy and United States," Journal of Business Ethics, Springer, vol. 163(1), pages 67-83, April.
    17. Simone Pizzi & Francesco Rosati & Andrea Venturelli, 2021. "The determinants of business contribution to the 2030 Agenda: Introducing the SDG Reporting Score," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 404-421, January.
    18. Gianluca Vitale & Sebastiano Cupertino & Loredana Rinaldi & Angelo Riccaboni, 2019. "Integrated Management Approach Towards Sustainability: An Egyptian Business Case Study," Sustainability, MDPI, vol. 11(5), pages 1-26, February.
    19. Olivier Boiral & Iñaki Heras-Saizarbitoria & Marie-Christine Brotherton, 2019. "Assessing and Improving the Quality of Sustainability Reports: The Auditors’ Perspective," Journal of Business Ethics, Springer, vol. 155(3), pages 703-721, March.
    20. Andrea Venturelli & Simone Pizzi & Fabio Caputo & Salvatore Principale, 2020. "The revision of nonfinancial reporting directive: A critical lens on the comparability principle," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3584-3597, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:10:y:2020:i:1:p:13-:d:325138. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.