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The integration of Sustainable Development Goals into businesses sustainability management: a reporting perspective

Author

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  • Chee Kwong Lau

    (University of Nottingham Malaysia)

  • Jia Ci Wong

    (University of Nottingham Malaysia)

Abstract

This study examines how Malaysian businesses integrate Sustainable Development Goals (SDGs) into their business sustainability practices. First, we capture the extent of SDG integration in three stages: SDG adoption, strategic SDG integration, and SDG as a priority at board level. We find that 68.2% of sample firms reported SDG adoption in 2019, with six SDGs prioritized per firm on average. However, only 17.1% of these firms demonstrated SDG as a priority at board level. We find that firm size, profitability, ownership concentration, and board size have a positive impact on SDG adoption, while firm size and board size also have a positive impact on the extent of SDG integration into firms’ business sustainability management. Next, using the publication of the Sustainability Reporting Guide 2018 as a natural experiment, we divide firms into three groups according to the pace of their SDG integration: innovators, immediate, and late adopters. We find that innovators tend to be larger in size and more profitable and have more concentrated ownership. Promoting SDG integration via mandatory reporting, a measure-manage approach, does progressively influence businesses to contribute to sustainable development. However, the extent and pace of SDG integration vary considerably among firms.

Suggested Citation

  • Chee Kwong Lau & Jia Ci Wong, 2023. "The integration of Sustainable Development Goals into businesses sustainability management: a reporting perspective," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 20(4), pages 490-505, December.
    • Handle: RePEc:pal:ijodag:v:20:y:2023:i:4:d:10.1057_s41310-022-00164-2
    DOI: 10.1057/s41310-022-00164-2
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