The disclosure of sustainable development goals (SDGs) by the top 50 Australian companies: substantive or symbolic legitimation?

Purpose - This study aims to explore how the top 50 Australian companies are disclosing their commitment to addressing the sustainable development goals (SDGs) formulated by the United Nations (UN) in 2015. By investigating the nature and substantiveness of SDG reporting, this study provides exploratory evidence on how companies are taking the initial steps to addressing the SDGs. Design/methodology/approach - A content analysis of SDG disclosures by the top 50 Australian companies was undertaken. This content analysis was guided by the KPMG (2018) SDG disclosure framework. Legitimacy theory was used to interpret the findings, establishing whether such disclosure was substantive or symbolic. Findings - This study reports a moderate level of SDG disclosure among Australian companies. The top five most critical SDGs in Australian context are climate action, gender equality, decent work and economic growth, responsible consumption and production and industry, innovation and infrastructure. The findings also highlight that while the focus of Australian companies is on understanding and prioritizing SDGs, the measurement of SDGs performance needs to increase. Research limitations/implications - This study adds to limited literature on the corporate responses to SDGs by establishing how companies, especially in Australia, are addressing these goals through changes to their reporting systems, thereby communicating their strategic intent in relation to addressing these goals. A focus on symbolic legitimation through SDG disclosure by the Australian companies in this study reaffirms the findings of similar studies and suggests a need for more substantive SDG management and disclosure if these goals are to be adequately addressed by the corporate sector. Practical implications - The findings of this study provide insights into the current practices and future prospects of corporate responses to SDGs. Policy implications could arise in relation to possible approaches for disclosing social and environmental information and the paper argues for a potential need for regulation of non-financial reporting. Originality/value - This study contributes to the limited understanding of the corporate response to an urgent sustainability call made by the UN by providing evidence on how Australian companies are embedding, measuring and reporting the SDGs. The research goes beyond a descriptive analysis of SDG disclosure and assesses whether such disclosure is substantive or symbolic.