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Reporting Sustainability in China: Evidence from the Global Powers of Luxury Goods

Author

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  • Davide Galli

    (Department of Economic and Social Sciences (DiSES), Università Cattolica del Sacro Cuore, 29122 Piacenza, Italy)

  • Federica Bassanini

    (Department of Economic and Social Sciences (DiSES), Università Cattolica del Sacro Cuore, 29122 Piacenza, Italy)

Abstract

In this study, we investigated sustainability reporting practices adopted by the ‘Global Power of Luxury Goods 2019’, which are the top 100 companies operating in the luxury sector listed by Deloitte. The analysis firstly focused on exploring sustainability disclosure and reporting practices, moving then to the examination of China-specific sustainability initiatives according to the Global Reporting Initiative(GRI) standards categories: Economic, environmental, and social. Adopting a theoretical perspective based on elements of institutional theory and stakeholder theory, we highlight how the development of sustainability reports by companies in the luxury sector is still a limited practice involving larger companies that have already invested in the implementation of sustainability strategies. The findings reveal how the reporting of China-specific sustainability initiatives is influenced by a set of factors such as company dimensions, company nationality, the management of the supply chain and operation in China, and the direct reference to China as a key market in terms of revenues. Finally, a cluster analysis shows how companies belonging to different relevant markets for the luxury sector demonstrate different homogeneous approaches by geographical area (isomorphism), with French and Chinese companies more engaged in reporting their sustainability initiatives in China.

Suggested Citation

  • Davide Galli & Federica Bassanini, 2020. "Reporting Sustainability in China: Evidence from the Global Powers of Luxury Goods," Sustainability, MDPI, vol. 12(9), pages 1-18, May.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:9:p:3940-:d:356706
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    2. Maria Fernanda Ortiz Dominguez & Yasser Ahmad Bhatti, 2022. "From Waste to Luxury Fashion at Elvis & Kresse: A Business Model for Sustainable and Social Innovation in the Circular Economy," Sustainability, MDPI, vol. 14(19), pages 1-17, September.
    3. Margherita Pero & Elisa Arrigo & Antoinette Fionda-Douglas, 2020. "Sustainability in Fashion Brands," Sustainability, MDPI, vol. 12(14), pages 1-4, July.
    4. Kara Nel & Nadia Mans-Kemp & Pierre D. Erasmus, 2023. "Sustainable Thematic Investing: Identifying Opportunities Based on an Analysis of Stewardship Reports," Sustainability, MDPI, vol. 15(10), pages 1-20, May.
    5. Husain, Rehan & Paul, Justin & Koles, Bernadett, 2022. "The role of brand experience, brand resonance and brand trust in luxury consumption," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    6. Mohd Azhar & Rehan Husain & Sheeba Hamid & Mohd Nayyer Rahman, 2023. "Effect of social media marketing on online travel purchase behavior post-COVID-19: mediating role of brand trust and brand loyalty," Future Business Journal, Springer, vol. 9(1), pages 1-13, December.
    7. Iván Andrés Ordóñez-Castaño & Edila Eudemia Herrera-Rodríguez & Angélica María Franco Ricaurte & Luis Enrique Perdomo Mejía, 2021. "Voluntary Disclosure of GRI and CSR Environmental Criteria in Colombian Companies," Sustainability, MDPI, vol. 13(10), pages 1-18, May.

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