Laura Corazza

How SMEs Disclose their Sustainability Performance. Which Variables Influence the Choice of Reporting Guidelines

Abstract nPurpose nNowadays, social and environmental reporting is approached in different ways, paths and fields by either large-, small-, or medium-sized enterprises (SMEs). However, as demonstrated by previous scholars, SMEs have been critically discussed because they provide lack of proper sustainability disclosure. The fact that the predominant approach of SMEs toward social responsibility is often “sunken” and not “explicit” can drive the lack of disclosure. Furthermore, unstructured communication practices create difficulties in measuring and reporting the sustainability reporting phenomenon in SMEs. The aim of our study is to shed light on the activity of SMEs’ sustainability reporting and disclosure, specifically, by addressing the variables that influence the choice of the guidelines used to prepare sustainability reports. n n nDesign/methodology/approach nThe research has been carried out by using qualitative and quantitative methodologies. The empirical evidence is based on all the Italian companies, mostly SMEs, that were certified in 2011 as having adopted both environmental (i.e., ISO14001 or EMAS) and social (i.e., SA8000) management systems. A multivariate linear regression model has been developed to address the influence of several variables (i.e., financial performance, size, time after achievement of the certifications, group/conglomerate control, etc.) on the guidelines’ choice for preparing sustainability reports. n n nFindings nOur findings demonstrate that SMEs prefer to use simple guidelines such as those guidelines that are mandatory under management system certifications. However, the sustainability disclosure driven by the adoption of international guidelines may be more complex if the SME is controlled within a group of companies or if a significant amount of time has passed since the certification date. As such, we developed a taxonomy of their different behavioral drivers according to a legitimacy theory approach. n n nResearch limitations nAt this stage, our study didn’t focus on the contents’ quality of the disclosure and reporting practices adopted by SMEs, which is obviously a worthwhile and important area for further research. Furthermore, the analysis took into account the impact of a number of easily accessible variables; therefore, it can be extended to investigate the effect on disclosure of other relevant variables (i.e., nature of the board of directors, age, and industrial sector in which the company operates) as well as contexts prevailing in other countries. n n nPractical implications nThe study represents an important contribution for understanding how and why managers might use externally focused disclosure on social and environmental issues to benefit the company’s legitimacy. n n nSocial implications nOur study provides interesting insights for policy makers who require social or environmental certification when calling for tenders or specific EU contracts, in order to put aside the “brand” or “symbol” and really focus on the disclosed practices. n n nOriginality/value nPrevious studies have provided only a few evidence about reporting practices and related influencing features of SMEs’ sustainability actions. As such, the study wishes to make a significant contribution to the existing literature on Corporate Social Responsibility (CSR) by providing relevant insights about the factors which influence the guidelines used by SMEs in preparing their sustainability reports.

Stakeholder Definition in a Network Context: The Case of Piazza dei Mestieri

This article contributes to the body of stakeholder literature by providing a detailed analysis of the dynamics that pragmatically occur in a firm during the process of analysis of stakeholder relationships. This process can be fragmented when an entity operates through a coordinated combination of different firms (with several legal entities) that form a network. The application of stakeholder thinking could be difficult when the overall purpose of the network is to provide social goods for increasing social welfare in a critical community. Recent trends in the stakeholder salience model, such as stakeholder relationships model will be analyzed in detail. The case study focuses on a network of several entities that provide training and work possibilities to early school dropouts, i.e. young disadvantage people. The network analyzed is located in Italy and it is composed by several legal entities like profit, not-for-profit and training agencies. In recent years, the business model adopted by the network has demonstrated its validity in contrasting the social phenomena, and the network is currently in expansion. The methodological approach used is a Participatory Active Research (PAR) one, particularly important for testing the efficient application of a theory or the evolution of a theory in a proper manner. The case can add a contribution in the constant and still modern debate on stakeholder management in practice. Our research can bring useful insights for policy makers and all those organizations that provide guidelines for stakeholder engagement.

The Standardization of Down-Streamed Small Business Social Responsibility (SBSR): SMEs and Their Sustainability Reporting Practices

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