The Organizational Effects of Mandatory Non-Financial Reporting
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A study with a grounded theory approach was conducted analyzing the organizational effects of the implementation of a non-financial reporting mandate by looking at the Corporate Sustainability Reporting Directive of the European Union. This was set out in the following research question: “What are companies’ organizational responses to the implementation of a non-financial reporting mandate?” 11 in-depth interviews with executives closely involved with the development and publishing of the non-financial report were conducted. It was found that overall companies respond with enthusiasm at first, involving top-level management, seeing it as something that is inescapable in nowadays society. They start preparing by setting up several initiatives regarding ESG team development, starting initial reporting initiatives, and increasing ESG actions before the directive's entry into force. Gaining insight in these previously underexposed antecedents of organizational change following a non-financial reporting mandate adds to existing literature regarding the financial and non-financial effects of non-financial reporting.