A CRITICAL EXAMINATION OF SUSTAINABILITY REPORTING AND ITS CONCEPTUAL FOUNDATIONS: A SYSTEMATIC LITERATURE REVIEW
DOI:
https://doi.org/10.5281/zenodo.20797946Abstract
Sustainability reporting has gained increasing prominence in accounting literature as firms transcend traditional financial disclosures to incorporate environmental, social, and governance (ESG) dimensions. This paper provides a critical systematic review of the conceptual foundations, historical evolution, and empirical evidence concerning sustainability reporting. Drawing on a structured analysis of peer-reviewed empirical studies published between 2000 and 2024, the study categorizes the principal critiques identified in prior research into five coherent dimensions: (1) measurement and comparability deficiencies, (2) greenwashing and selective disclosure, (3) standard fragmentation and regulatory divergence, (4) assurance credibility gaps, and (5) limited behavioral and environmental impact. Each critique category is matched with corresponding empirical evidence and mapped onto actionable policy and managerial recommendations. The study argues that sustainability reporting must evolve from a disclosure obligation into a genuine strategic transformation mechanism and specifies the institutional design conditions under which this evolution becomes possible. The paper contributes to both the theoretical and practical dimensions of sustainability reporting by offering an evidence-based critique framework and a structured set of recommendations for standard-setters, regulators, and corporate practitioners.
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