From the corporate social responsibility reporting to the integrated reporting: the case of Sabaf S.p.a

In December 2013, the International Integrated Reporting Council (IIRC) published the International Integrated Reporting Framework. The aim of the Framework is to provide the guiding principles and the content elements of an integrated report. The integrated report constitutes an evolutionary step in the corporate’s financial and non-financial communication, moving from the social responsibility reporting to the integrated reporting. This practice is at the beginning in Europe and especially in Italy where only few listed companies have decided to face the multitude of challenges the integrated report implies. Considering the relevance of such a new form of communication, the paper examines the main steps carried out by an Italian listed company moving towards the integrated report. The research has been conducted by adopting a qualitative case study approach, by focusing on Sabaf S.p.a, an Italian listed medium sized company belonging to the Star Segment. This company has been selected because it was one of the first adopters of the integrated report among the Italian listed companies. The study builds on data gathered through sites visits, structured interviews and company materials. The paper examines Sabaf’s transition from the corporate social responsibility report to the integrated report, aiming at answering the following research question: Why has Sabaf moved to integrated reporting? Which are Sabaf’s main steps towars the integrated report? How is the Sabaf’s integrated reporting process going? The findings should be of interest to a number of parties including Standard Setters, firms, financial advisors, auditors and users of non-financial statements

Sustainability and Internal Control Systems in the Food and Pharmaceutical Sectors

Sustainability in the food and the pharmaceutical industry has become a hot topic as the several cases of malpractice reported by worldwide media in recent years shows. This research aims at identifying the reasons for the diffusion of non-ethically sustainable practices in these sectors, by evaluating the effectiveness of the company’s internal controls. To achieve this aim, a content analysis was performed considering the largest European pharmaceutical and food companies, listed on one or more of the main stock exchanges. Main findings underline many internal controls’ vulnerabilities to corruption

Does sustainability in executive remuneration matter?The moderating effect of Italian firms' corporate governance characteristics

Purpose – This paper aims to verify whether the integration of sustainability in executive compensation positively affects firms’ non-financial performance and whether corporate governance characteristics enhance the relationship between sustainability compensation and firms’ non-financial performance and to expand the domain of the impact of sustainability on non-financial performance. Design/methodology/approach – This analysis is based on a sample of companies listed on the Milan Italian Stock Exchange from the Financial Times Milan Stock Exchange Index over the 2016–2020 period. Regression analysis was used by using data retrieved from the Refinitiv Eikon database and the sample firms’ remuneration reports. Findings – The findings of this paper show that embedding sustainability in executive compensation positively affects firms’ non-financial performance. The results of this paper also reveal that specific corporate governance features can improve the impact of sustainability on non-financial performance. Research limitations/implications – This analysis is limited to Italian firms included in the Financial Times Milan Stock Exchange Index; however, the findings are highly significant. Practical implications – The findings provide regulators with useful insights for considering the integration of sustainability goals into executive remuneration. Another implication is that policymakers should require – at least – listed firms to fulfil specific corporate governance structural requirements. Finally, the findings can provide investors and financial analysts with a greater awareness of the role played by executive remuneration in the long-term value-creation process. Originality/value – This paper contributes to addressing the relationship among sustainability, remuneration and non-financial disclosure, drawing on the stakeholder–agency theoretical framework and focusing on Italian firms. This issue has received limited attention with controversial results in the literature

CORPORATE GOVERNANCE E COMUNICAZIONE NON FINANZIARIA. Vincoli normativi e modelli di disclosure integrata

La comunicazione istituzionale d’impresa ha registrato nell’ultimo decennio un progressivo ampliamento del perimetro di riferimento, con crescente risalto delle informazioni di carattere sociale ed ambientale, in aggiunta a quelle di natura economica. Tale processo riflette il modificarsi delle attese conoscitive degli stakeholder sempre più interessati agli impatti dell’attività aziendale sull’ecosistema e sui correlati rischi climatici, sul benessere della comunità in termini di inclusione, pari opportunità, rispetto dell’integrità psico-fisica, responsabilità globale ed equità. La crescente attenzione alle attese informative degli stakeholder ha indotto ad un progressivo rinnovamento del quadro regolamentare vigente a livello internazionale e nazionale, con specifica enfasi ai profili di disclosure socio-ambientale. In considerazione di quanto sopra esposto, il presente studio intende affrontare il tema della comunicazione non finanziaria – e in specie di quella di sostenibilità – alla luce dei recenti snodi normativi (Direttiva 2014/95/UE, D.Lgs. 254/16, Corporate Sustainability Reporting Directive), indagando le possibili opportunità per le imprese di sviluppare modelli evoluti di reporting, basati su una visione unitaria ed integrata delle molteplici informazioni veicolabili (sociali, economiche, ambientali, di governance) rispetto ai fattori critici (ESG) per la crescita nel medio-lungo periodo. In tale ambito, i sistemi di corporate governance rivestono un ruolo fondante con funzioni propulsive per la diffusione e la condivisione di valori informati alla sostenibilità e all’etica che orientino i comportamenti gestionali verso il raggiungimento di risultati soddisfacenti da rendicontare agli stakeholder di riferimento

Digital Transformation and Convergence toward the 2030 Agenda’s Sustainability Development Goals: Evidence from Italian Listed Firms

The United Nations 2030 Agenda has emphasized the potential of digital technology to enhance sustainability performance, assuming that digital transformation can enable firms’ convergence toward the Sustainable Development Goals. Despite this, the literature is unclear regarding whether there is a positive relationship between digitalization and sustainability, as the effects of digital transformation are controversial. The main goal of this study was to assess the hypothesis that digital technology contributes to the achievement of Sustainable Development Goals within the UN 2030 Agenda. To test this hypothesis, a textual analysis was performed to assess Italian firms’ digitalization efforts; the obtained results were then related to the selected firms’ ESG scores using a regression analysis. The analysis focused on Italian FTSE MIB listed firms for the period 2016–2019. The findings show a positive relation between digitalization and Sustainable Development Goals, highlighting the relevance of digital technology in implementing the sustainability agenda