Legitimizing gambling businesses’ negative aspects in sustainability reports : A qualitative study of sustainability reports

Sustainability is a highly relevant and debated topic. More companies disclose sustainability information and in 2017 it became mandatory for larger companies in Sweden to prepare a sustainability report. Some industries are considered more or less socially accepted. One industry that suffers legitimacy problems due to its business’ nature is the gambling industry. The gambling industry is associated with social issues, gambling addiction, corruption, and money laundering, which can be considered problematic from a legitimacy perspective. This study intends to increase the understanding of how Swedish gambling companies communicate negative aspects through sustainability reporting and what role sustainability reporting has in controversial industries, such as the gambling industry.  The study was conducted by a combination of an analysis of sustainability reports from Swedish gambling companies and interviews with audit professionals. The combination of different data sources intends to give a broad perspective and a deeper understanding for how negative aspects are communicated and the role of sustainability reports. The study finds that there is a clear pattern in how different legitimation strategies are used when disclosing certain negative aspects. This study also finds that sustainability reporting is considered as a communication tool even in controversial industries where manipulation is said to occur frequently.

Varför väljer små aktiebolag revision sedan avskaffandet av revisionsplikten? : En studie utifrån ett företagsperspektiv

In 2010, the audit obligation for smaller limited companies was abolished. The change in the law meant that small limited companies could make a choice whether or not they wanted to hire an auditor. Since the abolition, there has been a debate between the politicians and the auditors about the consequences that the abolition has really had. A party that has not been allowed to assert itself in the debate on the abolition of the audit obligation is the companies. The purpose of this study was thus to highlight the companies in this debate and to create an understanding of the reasons why small limited companies choose to hire an auditor and their reasons for dismissing the auditor. Through a qualitative research method, four small limited companies in Luleå were interviewed to investigate their reasons. The study's approach is of a deductive nature where we first chose to investigate what previous research says about companies' reasons for auditing and then compare it with our results. Through this approach, our results indicate that companies have difficulty seeing the benefits of hiring an accountant outweigh the disadvantages. The companies stated the high cost of hiring an auditor in combination with the fact that an auditor does not significantly raise the quality of the annual reports as reasons for refraining from using an auditor. The companies mentioned satisfaction and confirmation as reasons for hiring an auditor and that the authorities are a stakeholder who influences the companies to hire an auditor

Legitimizing gambling businesses’ negative aspects in sustainability reports : A qualitative study of sustainability reports

Sustainability is a highly relevant and debated topic. More companies disclose sustainability information and in 2017 it became mandatory for larger companies in Sweden to prepare a sustainability report. Some industries are considered more or less socially accepted. One industry that suffers legitimacy problems due to its business’ nature is the gambling industry. The gambling industry is associated with social issues, gambling addiction, corruption, and money laundering, which can be considered problematic from a legitimacy perspective. This study intends to increase the understanding of how Swedish gambling companies communicate negative aspects through sustainability reporting and what role sustainability reporting has in controversial industries, such as the gambling industry.  The study was conducted by a combination of an analysis of sustainability reports from Swedish gambling companies and interviews with audit professionals. The combination of different data sources intends to give a broad perspective and a deeper understanding for how negative aspects are communicated and the role of sustainability reports. The study finds that there is a clear pattern in how different legitimation strategies are used when disclosing certain negative aspects. This study also finds that sustainability reporting is considered as a communication tool even in controversial industries where manipulation is said to occur frequently.

Varför väljer små aktiebolag revision sedan avskaffandet av revisionsplikten? : En studie utifrån ett företagsperspektiv

In 2010, the audit obligation for smaller limited companies was abolished. The change in the law meant that small limited companies could make a choice whether or not they wanted to hire an auditor. Since the abolition, there has been a debate between the politicians and the auditors about the consequences that the abolition has really had. A party that has not been allowed to assert itself in the debate on the abolition of the audit obligation is the companies. The purpose of this study was thus to highlight the companies in this debate and to create an understanding of the reasons why small limited companies choose to hire an auditor and their reasons for dismissing the auditor. Through a qualitative research method, four small limited companies in Luleå were interviewed to investigate their reasons. The study's approach is of a deductive nature where we first chose to investigate what previous research says about companies' reasons for auditing and then compare it with our results. Through this approach, our results indicate that companies have difficulty seeing the benefits of hiring an accountant outweigh the disadvantages. The companies stated the high cost of hiring an auditor in combination with the fact that an auditor does not significantly raise the quality of the annual reports as reasons for refraining from using an auditor. The companies mentioned satisfaction and confirmation as reasons for hiring an auditor and that the authorities are a stakeholder who influences the companies to hire an auditor