What really matters? Materiality disclosures in sustainability reporting practices
Puroila, Jenni (2015)
2015
Kauppatieteiden maisteriopinnot - Master's Programme in Business Studies
Johtamiskorkeakoulu - School of Management
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Hyväksymispäivämäärä
2015-11-18
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:uta-201512032480
https://urn.fi/URN:NBN:fi:uta-201512032480
Tiivistelmä
This thesis attempts to increase the understanding of materiality in the context of sustainability reporting. The objective is to examine the materiality concept and its application, as well as to explore the point of view through which something is considered as material. The study compares the practices and patterns used in defining and measuring materiality, and identifies the underlying frames of materiality in sustainability reports.
The theoretical framework of the study includes a review of the materiality concept based on previous literature and sustainability reporting standards. The theoretical framework consists of sustainability reporting literature addressing the issues of sustainability, mandatory and voluntary reporting, accountability, motives for reporting and stakeholder engagement.
This study follows qualitative research tradition and the analysis is divided into two phases. The first phase is carried out in the form of qualitative content analysis, and the second phase uses frame analysis as a tool for analysis. The empirical data consists of materiality disclosures collected from 29 sustainability reports. The reporting organizations are listed in Global100 index as the most sustainable companies in the world and have published a sustainability report in accordance with the GRI G4 Sustainability Reporting Guidelines.
The findings of this research are summarized in the following three propositions: 1) Materiality reflects how the company positions itself towards sustainability and accountability. 2) The current understanding of materiality does not enhance stakeholder accountability. 3) The conflicting objectives of sustainability reporting are reflected in materiality disclosures.
The contribution of this study to existing sustainability reporting literature is to add insight to the materiality concept. This study reveals a concern of the materiality concept being used as a tool to create a preferred image of a company s sustainability performance. This study suggests that by using the materiality concept to acknowledge the most significant economic, environmental and social impacts, accountability and transparency could be increased.
The theoretical framework of the study includes a review of the materiality concept based on previous literature and sustainability reporting standards. The theoretical framework consists of sustainability reporting literature addressing the issues of sustainability, mandatory and voluntary reporting, accountability, motives for reporting and stakeholder engagement.
This study follows qualitative research tradition and the analysis is divided into two phases. The first phase is carried out in the form of qualitative content analysis, and the second phase uses frame analysis as a tool for analysis. The empirical data consists of materiality disclosures collected from 29 sustainability reports. The reporting organizations are listed in Global100 index as the most sustainable companies in the world and have published a sustainability report in accordance with the GRI G4 Sustainability Reporting Guidelines.
The findings of this research are summarized in the following three propositions: 1) Materiality reflects how the company positions itself towards sustainability and accountability. 2) The current understanding of materiality does not enhance stakeholder accountability. 3) The conflicting objectives of sustainability reporting are reflected in materiality disclosures.
The contribution of this study to existing sustainability reporting literature is to add insight to the materiality concept. This study reveals a concern of the materiality concept being used as a tool to create a preferred image of a company s sustainability performance. This study suggests that by using the materiality concept to acknowledge the most significant economic, environmental and social impacts, accountability and transparency could be increased.