Dissertation: Impact of Sustainability Reports on Company Performance

This dissertation investigates the multifaceted impact of sustainability reports on companies. It begins by defining corporate social responsibility (CSR) and its role in integrating social and environmental interests into business operations, emphasizing the triple bottom line (TBL) framework. The research aims to analyze the influence of sustainability reports on financial performance, operating models, and market reputation, posing specific research questions to guide the investigation. The study's rationale highlights the increasing importance of sustainability reporting and its potential benefits for organizational growth, brand image, and market share. The dissertation's significance lies in providing insights for firms to understand and improve their sustainability reporting practices, as well as offering a foundation for further research. The dissertation is structured into five chapters, covering an introduction, literature review, research methodologies, data analysis, and conclusions with recommendations. The literature review explores the concept of sustainability reports, their impact on financial aspects, operating models, company reputation, and relevant legal standards. The research methodologies section outlines the research philosophy, design, approaches, strategy, data collection methods, sampling, data analysis, ethical considerations, and limitations. The data analysis chapter examines the impact of sustainability practices on financial performance, market reputation, and operating models. Finally, the conclusion and recommendations chapter summarizes the findings and suggests areas for improvement. The study uses both primary and secondary data for thematic analysis.

DISSERTATION

TABLE OF CONTENTS
CHAPTER1: INTRODUCTION.....................................................................................................1
1.1 Overview of study............................................................................................................1
1.2 Aim and objectives...........................................................................................................1
1.3 Research Questions..........................................................................................................2
1.4 Rationale of study.............................................................................................................2
1.5 Significance......................................................................................................................3
1.6 Dissertation structure........................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
2.1 Introduction......................................................................................................................5
2.2 The concept of sustainability report.................................................................................5
2.3 Impact of sustainability report on the financial aspect of the company...........................6
2.4 Role of sustainability report on the operating model of the company.............................8
2.5 Effect of sustainability report on the reputation of the company.....................................8
2.6 Different legal standards considered by the company for monitoring sustainability.....10
CHAPTER: 3 RESERACH METHODOLOGIES........................................................................12
3.1 Introduction....................................................................................................................12
3.2 Research philosophy.......................................................................................................12
3.3 Research design..............................................................................................................13
3.4 Research approaches......................................................................................................13
3.5 Research strategy............................................................................................................14
3.6 Data collection methods.................................................................................................14
3.7 Sampling.........................................................................................................................15
3.8 Data analysis...................................................................................................................16
3.9 Ethical consideration......................................................................................................17
3.10 Research limitation.......................................................................................................17
CHAPTER 4: DATA ANALYSIS................................................................................................19
4,1 Introduction....................................................................................................................19
4.2 Discussion.......................................................................................................................19
Impact of sustainability practices on financial performance................................................19

Impact of sustainable business practices on market reputation............................................22
Impact of sustainable business practices on operating model..............................................23
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................25
5.1 Conclusion......................................................................................................................25
5.2 Recommendation............................................................................................................26
REFERENCES..............................................................................................................................28

CHAPTER1: INTRODUCTION
Title: What is the function and importance of sustainability report to companies?
1.1 Overview of study
Corporate Social Responsibility is a concept through which companies are able to
incorporate social and environmental interest, in order to manage their business functionality. It
supports in understanding various profitable and non-profitable efforts of the organisation. With
the help of this process company ensure satisfying their responsibility towards all the
stakeholders such as customers, investors and communities. Through applying this approach
establishments are able to fulfil their environmental, economic and social responsibilities,
following triple bottom line (TBL) (Adams and et.al., 2016 ). TBL is an accounting framework,
which includes environment, economic and social factors. This is applied as one of the proven
methods through which firms can maintain their competitiveness without making any
compromise. It helps in analysing key issues effective such as environmental engagement, proper
resource utilization, stakeholder’s engagement, employees and organisation relationship, etc.
The aim of the study is to explore the impact of the sustainability on different
functionality of the companies. In current scenario, all organisations publish CSR reports which
provide details about firm human resource management, environmental integrity, protection of
consumer rights, corporate governance mechanism and others. The present dissertation is based
on the role of CSR activities in order to analyse various factors and examine its impact on firm
financial status, operating model and its market reputation as well (Ball, Grubnic and Birchall,
2014). With the help of these strategies they are able to present their information and supports in
make effective decisions. Along with this plays significant role in converting an opportunity into
advantageous or disadvantageous for the company. Through applying this method, they are able
to discuss various aspects and on the basis of necessary steps can be adopted by the firm. As per
the Global Reporting Initiative (GRI), the sustainability report of the companies is based on
several factors such as social, environmental, economic and governance.
1.2 Aim and objectives
Aim: “To analyse the impact of sustainability report on various functionality of the companies
such as brand value, operational and financial status. “
Objectives:
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 To develop critical understanding on the concept of sustainability report.
 To evaluate the impact of sustainability report on the financial performance of
companies.
 To analyse the impact of corporate sustainability report on the operating model of the
companies
 To determine the effect of sustainability report on company’s market reputation
 To analyse legislation and mandatory standards considered by the company for
monitoring sustainable development.
1.3 Research Questions
Q.1 What is the concept of sustainability report?
Q.2 How sustainability report influence or affects the financial performance of different
companies?
Q.3 How sustainability report helps companies in the development of prominent operating
model?
Q.4 Is sustainability report has impact on the brand image and market share of organization?
Q.5 Which laws and standards are followed by the companies while reporting their CSR?
1.4 Rationale of study
The rationale behind conducting the present study is to assess the extent to CSR or
sustainability reporting has impact on organizational performance in both monetary and non-
monetary terms. It is considered as issue because now there is several numbers of companies
which do not lay high level of emphasis on sustainability reporting. It is the main issue now
because sustainability reporting aspects offer high level of benefits to the business organization
in terms of increasing revenue, brand image and market share. However, due to the lack of
having awareness regarding such aspect some business units do not prepare and disclose their
sustainability reports (Haigh and Hoffman, 2014). Hence, by conducting thematic analysis
through using both primary and secondary data scholar will entail the level to which
sustainability reporting system makes vital contribution in the growth of firm.
1.5 Significance
The present study and its findings are highly significant which in turn provides assistance
to the firms in understanding the aspects of sustainability reporting. Besides this, outcome of
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dissertation will help companies in assessing the extent to which sustainability reporting aid in
the growth and success of firm. Hence, by taking into account such study companies would
become able to take corrective measures for enhancing the reputation and overall performance.
Besides this, results of study will also help other scholars in understanding the concept of CSR
and significance of reporting. In the recent times, several researchers are interested in exploring
the use of sustainability reporting in the context of business organization. Thus, by using the
current study, scholars would become able to develop brief thesis and hypothesis for further
evaluation. By considering the all such aspects, it can be said that present study will offer high
level of benefits to the companies and other scholars.
1.6 Dissertation structure
The present dissertation is consisting of following chapters:
Chapter 1 Introduction: This chapter of the dissertation provide brief details about
overview of the study, aim and objectives, rationale and potential significance as well. It
helps in developing the basis of the study. This supports in building research framework
and explores covered area in the study.
Chapter 2 Literature Review: In this part of the study, critical analysis takes place
based on the aim and objectives. In this process information is gathered with the help of
secondary sources, especially, scholarly journals to gain deep understanding of the issue.
Chapter 3 Research methodologies: Under this section, various tools and
methodologies re selected such as data collection, data analysis, research strategy,
paradigm and ethnicity as well (Lock and Seele, 2015). It is considered as an essential
part of the dissertation which helps to obtain justified results.
Chapter 4 Data analysis: In this part of the study analysis of annual reports of various
companies are considered. With the help of this step comparison can be effectively done
on the basis of financial status, operational models and reputation of the company.
Chapter 5 Conclusion and Recommendations: This is considered as last part of the
dissertation, consisting of evaluation and analysis of annual reports. In the process
evaluation is considered based on the information gathered with the help of annual report
of the company of various years. Along with these recommendations are also included
into this part, in order to resolve various issues effectively.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Literature review is one of the essential parts of the research. It helps in critically
analysing the issues. In this process secondary information are considered, in order to develop
deep understanding about the topic and gaining knowledge. The present study is based on
determining the importance and functionality of sustainability report. In this process concept of
sustainability report is analysed (Lock and Seele, 2015). Moreover, the investigation will
critically analyse their impact on the processing of financial aspect of the organisation. It
supports in determining their roles for the operating models of the firm is analysed. Along with
this it also supports effect of sustainability report on the reputation of the company. There are
various legal standards also analysed, in order to monitor sustainability of the organisation.
2.2 The concept of sustainability report and related theories or models
Sustainability report is considered as an essential report for any organisation that
describes information based on the environmental, governance, economic and social status of the
company. According to the Marques, da Cruz and Pires (2015), it is an implementation of data
and methods in order to produce results. With the help of this step organisations are able to
maintain balance between internal and external conditions. It helps the firm in connecting
various components and meets their requirement. This is also known as triple bottom line
because through applying this approach, organisations are able to various factors based on
entities like environmental, economic and social. TBL is an accounting framework, which
includes environment, economic and social factors. It helps in improving their performance and
implements sustainability within the organisation. The organisation follows their social
responsibilities values and fulfils their responsibilities with the help of CSR activities. In this
framework and design of the organisation is also considered for determining their effectiveness.
Martínez‐Ferrero, Garcia‐Sanchez and Cuadrado‐Ballesteros (2015), stated that it is a benchmark
process, due to which most of the business groups are considering this feature. It also provides
different aspects such as clarity, balancing, comparability, accuracy, timeliness and reliability.
With the help of that firms are able to analyse quality of their services. As per the view of
Needles Jr and et.al., (2016), it enables the company in making long term developing plans. In
this process both social and economic factors are applied, due to which they are able to maximise
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their growth and profitability. The sustainability report is based on the structuring of the
company, on the basis of that different sets are incorporated.
According to the Rezaee (2017), economical factor is essential for formulating report.
With the help of this step they are able to analyse the financial status of the company such as
profitability, liquidity and asset. Along with this it supports in analysing various risk factors. The
company is analysing growth and demand with the help of these economical facts and figures.
However, it is not able to maintain the development unit of company. Along with this business
group is not able to meet the standards of the society with this only, therefore, other two factors
are also required.
On the contrary side, Searcy and Buslovich (2014) said that environmental factors is most
important because now-a-days, firms are responsible to maintain ecological integrity for the
community. The proper regulation of the resources is essential for the growth of the organisation.
If they are failed to maintain the processing as per the defined structure it will create direct
impact on the production. With the help of this element they are able to implement and regulate
various legislations. Through including this component, they are able to maintain safety and
security of their organisation as well employees.
On the other hand, Siew (2014), stated that various loopholes are also associated such
that it is not able to explain financial status of the company. It does not support the cultural
values of the corporation, due to which it is not enough to generate productive outcomes. As per
the view of Adams and et.al., (2016), social factors of the organisation help in order to maintain
the culture and values. With the help of this step they are formulate standards for different
functions but not able to generate results. Therefore, on the basis of above evaluation it is
critically analysed that all the three elements of the report are equally important. With the help of
these factors they are able to handle different aspect of the company and generate effective
results.
As per the view of Rezaee (2017) CSR includes wide range of role and responsibilities
with which business unit needs to comply. Hence, by making assessment, it has found that each
business organization is required to fulfil all the responsibilities pertaining to the main four
sections such as economic, legal, ethical and philanthropic. On the basis of economical aspects,
business should lay emphasis on offering products or services to the customers at affordable
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prices on the basis of demand. However, Saxton (2016) critically evaluated that economic
responsibilities are highly in against to the aims and objectives of firm. Moreover, in the
competitive environment firm can attain success only when it earns enough profit. In this regard,
Searcy and Buslovich (2014) said that by fulfilling legal accountabilities firm can do CSR and
thereby would become able to get the desired level of outcome or success. Legal responsibilities
include compliance with the employment laws and legislation. On the other side, Cruz and Pires
(2015) depicted firm should follow the legislation related to customers, employees, government
etc. Company can said to be socially responsible only when it follows all the rules and
regulations rather than only employment. Siew (2014) investigated and mentioned in their study
that while performing business activities and function firm should comply with all the ethical
aspects. In other words, it can be said that by developing norms as per the expectations of
customers, employees, investors as well as other stakeholders business organization can do CSR
and thereby would become able to build distinct image in the market.
2.3 Impact of sustainability report on the financial aspect of the company.
Sustainability report creates significant impact on the financial aspect. It consists of three
major components such as environmental, economic and social. According to the Ball, Grubnic
and Birchall, (2014), it helps in analysing the performance and growth of the company. In this
process marketing condition are analysed, based on that various facts and figures are collected
due to which financial status are determined. Along with this research and development activities
also depends on the sustainability report also. All the factors that are analysed weak in this
process are considered under the development process. As per the view of Higgins and
Larrinaga, (2014), organisations are able to develop new structural framework through, it helps
them in order to implement necessary changes in to the process. It helps in maintaining
performance of different level. With the help of effective financial structure of organisation is
able to access various opportunities and maximise their profitability (Show me the money:
Sustainability and financial outperformance, 2017). In order to determine challenges and
opportunities several factors are analysed. In this process, economic factors are considered as
essential. It helps in developing strategies based on the growth and stability of the company. On
the basis of that they are able to determine various risk factors and able to take necessary steps in
order to implement or cancel it.
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As per the view of the Pyo and Lee, (2013) sustainability report creates long term as well
as short term impact on the growth of the company. Through measuring their accounting details,
they are able to measure their profitability and financial status of the firm. With the help of
sustainability report they are able to access various tools and methodologies through which they
are able to effectively implement economic plans and improvise their relationship with
stakeholders. According to the Hosoda and Suzuki, (2015), there are various theories are also
available such as signalling, social identity and customer inference. These management theories
are approaches helps the organisation in understanding the needs and demands of the consumers.
Along with this it also supports in maintaining the manufacturing process. The organisations are
able to minimise their consumption of material due to which they are able to maximise the ratio
of profitability. Through which the organisations are able to maintain their financial stability.
Hur, Kim and Woo, (2014), stated that through applying sustainability reports at the
workplace, companies are able to create significant impact on their performance, net profit and
assets. Most of the firms are considering this approach in order to develop innovative and
creative strategies and also supports in maintaining the balance with the other factors also. It
plays essential role in strengthening the financial structure of the company.
Therefore, on the basis of above research it is analysed that sustainability report plays
significant role in the company. Through implementing this step, they are able to maintain
financial status, along with this it maximises the growth and profitability of the company
(Hosoda and Suzuki, 2015). It also enables the organisation in order to effectively maintaining
the balance between various factors such as social, economic and environmental due to which
they are able to make necessary changes into the manufacturing and development process.
2.4 Role of sustainability report on the operating model of the company.
The role of operational models is significant in order to maintain manufacturing and
development process. It supports them in order to implement effective and creative strategies and
improve performance of operational models. As per the view of the Swaen, Janssen and Du,
(2017) it supports the business organisation in order to make necessary changes into their
fundamental through which they are able to maximise their profitability. Most of the
organisations are considering new technologies through which they are able to increase
production. It also supports in order to maintain sustainable environment condition. Under this
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step they are implementing renewable energy resources. It plays significant role in controlling
pollution level and also reduces the cost of energy and fuels.
According to the de Jong and van der Meer, (2017) through incorporating effective
sustainability report on the operating model companies are able to develop strategies for future.
Along with this it helps in overcoming the mistakes of the business models and develops
understanding on the basis of various factors such as pattern, market place, social capital, etc.
The transformation process is effectively applied into the process due to which, organisations are
able to maintain creativity and innovation into their process. Therefore, with the help of
sustainability report the firms are able to select approaches voluntary.
Lee, Park and Lee, (2013) states that sustainability report implements changes into the
operational model by analysing the relationship with their stakeholders like employees,
investors.
2.5 Effect of sustainability report on the reputation of the company.
Sustainability report plays significant role in order to maintain balance between various
factors of the company such as social, economic and environmental. As per the view of the
Swaen, Janssen and Du, (2017), reputation of the firm is directly influenced by this step.
Through this step the companies try to analysed the needs and demands of the customers. In this
process organisations develops various propaganda on the basis of that strategies are framed.
These all strategies are emphasised on both the primary as well as secondary benefits of the firm.
Along with this interest of social groups are also considered.
On the basis of the Allan and Muirhead, (2017), sustainability report promotes
environment friendly strategies. Some of them are like reducing consumption of material through
recycle and reuse. Considering renewable energy resources for production and manufacturing
process. Along with this different waste management steps can be also implemented in this
activity. It supports the company in order to influence users and make positive impact in the
market place. It strengthens their brand value 'through which they are able to expand their
services at international platform. Therefore, the role of sustainability is significant in
maintaining the growth of the company.
Alonso‐Almeida, Llach and Marimon, (2014), stated that sustainability report promotes
organisation for organising different well-fare activities. With the help of this step firms invests
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some amount of their profitability for the development of the society. With the help of this step
they are able to maintain positive image among the users. Along with this there are various other
charity and donations are also offered to the needed individuals. Through this step they are able
to impose positive impact on the society and polish their brand value. The services provided
to the employees also plays significant role in order to build up trust and reputation of the
company.
As per the view of the Hur, Kim and Woo, (2014), sustainability report helps the
organisation in order to implement ethical code and conducts at the workplace. Through this
process they are able to minimise the risk and challenges. Along with this it supports the
handling all the long term as well as short term issues of the company effectively. During this
process they are able to develop strategies considering various factors (Hosoda and Suzuki,
2015). It helps in maximising the benefits of the company. It enables the organisation in order to
meet needs and expectation of customers, due to which they are able to maintain effective brand
value among them through their quality services.
Therefore, on the basis of above research it is analysed that organisations are able to
increase or maintain their brand value with the help of sustainability report (Hoi, Wu and Zhang,
2013). In this process, various approaches are considered order to maintain reputation some of
them are like charity, donation, implementation of ethical code and conducts at the work place,
applying renewable energy resources, etc. Apart from that there are various offers and services
are also organised through which they are able to make positive impact on the customers. With
the help of these strategies they are able to maintain their organisational reputation and brand
value. It supports them in order to expand their services at international services (de Jong and
van der Meer, 2017).
2.6 Different legal standards considered by the company for monitoring sustainability.
In order to incorporate sustainability report into the company there are several legal
standards are developed. With the help of these step organisations of Hong Kong are able to
maximise their growth and profitability. In this process, various standards are also developed for
encouraging them and reducing their complications. As per the view of the Alonso‐Almeida,
Llach and Marimon, (2014) the Hong Kong stock exchange has introduced reporting guidelines
called as ESG. It is mainly focused on the three elements such as environmental and social
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