Background: Since the 2030 Agenda for Sustainable Development establishment in 2015, the UN member nations have pressured organizations to improve their sustainability engagements in order to enable the nations to meet their agreed sustainable development goals. To ensure organizational transparency regarding an organization’s sustainability engagements, a regulation regarding non-financial reporting entered into force in 2016. However, the non-financial reporting is principally external-driven, and the communicated information is not received by the ones realizing these sustainability engagements, namely the internal stakeholders. Problem: The fact that external communication of an organization’s sustainability engagements improves the consumption from consumers, together with the regulation of non-financial reporting, there is no coincidence that a lot of the sustainability communication from organizations is directed to external stakeholders rather than internal stakeholders. Furthermore, the internal communication of an organization’s sustainability engagements is an insufficiently researched topic, although it is of great importance to foster employee engagement. Purpose: This study aims to discover how organizations within the food retail industry communicate their sustainability engagements internally throughout the levels of the organization, from top management down to all employee levels.  Method: The research is conducted through a qualitative research design with six semi-structured interviews. The interviewees represented three different levels of two different food retail organizations. Findings were analyzed and compared to previous research within the topic. Conclusion: Findings show that the examined organizations do communicate their sustainability engagements to their internal stakeholders. However, this communication is done through communication channels where the actual information is not received by its intended receivers. This results in internal stakeholders being unaware of their organization’s sustainability engagements. Since awareness is a prerequisite for engagement, preferred communication channels from the receiver’s perspective and an organizational structure that enables top management to reach its intended receiver are identified as vital components to engage the internal stakeholders with its organization’s sustainability engagements.

There is an increasing need for companies to act more responsibly in sustainability related issues due to pressures from their stakeholders. This increased pressure comes with a corresponding need for companies to report on their actions. As the stakeholders of companies do not have the opportunity to assess the credibility of the reporting themselves, the responsibility falls upon a third party to give assurance on the contents of the report. The assurance of such will be an important part in providing reliability to the sustainability work and report. One important corporate governance function responsible for overseeing the sustainability reporting and the assurance thereof is the audit committee. Therefore, this study will examine the effect of audit committee characteristics on the quality of sustainability assurance. Due to the novelty of the concept of sustainability assurance and as not many previous studies have addressed the issue of the quality, the authors proposed the following research question: “How do audit committee characteristics influencesustainability assurance quality?”. The findings from the study are analyzed through the shareholder-stakeholder theory, legitimacy theory, agency theory and the resource dependency theory. The shareholder-stakeholder and legitimacy theory are used to analyze the audit committees role as a governance function and the agency and resource dependency theory are applied to the different characteristics. This quantitative study includes data from the top 100 publicly listed companies in Sweden with a separate audit committee appointed by and amongst the board. The study uses observations from the fiscal year 2021, with data collected through content analysis. This thesis is conducted under a positivist paradigm, with a deductive approach. The data is tested through OLS regression, and the analysis is conducted with grounds in previous literature and theory. The results of this study are in some respects in line with a previous study but has also found differing results. Companies with audit committees with at least one member with industry expertise are more likely to have higher quality assurance on their sustainability report. Apart from the previous study, this study did not find a significant relationship of the independence and meeting frequency of audit committees. A significant relationship was neither found to the gender diversity, size, or experience of audit committees. Therefore, the authors can conclude that the research question is answered and that the results indicate that the audit committee may not be the best explanatory basis for the quality of sustainability assurance.

Abstract   Background: With the heightening pressure of climate change, the public as well as the corporate world calls for leaders that can drive sustainable development, hence tackling the challenges to come. Companies are facing growing pressure from both internal and external stakeholders to adopt sustainable practices. As a consequence, the question arises as to whom is the most suitable for such challenges. The presence of female leaders in corporate settings have shown to increase sustainable performance within companies. However, what actual role female leaders play in enabling such performance remains subdued. Purpose: The purpose of this thesis is to study what role female leaders play in sustainability strategy processes.  Method: This study is conducted through qualitative case study methods, using primary data collected from interviews with female leaders of Swedish companies.   Conclusion: The results identified that female leaders play different roles in the sustainability strategy process. The roles identified in the study are Carer, Responsibility Taker, Equality, Enabler and Motivator which are collectively conceptualized as Holistic Trustee meaning; Someone who includes all perspectives and components into their assessment, so that decisions made, enables development while preserving resources of coming generations. In such role, the female leader bridges the organizational level and individual level of her company and provides her employees with a bigger purpose in their “day-to-day” operations. The role as a Holistic Trustee broadens the understanding of leaders` importance in sustainability and draws attention to female traits that are naturally suited for a sustainable leadership.

The Doughnut Economy integrates social and environmental sustainability into one holistic model. As sustainability becomes more relevant for multinational corporations, it is crucial to explore the possibilities of the Doughnut Economy as a tool for enhancing and visualising corporate sustainability efforts. Therefore, this study examines how multinational corporations' sustainability strategies align with the Doughnut Economy model and explores potential challenges and stakeholder benefits of alignment. Moreover, this interpretive study adopts an inductive approach, employing an exploratory and explanatory case study to contribute to existing theory and practice. Gathering qualitative data through semi-structured interviews with sustainability managers at Husqvarna Group, complemented by the company's 2022 sustainability report as secondary data. Next, thematic analysis was used to analyse the empirical findings, providing a comprehensive understanding of patterns and themes. Overall this study concludes that strategic alignment with the Doughnut Economy enables multinational corporations to enhance sustainability efforts and enables stakeholder benefits. Additionally, there are challenges of alignment due to the Doughnut Economy model’s complexity and limited stakeholder knowledge, however, investments in education and stakeholder engagement can address these challenges. By embracing the suggested strategies and overcoming identified obstacles, multinational corporations can strengthen their alignment with the Doughnut Economy, contributing to a sustainable future.

Swedish firms have become increasingly accountable for their impacts on the economy, society, and environment. Since the year 2016, Corporate Sustainability has emerged as a relatively new phenomenon forcing SMEs that meet certain criteria to report annual sustainability metrics. However,sustainability reporting has not yet become standardized. Previous literature acknowledges the importance of sustainability orientation for the firm and the managers’ role in developing a general understanding of how sustainabilitypractices add value to the firm. Moreover, the particular organizationalpractice of sustainability reporting is still immature and have scarcely been attended by contemporary literature.  This study aims to develop an understanding of how sustainability reporting practices look like in the firm, and whether sustainability reporting practiceshas affected today’s innovation management. To answer the research questions, a mixed research method were chosen with an inductive approach.Three kinds of data was collected and analyzed – sustainability reports, survey, and firm-level interviews – in a step-wise manner to explore the complexities of sustainability reporting practices and its’ impact on firms’ innovation management.  In this study, we found that there are complexities in establishing clear routines in the sustainability reporting practices due to the multiple internal and external actors involvement, and because of knowledge gaps within the firm. In addition, sustainability reporting practices positively impactinnovation management through the building of general awareness, or even culture towards sustainability. In turn, this has boosted the firms’ creativity in sustainable innovations. Moreover, sustainability reporting practices impact New Product Development in particular, through stakeholder engagement in reporting the contents included in the sustainability reports.  This study contributes to an updated understanding of Sustainability Reporting practices in general and its’ role in Innovation Management in particular. The adoption of sustainability reporting transfer activities that are intertwined and embedded with organizational- and managerial perspectives when pursuing alignment of Corporate Sustainability in an already complex system. Therefore, we conclude that sustainability reporting is vital indeveloping stakeholder engagement for firms aiming at incorporating sustainability practices. Moreover, this subsequently influences the outcomes in New Product Development.

This paper investigates the key corporate sustainability performance indicators from the consumers' perspective in Sweden. The aim is to deepen the understanding of consumers as main stakeholders and their preferences for corporate sustainability. An online quantitative survey with 1003 respondents showed that fair working conditions and employment terms were the most important indicators, followed by strong sustainability requirements for suppliers and actions in case of human violations. Furthermore, the research results show that young and better-educated consumers rank environmental parameters as a more important indicator. The research contributes to CSR and stakeholder theory in better understanding the consumers’ perspectives on corporate sustainability.

Stakeholder engagement is considered, by both researchers and practitioners, an increasingly important aspect of corporate sustainability, and it is argued that companies should work together with their stakeholders to address the substantial social and environmental challenges ahead. Because of its importance, scholars within stakeholder theory and corporate sustainability have called for more research on how stakeholder engagement is conducted. This thesis, based on interviews with sustainability executives representing 18 Nordic companies, explores how companies work to engage stakeholders in their sustainability work. The study indicates that stakeholder engagement is an important part of the companies’ sustainability work, and that the companies are dependent on working together with stakeholders. It also highlights that even though stakeholder engagement occurs on a range of different levels, from one-way communication to strategic collaborations, education and information sharing efforts appear to be the most common. The companies in the study advocate for engaging with all stakeholders, but three stakeholder groups are considered particularly important due to their impact on the companies: customers, investors, and employees. Finally, transparency, openness, and listening are considered important success factors for stakeholder engagement, whereas lack of resources is seen as the overarching challenge.

Yes / Despite the importance of firms' strategy in corporate sustainability (CS), insufficient research has focused on the role of business strategy in the relationship between CS and firm performance. Focusing on generic business strategy, this study examines when and under what conditions CS relates to firm performance. The main argument is that the effects of CS on firm performance are contingent on the firm's business strategy. The findings present that CS strengths are positively related to firm performance when firms pursue a differentiation strategy. Meanwhile, CS concerns are negatively associated with firm performance when firms operate with a differentiation strategy. Empirical evidence is obtained from a sample of U.S. firms and fixed effects panel regression models, which controls for unobservable time-invariant factors that are correlated with covariates. This study contributes to the literature on CS and firm performance by suggesting business strategy as an important moderating condition in the CS-firm performance link.

As required by the Corporate Sustainability Reporting Directive (CSRD) of the European Union, this thesis thoroughly examines the transition in corporate sustainability reporting from limited to reasonable assurance. The directive is being implemented at a crucial time as companies are progressively incorporating environmental, social and governance (ESG) factors into their core operating and reporting practices. The CSRD is intended to improve sustainability disclosures’ comparability, credibility and reliability. It is a legislative response to a larger movement for more corporate accountability and transparency. The study uses a qualitative technique using semi-structured interviews with professionals from leading audit firms. The purpose of these interviews is to provide many aspects of the transition with a particular emphasis on how businesses and audit firms are modifying their operations to comply with the stricter requirements of the CSRD. The study identifies the main factors behind this shift such as increased stakeholder demands for transparency and a changing regulatory environment that makes it necessary to reevaluate current assurance practices.  The study’s important conclusion is that putting reasonable assurance requirements into practice is difficult. Companies must create advanced data management systems that can handle the CSRD’s requirements for an increasing volume of information. In addition to ensuring data accuracy, these systems need to make it easier to analyse and report on the data in a way that complies with the new assurance standards.  Additionally, the shift needs a major improvement in auditor competencies. It is necessary for auditors to have a better understanding of both traditional financial auditing and the specific challenges presented by sustainability reporting. This includes having a thorough understanding of ESG factors and how they affect risk profiles and corporate performance. Hence, the CSRD acts as a catalyst for a significant shift in auditors’ professional development and training, emphasising the necessity to combine sustainability with financial auditing skills.  Strong internal controls are also important, as the research shows. Establishing and maintaining strict internal mechanisms is necessary for businesses to ensure the reliability of their sustainability reports. This involves a thorough review and a redesign of internal processes in order to meet the higher standards of reasonable assurance. These controls are essential for reducing the risks associated with sustainability reporting such errors or misrepresentations which can have a big influence on stakeholder trust and regulatory compliance.  This change has significant implications for society at large. Companies may give stakeholders more reliable and detailed disclosures about their sustainable practices by shifting toward reasonable assurance. This can have a big impact on investment choices and build stakeholder confidence. This shift promotes a more transparent and sustainable corporate environment by supporting the incorporation of ESG factors into core business strategies and by strengthening the credibility of sustainability reports.

Background: In an evolving business landscape, the need for regulations has emerged to foster sustainable business. To ensure that firms are held accountable, the Corporate Sustainability Reporting Directive (CSRD) entered into force in January 2024, encompassing approximately 50,000 firms across Europe. This directive expands upon previous legislation in all conceivable metrics, and has put affected firms under significant pressure, posing implications for organizational change arising from the extensive implementation. Purpose: The purpose of this study is to identify what actions firms are taking to comply with the Corporate Sustainability Reporting Directive and explore how their actions impact their organizational structure. Method: The study was conducted through a qualitative method including semi-structured interviews with eight participants, including HR Managers, Sustainability Managers, and Consultants. Conclusion: The study reveals that the effects on the organizational structure of firms as a consequence of the CSRD primarily involves incremental change. Efforts of coordinating across departments, allocating tasks and establishing supervisory functions emerges as core challenges when transitioning to CSRD compliance. These, in turn constituting structural changes in specialization, functional flexibility, formalization and standardization to accommodate new procedures necessitated by the CSRD. The analysis further highlights the expansion of middle management, support staff and technostructure, as a result of organization wide collaboration.