In our qualitative master thesis, we explore theories on sustainability in levels, ranging from very weak to very strong. We integrate academic theories with corporate perspectives to provide representatives in the corporate world with an alternative way of conversing and engaging mainly in strong sustainability. The purpose of this paper is to contribute to a richer understanding of what corporate sustainability can be in practice. Our study is a collaboration with business leaders, designers, sustainability professionals and students. Using Design Science Research as an overarching framework for our method, we conducted interviews, focus groups and a survey. The academic theories and the insights from our data were then translated into a visual and verbal co-creation of an artefact (as it is called in Design Science Research). Wording and visualisations are inspired both from the corporate and the academic world. The artefact is intended to be a conversation starter which is hoped to lead to a shift in the strength with which companies work with sustainability, guided by an ecological case for business.

The new sustainability directive Corporate Sustainability Reporting Directive [CSRD] isdescribed as the biggest thing that has happened since International Financial ReportingStandards [IFRS] was implemented in the reporting world. A watered-down Non-FinancialReporting Directive [NFRD] will be given new strength through CSRD, which entails higherand stricter requirements for reporting companies to report sustainability information to, amongother things, improve comparability and credibility, and as a step on the way to equatingsustainability reporting with financial reporting. A common way of explaining CSRD at theagency is "GRI on steroids" as a synonym for the higher and more comprehensive requirementsof the directive.This study has been carried out as a case study and aims to create an understanding of auditfirms' perceptions regarding the new sustainability directive CSRD and how they prepare forimplementation. But also, how audit firms are involved in the interpretation and design of thedirective. More precisely, the study has been carried out as a case study of the audit firm KPMG.The purpose of the study has been achieved by first carrying out text analysis which consistedof, among other things, EU documents regarding CSRD, web pages and newspaper interviews.In addition to text analysis, an observation was also carried out which consisted of a webinarfrom European Accounting Association [EAA]. Finally, six interviews were conducted withsustainability experts from KPMG who have extensive knowledge in sustainable business andwho work proactively in the field. Institutional theory has been combined with the threedifferent methods to be able to produce analyses regarding agencies' perceptions about thedirective.In conclusion, the study demonstrates the impact of institutional pressures where there arepressures from different market players pulling in different directions. The institutionalpressures, which are exerted by for example the reporting companies, their stakeholders, andaudit firms, reflect the different players’ interests. Because of these pressures, KPMG needs toadapt its operations to the new directive in order to remain competitive on the market. KPMGis also involved in shaping what the final draft of the directive and the new standards will be,as they are part of the Förenade Auktoriserade Revisorerna [FAR] and the European FinancialReporting Advisory Group [EFRAG] that work to develop and interpret the directive. Becauseof this and the size of the firm, KPMG is able to exert pressure on the standard setters to shapethe final draft of the CSRD in accordance with KPMG’s interests.

[pt] O objetivo deste trabalho foi desenvolver recomendações para que a Penco Móveis SA possa integrar a sustentabilidade de forma estratégica nos seus negócios. As empresas não apenas enfrentam pressões crescentes para se engajar com os desafios socioambientais atuais, mas também têm a oportunidade de criar valor atendendo às necessidades da sociedade. Este estudo de caso investigou o contexto competitivo, os temas relevantes para o setor da companhia e o posicionamento de seus concorrentes. Além disso, as práticas da companhia foram mapeadas e analisadas por meio de diferentes metodologias para compor um diagnóstico que orientou as recomendações. Concluiu-se que é relevante para a Penco desenvolver um plano de ação abrangendo três pilares: desenvolvimento de competências internas e cultura para a inovação, engajamento externo e atendimento de demandas atuais da sociedade. / [en] The objective of this work was to develop recommendations for Penco Móveis SA to strategically integrate sustainability into its business. Companies not only face increasing pressures to deal with current socio-environmental challenges but also have the opportunity to create value by addressing societal needs. This business case study investigated the competitive context, relevant topics for the company s sector, and its competitors. Furthermore, the company s practices were mapped and analyzed through different methodologies to build a diagnosis that guided the recommendations. It was concluded that it is relevant for Penco to develop an action plan encompassing three pillars: the development of internal competencies and a culture for innovation, external engagement, and meeting current societal demands.

The need to transition the global economy to net zero greenhouse gas emissions is clear. Commitments made by the majority of the world’s governments declare that a global net zero economy should be achieved by the middle of the century. What is less clear is how this transition should take place, or how these commitments impact companies. This paper explores senior management perspectives on a net zero transition, identifying drivers, enablers, and barriers to transitioning effectively. In line with Kurt Lewin’s work, we collectively refer to these as forces. Through 11 in-depth interviews and a quantitative survey to managers across several industries and geographies, we identify, rank, and visually conceptualise 26 forces that act on companies in the context of a net zero transition. The strongest driving force is ‘Societal awareness of climate change and net zero targets’, while the biggest current constraining force is ’Business priorities’. The force considered to have the single biggest potential impact is ‘government disincentives and bans’. Based on the collective analysis of our findings, there are possible policy implications that could be explored further in order to successfully manage a transition to net zero.

The consolidation of corporate ownership into the hands of large institutional investors has resulted in growing expectations that actors in the financial system should leverage their positions of ownership to improve corporate sustainability. In other words, institutional investors are expected to take a greater responsibility for the transition towards a greener economy by becoming active owners. However, active ownership is not a uniform concept. Instead, the term can imply many different strategies and tools, raising questions of how investors become active owners in a way that yields maximum influence while economizing their resources. Among all the tools investors have available, shareholder engagement through dialogues is suggested to have many advantages. However, previous research has not provided a clear-cut account of the mechanisms by which shareholder engagement through dialogues unfold successfully. Therefore, this thesis aims to contribute to the understanding of when and how engagement dialogue becomes a powerful tool for shareholders in order to improve corporate sustainability. The study is performed in the context of actively managed equity funds, with interviews from both funds and companies. In order to understand how actively managed equity funds can effectively leverage their ownership through engagement dialogues, the focus of this study has been twofold. First, the research has focused on understanding how the internal structures within funds should be designed to support the engagement process. Second, the research has focused on pinpointing the mechanisms that make engagement dialogue between Swedish equity funds and their portfolio companies successful. This has resulted in the development of three frameworks, aiming to facilitate funds to make conscious decisions regarding how they work with shareholder dialogues. / Aktieägare har en nyckelroll när det kommer till att påverka bolag till att ställa om till en mer hållbar verksamhet genom att praktisera ett aktivt ägandeskap. Att vara en aktiv ägare kan dock betyda många olika saker, och investerare kan använda sig av en uppsjö av olika strategier och verktyg. Därmed väcks frågan hur investerare praktiserar ett aktivt ägandeskap så effektivt som möjligt. Bland de verktyg som investerare har tillgängliga för att bedriva aktivt ägande så föreslås påverkansarbete genom dialog ha många fördelar. Tidigare forskning har dock inte fullgott redogjort för de mekanismer som gör att investerares påverkansarbete genom dialog blir framgångsrikt. Mot den bakgrunden så är syftet med den här uppsatsen att fördjupa förståelsen för hur påverkansdialog blir ett kraftfullt verktyg för investerare när de försöker påverka företag till att bli mer hållbara. Studien har genomförts i den svenska kontexten med fokus på aktivt förvaltade aktiefonder. Genom intervjuer på både investerar- och företagssidan har studien rörts sig i interaktionen mellan fonder och dess portföljbolag. För att förstå hur aktivt förvaltade aktiefonder kan få inflytande genom påverkansdialoger har studien haft ett tudelat fokus. Fokus har legat på att försöka förstå dels hur interna strukturer bör utformas för att stötta påverkansdialoger på bästa sätt, och dels på vilka mekanismer och kritiska faktorer som behövs för att påverkansdialoger ska bli framgångsrika. Detta har mynnat ut i tre ramverk som alla syftar till att underlätta för fonder att göra medvetna val kring hur de arbetar genom påverkansdialoger

The rapid increase in the adoption of global sourcing practices that took place in 1980’s led to significant transformations in traditional value chains, which were encompassed by single, vertically integrated organizations, and became globally dispersed networks of independent buyers and suppliers, where each of these firms performs specific value-adding activities that will ultimately result in that value chain’s final output. As concerns over the negative social and environmental impacts caused by industrial activity continue their rise to prominence, stakeholders are starting to realize that the changes through which value chain structures underwent have shifted the locus of corporate sustainability from individual focal firms to entire supply networks. This wider scope of stakeholder expectations has, thus, created a necessity for corporate sustainability initiatives to be diffused to all members of the supply network. Chapter one constitutes a theoretical investigation of the strategic relevance of corporate sustainability diffusion in global supply networks for both focal and non-focal firms within global supply networks, as well as the determining factors of a firm’s capacity to diffuse and performance in diffusing corporate sustainability within its supply network? The theoretical contributions of this study are divided into two parts. The first part seeks to establish a more solid cause and effect relationship to explain why firms that are more highly exposed to stakeholder scrutiny (i.e. focal firms) should necessarily face a higher risk of being held responsible for the sustainability-related misconducts of lesser exposed members of the network (i.e. supplier sustainability risk). The first part also proposes an expansion of the dichotomous categorization of corporate sustainability initiatives as either mandatory or voluntary, to add what we termed: semi-voluntary corporate sustainability initiatives. This addition serves to explain why certain firms adopt non-mandatory corporate sustainability initiatives, which apparently destroy shareholder value. We argue that this distinction is important because cases concerning semi-voluntary initiatives are likely to involve higher levels of supplier sustainability risk. In part two of the theoretical development we introduce a theoretical framework to explain the existing heterogeneity among different firms within a supply network in regards to their ability to implement the diffusion of corporate sustainability initiatives in the network (i.e. network dominance) and propose that it results from the interaction among three network-related firm characteristics: relative resource value, resource substitutability, and relative network position. Lastly, we discuss why higher levels of network dominance increase the likelihood that firms will be able to ensure a high level of corporate sustainability diffusion in the network. Chapter two aims at empirically testing a set of hypotheses derived from the propositions put forth in the second part of chapter one’s theoretical development Therefore, it seeks to answer questions, such as, who is responsible for ensuring that all network members meet the necessary corporate sustainability standards in order to adequately fulfill the demands of stakeholders? Why do some firms engage in corporate sustainability and others do not? What contributes to the effective diffusion of corporate sustainability in a supply network? These hypotheses are tested on a sample of 10,728 firms in the automotive sector, linked by 45,044 inter-firm relationships. Strong support for our hypotheses provides both researchers and managers with an interesting discussion of how this emerging business paradigm, where corporate sustainability is becoming the norm and no longer the exception, may have significant implications on how value chains are structured within this sector. / Business Administration/International Business Administration

This thesis aims to investigate the attitudes of several Swedish stakeholders towards regulating the business sector from a sustainability perspective. Focusing on the European Union's Corporate Sustainability Reporting Directive (CSRD), the study furthermore aims to examine the stakeholder’s positions on supranational versus national regulation of the business sector. By examining the early stage of Swedish implementation of the EU's CSRD directive, the study aims to contribute new empirical evidence to research in Corporate Social Responsibility and national implementation of supranational regulations. The study also aims to provide additional empirical support for current theories on stakeholders' attitudes toward national implementation of supranational regulations with CSR in mind. What are the perceptions of Swedish political parties, businesses, and environmental organizations regarding the growing standardization and supranational regulation of business introduced by the EU's new directive CSRD? Utilizing a qualitative method, viewpoints from the stakeholders were examined and compared to each other. Findings reveal that left-leaning parties are generally more favorable towards the EU directive compared to right-leaning counterparts. While the business sector demonstrates some acceptance of increased regulation, companies continue to prioritize profit maximization despite potential shifts toward climate-conscious practices. Environmental organizations exhibit nuanced viewpoints, expressing reservations about the directive's efficacy in achieving climate goals. The conclusions suggest a shift in the landscape of resistance to EU influence in Sweden, with right-wing populist parties and environmental organizations emerging as key players rather against supranational business regulation. Thus, the business sector might be viewed as more climate-conscious than expected.

Climate change is upon us and the European continent is striving towards reaching the goals set up throughout the EU-green deal, the overarching transitioning plan for Europe to reduce its emissions by 55% by 2030 and net zero emissions by 2050. One of the newest frameworks to facilitate this change is the corporate sustainability reporting directive. The directive affects big companies and is written in such a way that the coverage of the scope is gradual, so today only listed firms are covered. This research investigates how companies not yet covered by the directive adapt their communication and efforts to align with the directive. It does this by studying the aim: This report aims to explain motives for small and unlisted companies while communicating their corporate social responsibility reporting. The overall objective of the project is to understand their communication and connection to the CSRD- and hence how they prepare for new environmental legislation. It will do this by looking into four IT and consultancy firms based in Stockholm where marketing material as well as sustainability reports has been viewed. The research was done with a flexible design and builds on a literature review covering CSR historic communication, legitimacy theory, Stakeholder theory, and the Triple bottom line, altogether constructing the conceptual framework. The results show that companies communicate by sense giving characteristics in a one-way fashion. Business should involve their stakeholders more in their communication, enabling them to be fast movers concerning the CSRD as well as by competitive reasons. It also shows the value of including external stakeholders. The results also show that companies' communication is focused on the social aspects of sustainability, it is misplaced in focus, and to communicate in line with the CSRD they should communicate emissions as well as anti-corruption, equality, and employee rights. Even though unnoted companies are not covered, there are clear advantages of reporting in line with the directive.

The European Union entered into force the Corporate Sustainability Reporting Directive (CSRD), which represents a comprehensive framework to enhance transparency and accountability in corporate sustainability reporting. The study focuses on the organisational change processes and attitudes activated in the companies by the implementation of mandatory sustainability reporting under the CSRD. The study aims to provide insights into the practical adoption of the CSRD from an organisational change perspective. While prior studies have concentrated on more isolated aspects of CSRD implementation, this paper offers a holistic outlook on the entirety of the change processes involved. To achieve the goal, nine semi-structured interviews were conducted with sustainability professionals representing various organisations that are obligated to report under the CSRD in 2025 and 2026. This study develops an analytical framework combining Corporate Social Responsibility theory and Organisational Change frameworks. The results indicate that the CSRD serves as a catalyst for organisational change in all companies, regardless of their prior reporting practices. In managing this change, companies have to integrate sustainability and market concerns into their strategies.

Thesis (MPhil)--Stellenbosch University, 2013. / ENGLISH ABSTRACT: In recent years, a great deal of attention has been paid towards the notion of corporate sustainability, which has variously been defined as meaning the incorporation of social, environmental, economic, and cultural concerns into corporate strategy and bottom line. The preliminary investigation suggests that Multi-National Corporations (MNCs) are mainly worried about securing permission for commencing operations and not about the wellbeing of locals and their livelihoods. Further to this, one of the main reasons why efforts aimed at improving sustainability are not yielding significant and lasting results, is that solution seekers in business, science, government and the research community are still operating in the same old paradigm of using basically the same tools and adopting the same world view that threaten sustainability in the first. The key and clear research objectives of this study are:- to ascertain if there is a link between British American Tobacco Zimbabwe (BATZ) top management philosophy, corporate strategy and the company`s corporate sustainability programmes, initiatives and other efforts, and the various stakeholders, and, if so, how these are communicated to them; to establish the degree of integrating sustainable development practice and initiatives into the BATZ business model in order to have long term benefits for both the company and its various stakeholders - these are an integral part of the socio-ecological system, and will help the business understand the resilience of the system and where in the system they should operate; to establish the depth, scope and culture of sustainability in terms of the extent to which they inserted inside (embedded) the BATZ operations; and to ascertain the level of economic, social and environmental effects of BATZ`s corporate sustainability programmes and initiatives in the locality in which it operates. The research used focus group and key informant discussions, one-on-one interviews, and to a limited extent a semi-structured research questionnaire. Information was also accessed from company internal information management portals, and BATZ’s group sustainability and other reports. The conclusion was that renewable energy programmes at BATZ were driven by energy insecurity and scarcity. Currently BATZ is not recycling water used in cigarette manufacturing operations, waste recycling of cut-rag tobacco has been occurring, and BATZ will continue to provide agronomic support to small scale farmers under its Social Responsibility in Tobacco Programmes (SRTP) towards leaf sustainability. The Rocket Barn concept is one of the most innovative intermediate technological breakthroughs meant for improving wood fuel efficiency in tobacco curing. Socially BATZ has done some good works in addressing some of society’s key challenges. There have been benefits for key corporate stakeholders in having BATZ operating in Zimbabwe. The research will assist BATZ to fully understand the socio-ecological system in which it operates; a fundamental understanding to improve corporate sustainability, which will then require a shift in sustainability-oriented efforts. / AFRIKAANSE OPSOMMING: Die idee van korporatiewe volhoubaarheid het die afgelope klompie jare baie aandag geniet. Wyd gesien, kom definisies neer op die insluiting van maatskaplike, omgewings-, ekonomiese en kulturele ondernemings in basiese korporatiewe strategieë. Die voorlopige ondersoek stel voor dat MNK’s wel gemoeid is met die verkryging van toestemming om bedrywe te stig, maar nie juis die welsyn en dag-tot-dag-belange van die plaaslike gemeenskap op die hart dra nie. Volgens (Fiksel 2003) en Du Plessis (2008) is een van die hoofredes waarom pogings om volhoubaarheid te verbeter nog nie betekenisvolle en blywende resultate gelewer het nie, die feit dat die mense betrokke by sake-ondernemings, wetenskap, die regering en navorsing wat na oplossings soek, nog geen paradigmaskuif gemaak het wat hul denkpatrone betref nie. Hulle gebruik steeds dieselfde uitgediende gereedskap en huldig nog dieselfde wêreldsienings wat volhoubaarheid in die eerste plek bedreig het. (Fiksel, 2003, Du Plessis, 2008, Hayward et al 2010). Die doelwitte van die navorsing is: om uit te vind of daar ’n skakel is tussen die filosofie en korporatiewe strategie van BATZ-hoofbestuur en die maatskappy se volhoubaarheidsprogramme, inisiatiewe ens; om te bepaal in watter mate volhoubare ontwikkeling en volhoubaarheidspraktyke en inisiatiewe geïntegreer word in die BATZ-korporatiewe model, om impak vas te stel en die kultuur van volhoubaarheid binne BATZ-bedrywe te bepaal. Die navorsing het gebruik gemaak van fokusgroepe, van sleutelbesprekings deur ingeligte persone, een-tot-een-onderhoude en in enkele gevalle selfs van gestruktureerde vraelyste. Toegang tot inligting is ook verkry deur middel van ‘n maatskappy se interne inligtingsbestuursbronne, BAT-groep-volhoubaarheids- en ander verslae. Die gevolgtrekking is dat hernubare energieprogramme afgedwing is op Batz deur die onsekerheid oor en die gebrek aan energie. Tans word water wat in sigaretbedrywe gebruik word nie deur BATZ herwin nie, maar afval van “cut-rag” tabak word wel herwin, en BAT Zimbabwe sal voortgaan met agronomiese ondersteuning aan kleinskaalboere kragtens sy Maatskaplike Verantwoordelikheid t.o.v. Tabak Programme (MVTP) vir blaarvolhoubaarheid. Die “Rocket Barn-”konsep is een van die innoverendste intermediêre tegnologiese deurbrake om die effektiwiteit van houtbrandstof by die droogmaak van tabak te verbeter. Op maatskaplike vlak het BATZ Zimbabwe goeie werk gedoen deur enkele uitdagings van die gemeenskap die hoof te bied. Die feit dat BAT in Zimbabwe werksaam is, was tot voordeel van korporatiewe belangstellendes. Die navorsing sal BATZ help om die sosio-ekologiese stelsel waarvolgens dit bedryf word, ten volle te verstaan, en om korporatiewe volhoubaarheid te bevorder, wat dan ‘n kopskuif ten opsigte van volhoubaarheidsgeöriënteerde pogings sal vereis.