The purpose of this study is to explore if small businesses have the resources and competenciesto adopt corporate sustainability reporting directives at their current status. The theoreticalframework within the study was built by different concepts such as physical resources, financialresources and competencies, human resources and competencies, and organizational support.Qualitative research was chosen to be able to explore the study's nature. Semi-structuredinterviews were made to gather data that supported the aim as well as the objective. The fivesmall businesses that were included from the purposive sampling gave insights on whatresources and competencies they had to adapt CSRD.To be able to find the core categories, coding was used and inspired by grounded theory. Thecore categories that came forward were databases, sustainability knowledge, operationalefficiency, and organizational policies. The sampled data was analyzed together with thetheoretical framework to be able to answer the research question of the study. The analysiswithin the study gave the reader an understanding of whether small businesses have the neededresources and competencies to adopt CSRD. In conclusion, at the current status, small businessesdo not have the resources and competencies to adopt CSRD. However, by addressing these gapsan adoption of CSRD can be successfully implemented and enhance their sustainabilitypractices.

Revisorer beskriver Corporate Sustainability Reporting Directive (CSRD) som det största som någonsin hänt inom revisionsprofessionen. Klimatförändringar är något som inte går att blunda för i dagsläget utan alla måste agera för att vända den pågående förödande trend i världen. Europaparlamentet fattade beslut att införa CSRD för att EU ska bli den första kontinenten att bli klimatneutrala, vilket är EU:s gröna giv. Tidigare har stora företag i EU omfattats av Non-Financial Reporting Directive (NFRD) men kraven på vad företag måste rapportera har varit nästintill obefintliga, vilket resulterar i att många företags hållbarhetsrapporter kan klassas som greenwashing. CSRD syftar till att öka transparens, jämförbarhet och kvalité för hållbarhetsrapporter då det nya direktivet är betydligt mer omfattande än NFRD. Företag som omfattas av det nya direktivet ska nu rapportera hur de hanterar miljö, socialt och bolagsstyrning för att öka jämförbarhet och trovärdigheten. Rapporter omfattas enligt CSRD även av lagstadgad revision vilket innebär att auktoriserade revisorer ska utföra oberoende granskning för att öka trovärdigheten för intressenter.  Syftet med studien är att med utgångspunkt i skandinavisk institutionell teori identifiera hur det nya direktivet för hållbarhetsrapportering översätts hos en revisionsbyrå samt skapa en förståelse för vilka utmaningar dessa förklaringar ger uttryck för. Intervjuer genomfördes med revisorer för att få en förståelse för hur de ser på direktivet och skapa en bild över hur direktivet översätts i organisationen. Även textanalys av CSRD och statens offentliga utredning om hållbarhetsrapportering genomfördes för att besvara studiens syfte. Resultatet visar att det finns flera olika steg som organisationer går igenom när de implementerar CSRD i revisionsbyrån. Studien identifierar flertalet teman som påverkar översättningsprocessen både internt och externt. Utifrån dessa identifierade teman i empirin framstår tre utmaningar kopplat till översättningsprocessen vilket är tidspress, kompetens och slutkonsumentens makt. / Auditors describe the Corporate Sustainability Reporting Directive (CSRD) as the biggest thing that has ever happened to the audit profession. Climate change is something that cannot be turned a blind eye to and everyone must act to reverse the ongoing devastating trend in the world. The European Parliament decided to introduce CSRD so that the EU can become the first continent to become climate neutral, which is the EU's green Deal. In the past, large companies in the EU have been covered by the Non-Financial Reporting Directive (NFRD), but the requirements for what companies must report have been almost non-existent, which results in many companies' sustainability reports being classified as greenwashing. CSRD aims to increase transparency, comparability, and quality of sustainability reports as the new directive is significantly more comprehensive than NFRD. Companies covered by the new directive must now report how they manage environmental, social and corporate governance to increase comparability and credibility. Reports according to CSRD are also covered by statutory audit, which means that authorized auditors must carry out independent review to increase credibility for stakeholders. The purpose of the study is to identify, based on Scandinavian institutional theory, how the new directive for sustainability reporting is translated at an accounting firm and to create an understanding of the challenges these explanations express. Interviews were conducted with auditors to gain an understanding of how they view the directive to create a picture of how the directive is translated in the organization. Text analysis of the CSRD and the state's public inquiry into sustainability reporting was also carried out to answer the purpose of the study. The result shows that there are several different steps that organizations go through when implementing CSRD in the audit firm. The study identifies several themes that affect the translation process both internally and externally. Based on these identified themes in the empirical work, three challenges appear linked to the translation process, which are time pressure, competence and the power of the end consumer.

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.

As part of the EU’s sustainable strategy in reducing emissions and combating climate change the EU introduced the Corporate Sustainability Reporting Directive (CSRD) in 2022. This directive requires the reporting of sustainability information from a significantly wider group of companies. The CSRD imposes higher demands on reporting and especially within a company’s Scope 3 transportation emissions. The study aims to identify and understand the challenges newly affected companies face in collecting and reporting scope 3 transportation emissions to comply with the CSRD. The study also intends to shed light on the resource and capability gaps that newly affected companies encounter and propose strategies and solutions to address these challenges. The study draws from institutional theory combined with are source-based view of a company to propose a hypothesis that companies face resource and capability gaps due to institutional pressure. The research methodology employed was exploratory multi-method qualitative research. The findings identified how companies, needing to adapt to the CSRD, perceived a regulatory institutional pressure in the form of new and higher requirements and demands now placed on them. In addition the exploration resulted in identification of external challenges, affecting companies ability to comply with the new legalization. Furthermore, internal and supplier challenges were discovered as factors within companies that affect their compliance. These highlighted the presence of resource and capability gaps within companies. In order to close these gaps, the study proposes several strategies and solutions together with a roadmap to address these challenges, ultimately guiding companies towards managing institutional pressures and enhancing their sustainable competitive advantage. Solutions regarding management and strategy as well as tangible operations were identified. These solutions and strategies include developing a sustainability culture within the organization, engaging with stakeholders through collaboration and communication efforts, and implementing technology solutions for data collection and analysis. The study can potentially be utilized by companies to navigate useful solutions when trying to comply with the CSRD. Additionally, the study contributes to guiding companies towards a future position of managing institutional pressure while enhancing their sustainable competitive advantage. Companies are encouraged to shift and transform their viewpoint of complying with the institutional pressure of CSRD from a compliance-focused approach towards a corporate social responsibility-driven sustainable approach with long-term value development. The study thus contributes with a new perspective by highlighting how complying with sustainability reporting can become a tool for advancing corporate responsibility and contributing to a more sustainable development and responsible business landscape.

Från och med år 2024 kommer stora och vissa små/medelstora företag (SMEs) i EU bli hållbarhetsrapporteringsskyldiga enligt det nya EU-direktiv, Corporate Sustainability Reporting Directive (CSRD) (2022/2464/EU). Direktivet medför lagkrav på att företagen som omfattas ska rapportera om deras påverkan på människor, miljö och vilka ekonomiska risker samt möjligheter som kan uppstå till följd av klimatförändringar. Direktivet medför krav på företag att ställa om sina rapporteringsrutiner vilket innebär att de står inför stora utmaningar och implementeringsbarriärer. Denna studie presenterar och analyserar de utmaningar och möjligheter företag kan komma stå inför med det nya rapporteringskravet. Därav lyder studiens forskningsfrågor: Vilka externa möjligheter och hot kan företag tänkas möta till följd av CSRD? Vilka interna styrkor och svagheter kan företag tänkas identifiera till följd av CSRD? Hur påverkar tidigare kommunikation kring hållbarhet organisationens syn på utmaningar som uppstår vid förändringar i hållbarhetsarbete? Studien baseras på intervjuer från ett svenskt företag som omfattas av CSRD, Parks and Resorts (PRS). Intervjusvaren har genomgått en innehållsanalys med ett analytiskt ramverk baserat i SWOT-analys. Analysen visar att informanterna upplever utmaningar med datainsamling, resurser och kommunikation. Mot bakgrund av den tidigare forskningen visar studien att företags rutiner, resurser och befintliga praktiska hållbarhetsarbete hotas under implementeringsfasen. Studien visar att CSRD bidrar med möjligheter för företag att utveckla sitt långsiktiga hållbarhetsarbete, och öka statusen för hållbarhetsfrågor inom företag. Vidare visar studien att företag som har god kommunikation blir mer mottagliga för förändringar i hållbarhetsarbete, då det finns en acceptans, ett redan etablerat kontaktnät och ett hållbarhetsengagemang inom organisationen. Studien bidrar till forskningsläget genom att påvisa utmaningar företag kan uppleva vid implementering av ny lagstiftning, i detta fall CSRD. Studien visar också hur organisationers tidigare kommunikation kring hållbarhet påverkar dess anpassningsmöjlighet till externt pålagda krav som medför förändringar för företaget. Till skillnad från tidigare forskning visar denna studie att jämförbarhet i mätdata upplevs svåruppnått, och därav finns det en risk att CSRD inte uppfyller sitt syfte att öka transparens. / From the year 2024, large enterprises and some small/medium-sized enterprises (SMEs) in the EU will be obliged to report on sustainability according to a new EU directive, the Corporate Sustainability Reporting Directive (CSRD) (2022/2464/EU). The directive sets legal requirements that the companies covered must report on their impact on people, the environment and the financial risks and opportunities that may arise as a result of climate change (European Commission, u.å). The directive requires companies to change their reporting routines, which means that they face major challenges and implementation barriers (Ioannou & Serafeim, 2017). This study presents and analyzes the challenges and opportunities companies may face with the new reporting requirement. Hence the study's research questions are: What external opportunities and threats can companies face as a result of CSRD? What internal strengths and weaknesses can companies identify as a result of CSRD? How does previous communication about sustainability affect the organization's view of challenges that arise from changes in sustainability work? The study is based on interviews from a Swedish company covered by the CSRD, Parks and Resorts (PRS). The responses have been analyzed through content analysis with an analytical framework based on SWOT analysis. When compared to previous research, the study shows that companies' routines, resources and existing practical sustainability work are threatened during the implementation phase of the CSRD. The study shows that the CSRD can contribute to opportunities for companies to develop their long-term sustainability work and increase the status of sustainability issues within companies. Furthermore, the study shows that companies that have good communication become more resilient to changes in sustainability work, as there is acceptance, an already established network of contacts and a commitment to sustainability within the organization. The study contributes to research by identifying challenges companies may experience when implementing new legislation, in this case CSRD. The study also shows how organizations' previous communication about sustainability affects its ability to adapt to externally imposed requirements that bring about changes for the company. In contrast to previous research, this study shows that it is difficult to achieve comparability in climate-data, and hence there is a risk that CSRD does not fulfill its purpose of increasing transparency.

Titel: Motivationer till frivilligt hållbarhetsarbete för SME   Nivå: Examensarbete på̊ grundnivå (kandidatexamen) i ämnet företagsekonomi   Författare: Emelie Bast och William Henningsson Handledare: Asif M Huq  Datum: 2024 – maj  Syfte: Tidigare forskning visar en ökad trend med CSR aktiviteter bland SME trots att lagkraven inte påverkar dem ännu. Den här studien syftar till att undersöka varför små och medelstora företag (SME) engagerar sig i CSR aktiviteter även om de enligt lag inte är skyldiga att rapportera det. Där fokuset ligger på att öka kunskapen hur SME påverkas av CSRD, utifall CSR aktiviteter är ekonomiskt lönsamt för SME och utifall CSR ger långsiktiga konkurrensfördelar.   Metod: Studien utgår ifrån socialkonstruktivismen med ett hermeneutiskt synsätt med en abduktiv forskningsansats. Studien tillämpar en kvalitativ forskningsstrategi, där studiens empiriska data samlats in genom semistrukturerade intervjuer. Där respondenterna bestod främst av ägare bland små och medelstora företag inom Gävle/Sandviken. Studien har analyserat den teoretiska referensramen som baserats på tidigare forskning och det empiriska datamaterialet analyserades utifrån studiens teman. Genom den abduktiva forskningsansatsen har författarna pendlat mellan teori och empiri för att besvara studiens syfte.  Resultat och slutsats: Studien tyder på att SMEs ökade kunskap samt kring CSR och CSRD samt implementering av CSR aktiviteter kan ge potentiella fördelar i verksamheten och samhället. CSR arbete bland SME kan ge en positiv påverkan på interna samt externa faktorer inom ekonomiska, sociala och miljömässiga aspekter.   Examensarbetets bidrag: Studien ger ett teoretiskt bidrag i en ökad kunskap om SMEs motiv samt engagemang till CSR arbete om de inte berörs av lagkrav. Studien ger även ökad information och insikter i SMEs åsikter om CSRD. Studien ger även ett praktiskt bidrag till SME där ökad kunskap samt information kring CSR och CSRD ger en positiv påverkan på verksamheten. Där företag bör implementera CSR arbete där de kan utifrån deras förutsättningar, då det kan ge positiva verkningar i framtiden.  Förslag till fortsatt forskning: Vidare forskning borde fokusera på hur SMEs relation och motiv till CSR kan skilja sig mellan olika branscher samt vilka aspekter som gör att det eventuellt skiljer sig mellan branscher. Vidare forskning bör även replikera denna studie inom några år då CSRD inte riktigt har påverkat SMEs ännu men kommer förmodligen att göra det i framtiden.  Nyckelord: Small and medium-sized enterprises (SME), Corporate Social Responsibility (CSR), Corporate Sustainability Reporting Directive (CSRD), hållbarhetsarbete och motivationer. / Title: Motivations for voluntary sustainability work for SMEs  Level: Bachelor's degree thesis in business administration  Author: Emelie Bast och William Henningsson  Supervisor: Asif M Huq  Date: 2024 - may  Aim: Previous research shows an increasing trend of CSR activities among SMEs even though legal requirements do not yet affect them. This study aims to investigate why small and medium-sized enterprises (SMEs) engage in CSR activities even though they are not required by law to report it. The focus is on increasing knowledge of how SMEs are affected by CSRD, whether CSR activities are economically profitable for SMEs, and whether CSR provides long-term competitive advantages. Method: The study is based on social constructivism with a hermeneutic approach and an abductive research strategy. A qualitative research strategy is applied, where the empirical data of the study was collected through semi-structured interviews. The respondents mainly consisted of owners of small and medium-sized enterprises in Gävle/Sandviken. The theoretical framework of the study, based on previous research, and the empirical data were analyzed according to the study's themes. Through the abductive research approach, the authors have oscillated between theory and empirical data to address the study's purpose. Results and conclusions: The study indicates that increased knowledge and implementation of CSR activities among SMEs can provide potential benefits for the business and society. CSR work among SMEs can have a positive impact on internal and external factors within economic, social, and environmental aspects.  Contribution of the thesis: The study provides a theoretical contribution by increasing knowledge of SMEs' motivations and engagement in CSR work despite not being subject to legal requirements. It also provides increased information and insights into SMEs' opinions on CSRD. The study offers a practical contribution to SMEs, where increased knowledge and information about CSR and CSRD can positively impact the business. Companies should implement CSR activities based on their conditions, as it can have positive effects in the future.  Suggestions for future research: Future research should focus on how SMEs' relationships and motivations for CSR may differ between different industries and what aspects may cause these differences. Further research should also replicate this study in a few years, as CSRD has not yet significantly impacted SMEs but is likely to do so in the future.  Key words: Small and medium-sized enterprises (SME), Corporate Social Responsibility (CSR), Corporate Sustainability Reporting Directive (CSRD), sustainability work and motivations.

Studiens syfte är att undersöka sambandet gällande hållbarhetsredovisningens påverkan på företagens finansiella lönsamhet. Studien tar även hänsyn till branschspecifika faktorer, vilket tidigare forskning saknat. För att besvara studiens syfte har en kvantitativ forskningsmetod använts. Den teoretiska referensramen består av institutionell teori, legitimitetsteori och intressentteori, vilket hypoteserna formulerats utifrån. Studien analyserar hur omfattningen på hållbarhetsredovisningar år 2013 påverkat företagens finansiella lönsamhet år 2014. Företagens finansiella lönsamhet mäts med nyckeltalen ROE och ROA. Studien använde sig utav en regressionsanalys, där de oberoende variablerna var företagens bransch, företagens ålder, balanslikviditet, omsättning samt CSR antal ord. Det empiriska resultatet påvisade att det inte förekom något samband gällande hållbarhetsredovisningens påverkan på företagens finansiella lönsamhet. Studien visade heller inget samband gällande företagens bransch och dess påverkan på företagens finansiella lönsamhet. Studiens frågeställning besvaras således med att det inte finns något samband gällande hållbarhetsredovisningens påverkan på företagens finansiella lönsamhet. Slutsatsen stöds även av studiens kontrollvariabler, företagens ålder, balanslikviditet samt omsättning. Resultatet talar för att vid en regressionsanalys av ROE och ROA skall ingen av de valda variablerna inkluderas i modellen. Resultat skall tolkas med försiktighet. Studien analyserade sambandet under en kort tidsperiod vilket leder till att studien brister i den långsiktiga aspekten. / This study’s purpose is to explore the connection regarding sustainability reports and its effect on corporate financial profitability. This study also takes into account industry-specific factors, which previous research are lacking. A quantitative research method has been used. The theoretical framework is based on institutional theory, legitimacy theory and stakeholder theory, which the hypotheses are founded from. The study analyzes the extent of sustainability reports in 2013 and how it affected the financial profitability in 2014. Financial profitability is measured with the indicators ROE and ROA. The study uses a regression analysis, where the independent variables are the business industry, corporate age, balance sheet liquidity, turnover and CSR number of words. The empirical result indicated that there is no connection regarding sustainability report and its effect on financial profitability. The study didn’t either show a connection regarding the company’s industry and its effect on profitability. The study’s research question is therefore answered with that there is no connection regarding sustainability report and its effect on financial profitability. This conclusion is also supported by the study’s control variable, corporate age, balance sheet liquidity and turnover. The result regarding ROE and ROA indicates that none of the variables should be included. The result should be interpreted with caution. The study analyzes the connection in a short period of time, which leads to the lacking of a long-turn aspect.

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.

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.