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Sustainability Disclosure and the Financialization of Social Sustainability

Author

Listed:
  • Woschnack Daniela

    (University of Jena, Sociology of Markets, Organizations and Governance, Bachstrasse 18k, 07743 Jena, Germany)

  • Hiss Stefanie

    (University of Jena, Sociology of Markets, Organizations and Governance, Bachstrasse 18k, 07743 Jena, Germany)

  • Nagel Sebastian

    (University of Jena, Sociology of Markets, Organizations and Governance, Bachstrasse 18k, 07743 Jena, Germany)

  • Teufel Bernd

    (University of Jena, Center for Teaching and Learning, Carl-Zeiss-Platz 1, 07743 Jena, Germany)

Abstract

This empirical study explores the financialization of social sustainability driven by sustainability accounting and reporting initiatives (SARIs). Since no globally accepted definition of what social sustainability encompasses exists, the paper asks how social sustainability is translated into the financial market language by SARIs as they provide standards for disclosing corporate non-financial performance and promote their concepts of social sustainability. The paper uses a two-step qualitative content analysis. First, it operationalizes social sustainability based on the empirical data of six sustainability rating agencies. Second, this operationalization is compared with the concepts created by three SARIs. The paper shows significant differences between the concepts of the SARIs and the rating agencies. While the rating agencies altogether interpret social sustainability with 83 distinct aspects, the SARIs, although differently created, use significant reduced concepts where 20% of these aspects are absent. The result of this financialization process could be a simplified and financially determined concept of social sustainability within die socially discourse. The research is limited to social sustainability and its financialization by SARIs. Individual indicators and their way or intensity to capture aspects of social sustainability were not part of the research interest. Further research should investigate the economic and the ecological pillars of sustainability as well as the usage of such financialized concepts within the society and especially by corporations. The paper unfolds the arbitrariness of operationalizing a qualitative phenomenon like social sustainability through the financial system. It discloses the need for looking at the mechanisms behind such processes and at the interests of the actors behind the frameworks. The paper reveals the financialization process driven by SARIs and demonstrates its simplifying effects on the concept of social sustainability. Furthermore, the paper shows that SARIs as metrics for non-financial aspects are troubled with a lack of transparency and a lack of convergence.

Suggested Citation

  • Woschnack Daniela & Hiss Stefanie & Nagel Sebastian & Teufel Bernd, 2024. "Sustainability Disclosure and the Financialization of Social Sustainability," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 14(3), pages 339-367.
  • Handle: RePEc:bpj:aelcon:v:14:y:2024:i:3:p:339-367:n:1001
    DOI: 10.1515/ael-2018-0053
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    More about this item

    Keywords

    social and environmental accounting; social and environmental reporting; sustainability disclosure; financialization; social sustainability;
    All these keywords.

    JEL classification:

    • Z - Other Special Topics
    • Z1 - Other Special Topics - - Cultural Economics
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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