Reconsidering financial reporting from the perspective of corporate social and environmental responsibility. Romanian companies’ approach

Abstract

Abstract Purpose This study analyses the scope of social and environmental reporting from the perspective of integrating it in financial reporting and comments on a new approach regarding the presentation of social and environmental information in the annual reports from Romanian companies’ perspective. Methodology A literature review introduces and justifies the second part of the research. The latter is organised as an exploratory study based on interviews. It presents the current state of Romanian companies’ availability for reconsidering financial reporting from the perspective of corporate social responsibility. Findings While social and environmental involvement of Romanian companies is at an early stage, there is a basis for future development of corporate reporting by addressing social and environmental aspects. We noticed that companies have the tendency of responding rather to a mandatory framework than a voluntary one. Research limitations The limitations of the research are linked to the study population. The small number of Romanian companies that publicly manifest interest for social responsibility determined the choice of a qualitative instead of a quantitative research. Social implications The exploratory study based on the case of Romania accompanies the present state of non-financial versus financial reporting in order to highlight measurable and non-measurable, but relevant, information to be considered in a future reporting framework. Originality of the chapter The study advances new lines in accounting research by confronting the national and international perspectives of social and environmental reporting. Debates and arguments on the research results add value and utility to the research.