Abstract
In this paper we conceptually identify the gap in the literature about lack of business's awareness in non ‐financial activities, especially biodiversity, which can be responsible for crisis like Covid‐19 which can adversely affect the global economy. We recommend approaches to existing business about how to enhance the quality of reporting by considering non‐human element in reporting and making it more comprehensive for the stakeholders. We adopt Actor Network Theory (ANT) and the Natural Inventory Model to support our argument that nature consists of both human and non‐human. From our observation about the Covid‐19 crisis and by consulting the existing relevant literature on CSR, Covid‐19, non‐financial reporting and integrated reports (IR), we propose the implication of non‐financial reporting by companies based on a theoretical framework. We recommend that companies should implement/adopt Circular Economy concept for sustainable business model and report on biodiversity and extinction accounting in more structured and mandatory way via producing IR to create value on short, medium and long terms. This is the first paper to tackle the Covid‐19 crisis and offer solution for future reporting. The findings will add value in the academia and society.
Highlights
The United Nations (UN) mention that there is an immense need to develop a resilient and sustainable all-inclusive global system in the post Covid-19 period (UN.org, 2020)
This research note (1) identifies what changes the business should adopt in their annual reporting (2) Critically discusses the gaps in the extant literature about lack of business's awareness in non-financial activities, especially biodiversity, which can be responsible for a recent crisis like the one generated by Covid-19
The literature cannot capture a holistic view of the usefulness of non-financial reporting. This paper addresses this gap in the extant literature by introducing the Actor Network Theory by identifying the application of the theory during the recovery of the Covid-19 crisis
Summary
There is a high possibility that the companies that managed to survive the adverse impact of Covid-19, were presenting their awareness about the environment before the crisis in their company activities Companies usually disclose their corporate social responsibilities to wider stakeholders through financial reports of the companies. This research note (1) identifies what changes the business should adopt in their annual reporting (2) Critically discusses the gaps in the extant literature about lack of business's awareness in non-financial activities, especially biodiversity, which can be responsible for a recent crisis like the one generated by Covid-19. Different instruments are in place to assess the corporate risk and to examine if the corporate is able to sustain itself in the long run by maintaining biodiversity We find that these policy changes before the pandemic might have influenced many companies to report about their non-financial activities more than before in their business report to maintain their reputation in the financial market.
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