Accounting for societal concerns
Transparency does not guarantee sustainable behavior
Cynthiana Hartono of the Accounting department investigated whether the growing pressure on companies to be transparent about the environment and human rights actually leads to better behavior. She analyzed the impact of reporting requirements regarding climate risks, conflict minerals, and modern slavery.
Her conclusion is clear: transparency alone is not enough. Without strict enforcement and clear sanctions, companies often do only the bare minimum, and investor responses to misconduct remain limited. Hartono's findings are an important warning for policymakers, especially now that new European regulations (CSRD) are being rolled out: real change requires stricter frameworks than just openness.
More information on the thesis
