Corporate Sustainability Audits: Enhancing Transparency and Accountability in Financial Reporting

Shaheen, Fateha; Rashed Khan, Mohammad; Middlebrough, Fleur

Abstract

Corporate sustainability audits (CSAs) have emerged as critical tools for promoting transparency and accountability in financial reporting. In the modern business landscape, stakeholders increasingly demand that organizations demonstrate their commitment to sustainable practices, both environmentally and socially. This paper explores the integration of CSAs into financial reporting frameworks, emphasizing their role in enhancing the credibility and reliability of financial disclosures. The study investigates how sustainability audits address issues such as environmental compliance, social governance, and ethical business practices while aligning with financial performance metrics. A comprehensive analysis of case studies and industry data is conducted to evaluate the effectiveness of CSAs in mitigating risks associated with greenwashing, fraud, and regulatory non-compliance. Furthermore, this research identifies key challenges in implementing sustainability audits, such as the lack of standardized frameworks, resource constraints, and the need for skilled auditors. The findings reveal that organizations that adopt robust CSA practices experience improved stakeholder trust, enhanced corporate reputation, and better financial accountability. The paper also highlights best practices for conducting sustainability audits, such as integrating advanced auditing technologies, fostering cross-functional collaboration, and adhering to global sustainability standards like the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). Through the inclusion of illustrative tables and graphs, this study provides actionable insights and a roadmap for companies aiming to strengthen their financial reporting practices via sustainability audits. The research concludes with recommendations for policymakers, auditors, and organizations on leveraging CSAs to drive a more transparent and accountable corporate environment. This paper aims to contribute to the growing body of knowledge on sustainability audits, underscoring their significance in shaping the future of ethical and sustainable financial reporting.

Citation

Shaheen, F., Rashed Khan, M., & Middlebrough, F. (2024). Corporate Sustainability Audits: Enhancing Transparency and Accountability in Financial Reporting. #Journal not on list, 12(02), 15-24

• Journal Article Type: Article
• Acceptance Date: Jul 10, 2024
• Publication Date: 2024
• Deposit Date: Jan 18, 2025
• Publicly Available Date: Jan 20, 2025
• Journal: Review Article E Environmental and Earth Sciences
• Peer Reviewed: Peer Reviewed
• Volume: 12
• Issue: 02
• Pages: 15-24
• Keywords: Corporate Sustainability Audits (CSAs); Transparency in Reporting; Environmental; Social; and Governance (ESG); Accountability in Business; Global Reporting Initiative (GRI); Standardized Auditing Frameworks; Technological Integration in Auditing