Accountability on Sustainability in Central and Eastern Europe: An Empirical Assessment of Sustainability-Related Assurance

Oleh Pasko; Inna Balla; Inna Levytska; Nataliia Semenyshena

doi:10.18778/1508-2008.24.20

Authors

Oleh Pasko Ph.D., Assoc. Prof., Sumy National Agrarian University, Faculty of Economics and Management, Department of Accounting and Taxation, Sumy, Ukraine https://orcid.org/0000-0002-6275-5885
Inna Balla Ph.D., Assistant professor, State Agrarian and Engineering University in Podilya, Faculty of Economics, Department of Accounting, Taxation and E-business, Kamianets-Podilskyi, Ukraine https://orcid.org/0000-0001-5041-9801
Inna Levytska Doctor of Economic Sciences, Full Professor, National University of Life and Environmental Sciences of Ukraine, Educational and Scientific Institute of Continuing Education and Tourism, Department of Agricultural Consulting and Tourism, Kyiv, Ukraine https://orcid.org/0000-0003-3739-6662
Nataliia Semenyshena Ph.D., Assoc. Prof., State Agrarian and Engineering University in Podilya, Faculty of Economics, Department of Accounting, Taxation and E‑business, Kamianets-Podilskyi, Ukraine; Doctoral candidate; Ternopil National Economic University, Department of Accounting and Taxation, Ternopil, Ukraine https://orcid.org/0000-0002-0718-0230

DOI:

https://doi.org/10.18778/1508-2008.24.20

Keywords:

sustainability reporting, assurance statement, GRI, corporate social responsibility, reporting, auditing

Abstract

The paper explores how companies from Central and Eastern Europe adopt assurance practices to provide accountability for sustainability. Drawing on modified coding rules from prior research, a conventional content analysis of 36 assurance statements companies from nine countries was conducted. The results imply differences in the content of reports, processes, and implementation of the standards.

Exclusively large and multinational enterprises from the energy sectors domiciled in Poland and Hungary are a typical portrait of a company from the study’s sample, striving to issue and assure sustainability reporting. Of the nine countries represented in the study, sustainability assurance statements of companies from Poland, Hungary, and Romania tend to excel in terms of quality. The vast majority of assurance providers belong to the Big Four, who use ISAE3000 as opposed to AA1100AS. Yet, irrespective of the assurance provider type, stakeholders are neglected. It is argued that just transferring the experience of financial auditing to the field of sustainability, which, by and large, has taken place, is not an option. Authors state that following this route, we are heading in the wrong direction, and in technical terms, the wider proliferation of AA1100AS and its principles, with greater emphasis on reasonable assurance as opposed to the limited and enhanced role of stakeholders, are vital to get back on track.

The paper contributes to the emerging literature on accountability standards and stresses the need to enhance sustainability-related assurance.

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