IS MANDATORY NON-FINANCIAL REPORTING AN EFFECTIVE
REGULATORY STRATEGY FOR ADVANCING RESPONSIBLE
BUSINESS CONDUCT?

Observations on human and labour rights reporting in
Denmark 2008-2018


Karin Buhmann
Professor (Business and Human Rights)
Dept. of Management, Society and Communication
Copenhagen Business School
Dalgas Have 15, 2
Denmark


ABSTRACT
Through a contents analysis of reporting in Denmark during 2008-2018,
this article examines the transformational effect of mandatory NFR
as a regulatory strategy. Based on a pilot study, the article contributes
to the legal and organisational literature by exploring the under researched
issue of the effect of mandatory NFR as a regulatory strategy
to advance responsible business conduct by stimulating organisational
transformation. NFR is typically viewed from an informational
perspective, concerned with providing investors and other stakeholders
with data relevant to their decisions concerning the company, or a
transformational perspective, targeting internal learning and focused
organisational change. The article provides novel understanding of
the dynamics of a transformational approach based on stimulating
organisational learning, as well as the effects of shifting to a disclosure
orientation following the implementation of the NFRD. Based on the
empirical analysis it concludes that the learning objective as well as the
manner in which a NFR requirement is communicated in a legislative text
or supporting guidelines are significant for the transformational potential
and therefore regulatory effects of NFR.