Constructing Compliance - A qualitative study exploring the translation process of a CSRD network

Abstract

The European Union's new regulations for sustainability reporting, known as the Corporate Sustainability Reporting Directive (CSRD), represent a significant advancement towards more rigorous and transparent non-financial reporting. The directives are extensive and complex and have led to an overwhelming sense of confusion. Given the many questions surrounding the concept, this study explores the intricate network of actors affected directly or indirectly by them, focusing specifically on Swedish actors. Through 13 semi-structured interviews, a podcast and additional document review, this research aims to identify representatives from various groups that are affected by the new directives and capture their perspectives on how they navigate the field of CSRD. To analyze the findings, Actor-Network Theory (ANT) is applied, and more specifically the process of translation is utilized to define the network of actors and their dynamic relationships. By observing the activities surrounding CSRD, here perceived as a network being constructed during the ongoing and multidimensional translation process, key moments are outlined as Obligatory Passage Points. Moreover, the CSRD as an overarching concept is defined as a boundary object set to unite the actors around a common objective; Find a way to ensure the reporting companies will comply with CSRD. This leads to an enhanced understanding of how the translation process, emphasizing network construction, stabilization, and legitimacy, can aid in overcoming compliance mandates and regulatory hurdles. These insights can help stakeholders comprehend and manage the complexities of compliance, demonstrating practical strategies for aligning diverse interests and fostering collaboration.