The role of firms, corporations, and businesses in shaping social outcomes has long been a key area of focus for economics and business scholars. With growing attention on addressing climate change, reducing social inequalities, and upholding human rights, there is an increasing interest in how corporate activities impact society. This book examines these pressing issues through the lens of fundamental theories of the firm, particularly drawing on the Italian tradition of Economia Aziendale, which views the firm as a vehicle for meeting human needs and generating social value.
The book begins by introducing the anthropocentric theory of the firm and explores the connection between accounting practices and sustainable management. It offers a thorough review of the literature on Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) practices, highlighting key aspects of the extensive body of work in this field. The analysis is grounded in the context of evolving regulations, especially within the EU, that underscore the importance of considering both financial and sustainability factors. Rational management theory is expanded to include sustainability accounting, showcasing its pivotal role in corporate decision-making. The book provides detailed guidance on the integrated knowledge acquisition process, showing how companies can systematically identify and assess their social and environmental impacts. This process is further illustrated through a hypothetical reality-based case study, demonstrating its application in a practical context. The book concludes with an exploration of current trends and future directions in sustainability accounting.
It serves as a valuable resource for academics, practitioners, and anyone interested in the intersection of corporate governance, accounting, and sustainability.