Sustainability performance disclosure and family businesses: a perspective article

Purpose - The deeper understanding of the disclosure of external and internal dynamics of the family firms necessarily places the issue of sustainability as one of the most pressing needs from both a research and managerial perspective. Therefore, this perspective article contributes to the debate of the sustainability performance disclosure in family firms proposing a research agenda. Design and Methodology - This study has organized the discussion around those elements that most significantly impact the propensity to disclose and with the specific focus on the interconnections and interrelations within them. The proposed research agenda is developed around three key elements: how firms disclose, the reason why they do it and what disclose of their performance(s). Findings - To better understand how family firms should disclose their performance is suggested a proactive stakeholder engagement to preserve long term socio-emotional wealth. ‘The reason why’ for disclosure is still associated with the legitimization of family firms from an economic, social and environmental point of view. Finally, the ‘what’ depends on several factors, such as the regulatory framework and the market involved. Originality and Value - This paper suggests a logical framework to combine these three elements of the debate as strictly interrelated to foster the sustainability performance disclosure of family firms. Practical implications - This paper contains suggestions for family firm managers, consultants, and policymakers that are approaching corporate social responsibility and non-financial reporting or sustainability disclosure overall, providing an overview of relevant factors influencing this transition process.