Understanding the interplay between sustainability strategy and the approach to sustainability reporting in SMEs

Abstract

The study aims to understand the interplay between sustainability strategy and the approach to sustainability reporting in small- and medium-sized enterprises (SMEs). To achieve this purpose, a case study is developed, examining four companies that exemplify different sustainability strategy types delineated by Baumgartner: introverted, extroverted, conservative, and visionary. According to the findings of the research, while it is possible to identify sustainability strategies based on the key defining elements of the adopted conceptual map, and to interpret the company’s perception and approach to sustainability reporting considering the sustainability strategy, integrating owner-manager values, stakeholder proximity, and supply chain dynamics the conceptual map becomes a more adaptable and practical tool for SMEs seeking to thrive in an increasingly sustainability-focused business landscape. The incorporation of these insights extends Baumgartner’s work, enhancing the comprehension of sustainability strategies within SMEs and providing implications for regulatory bodies, consultants, and managers.