Preliminary communication
https://doi.org/10.51650/ezrvs.19.3-4.16
Fraud in Sustainability Reporting: Perceptions of Risk, Transparency, and the Effectiveness of Oversight Mechanisms
Mateja Brozović
orcid.org/0000-0001-7338-7494
; Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia
*
Ivana Jaklić
; Metalska industrija Varaždin d.d., Varaždin, Hrvatska
* Corresponding author.
Abstract
Sustainability reporting has become an essential component of modern corporate reporting, as it enables the assessment of a company’s impact on the environment, society, and the economy. However, it is important to keep in mind the significant risk of unethical and manipulative practices in the collection and presentation of sustainability information, which is why the role of accounting and auditing professionals in ensuring the credibility of such reports is gaining increasing importance. The purpose of this paper is to examine the perceptions of managers and experts in the fields of sustainability and accounting regarding the frequency, consequences, and mechanisms for preventing and detecting fraudulent sustainability reporting, along with an additional analysis of the current theoretical framework. Based on a literature review, theoretical aspects of sustainability fraud, risks, consequences and the importance of control and supervision mechanisms were analyzed. Empirical research was conducted using a questionnaire on a sample of 38 respondents working as managers and experts in the fields of sustainability and accounting in large companies in Croatia. Descriptive statistics methods, reliability analysis (Cronbach α), Separman's correlation coefficient and Mann-Whitney U test were used to process the results. The results of the survey show that respondents recognize the existence of the risk of fraudulent sustainability reporting, but do not consider it to be frequent in practice. At the same time, they are skeptical about the transparency and credibility of existing reports, while they have more pronounced trust in control and oversight mechanisms, especially in the role of internal audit. No statistically significant differences in attitudes were found between respondents from companies that publish sustainability reports and those that do not yet publish them, which indicates a similar level of risk perception among respondents. The survey findings indicate the need to strengthen the preventive and advisory role of accounting and auditing professionals in the context of sustainability reporting.
Keywords
sustainability reporting; fraudulent reporting; greenwashing; accounting; auditing.
Hrčak ID:
341519
URI
Publication date:
23.12.2025.
Visits: 595 *