“The Impact of CSRD and CSDD Directives On The Approach Of Multinational Organizations Towards Their Societal And Environmental Impact"

Abstract

The study aims to address the implications coming from the recent changes in the legislative sustainability landscape in the European Union. Recently the CSRD and CSDDD directives have subjected large multinational enterprises operating in the European economy to publishing non-financial reports. The research paints a picture of the approach of multinational enterprises towards the societal and environmental that they create. With that comes the analysis of the initial reactions, implementation of change strategies, influence on the long- term perspective, resource allocation, and stakeholder engagement. The findings of this research suggest that the policies demand from many enterprises to gather new data to consider in the reports, expansion, or creation of the ESG departments, and mapping of their stakeholders. Furthermore, enterprises that in previous years have engaged in non-financial reporting practices are now benefiting from competitive advantage. The research also found clear disparities in the approach towards sustainability practices when considering the geographical context. The qualitative nature of this study acquired the grounded theory approach in which interviews with representatives from different industries were conducted.