A Comparative Analysis of the Corporate Sustainability Reports of Local Companies in Romania and Companies of Turkish Origin within the Framework of Hofstede’s Cultural Dimensions Theory

Abstract

The Objectives: The fundamental elements of the EU Green Deal strategy consist of the transition to a circular economy along with climate action. In accelerating this transition process, “corporate sustainability reporting” plays a significant role. In this process, in which the EU has made such reporting mandatory for a larger number of companies, this study aims to compare local companies operating in Romania with companies of Turkish origin. This comparison seeks to analyze, through open-access reports of companies, with the support of artificial intelligence, within the framework of Hofstede’s Cultural Dimensions Theory.

Implication: This study presents important outcomes for policymakers, standard setters, companies, sustainability experts, NGOs, and practitioners in the field. In this context, the most fundamental contribution of the study is the inclusion into reporting of cultural contexts that are considered to be neglected, while the reports are prepared in the environmental, social, and governance dimensions. Accordingly, by contributing to the presentation of more consistent, comparable, and transparent sustainability disclosures among different countries, it may support the achievement of the EU’s sustainability objectives.

Originality Value: While steps are being taken through legislative facilitation and simplification (EU Omnibus Package) on the one hand, in order for ESG reporting to achieve its purpose and become widespread, on the other hand, the examination of reporting behaviors of companies in different countries for the sake of “establishing reporting standards” and the investigation of the differences that may emerge have arisen as a necessity. In this context, the study will evaluate the sustainability reporting of local companies operating in Romania and companies of Turkish origin, both within themselves and comparatively, within the framework of Hofstede’s Cultural Dimensions Theory. One of the most fundamental contributions of the study, through its comparative analysis, is its effort to demonstrate to what extent cultural differences, which are felt to be needed in ESGs, are reflected in corporate sustainability reporting.