The CSRD as a trigger for change A contemporary study on how the Corporate Sustainability Reporting Directive drives innovation and brings institutional effects

Abstract

The Corporate Sustainability Reporting Directive (CSRD) is said to be a paradigm shift in sustainability reporting. With its extensive framework, organizations face the challenge of becoming compliant in a short time. This thesis is a case study of the apparel sector, with a particular focus on the sports and outdoor industry. It examines how the CSRD drives change within affected organizations through the lens of institutional and innovation theory. This thesis employs a qualitative research approach, with interviews as an empirical data collection method. Our conclusions show that the CSRD drives change through the implementation of new processes, methods, and innovations, as well as strong influences of legitimacy-seeking behavior. Data collection necessary to comply with the directive poses a challenge, as no dominant IT-system exists, despite many emerging tools. Prerequisites such as company size and resources determine the level of difficulty when facing the directive. Consultants play a crucial role, both in translating the directive and offering legitimacy to organizations.