Ebne , Ral
A icle
Mul iple case s udy analysis on he consequences o
manda o y sus ainabili y epo ing in p i a e Ge man
amily i ms
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Edi o :
DOMINIK VAN AAKEN
Gues Edi o :
ANNE KATARINA HEIDER
Ad iso y Edi o ial Boa d:
FREDERIK AHLEMANN
JAN-PHILIPP AHRENS
BASTIAN AMBERG
THOMAS BAHLINGER
MARKUS BECKMANN
CHRISTOPH BODE
SULEIKA BORT
ROLF BRÜHL
KATRIN BURMEISTER-LAMP
JOACHIM BÜSCHKEN
CATHERINE CLEOPHAS
NILS CRASSELT
BENEDIKT DOWNAR
RALF ELSAS
KERSTIN FEHRE
MATTHIAS FINK
DAVID FLORYSIAK
GUNTHER FRIEDL
MARTIN FRIESL
FRANZ FUERST
WOLFGANG GÜTTEL
NINA KATRIN HANSEN
CHRISTIAN HOFMANN
SVEN HÖRNER
KATJA HUTTER
LUTZ JOHANNING
STEPHAN KAISER
NADINE KAMMERLANDER
ALFRED KIESER
NATALIA KLIEWER
DODO ZU KNYPHAUSEN-AUFSESS
SABINE T. KÖSZEGI
ARJAN KOZICA
CHRISTIAN KOZIOL
MARTIN KREEB
TOBIAS KRETSCHMER
WERNER KUNZ
HANS-ULRICH KÜPPER
MICHAEL MEYER
JÜRGEN MÜHLBACHER
GORDON MÜLLER-SEITZ
J. PETER MURMANN
ANDREAS OSTERMAIER
BURKHARD PEDELL
MARCEL PROKOPCZUK
TANJA RABL
SASCHA RAITHEL
NICOLE RATZINGER-SAKEL
ASTRID REICHEL
KATJA ROST
THOMAS RUSSACK
FLORIAN SAHLING
MARKO SARSTEDT
ANDREAS G. SCHERER
STEFAN SCHMID
UTE SCHMIEL
CHRISTIAN SCHMITZ
MARTIN SCHNEIDER
MARKUS SCHOLZ
LARS SCHWEIZER
DAVID SEIDL
THORSTEN SELLHORN
STEFAN SEURING
ANDREAS SUCHANEK
TILL TALAULICAR
ANN TANK
ORESTIS TERZIDIS
ANJA TUSCHKE
MATTHIAS UHL
CHRISTINE VALLASTER
PATRICK VELTE
CHRISTIAN VÖGTLIN
STEPHAN WAGNER
BARBARA E. WEISSENBERGER
ISABELL M. WELPE
HANNES WINNER
THOMAS WRONA
THOMAS ZWICK
JUNIOR
MANAGEMENT
SCIENCE
Anne Scha mann,Inno a ion Collabo a ion Be ween
Family Fi ms and S a ups: Insigh s om he
Ge man Cons uc ion Indus y
Anna Vi en, Compa ison o he P e e en ial T ea men
o Re ained Ea nings wi h he Op ion Model o
Family Pa ne ships
Abhishek Omp akash Singh, Impac o CSR on Fi m
Pe o mance: The Mode a ing Role o Family
Owne ship in Indi idualis ic & Collec i is ic
Coun ies
Pia Do is Mo ow, Un o eseen Succession -Iden i y
Change Amongs La e al En an s in Family Fi ms
Philipp Schmid , Analysing he Sus ainabili y o
P ocu emen in Family Businesses -A S udy o
Measu able In es men s and P ac ices Based on
ESG P inciples
Ludwig Ma enbach, Le e aging C edi Ra ings Th ough
Imp ession Managemen : An Explo a o y S udy
o Ge man Small and Medium-Sized Family Fi ms
Ral Ebne , Mul iple Case S udy Analysis on he
Consequences o Manda o y Sus ainabili y
Repo ing in P i a e Ge man Family Fi ms
Vale ie Raiss, G owing Up Be ween Family and Business:
T ansmission o Values in he Socializa ion
P ocess o Child en in Business Families
1384
1414
1445
1464
1485
1511
1540
1567
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This is an Open Access a icle dis ibu ed unde he e ms o he CC-BY-4.0
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ISSN: 2942-1861
WIFU-Special-Issue: Family Businesses and Business Families
Volume 9, Issue 2, June 2024
Mul iple Case S udy Analysis on he Consequences o Manda o y Sus ainabili y
Repo ing in P i a e Ge man Family Fi ms
Ral Ebne
Technical Uni e si y o Munich
Abs ac
This s udy explo es he consequences o he Co po a e Social Responsibili y Repo ing Di ec i e (CSRD) on amily i ms.
The Eu opean Commission (EC) ex ends unde he CSRD he numbe o epo ing companies om app oxima ely 12,000
o 50,000, wi h he g ea es inc ease in Ge many. Fo 2025, a ound 13,000 Ge man p i a e amily i ms mus disclose a
sus ainabili y epo o he i s ime. P epa ing a sus ainabili y epo ha mee s he equi emen s o he CSRD in ol es i s
own consequences. Based on a mul iple case s udy o en p i a e Ge man amily i ms, I de elop a amewo k ha illus a es
implemen a ion challenges and p o ides guidance o unlock business oppo uni ies. Building on amily business esea ch, I
con ibu e o he li e a u e by di e en ia ing amily i ms based on hei sus ainabili y s a egy and ma u i y o sus ainabili y
epo ing. This allows us o de i e h ee a che ypes acing a ying implemen a ion challenges. The analysis e eals di ec and
indi ec oppo uni ies along a i m’s alue chain. A e in oducing a epo ing p ocess, all a che ypes can bene i om di ec
oppo uni ies, whe eas a p oac i e sus ainabili y s a egy needs o unlock indi ec oppo uni ies.
Keywo ds: co po a e sus ainabili y; co po a e sus ainabili y epo ing di ec i e; amily i ms; manda o y sus ainabili y
epo ing; socioemo ional weal h
1. In oduc ion
“Wi hou a sense o pu pose, no company, ei he
public o p i a e, can achie e i s ull po en ial. I
will ul ima ely lose he license o ope a e om key
s akeholde s.”
La y Fink, CEO o BlackRock (Fo bes, 2018)
The con inuous ise and eco d high o global ca bon
dioxide (CO2) emissions in 2022 (Wo ld Economic Fo um,
2022), he g owing de elopmen o social inequali y ac oss
coun ies (The Economis , 2022) o he inc eased ossil- uel
ex ac ion due o he in asion o Uk aine has accele a ed
Fi s , I would like o hank D . Alexand a Kno h o supe ising my hesis,
he egula exchange o ideas, and he sha ing o aluable bes p ac ices
in academic esea ch. Fu he mo e, I would like o hank P o . D . Gun-
he F iedl and he Chai o Managemen Accoun ing a he Technical
Uni e si y o Munich o gi ing me he oppo uni y o con ibu e o a
highly ele an esea ch opic on deca boniza ion in amily i ms.
he impo ance o how o imp o e sus ainable pe o mance
among co po a e s akeholde s (Pé ez e al., 2022). Compa-
nies’ ac ions and hei linked ex e nali ies ha e conside able
e ec s on sus ainabili y issues, go e nmen s impose ules
and use egula o y ins umen s like epo ing di ec i es o
modi y economic beha io (Ch is ensen e al., 2021; Pé ez e
al., 2022). O ganiza ions ha ail o comply will ace penal-
ies (DiMaggio & Powell, 1983) o may e en lose hei license
o ope a e (Gunningham e al., 2003).
The egula o y landscape on sus ainabili y led o a “wa e
o egula ion” in he Eu opean Union (EU) (Lykkes eld &
Kjae gaa d, 2022). The membe ship o all EU Membe S a es
(MS) in he Uni ed Na ions in luences he de elopmen o
sus ainabili y legisla ion in he EU (Uni ed Na ions, 2007).
Se e al coope a ions a ise om his alliance, including he
ield o sus ainable de elopmen . Especially he binding
2030 Agenda o Sus ainable De elopmen and he Pa is
Ag eemen ans o med he sense o pu pose o sus ainable
change and clima e ac ion a ound he globe (Baue e al.,
DOI: h ps://doi.o g/10.5282/jums/ 9i2pp1540-1566
© The Au ho (s) 2024. Published by Junio Managemen Science.
This is an Open Access a icle dis ibu ed unde he e ms o he CC-BY-4.0
(A ibu ion 4.0 In e na ional). Open Access unding p o ided by WIFU and ZBW.
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-1566 1541
2021; Olsen e al., 2019). To implemen he ag eed goals o
he Uni ed Na ions and ansmi his pu pose o he EU, he
Eu opean Commission (EC) published he Eu opean G een
Deal in 2019 (Eu opean Commission, 2019). I s implemen-
a ion and, hus EU’s sus ainabili y ansi ion equi es one
illion eu os (Eu opean Commission, 2020). To acili a e
inancing and di ec in es men decisions in o sus ainable
unds, he EU axonomy calls o he disclosu e o sus ain-
abili y in o ma ion om public companies ha all unde he
Non-Financial Repo ing Di ec i e (NFRD) (Ac ion 9, COM
(2018) 97 inal) (Eu opean Commission, 2018). In 2018,
he NFRD was he EU’s s a ing poin o manda o y sus ain-
abili y epo ing1(Hummel & Jobs , 2021). In 2022, he
Co po a e Sus ainabili y Repo ing Di ec i e (CSRD) suc-
ceeds he NFRD (Eu opean Commission, 2022). The mos
d as ic change ela es o he ex ended company scope, which
will apply om 2025 (A . 5, CSRD) (Eu opean Union, 2022)
and inc eases he numbe o epo ing companies ega dless
o hei capi al ma ke o ien a ion om 12,000 o 50,000,
wi h a much la ge inc ease in Ge many (Baumülle & G -
benic, 2021).
Ge man epo ing companies inc eased om 500 o
15,000 (DIHK, 2023). The esul ing del a o 14,500 co -
esponds o he numbe o companies equi ed o disclose a
sus ainabili y epo acco ding o EU guidelines o he i s
ime. Among hem, a ound 88% a e p i a e amily i ms
since his is he sha e o companies p i a ely owned by ami-
lies in Ge many (S i ung Familienun e nehmen, 2023). The
o me Ge man Fede al Minis e o Economic A ai s and
Clima e Ac ion u he unde lines he impo ance o amily
i ms: “Ou economic model is based on medium-sized, amily-
owned i ms. Qui e app op ia ely, hey a e desc ibed as he
"engine" o ou na ional economy” (Handelsbla , 2019).
Resea ch on manda o y sus ainabili y epo ing has
shown ha i s - ime epo ing companies (Ho mann e al.,
2018; Pede sen e al., 2013) and p i a e small and medium-
sized en e p ises (SMEs) (Campopiano & De Massis, 2015;
Pa ke e al., 2009) ha e di icul ies in implemen ing a sus-
ainabili y epo ing manda e. Ho mann e al. (2018) ana-
lyzed he change om olun a y o manda o y non- inancial
epo ing in Ge man companies based on he NFRD. They
concluded ha in oducing a epo ing manda e led o de-
c eased epo ing quali y due o he numbe o new epo e s,
indica ing implemen a ion challenges.
P i a e SMEs ha e obs acles o coping wi h a epo ing
manda e, as hey ha e li le expe ience wi h no m-based sus-
ainabili y epo ing due o missing p essu e om inancial
ma ke s (Campopiano & De Massis, 2015) o limi ed inan-
cial esou ces (Pa ke e al., 2009). Speci ically, amily i ms
di e in hei sus ainabili y disclosu e beha io due o hei
socioemo ional weal h (SEW) (A ena & Michelon, 2018; Au-
1This s udy e e s o he e m “sus ainabili y epo ing”, which aligns wi h
he CSRD. P e ious s udies o en use he e m “non- inancial epo ing”,
which e e s o he p edecesso , he NFRD. Due o he agueness o he
e m “non- inancial,” he EC changed he name wi h he amendmen o
he new di ec i e (Baumülle & G benic, 2021).
eli e al., 2020; Biswas e al., 2019; Campopiano & De Mas-
sis, 2015; Ga ana e al., 2017; Te laak e al., 2018; Ven u elli
e al., 2021). Losing he license o ope a e o a amily i m
would hu i s SEW, as one key goal o amilies is passing he
business o u u e gene a ions (Be one e al., 2012; Zell-
wege e al., 2010). Howe e , esea ch on olun a y sus-
ainabili y epo ing has shown ha such a epo and he
unde lying p ocesses can also se e as an oppo uni y.
I is di icul o hose i ms o lea n om esea ch o p e-
ious lessons lea ned since he consequences o in eg a ing a
sus ainabili y epo ing manda e a e highly con ex speci ic
(Gulenko, 2018). Bo h in e ms o ins i u ions’ mo i a ion
o impose a sus ainabili y epo ing manda e (Ch is ensen
e al., 2021) and he i m-speci ic con ex (De Micco e al.,
2021). Thus, i is no use ul o ex apola e he indings on he
esea ch o lis ed companies unde he NFRD (Fiech e e al.,
2022; O ens ein e al., 2022) o he e ec s o he new CSRD.
Beyond ha , esea ch on amily i ms’ sus ainabili y epo -
ing e e s only o olun a y epo ing in lis ed i ms (A ena &
Michelon, 2018; Ga ana e al., 2017; Te laak e al., 2018).
Gi en he impo ance o amily i ms o he Ge man
economy, he mo i a ion o my s udy is o build an induc i e
amewo k o Ge man p i a e amily i ms (PFF) ha shows
he po en ial challenges and oppo uni ies o implemen ing
a sus ainabili y epo ing manda e based on he new CSRD.
Thus, my s udy analyzes he ollowing esea ch ques ion:
Wha challenges do p i a e amily i ms ace ega ding he in-
oduc ion o a sus ainabili y epo ing manda e, and how can
a s anda d amewo k p o ide guidance o mee o e en exceed
he legal equi emen s and unlock business oppo uni ies?
To answe he esea ch ques ion, I conduc ed an ex-
plo a o y, induc i e quali a i e s udy wi h mul iple cases
(Eisenha d , 1989; Yin, 2018). My s udy is based on he
heo e ical sampling app oach by Glase and S auss (1967).
The sample selec ion c i e ia include (1) Ge man PFF, (2)
amily owne ship o a leas 50%, and (3) he i m’s ope -
a ion in he business- o-business (B2B) ma ke . The inal
sample consis s o en PFF om se en indus ies. As a p i-
ma y da a sou ce, I in e iewed one sus ainabili y expe o
boa d membe in each case o he sample. The da a analysis
elied on he induc i e me hod o Gioia e al. (2013). The
esul ing da a s uc u e o he wi hin- and c oss-case anal-
ysis o med he basis o c ea ing an induc i e amewo k.
I con i med my indings by a sus ainabili y expe om a
leading ad iso y i m. The s udy e e s o he s a us quo o
amily i ms’ he e ogeneous sus ainabili y s a egies as a he-
o e ical basis. Thus, my analysis elies on he SEW concep
(Gómez-Mejia e al., 2007) o explain he unique beha io o
amily i ms, in addi ion o Lee’s (2011) heo e ical ame-
wo k combining ins i u ional and s akeholde heo y. Lee’s
con igu a ional concep , which is also a p o en app oach in
amily business esea ch (Hsueh e al., 2023), helps o clas-
si y he cases acco ding o hei sus ainabili y s a egy as a
esponse o a sus ainabili y epo ing manda e.
My indings and he de i ed amewo k show heo e i-
cal and p ac ical ele ance. Fi s , I con ibu e o esea ch
o amily i m’s he e ogenous sus ainabili y s a egy (Cam-
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-15661542
popiano & De Massis, 2015; Cennamo e al., 2012; Hsueh
e al., 2023; Sha ma & Sha ma, 2011) and epo ing beha -
io (A ena & Michelon, 2018; Au eli e al., 2020; Biswas e
al., 2019; Campopiano & De Massis, 2015; Ga ana e al.,
2017; Te laak e al., 2018; Ven u elli e al., 2021). Going
beyond exis ing indings, I di e en ia e amily i ms based
on hei sus ainabili y s a egy and ma u i y o sus ainabili y
epo ing. This allowed me o de i e h ee PFF a che ypes
(i.e., conse a i e sus ainabili y denie ,cau ious i s - ime e-
po e , isiona y ea ly adop e ) ha ace a ying deg ees o
he iden i ied sus ainabili y epo ing implemen a ion chal-
lenges. Rega ding he second pa o my esea ch ques ion,
I iden i ied di ec and indi ec o “locked” oppo uni ies in
di e en business unc ions. I espec i e o he a che ype,
all i ms can bene i om di ec oppo uni ies (e.g., p ocess
anspa ency) ha a ise a e he in oduc ion o a epo ing
p ocess. In con as , he indi ec oppo uni ies (e.g., p oduc
inno a ion) need o be unlocked h ough a p oac i e sus ain-
abili y s a egy. Hence, my s udy con ibu es o he knowl-
edge abou how con igu a ions o SEW and ex e nal in lu-
ences (i.e., he imposi ion o a sus ainabili y epo ing man-
da e, including s akeholde s’ expec a ions o mee ing hese
legal equi emen s), shape amily i ms’ sus ainabili y s a -
egy. I show ha PFFs’ sus ainabili y s a egy indica es he
ype and deg ee o epo ing challenges and he possibili y
o gaining a mo e comp ehensi e se o oppo uni ies.
Second, I ex end he li e a u e on he impac o manda-
o y sus ainabili y epo ing in gene al (Ch is ensen e al.,
2021; Ioannou & Se a eim, 2017) and on he EU’s disclosu e
di ec i es in pa icula (Fiech e e al., 2022; O ens ein e
al., 2022), as my indings con ibu e o he spa se esea ch
on he CSRD. The amewo k highligh s he challenges and
oppo uni ies associa ed wi h he new di ec i e. The e o e,
my amewo k also highligh s p ac ical implica ions o am-
ily and non- amily i ms by suppo ing hem on hei pa h o
p epa ing o one o he mos pi o al miles ones o sus ain-
abili y epo ing in he EU.
My s udy encompasses i e u he chap e s, s a ing wi h
he heo e ical backg ound. I p o ide a b ie o e iew o
esea ch on amily i ms’ sus ainabili y s a egy and epo -
ing beha io , ollowed by he heo y o Lee (2011). An ou -
line o he EU sus ainabili y disclosu e di ec i es, including
he s a us quo on hei impac , con inues s essing he need
o building heo y in his ield. Chap e h ee explains he
me hodological app oach o my induc i e amewo k, which
is illus a ed and desc ibed in chap e ou . The i h chap e
discusses my esul s, which will be concluded in chap e six.
2. Theo e ical backg ound
2.1. De ini ional dilemma and amily i ms’ he e ogeneous
beha io
Academia’s in e es in amily businesses is cons an ly in-
c easing (Piepe , 2010), which is unde lined by he ac ha
o e 70% o he wo ld’s g oss domes ic p oduc is gene -
a ed by amily i ms (UNCTAD, 2021). Despi e his high mo-
men um, he ambigui y o he e m “ amily i m” con on s
esea che s wi h a de ini ional dilemma (B ockhaus, 2004;
Lansbe g, 1988). The e is no consensus among he concep s
o de ine amily i ms (Ha ms, 2014). Fo his eason, Ch is-
man e al. (2005) ecommend ocusing on a pa icula de i-
ni ion be o e p oceeding wi h esea ch. Al hough a amily’s
in ol emen in he i m h ough managemen o owne ship
appea s o be he mos e iden cha ac e is ic, he eal essence
o a amily i m is a he cap u ed by i s speci ic beha io and
co esponding ision (Chua e al., 1999). Hence, Chua e al.
(1999, p. 25) de eloped a de ini ion ha conside s bo h he
amily’s in ol emen and he amily i m’s essence:
“The amily business is a business go e ned and/o
managed wi h he in en ion o shape and pu sue
he ision o he business held by a dominan coali-
ion con olled by membe s o he same amily o a
small numbe o amilies in a manne ha is po en-
ially sus ainable ac oss gene a ions o he amily
o amilies.”
The dominan coali ion o a amily i m is composed o
amily membe s o a mix o amily and non- amily membe s
nomina ed by he con olling amily, ensu ing he amily’s in-
luence in de e mining membe s’ composi ion and he busi-
ness s a egy (Chua e al., 1999; Sha ma & Sha ma, 2011).
The e o e, amily membe s mos ly hold op managemen po-
si ions o si on he boa d (Chen e al., 2008). As I analyze
amily i m-speci ic consequences induced by a sus ainabil-
i y epo ing manda e ha aims o change a i m’s beha io
(Ch is ensen e al., 2021), i was easonable o his s udy o
choose a de ini ion based on a beha io al app oach. In his
ein, he SEW concep (Gómez-Mejia e al., 2007), which
ex ends he beha io al agency heo y (Gómez-Mejia e al.,
2000; Wiseman & Gomez-Mejia, 1998), has become he key
di e en ia ing ac o o amily i ms (Be one e al., 2012).
The ini ial beha io al agency heo y assumes ha a i m’s
dominan p incipals make choices based on hei e e ence
poin o p ese e accumula ed endowmen . In con as , he
SEW concep is based on he no ion ha amily p incipals in-
s ead ca e abou hei socioemo ional endowmen o weal h,
which cap u es non-economic u ili ies like he enjoymen o
amily in luence (Be one e al., 2010,2012; Gómez-Mejia e
al., 2007). Hence, o any issue ha could nega i ely impac
he SEW, such as in oducing a sus ainabili y epo ing man-
da e, a amily p incipal is e en willing o bea inancial losses
o pu he business a isk o p ese e i s SEW (Be one e al.,
2010,2012; Gómez-Mejia e al., 2007). Consequen ly, am-
ily i ms pu sue a se o economic and non-economic goals
(Be one e al., 2010; Ko la & De Massis, 2013) wi h a
highe isk a e sion o SEW (Be one e al., 2012).
Howe e , as emo ions a y wi hin he amily o he con-
olling i m (Be one e al., 2012; Hoy & Sha ma, 2010),
SEW as a psychologically ancho ed concep (Be one e al.,
2010) implies he e ogenei y in amily p incipals’ e e ence
ames and he e o e, also in amily i ms’ beha io (Cen-
namo e al., 2012). Going one s ep u he , as emo ions
eme ge om si ua ion-speci ic ac i i y (Pugh e al., 2022),
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-1566 1543
looking om a socioemo ional lens would he e o e mean
ha amily i ms’ beha io also depends on i s speci ic con ex
(Lumpkin e al., 2011; W igh e al., 2014). Wi hin amily
business esea ch, W igh e al. (2014) dis inguish be ween
an o ganiza ional con ex , which e e s o in e nal i m ac-
o s like goals o go e nance, and an ins i u ional con ex ,
which e e s o ex e nal poli ical and legal ins i u ions. Gi en
he ac ha s akeholde s a e de ined as “any g oup o indi-
idual who can a ec o is a ec ed by he achie emen o he
o ganiza ion’s objec i es” (F eeman, 1984), including go e n-
men al o icials (Gómez-Mejia e al., 2011), hese ex e nal
ins i u ions (W igh e al., 2014) can be a ibu ed o am-
ily i ms’ majo s akeholde g oup. Family i ms a e mo e
esponsi e o ex e nal s akeholde s (Cennamo e al., 2012;
Gómez-Mejia e al., 2011), especially ega ding sus ainabil-
i y demands (Va daman & Gondo, 2014). The e o e, how
would PFFs espond o an ex e nal demand om an ins i u-
ion such as he EC o disclose a sus ainabili y epo ?
Conside ing his con ex -a ec ed and he e ogeneous be-
ha io wi hin he SEW amewo k, esea che s de eloped
sub-dimensions o SEW (Be one e al., 2012; Ven u elli e
al., 2021). These dimensions se e as ins umen s o mea-
su e and alida e he belie ha non-economic goals can lead
o posi i e pe o mance ou comes (Be one e al., 2012).
Be one e al. (2012) e e in hei model o i e dimen-
sions which we e condensed in o he FIBER ac onym ha
includes (1) amily con ol and in luence, (2) iden i ica ion
o amily membe s wi h he i m, (3) binding social ies, (4)
emo ional a achmen , and he (5) enewal o amily bonds
o he i m h ough dynas ic succession. Family i ms p io i-
ize hese dimensions di e en ly, which esul s in company-
speci ic beha io (Be one e al., 2012). The isola ed consid-
e a ion o hese dimensions allows o de i e cha ac e is ics
o amily i ms. Fo ins ance, (1) amily con ol and in luence
a e exe ed o e he dominan amily coali ion (Be one e
al., 2012) and desi ed by amily membe s (Zellwege e al.,
2012). The main de i ed a ibu e is amily membe s’ p ese -
a ion o con ol o e s a egic decisions (Chua e al., 1999)
and day- o-day ope a ions (Va daman & Gondo, 2014). (2)
Iden i ica ion o amily membe s wi h he i m desc ibes he
s ong connec ion be ween he amily and he i m (Be one
e al., 2012) ha esul s in one unique iden i y (Be one e
al., 2010). This is mainly due o he equen coincidence o
amily and i m names, which is also a eason why s akehold-
e s pe cei e he amily and he i m as one en i y (Be one e
al., 2012). (3) Binding social ies e e o a amily i m’s so-
cial ela ionships (Be one e al., 2012). The exis ing social
bonds and inclusion wi hin he amily can also ex end o non-
amily membe s and hus p omo e commi men s o he i m
(Mille & Le B e on-Mille , 2005). (4) Emo ional a achmen
be ween he amily and he i m is i al due o amilial in e -
gene a ional ela ionships and he unde lying his o y (Felden
e al., 2016). (5) Family bonds o he i m h ough dynas ic
succession emphasize he goal o passing he business o u-
u e gene a ions (Zellwege e al., 2012). This sense o dy-
nas y implies a long- e m planning ho izon (Be one e al.,
2012; Mille & Le B e on-Mille , 2006).
Ano he mul idimensional model ha suppo s he ap-
p oach o Be one e al. (2012) was de eloped by Va daman
and Gondo (2014). Thei model is based on he hypo hesis
ha amily i ms ace con lic s o ade-o s be ween di e en
SEW dimensions. They clus e SEW in o an in e nal dimen-
sion, he desi e o e ain con ol and in luence, and in o an
ex e nal dimension, he p ese a ion o he i m’s image and
epu a ion. The key be ween hose elemen s is ha amily
p incipals use in e nal SEW as he de aul e e ence poin bu
swi ch o ex e nal SEW i an e en ha ms he i m’s epu a-
ion o iden i y (Va daman & Gondo, 2014).
In conclusion, my s udy ocuses on he upcoming CSRD
imposed by he EC. T ansla ed in o a heo e ical con ex ,
his would co espond o sus ainabili y demands om ex-
e nal s akeholde s in an ins i u ional con ex . The aim
is o analyze PFF’s po en ial challenges and oppo uni ies
when pushed in o his se ing. As combina ions o SEW di-
mensions oge he wi h speci ic con ex s a e esponsible o
amily i ms’ he e ogeneous beha io , Agos ino and Rube o
(2021) call o empi ical e idence, as hese he e ogeneous
beha io s make i ambiguous how amily i ms would e-
spond o sus ainabili y egula ions. Also, Gómez-Mejia e al.
(2011) suppo u he esea ch in his a ea, as e e ences
o s akeholde s in amily business esea ch a e o en indi ec
and simplis ic. Finally, o p o ide nuanced conside a ions,
he ollowing chap e s e e o he FIBER model (Be one
e al., 2012) and he in e nal and ex e nal SEW pe spec i es
o Va daman and Gondo (2014).
2.2. Family i ms’ he e ogenous sus ainabili y s a egy and
epo ing beha io
2.2.1. Family i ms’ p oac i e and eac i e sus ainabili y
s a egy
A sus ainabili y s a egy helps me o de e mine how am-
ily i ms beha e owa ds ex e nal demands (e.g., sus ainabil-
i y epo ing manda e) because a sus ainabili y s a egy is a
cons uc in esponse o ex e nal in luences, which consis s o
s akeholde s including ins i u ions (Lee, 2011). In he case
o amily i ms, decision make s’ in e p e a ion o ex e nal in-
luences is guided by salience (Va daman & Gondo, 2014) o
con igu a ions (Hsueh e al., 2023) o SEW dimensions. A
his poin , i is essen ial o conside Va daman and Gondo’s
(2014) easoning abou he amily i m’s de aul sc ip . Ac-
co ding o hei concep , amily i ms p io i ize p ese ing
SEW dimensions ela ed o ex e nal s akeholde s. In his
ein, he li e a u e e e s o he second (iden i ica ion o am-
ily membe s wi h he i m), hi d (binding social ies), and i h
( enewal o amily bonds o he i m h ough dynas ic succes-
sion) SEW dimension (Cennamo e al., 2012; Hsueh e al.,
2023; Va daman & Gondo, 2014).Ne e heless, Cennamo
e al. (2012) add ha he a ionale o p io i izing ex e nal
s akeholde s is only alid when amily i m decision-make s
conside a leas one o he dimensions men ioned abo e as
hei p ima y e e ence poin . I his is he case, amily i ms
espond o hei ex e nal s akeholde s p oac i ely (Cennamo
e al., 2012) and in he con ex o sus ainabili y wi h a o -
malized sus ainabili y s a egy (Hsueh e al., 2023). I no ,
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-15661544
amily i ms espond eac i ely o incoming (sus ainabili y)
demands (Cennamo e al., 2012). The mo i a ion behind
amily i ms’ p oac i e s akeholde engagemen and he un-
de lying p io i iza ion o SEW dimensions a e mani old.
Fi s , he s ong (2) iden i ica ion o amily membe s wi h
he i m, and s akeholde s’ pe cep ion o he amily and
he i m as a single en i y inc eases he amily’s conce n
abou hei ex e nally pe cei ed image (Micelo a & Ray-
na d, 2011). Thus, amily membe s’ iden i y wi h he i m
links he amily’s epu a ion wi h he company’s su i al (An-
de son e al., 2002). Consequen ly, epu a ional h ea s o
he amily a e pe cei ed as a isk o he iden i y and he exis-
ence o he amily i sel (Zellwege e al., 2010). The e o e,
a p oac i e s akeholde app oach se es no only as a p ese -
a ion bu also as an imp o emen o epu a ion combined
wi h he gain o legi imacy, i.e., seeking social accep ance
and c edibili y (Cennamo e al., 2012; Gómez-Mejia e al.,
2011; Hsueh e al., 2023; Suchman, 1995).
Second, amily i ms wi h a e e ence poin domina ed by
(3) binding social ies engage p oac i ely wi h s akeholde s o
de elop social capi al (Ca ney, 2005; Cennamo e al., 2012).
Social capi al ela es o s akeholde managemen (Cennamo
e al., 2012; Rowley, 1997) and is a sou ce o weal h o he
amily (Ga ana e al., 2017). Hence, amily i ms seek social
capi al o enhance hei ela ionship wi h ex e nal s akehold-
e s (Si mon & Hi , 2003), o enable pa ne ships wi h di e -
en sec o s (Boehm, 2005), o acili a e he implemen a ion
o ex e nal no ms (Meye & Rowan, 1977).
Thi d, ins ead o a single salien SEW dimension, he co-
p esence o he (2) iden i ica ion o amily membe s wi h he
i m and he (5) enewal o amily bonds o he i m h ough
dynas ic succession leads o a o malized sus ainabili y s a -
egy (Hsueh e al., 2023). I ela es o a p oac i e sus ain-
abili y s a egy in amily business esea ch (Campopiano &
De Massis, 2015; de la C uz Déniz Déniz & Cab e a Suá ez,
2005; Hsueh e al., 2023; Sha ma & Sha ma, 2011). Families
wi h a con igu a ion o bo h dimensions a e o wa d-looking,
as hey wan o ans e hei business o he nex gene a-
ions (Be one e al., 2012) and de elop a posi i e iden i y
in he u u e (Hsueh e al., 2023). Hence, amily i ms pu -
sue a p oac i e sus ainabili y s a egy o educe in o ma ion
asymme ies wi h ex e nal s akeholde s by o mally commu-
nica ing sus ainabili y in o ma ion (Campopiano & De Mas-
sis, 2015; Te laak e al., 2018).
As a esul , in case o ex e nal sus ainabili y demands,
amily i ms ei he espond wi h a p oac i e o eac i e sus-
ainabili y s a egy (Campopiano & De Massis, 2015; de la
C uz Déniz Déniz & Cab e a Suá ez, 2005; Hsueh e al.,
2023; Sha ma & Sha ma, 2011). The e is no consensus on
which ype o s a egy is mo e p e alen (Hsueh e al., 2023).
The nomencla u e o a p oac i e o eac i e sus ainabili y
s a egy is no consis en wi hin amily business li e a u e,
bu he de ini ions o bo h s a egies sha e common ea u es.
In amily business esea ch, a sus ainabili y s a egy ha
is p oac i e, as Sha ma and Sha ma (2011) call i , is also
de ined as o mal (Hsueh e al., 2023), philan h opic (de la
C uz Déniz Déniz & Cab e a Suá ez, 2005), o explici (Cam-
popiano & De Massis, 2015) (see Figu e 1). Independen ly o
i s speci ic name, pu suing such a s a egic app oach is a ol-
un a y decision by he amily. The e o e, i cap u es he cha -
ac e is ic o going beyond expec a ions o egula o y equi e-
men s (Campopiano & De Massis, 2015; de la C uz Déniz
Déniz & Cab e a Suá ez, 2005; Hsueh e al., 2023; Sha ma &
Sha ma, 2011). Fu he common ea u es include he i m’s
communica ion o i s sus ainabili y ac i i ies o s akeholde s
in addi ion o in insic social alues by he amily i m’s man-
agemen (Campopiano & De Massis, 2015; de la C uz Déniz
Déniz & Cab e a Suá ez, 2005; Hsueh e al., 2023; Sha ma
& Sha ma, 2011). Mo eo e , de la C uz Déniz Déniz and
Cab e a Suá ez (2005) igu ed ou ha a highe numbe o
gene a ional successions cha ac e ize amily i ms in he phil-
an h opic g oup. This inding is in line wi h he obse a ion
o Hsueh e al. (2023) o ollow a p oac i e sus ainabili y ap-
p oach.
In con as , a sus ainabili y s a egy ha is eac i e
(Sha ma & Sha ma, 2011) is desc ibed as in o mal (Hsueh e
al., 2023), socioeconomic (de la C uz Déniz Déniz & Cab e a
Suá ez, 2005), o implici (Campopiano & De Massis, 2015)
(see Figu e 2). The main commonali y is o comply wi h
he legal equi emen s and hus o s ay wi hin he “ ules
o he game” (de la C uz Déniz Déniz & Cab e a Suá ez,
2005; No h, 1990). Ano he sha ed cha ac e is ic o all
eac i e ypologies is he amily i m owne ’s limi ed sus-
ainabili y knowledge (Fassin e al., 2011). Beyond ha , de
la C uz Déniz Déniz and Cab e a Suá ez (2005) conclude
ha amily i ms in he socioeconomic g oup ha e a lim-
i ed commi men o sus ainabili y due o hei smalle size
(i.e., u no e and headcoun ) and esul ing limi ed access
o esou ces. Ul ima ely, amily i ms ha eac eac i ely o
ex e nal demands ha e he cen al p emise o gaining legi -
imacy and hus p ese ing hei SEW (Be one e al., 2010;
Gómez-Mejia e al., 2011).
As illus a ed in Figu e 1and 2, amily i ms’ sus ainabil-
i y s a egies a e he e ogeneous due o di e en p io i ies
(Cennamo e al., 2012; Va daman & Gondo, 2014) o con-
igu a ions (Hsueh e al., 2023) o SEW dimensions. The
c i ical di e en ia o be ween a p oac i e and eac i e ap-
p oaches lies in he ac ha amily i ms wi h a p oac i e
s a egy a e mo e likely o build SEW ins ead o main aining
i . In con as , he main commonali y lies in he achie emen
o legi imacy.
2.2.2. Family i ms’ sus ainabili y epo ing beha io
Rega dless o whe he a amily i m is pu suing a eac-
i e o p oac i e sus ainabili y s a egy, ex e nal s akehold-
e s should ecognize ha hei sus ainabili y demands ha e
been implemen ed (Ga ana e al., 2017). The e o e, i ms go
in o a dialog wi h hei s akeholde s (G ay e al., 1995) and
use he go e nance p ac ice o sus ainabili y epo ing (Ven-
u elli e al., 2021) as a ool o communica e hei sus ainable
ac ions (Campbell, 2004). In his con ex , communica ion is
he key o ecognizing a i m’s legi imacy by i s s akeholde s
(Ga ana e al., 2017). A his poin , i is essen ial o men-
ion ha he cu en li e a u e on sus ainabili y epo ing in
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-1566 1545
No e: SEW dimensions (2) iden i ica ion o amily membe s wi h he i m; (3) binding social ies; (5) enewal o amily bonds o he i m h ough dynas ic
succession
Figu e 1: Family i ms’ p oac i e sus ainabili y s a egy (Sou ce: Own igu e)
Figu e 2: Family i ms’ eac i e sus ainabili y s a egy (Sou ce: Own igu e)
amily i ms e e s ei he o olun a y epo ing (Campopi-
ano & De Massis, 2015; Ven u elli e al., 2021), o publicly
lis ed i ms (Au eli e al., 2020; Biswas e al., 2019), o o
bo h (A ena & Michelon, 2018; Ga ana e al., 2017; Te laak
e al., 2018). In e na ionally, he egula ions on manda o y
sus ainabili y epo ing ha e e e ed so a o publicly lis ed
companies (Jiang e al., 2023). In he EU, o example, p i-
a e companies a e only a ec ed by a sus ainabili y epo -
ing manda e h ough he ex ension o he company scope by
he CSRD in 2025 (Lange-Snijde s, 2023). Hence, o my e-
sea ch pu pose, i is no ideal o de i e cha ac e is ics o he
beha io o olun a y sus ainabili y epo ing om publicly
lis ed amily i ms o h ee easons. Fi s , he public s a-
us o lis ed amily i ms leads o p essu e om capi al ma -
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-15661546
ke s, impac ing go e nance p ac ices (Ca ney e al., 2015).
Sha eholde s’ demand o high sho - e m e u ns and isk-
aking dis ances public i ms om amily alues such as non-
economic goals (Ko la & De Massis, 2013) o long- e m o i-
en a ion, which usually implies sus ainable beha io (Mille
e al., 2009). Second, acco ding o Jiang e al. (2023), al-
mos all publicly lis ed i ms publish sus ainabili y epo s be-
sides hei inancial epo s. In con as , i s - ime epo ing
companies show a lowe epo ing quali y, indica ing imple-
men a ion challenges (Ho mann e al., 2018). Hence, con-
side ing epo ing cha ac e is ics o mo e expe ienced pub-
licly lis ed companies would no be bene icial ei he . Thi d,
i is un a o able o de i e bes p ac ices om olun a y sus-
ainabili y epo ing due o i s speci ic i m con ex (A ena
& Michelon, 2018). This a iabili y is pa icula ly s ong o
amily i ms, as he decision on he epo ing con en lies a
he disc e ion o amily manage s (A ena & Michelon, 2018).
Howe e , h ee o he men ioned s udies (Au eli e al.,
2020; Campopiano & De Massis, 2015; Ven u elli e al.,
2021) o e lap wi h he use case o manda o y sus ainabili y
epo ing in PFF. Au eli e al. (2020) indica e ha in oducing
a sus ainabili y epo ing manda e encompasses bo h chal-
lenges and oppo uni ies, suppo ing he necessi y o u he
esea ch bo h consequences. In hei single case s udy, he
au ho s conclude ha he i m pe cei ed he legal obliga ion
o sus ainabili y epo ing as a equi emen om mul iple
s akeholde s (e.g., employees, local communi ies, amily).
Howe e , wi hin a yea , he company changed i s a i ude
owa ds sus ainabili y epo ing. Fu he oppo uni ies we e
ecognized om he ini ial p essu e o comply wi h egula-
ions and o gain legi imacy. Con a ily, Campopiano and
De Massis (2015) do no ocus on manda o y sus ainabili y
epo ing bu examine he di e ences in olun a y disclosu e
o sus ainable ac ions be ween amily and non- amily i ms
bu also be ween p i a e and lis ed companies. Acco ding o
hei analysis, he lis ing s a us and amily’s in luence signi -
ican ly impac he epo ing beha io . Fo example, p i a e,
and lis ed amily i ms a e less complian wi h epo ing
s anda ds and disclose less in o ma ion on employee- ela ed
opics, bu mo e on en i onmen al issues han hei non-
amily coun e pa s. Only p i a e amily i ms end o epo
mo e on hei philan h opic ac i i ies (e.g., engagemen wi h
he local communi y, dona ions, sponso ship). Thei indings
unde line he impo ance o dis inguishing be ween amily,
and non- amily-owned, bu also be ween p i a e and lis ed
companies when analyzing co po a e sus ainabili y epo -
ing. Also, Ven u elli e al. (2021) indica e he speci ici y o
sus ainabili y epo ing wi hin p i a e amily i ms. They
in es iga ed he impac o he i s SEW dimension on olun-
a y sus ainabili y communica ion and p ac ices in p edomi-
nan ly p i a e SMEs. Acco ding o hem, amily in ol emen
has a nega i e impac on olun a y sus ainabili y commu-
nica ion due o he amily’s ea o disclosing con iden ial
in o ma ion ha could ha m hei SEW. Thus, he au ho s
suppo he a gumen ha olun a y sus ainabili y commu-
nica ion is less p e alen in (mainly p i a e) amily- un SMEs
because o hei lowe egula o y and s akeholde p essu e.
2.3. Sus ainabili y s a egy - a con igu a ion o ex e nal de-
mands
A ele an heo y o my esea ch is Lee’s (2011) ame-
wo k, which uses a con igu a ional app oach and combines
ins i u ional wi h s akeholde heo y. Speci ically, amily
business esea ch suppo s Lee’s app oach as a con igu a-
ional pe spec i e en iching he unde s anding o amily
i ms’ he e ogeneous beha io (Hsueh e al., 2023). Lee
(2011) s a es ha a i m’s sus ainabili y s a egy is a con-
s uc in esponse o he in ensi y and cohe ence o ex e nal
in luences ha consis s o ins i u ions and s akeholde s (Lee,
2011). The essence o his amewo k is ha only he con-
igu a ion o he wo ex e nal in luences can explain he
in ensi y and cohe ence and, hus a i m’s chosen sus ain-
abili y s a egy (Lee, 2011). This a ionale also applies o
amily i ms, as he absence o egula o y and s akeholde
p essu e educes he mo i a ion o communica e sus ainabil-
i y in o ma ion (Ven u elli e al., 2021) o use sus ainabili y
s anda ds (Dye & Whe en, 2006).
On he one hand, ins i u ional heo y assumes ha ins i-
u ions exe p essu e on o ganiza ions o beha e in ce ain
ways and o achie e desi ed ou comes (DiMaggio & Powell,
1983). Hence, ins i u ions a e he “ ules o he game” com-
p ising o mal w i en ules and in o mal, unw i en codes
o conduc (No h, 1990). In pa icula , o mal ins i u ions
ha e he au ho i y o moni o and en o ce compliance (Webb
e al., 2015), such as he EC wi h i s CSRD. Compliance wi h
ules leads o legi imacy (Suchman, 1995), which enables
access o ma ke oppo uni ies (DiMaggio & Powell, 1983).
O ganiza ions ha ail o comply ace penal ies (DiMaggio &
Powell, 1983) o e en lose hei license o ope a e (Gunning-
ham e al., 2003).
On he o he hand, he s akeholde heo y by F eeman
(1984) embeds i ms in a b oad spec um o social ela ions.
F eeman (1984) cha ac e izes i as “g oups and indi iduals
who can a ec he o ganiza ion, and is abou manage ial be-
ha io aken in esponse o hose g oups and indi iduals” (p.
48). The e o e, i ms mus balance he in e es s o di e en
s akeholde s and manage hei in luences (Lee, 2011). O e -
all, bo h heo ies a e in e dependen and d i e companies o
espond o social demands (Lee, 2011). Consequen ly, Lee
(2011) jus i ies his con igu a ional app oach wi h he ac
ha “[...]s akeholde s can media e ins i u ional e ec s by
ac ing as ei he bu e s o ampli ie s o ins i u ional in luences.
Ins i u ions can also media e s akeholde e ec s by legi ima ing
o de-legi ima ing a s akeholde g oup’s claim” (p. 282). Fi ms
scan hei en i onmen and pay a en ion o he ex e nal sig-
nal wi h he mos igo ous in ensi y and cohe ence, leading
o di e en esponses and a iable sus ainabili y s a egies
(Lee, 2011). Lee (2011) di e en ia es be ween ou s a e-
gic esponses (see Figu e 3).
Obs uc ionis (“Reac i e”) sus ainabili y s a egy. A
s a egy ha esul s om a con igu a ion o weak ex e nal
in luences. Companies see no incen i e o engage in sus ain-
abili y ma e s. Mo eo e , oday’s ma ke s o en o ce com-
panies o compe e on cos , p e en ing companies om en-
gaging in cos ly social ac i i ies (Lee, 2011). The li e a u e
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-1566 1547
Figu e 3: Con igu a ion o ex e nal p essu es and sus ainabili y s a egies (Sou ce: Lee (2011)
calls his app oach also a eac i e sus ainabili y s a egy (Bini
& Bellucci, 2020).
De ensi e sus ainabili y s a egy. Fi ms ollow a de-
ensi e app oach when acing in ense ins i u ional bu low
s akeholde p essu e. They will mee he legal equi emen s
bu no go beyond compliance. Hence, i ms show no eal
commi men o sus ainabili y (Lee, 2011).
Accommoda i e sus ainabili y s a egy. A combina ion
o weak ins i u ional and high s akeholde p essu e leads o
an accommoda i e s a egy. Companies a e mo i a ed o e-
spond o speci ic s akeholde s’ sus ainabili y demands o p o-
ec economic in e es s (Lee, 2011).
P oac i e sus ainabili y s a egy. The join p esence o
high ins i u ional and s akeholde p essu e esul s in a p oac-
i e s a egy (Lee, 2011). Fi ms su pass he minimum e-
qui emen s and o en in eg a e sus ainabili y in o he alue-
c ea ion p ocess (Bini & Bellucci, 2020). Acco ding o Lee
(2011), he main incen i e o companies is o be p epa ed
o unce ain demands and o ensu e con inued legi imacy.
2.4. Manda o y sus ainabili y epo ing and i s consequences
2.4.1. Regula o y o e iew o sus ainabili y epo ing di ec-
i es
Resea che s complains abou he unspeci ied epo ing
equi emen s by he NFRD (La To e e al., 2018; Mi elbach-
Hö mansede e al., 2021) and he limi ed compa abili y o
disclosed sus ainabili y in o ma ion (Hummel & Jobs , 2021)
led o an amendmen o he NFRD. The succeeding CSRD was
adop ed in No embe 2022 (Hummel & Jobs , 2021) and en-
ails mo e guidelines ha inc ease he ins i u ional p essu e
on epo ing companies.
S a ing in 2018, he NFRD equi es public-in e es en-
i ies (PIEs) wi h mo e han 500 employees and an annual
ne u no e o a leas EUR 40 million o a balance-shee
sum highe han EUR 20 million o disclose a sus ainabili y
epo (A . 1, 3, 4, NFRD) (Eu opean Union, 2014). EU MS
had o anspose he NFRD in o na ional law (A . 4, NFRD)
(Eu opean Union, 2014). The di ec i e consis s o i e key
epo ing aspec s, i.e., (1) de ini ion o PIE,(2) epo ing con-
en ,(3) epo ing amewo k,(4) disclosu e o ma ,(5) ex e -
nal audi , ha each MS can adap (CSR Eu ope, Global Re-
po ing Ini ia i e, 2017). Ge many almos iden ically ans-
posed he NFRD by he Co po a e Social Responsibili y Di-
ec i e Implemen a ion Ac (CSR-RUG) in o comme cial and
co po a e law in 2017 (Uwe & Sch amm, 2018). The adjus -
men s e e o he (1) de ini ion o PIE, which in Ge many
co esponds o capi al ma ke -o ien ed companies (§ 264d
HGB) in addi ion o insu ance and c edi ins i u ions, and (5)
he ex e nal audi , which emains olun a y (CSR Eu ope,
Global Repo ing Ini ia i e, 2017). Rega ding he (2) epo -
ing con en ha aligns wi h he NFRD, Ge man public i ms
mus disclose gene al in o ma ion abou hei business model
and policies, including hei ou comes, isks, and key pe o -
mance indica o s (KPIs) in ela ion o he en i onmen , social
and labo issues, human igh s, an i-co up ion, and b ibe y
ma e s (A ., 1, NFRD) (Eu opean Union, 2014). The in-
o ma ion should ollow he “double ma e iali y” p inciple.
Thus, he epo includes in o ma ion ha is o signi icance
o an unde s anding o he i m’s pe o mance (ou side-in)
and he impac o i s ac i i ies on he en i onmen and soci-
e y (inside-ou ) (Eu opean Pa liamen , 2021). The di ec i e
does no manda e a (3) epo ing amewo k bu ecommends
o ins ance he Global Repo ing Ini ia i e (GRI) s anda ds
(Reci al 9, NFRD) (Eu opean Union, 2014). A compa a-
ble amewo k is he Deu sche Nachhal igkei skodex (DNK).
The (4) disclosu e o ma p o ides o in eg a ion in o a com-
pany’s managemen epo o a publica ion in a sepa a e e-
po (Reci al 6, NFRD) (Eu opean Union, 2014).
The amendmen s o he CSRD ela e o all i e epo ing
aspec s, including a scope expansion o he co e ed compa-
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Figu e 6: P i a e amily i m a che ypes (Phase 1.1) (Sou ce: Own igu e)
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-1566 1555
Figu e 7: Sus ainabili y s a egy ma ix (Phase 1.2) (Sou ce: Own igu e)
aging machine y and packaging ma e ials o as -mo ing
consume goods (e.g., ood). I in e iewed The a’s p ojec
manage o co po a e s a egy and sus ainabili y. The a
mus ace high mul i-s akeholde (i.e., end cus ome s, di ec
cus ome s, applican s) and o mal ins i u ional sus ainabili y
p essu e. An inc eased sus ainabili y awa eness among end
cus ome s inc eased he p essu e on The a’s di ec cus ome s.
“[We]no iced ha he end consume s o ou packages, he peo-
ple who buy sausage and cheese in he supe ma ke [...]pu
p essu e on ou di ec cus ome s, and ha , o cou se, comes
back o us.” Some cus ome s e en con ac hem di ec ly. „We
a e busy esponding o cus ome eques s [ ega ding sus ain-
abili y].” The human esou ces depa men ge s sus ainabil-
i y ques ions om applican s. “[...]e en i we wan o hi e
new s a , young people always ask o [sus ainabili y].” In
con as o he indus ies o he i s wo a che ypes, high
egula ions apply o ood packaging, which esul s in high
ins i u ional p essu e. “In he packaging sec o in pa icula ,
he issue o sus ainabili y, depending on he packaging seg-
men [...]has isen conside ably in ecen yea s, and we a e
also qui e s ongly in luenced by egula o s, especially when
i comes o he ood sec o .”The a’s sus ainabili y ocus in-
cludes a sus ainabili y ision, social ini ia i es (e.g., suppo
o social g oce y shops) and a sus ainabili y ep esen a i e.
I s mo i a ional d i e s owa d sus ainabili y a e compa-
able o he second a che ype. The main di e ence is he
in eg a ion o sus ainabili y and i s ep esen a i e in o he
managemen and go e nance p ocesses. The a has a o -
malized sus ainabili y s a egy and ou s a egic ields (i.e.,
in as uc u e, p oduc s, go e nance, social engagemen ) in
which sus ainabili y is ancho ed, implemen ed, and acked.
“[Sus ainabili y]is pa o he managemen p ocess. We ha e
a sus ainabili y s ee ing commi ee, which consis s o he man-
agemen and me.” Hence, besides he amily’s s ong iden-
i y wi h he i m, The a ca es abou i s dynas ic succession.
“[...]we see i as ou esponsibili y o p ese e an en i onmen
in which u u e gene a ions can li e.” The amily is o wa d-
looking and wan s o de elop a posi i e amily iden i y o
u u e gene a ions. To communica e i s social ac i i ies and
alues, The a has olun a ily published a sus ainabili y e-
po o se e al yea s. In con as o he i s - ime epo e ,
he isiona y ea ly adop e uses epo ing s anda ds. The a
used o i s sus ainabili y epo s he DNK s anda d. Two ad-
di ional upg ades in con as o he las a che ype a e i s ,
he knowledge abou he CSRD and i s conc e e p epa a ion.
Second, all PFF in he sample belonging o he isiona y
a che ype ha e a leas he b onze EcoVadis in addi ion o
sus ainabili y- ela ed ISO ce i ica ions. In summa y, The a’s
join high ins i u ional and s akeholde p essu e, including
i s ansgene a ional alues, led o a o malized s a egy and
communica ion. This enables ex e nal s akeholde s o mon-
i o and e alua e he i m’s s a us quo owa d sus ainabili y.
Consequen ly, a PFF wi hin his a che ype ollows a p oac i e
sus ainabili y s a egy beyond minimum equi emen s.
Sus ainabili y s a egy ma ix. Acco ding o my ame-
wo k, each PFF can be assigned o one o he a che ypes
and i s co esponding sus ainabili y s a egy. The mapping
be ween a che ype and sus ainabili y s a egy can be de e -
mined h ough he sus ainabili y s a egy ma ix (see le side
Figu e 7).
My sample does no include a case wi h a con igu a ion
o low s akeholde and high ins i u ional p essu e. One ex-
plana ion could be he ecognized “ ickle-down” e ec by
O ens ein e al. (2022). This e ec s a es ha some non-
lis ed companies migh be indi ec ly a ec ed by a sus ain-
abili y epo ing manda e (e.g., NFRD) o lis ed companies in
he same supply chain. Thus, I assume ha due o he ickle-
down e ec , lis ed co po a e cus ome s in a B2B ma ke will
also demand sus ainabili y om hei (non-lis ed) supplie s.
Thus, high ins i u ional p essu e h ough no ms and egula-
ions in a B2B ma ke would lead o inc eased s akeholde
p essu e (i.e., sus ainabili y p essu e om cus ome s) in i s
supplie ma ke . A supplie ’s de ensi e sus ainabili y s a -
egy ha consis s o low s akeholde and high ins i u ional
p essu e would become obsole e.
Howe e , in oducing a sus ainabili y epo ing manda e
leads o FOC and SOC (Gulenko, 2018) o he conse a i e
sus ainabili y denie and he cau ious i m- ime epo e . The
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Figu e 8: Fi s - and second-o de consequences (Phase 2, Phase 3) (Sou ce: Own igu e)
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-1566 1557
CSRD egula ion will u he inc ease he in ensi y o o mal
ins i u ional p essu e h ough addi ional ules (e.g., ESRS
s anda ds), indica ed by “high+” (see igh side Figu e 7).
Companies hus ha e much less lexibili y in disclosing hei
sus ainabili y in o ma ion han be o e he CSRD. This is why
e en he isiona y ea ly adop e will ace FOC and SOC. As
depic ed in he ollowing chap e , i would be bene icial o
he conse a i e sus ainabili y denie no o ollow a de en-
si e s a egy (see do ed line igh side Figu e 7) bu a he
a p oac i e s a egy o bene i om SOC.
4.2. Challenges - be awa e o obs acles
The second phase o my amewo k illus a es a che ype-
speci ic challenges (i.e., FOC) along he implemen a ion p o-
cess o a sus ainabili y epo ing manda e (see le side Fig-
u e 8). My analysis e ealed ha he ype and deg ee o
challenge a PFF aces depend on i s a che ype and he co -
esponding sus ainabili y s a egy. Thus, use s o my ame-
wo k can guide h ough he p ocess acco ding o hei as-
signed a che ype. I iden i ied ou challenge clus e s (i.e.,
I. Mo i a ional ba ie o sus ainabili y (- epo ing), II. O -
ganiza ional sus ainabili y epo ing obs acles, III., Technical
gaps, e o s, and discon inui ies, IV. Hesi an pos - epo ing
disclosu e and exchange) ha ep esen he agg ega e di-
mensions o my da a s uc u e. The clus e s a e u he sub-
di ided in o g anula challenges e lec ing he second-o de
hemes.
Two a ibu es dis inguish he clus e s and hei associ-
a ed challenges. The i s and pa ly ou h clus e e e s o
in insic ba ie s o sus ainabili y and i s epo ing, while he
o he clus e s exhibi ope a ional epo ing ba ie s. PFFs
ha belong o he conse a i e sus ainabili y denie ace he
highes obs acle in adop ing he epo ing equi emen s, as
hey mus o e come all ou challenge clus e s. Ins ead,
mos cau ious i s - ime epo e s and isiona y ea ly adop e s
can skip he i s clus e because o hei in insic mo i a ion
and p og ess in sus ainabili y epo ing. Ne e heless, as e-
po ing challenges depend on hei con ex (De Micco e al.,
2021; Gulenko, 2018), he i s challenge clus e migh s ill
pa ially occu o hose wo a che ypes (see do ed boxes
in Figu e 8). Wi hou conside ing he s a us quo o a use
o my amewo k, he cau ious i s - ime epo e and ision-
a y ea ly adop e show only mino di e ences in he ex en
o ope a ional challenges. Con inuing he implemen a ion
p ocess, gi en he p ecise equi emen s o he new CSRD,
he s a us quo o an a che ype becomes i ele an . Thus, my
esul s show ha ega dless o he a che ype, all PFFs ace
he same challenges a e o e coming he second challenge
clus e .
In he ollowing pa ag aph, I p o ide illus a i e e idence
o each challenge clus e and desc ibe how each challenge
impedes he implemen a ion p ocess o a sus ainabili y e-
po ing manda e in he ela ed a che ype. I also include
bes p ac ices o he cau ious i s - ime epo e s and ision-
a y ea ly adop e s ha jus i y omi ing he i s and pa ly he
second challenge clus e . Those examples could also be an
inspi a ion o imp o emen o he conse a i e sus ainabili y
denie s. To make use o my ich da a, I include ep esen a i e
quo es o each challenge clus e .
I. Mo i a ional ba ie o sus ainabili y epo ing.
The i s implemen a ion challenge is an in insic mo i a-
ional ba ie o sus ainabili y and i s epo ing. I obse ed
s ong e idence o his a i ude among he conse a i e sus-
ainabili y denie and weak o no e idence among he o he
a che ypes. The ejec ion o epo ing is based no only on
he epo ing i sel bu also on a undamen al a e sion o sus-
ainabili y. I ound wo beha io al easons ha need o be
o e come in he case o a sus ainabili y epo ing manda e.
Fi s , a one-dimensional cos s a egy. “The ypical en-
ep eneu ial app oach in SMEs is, wha does i cos and wha
a e he bene i s” (Gamma). This mindse p e en s seeing
meaning in sus ainabili y and epo ing. A ypical o am-
ily i ms, bu hese companies’ managemen ocuses on cos s
and p io i izes economic u ili y. They pe cei e any sus ain-
able measu e as a cos ly bu den. The lack o ex e nal p es-
su e makes hem less conce ned abou epu a ional damage
due o a missing commi men o sus ainabili y. Al hough his
a che ype ends o be he smalles , his does no mean hese
PFFs lack inancial esou ces. They a e a he unwilling o
elease a budge o sus ainabili y. “[...] he e is a budge o
ce ain hings [...]. As long as his budge is no dedica ed o
sus ainabili y, his opic will no be pu sued u he ” (Gamma).
Fo example, Gamma in es ed in a ca bon-e icien ni ogen
gene a ion plan o a oid anspo a ion cos s om ni ogen
supplie s. Kappa, a so wa e p o ide , enewed isola ion in
all i s o ices o sa e ene gy cos s. Thus, a conse a i e sus-
ainabili y denie would in es in a sus ainable p ojec when
i educes cos s. This a ionale builds he b idge o he sec-
ond d i e .
The conse a i e sus ainabili y denie sees no (economic)
alue in sus ainabili y epo ing. “I employ someone who akes
beau i ul pho os h oughou he yea . In he end, we bind [ he
epo ]in o a book. Then I ask mysel wha is sus ainable
abou [ he epo ]i , in he end, no one is in e es ed” (Gamma).
Repo ing is solely pe cei ed as an addi ional bu den un e-
la ed o sus ainable ac i i ies. In his way, amily manage-
men ’s mo i a ional ba ie o sus ainabili y epo ing also
hinde s employee empowe men in con ibu ing o sus ain-
abili y. Managemen sees no incen i e o mo i a e employ-
ees o d i e sus ainabili y, including collec ing and eco ding
sus ainabili y da a. “[...]When I p epa e such a epo , I
mus collec da a and consolida e hem in a epo . [...]This
epo has no made my s a mo e sus ainable. [...]Why
should I mo i a e hem o a epo a all?” (Kappa). This
would make implemen ing he manda e e en mo e di icul
because sus ainabili y epo ing is a holis ic p ocess equi ing
mul i-s akeholde suppo .
To conclude, he p ac ice o sus ainabili y and i s epo -
ing con adic s he conse a i e alues o he sus ainabili y
denie . A sus ainabili y epo ing manda e would o ce hem
o change hei mindse , a leas o he poin o mee ing he
minimum equi emen s. In o he wo ds, a manda e would
push sus ainabili y alues in o PFF decision-make s’ e e -
ence poin s; hey would ypically p io i ize less. Fo exam-
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-15661558
ple, o a oid his inne con lic o alues he isiona y ea ly
adop e s Del a, a six h-gene a ion au omo i e supplie , and
E a, a hi d-gene a ion logis ics se ice p o ide , ollow di -
e en app oaches. Del a in eg a ed in o i s o malized sus-
ainabili y s a egy sus ainable KPIs ha ha e he same alue
as inancial KPIs. E a’s Head o Sus ainabili y sees he CSRD
as an oppo uni y. “I like he CSRD because i is so much mo e
han a epo ing di ec i e. I is such a huge le e .”
II. O ganiza ional sus ainabili y epo ing obs acles.
The second challenge clus e s a s dealing wi h he
ope a ional epo ing p ocess. These obs acles a ec all
a che ypes a his implemen a ion s age bu o di e en de-
g ees. My analysis showed ha he main issue is he o -
ganiza ion implemen ing a sus ainabili y epo ing p ocess.
The issues s a wi h a lack o o ganiza ional s uc u es and
oles, ollowed by esou ce sho ages and an unclea epo -
ing scope. The i s wo o hese second-o de hemes ela e
o challenges due o in e nal i m easons, and he hi d due
o ex e nal poli ical easons ou side he company’s con ol.
The conse a i e sus ainabili y denie has di icul ies ap-
p oaching an incoming sus ainabili y epo ing equi emen
due o missing esponsibili ies and s anda dized sus ainabil-
i y managemen sys ems (e.g., ISO 14001). Fo example,
he s a egic ad iso o Kappa’s CEO seemed o e whelmed.
“Wha does he CSRD look like? Wha do I ha e o do o
ul ill i ? Who can deal wi h i ? How can ele an ields o
ac ion be de ined and wo k packages de i ed?” In con as ,
o he mo e ad anced a che ypes, hei clea esponsibili-
ies and managemen sys ems acili a e he de elopmen o
p ojec s uc u es o a new epo ing equi emen . Fo in-
s ance, Case Del a c ea ed se e al sus ainabili y epo s in he
pas and hus assigned da a owne s o each chap e in hei
sus ainabili y epo . The sus ainabili y manage o Io a con-
i med he bene i s o ISO sus ainabili y ce i ica es. “I ha e
he ad an age ha ou si es ha e exis ing ce i ica ions, o ex-
ample, in he ene gy sec o , ISO 50001, and in he en i on-
men al sec o , ISO 14001, [...]many hings ha I need o
he CSRD a e al eady documen ed.”
Following implemen a ion, esou ce sho ages o sus-
ainabili y epo ing a e he nex iden i ied challenge. The
mos equen esou ce sho ages ela e o knowledge and
ime. A his poin , he cau ious i s - ime epo e s a s
o expe ience he ull ex en o he challenges. The cases
belonging o his a che ype jus began es ablishing a epo -
ing p ocess. Thus, epo ing esou ces a e no ye p ope ly
aligned. In e ms o knowledge, he i s wo a che ypes ha e
no o li le expe ise in sus ainabili y epo ing. I ound ha
he i s poin o con ac o hese PFFs is he quali y depa -
men , as his business unc ion is al eady amilia wi h he
equi emen s o ex e nal au ho i ies h ough audi s. “[...]
he opic [o sus ainabili y epo ing]was handed o e o me
because he quali y depa men has no capaci y a all [...]”
(Kappa). The opinion in ol ing ex e nal knowledge be ween
hose wo a che ypes is mixed. Gamma and Io a a e unwill-
ing o wo k wi h ex e nal consul an s, while Kappa and Ze a
a e no . “[...]One o he bigges challenges is knowledge.
[...]bu we need suppo om ex e nal consul an s who show
us wha we need o look a ” (Ze a). Gamma’s cos ocus can
explain i s hesi a ion owa d ex e nal suppo . Rega ding
ime cons ain s, he cases o he i s wo a che ypes wo y
abou he missing ime capaci ies o implemen ing he e-
po ing p ocess a he han main aining i . This is due o
he leng hy amilia iza ion wi h he epo ing obliga ions,
impeded by an o e supply o aining ma e ials. “[...] he
e y i s epo unde he new s anda d akes an eno mous
ime o p epa e [...]I could spend he whole week isi ing we-
bina s [...](Io a). Followed by he subsequen ins uc ion
o he employees in he epo ing obliga ions. “[...] i s we
ha e o ain he managemen le el, and hen ans e i o he
whole wo k o ce” (Ze a). This is con i med by he cases o he
isiona y ea ly adop e ha expe ienced ime sa ings a e
he i s epo ing cycle. “The ini ial ma e iali y analysis ook
he mos ime” (E a).
The las obs acle wi hin he second challenge clus e e-
la es o he unclea epo ing scope due o cons an changes
in epo ing egula ions by policymake s. The ansposi ion
o he CSRD in o na ional law has no ye aken place. The
new CSR-RUG may de ia e om he CSRD. “[...]i is cu -
en ly qui e di icul o s ay up o da e wi h he la es egula o y
changes. I eels like he e a e always new laws and he 50 h
d a o a law o s anda d [...]” (Del a). In addi ion, he
new ESRS epo ing s anda ds and hei changing equi e-
men s equi e i ms o conduc se e al gap analyses on hei
cu en epo ing s anda d. “[...]in e ms o he CSRD [...]
we would like o ake a close look wha his change om he
GRI s anda d o ESRS means. Thus, we will p obably conduc
a gap analysis [...]” (Del a). This is also an obs acle o he
i s wo a che ypes ha ha e ne e used any s anda d. “[...]
he i s sus ainabili y epo is an exe cise whe e we wan o
app oach his ESRS s anda d o he bes o ou abili y. We will
see he esul s o he i s sus ainabili y epo a he end o his
yea and hen publish he gap analysis [...]” (Io a). Thus, e-
ga dless o he a che ype, any change in egula ions means
addi ional e o o unde s and he new equi emen s.
To summa ize, a che ypes’ (i.e., PFFs’) he e ogeneous
sus ainabili y s a egy s ill in luences he ex en o o ganiza-
ional challenges due o an incoming sus ainabili y epo ing
manda e. The mo e ad anced a che ypes can bene i om
hei p oac i e sus ainabili y and epo ing beha io (e.g.,
clea esponsibili ies, ISO ce i ica ions, expe knowledge).
Howe e , hese bene i s seem o diminish based on he spe-
ci ic and changing equi emen s o he new CSRD. In o he
wo ds, wi hou conside ing hese ex e nal easons (i.e., un-
clea epo ing scope), he isiona y ea ly adop e could also
ha e skipped he second challenge clus e .
III. Technical gaps, e o s, and discon inui ies.
The hi d challenge clus e ela es o he second because
o i s ope a ional a ibu es. The challenges o he hi d clus-
e a e independen o he a che ype. Implying ha any PFF,
ei he wi h a p oac i e o a eac i e sus ainabili y s a egy,
will ace simila challenges a his s age. All sub-challenges
(i.e., second-o de hemes) in ol e hu dles in managing he
equi ed da a. Di icul ies in da a managemen include a lack
o ele an da a sou ces, ollowed by a high manual e o
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o da a collec ion and inconsis encies in da a consolida ion.
The absence and gaps o da a sou ces pose a wo old chal-
lenge. Fi s , all a che ypes mus iden i y hei speci ic da a
sou ces equi ed o he ESRS 2, ESRS E1, and ESRS S1 s an-
da ds. I business p ocesses along he alue chain a e no
designed o measu e hese speci ic sus ainabili y indica o s
(e.g., GHG emissions), i is almos impossible o ind and ob-
ain he equi ed da a a all. “The challenge is o design he
p ocesses in such a way ha he in o ma ion needed can be
p esen ed anspa en ly and also in a o m in which i can be
acked. Fo example, wi h he CO2calcula ion, we need o
disclose scope 1, 2, and 3” (The a). This hu dle is pa icu-
la ly in ense o p ocesses beyond a i m’s bo de s, like o
he measu emen o scope 3 emissions. “Da a managemen
in he supply chain will be one o he bigges challenges in he
coming yea s”(Epsilon). “We a e now s a ing o go deepe in o
scope 3. I eel like I’m unning in o walls” (E a). “[...]wha
I ind e y challenging a e he scope 3 emissions” (Be a). All
hese quo es a e om cases belonging o he isiona y ea ly
adop e , al hough hey ha e he mos expe ience in sus ain-
abili y epo ing. Howe e , once iden i ied, a sui able and
measu able p ocess may s ill ha e da a gaps ha need o be
illed subsequen ly. “[...] ying o ge exac igu es om you
own p ocesses, om he supply chain, o eques hem [...],
hese a e huge challenges” (Epsilon). Mos PFFs collec hei
da a manually, which is a imely p ocess. “Fo he CO2bal-
ance, I ha e 150 was e in oices in my olde , all o which I ha e
o ead h ough manually” (Kappa). “[...]las yea , when we
p epa ed he i s ca bon oo p in [...]we had o adap ce ain
hings o ge da a mo e quickly. [...] o ge digi al da a and no
manual e alua ions [is a challenge]” (Ze a).
A e da a collec ion, he nex s ep is o me ge he sus-
ainabili y in o ma ion om he di e en sou ces and depa -
men s, which is challenging due o sys em discon inui ies.
“The depa men s ha e hei own measu emen sys ems o dig-
i al p og ams. Fo example, in HR, some p og ams ha use
aining in o ma ion, [...]employee s uc u es. In he ene gy
sec o , we ha e an in e nal digi al ene gy managemen sys em,
which means ha he indica o s can also be ead ou he e. And
his is how i wo ks in each depa men , and in he end, we
ha e a [Excel]documen , illed ou by he espec i e depa -
men s, which we pu oge he wi h ma ke ing in a sus ainabil-
i y epo ” (The a). Fo companies wi h in e na ional loca-
ions, he hu dle o sys em b eaks is e en mo e se e e. He e,
he echnical consolida ion is addi ionally impeded by a cog-
ni i e obs acle. Cul u es om di e en coun ies ha e di-
e se sus ainabili y pe cep ions. Speci ically, unde s anding
he social dimension a ies ac oss cul u es in luencing how
sus ainabili y is app oached, e.g., ega ding labo equali y o
sa e y. Thus, consolida ing inconsis en da a collec ions due
o di e en in e p e a ions o sus ainabili y makes cohe en
epo ing di icul .
O e all, some echnical di icul ies a ise om he speci ic
equi emen s o he CSRD (e.g., scope 3 emissions). Thus,
e en mo e, expe ienced i ms ha ha e al eady olun a ily
p epa ed a sus ainabili y epo ace challenges. This is due
o he eason ha olun a y epo s a e o en summa ies o
exis ing sus ainabili y in o ma ion. “Th ough he olun a y
epo , we ha e c ea ed anspa ency and simply w i en down
e e y hing ha we a e al eady doing in he a ea o sus ainabil-
i y” (The a). The e o e, ins i u ions’ eques s o sus ainabil-
i y da a om p ocesses no ye designed o be epo ed a e
challenging o any a che ype.
IV. Hesi an pos - epo ing disclosu e and exchange.
The las challenge clus e e lec s a dilemma ha a ec s
e e y a che ype. On he one hand, PFFs hesi a e o disclose
hei da a o he public a e o ganizing and collec ing ele-
an da a. “O cou se, he e a e ce ain opics whe e you con-
side whe he you wan o disclose his in o ma ion. In pa -
icula , sensi i e da a ela ing o compensa ion [...]. These
opics pose challenges o a amily i m, especially i you a e
locally based” (Io a). This conce n is pa icula ly p onounced
o he i s - ime epo e due o i s accommoda i e sus ain-
abili y s a egy. These PFFs buil s ong ela ionships wi h
ex e nal s akeholde s, especially o hei local communi ies,
whe e hey wan o be isible and enjoy a good epu a ion.
Thus, he communica ion o con en ha has no been se-
lec ed by he i m bu by a poli ical ins i u ion is a conce n
o hose PFFs. On he o he hand, PFFs app ecia e eading
he disclosed epo s om indus y pee s o joining i m asso-
cia ions o lea n abou bes p ac ices. “[...]we a e in egula
exchange wi h o he companies ha a e a he same poin as
we a e. [...]we look wha he o he s a e doing, can we copy
any hing, wha can we do be e o how a e hei p ocesses o -
ganized” (The a). Ne e heless, The a only exchanges wi h
public i ms o i ms ou side hei indus y due o hei ea
o disclosing con iden ial da a.
4.3. Oppo uni ies - go beyond legal equi emen s
The hi d phase o my amewo k e eals oppo uni ies
(i.e., SOC) ha esul a e he in oduc ion o a sus ainabili y
epo ing p ocess and epo s disclosu e (see igh side Fig-
u e 8). I di e en ia e be ween di ec and indi ec o “locked”
oppo uni ies along a i m’s alue chain. I espec i e o he
a che ype, all PFFs can bene i om he di ec oppo uni-
ies ha a ise a e mee ing he minimum epo ing equi e-
men s. In con as , a p oac i e sus ainabili y s a egy needs
o unlock indi ec oppo uni ies. Two business unc ions, i.e.,
(1) co po a e s a egy and communica ion and (2) sus ain-
abili y and ope a ions, can bene i om di ec oppo uni ies.
The o he unc ions, i.e., (3) no ma i e managemen , (4)
sales and inance, (5) esea ch and de elopmen , and (6) hu-
man esou ces, can bene i om indi ec oppo uni ies.
Di ec oppo uni ies. Business unc ions (1) and (2)
can bene i om he i m’s s uc u ed disclosu es ollowing
he ESRS s anda ds by mee ing he minimum epo ing e-
qui emen s wi hou addi ional e o . Rega ding business
unc ion (1), using he obliga o y ESRS s anda ds p o ides a
s a egic s uc u e. “I de i ed ou sus ainabili y s a egy om
he ESRS, i.e., E, S, and G, and he chap e s [...]. And I hink
you can show his nicely wi h he chap e s uc u e o he ESRS.
[...]I pe cei ed i e y help ul, he s uc u e, o ca y his in o
he o ganiza ion” (Io a). Mo e speci ically, ESRS 2 s anda d
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-15661560
equi es he disclosu e o boa d membe s’ oles and espon-
sibili ies (EFRAG, 2022b), which can be help ul o a clea
ask alloca ion among amily membe s and co po a e go e -
nance. In addi ion, he epo p o ides i ms wi h a holis-
ic o e iew o hei business ac i i ies h ough he double
ma e iali y pe spec i e. Thus, imp o ing he i m’s isk man-
agemen . Mo eo e , he cases expe ienced imp o ed in e -
nal communica ion h ough c oss- unc ional collabo a ion.
“[...]be o e [ he epo ], each depa men wo ked sepa a ely,
and each depa men had al eady done some hing in he a ea
o sus ainabili y, bu i was ne e eally communica ed. [...]
h ough his epo , i has simply become much mo e s uc-
u ed, and he indi idual a eas could also in o m each o he ”
(The a). Bu also, ex e nal communica ion as pa o he e-
po p epa a ion. “The e a e again hese syne gy e ec s, such
as s akeholde ma e iali y analysis [...]. This [s akeholde ]ex-
change is a posi i e side e ec ” (Io a). Rega ding business
unc ion (2), he holis ic iew also helps o moni o p ocesses
h ough (sus ainabili y) KPIs and hus o iden i y ine icien-
cies mo e quickly. „[...]KPI is supposed o p o ide a a ge
and help us o de elop ce ain p ocesses in a ce ain di ec ion”
(Be a). Las ly, sus ainabili y epo ing simul aneously leads
o eco ding sus ainable ac i i ies and unco e s a hidden po-
en ial. “[...]we al eady do a lo bu in an uncoo dina ed
way. Tha means he di e en depa men s, en i onmen in
de elopmen , in ma e ials, in HR. Things a e happening e e y-
whe e ha you can pu in o his huge opic o sus ainabili y”
(Epsilon).
Indi ec (“locked”) oppo uni ies. The in o ma ion
in he sus ainabili y epo and he unde lying p ocesses can
be u he le e aged o de i e indi ec oppo uni ies. Fi ms
ha pu sue a p oac i e s a egy can bene i om indi ec op-
po uni ies because o hei a i ude o exceed s akeholde
equi emen s. They a e willing o make ex a e o s o u n
he epo ’s in o ma ion in o addi ional alue. The e o e, I
ecommend o PFFs belonging o he conse a i e sus ain-
abili y denie espond o a sus ainabili y epo ing manda e
wi h a p oac i e a he han a de ensi e app oach o unlock-
ing business oppo uni ies.
A PFF ollowing a p oac i e app oach would ecognize
he sus ainabili y pu pose behind a sus ainabili y epo ing
p ocess and could de elop u he mo i a ion and eal al-
ues o sus ainabili y. Looking a business unc ion (3), a
PFF could in eg a e hese new alues in o i s mission, hus
sha pening and ques ioning i s pu pose. I would p o ide
anspa ency o s akeholde s on wha he company s ands
o and allow o assessing he “ u u e eadiness” o a com-
pany’s business model. “[...]i is also clea e o e e yone
wha he company is doing. Wha a e he goals? [...]Such
a epo is, o cou se, an impo an componen . Wha is he
mission? Whe e do we wan o go? I is simply some hing ha
is goal-o ien ed, a posi i e side e ec o such a epo ” (The a).
“[...]And i ’s no jus abou how do we make he p oduc s
mo e sus ainable bu how i is ou business model o he u-
u e” (E a). Beyond ha , such a sus ainabili y epo and
i s double ma e iali y pe spec i e can also enhance a amily’s
SEW by building endu ing ies o mul i-s akeholde s, imp o -
ing he i m’s epu a ion, and hus pa ing he way o u u e
gene a ions.
Ano he le e o he sus ainabili y epo is he acili-
a ed acc edi a ion o sus ainabili y o ganiza ions such as
EcoVadis. The p ocess anspa ency and in o ma ion c ea ed
by he epo can con ibu e o ob aining o he ce i ica es.
Howe e , his equi es p oac i e esea ch by i ms o iden i y
eligible ce i ica ions. In addi ion, exceeding legal equi e-
men s could c ea e a compe i i e edge i a sus ainabili y
epo was no an indus y s anda d be o e he manda e, as
o he conse a i e sus ainabili y denie . Thus, e en sligh ly
exceeding he equi emen s can s eng hen he b and and
inc ease sales. Repo s’ esul ing p ocess anspa ency, e.g.,
h ough sus ainabili y KPIs, can also e eal was e and e-
sou ce ine iciencies. Thus, i a epo ’s con en is conside ed
co ec ly, i se es also as a le e o educe cos s. “[...]es-
pecially when I conside he opic o wa e ci cui s o ene gy,
hen his no only pays o in e ms o sus ainabili y bu also in
e ms o p o i abili y [...]” (Alpha). Consequen ly, hose e -
enue and cos -based a gumen s ep esen a le e o business
unc ion (4).
A mul i-s akeholde iew along a i m’s alue chain, e.g.,
as a equi emen o he epo ing s anda d ESRS E1 o ack
scope 3 emissions, also pa es he way o p oduc inno a ion
and he e o e an oppo uni y o business unc ion (5) “[...]
i we hink in he di ec ion o ci cula economy, whe e p od-
uc de elopmen , cus ome s, and also sales si oge he , whe e
pe haps om he p oduc de elopmen poin o iew he e a e
ideas ha ha e no been ecognized by he cus ome ye ” (Io a).
Las ly, business unc ion (6) can in eg a e he sus ain-
abili y epo in o i s wo k lows o enhance employe b and-
ing and o ganiza ional lea ning. The a and Be a men ioned
ha hey ge unsolici ed applica ions ha e e o hei sus-
ainabili y epo , especially om young alen s ha app eci-
a e wo king o a sus ainable employe . Howe e , in e nally,
he epo is a lea ning ool and inc eases he sus ainabili y
awa eness o he wo k o ce. “O cou se, we also ha e high
s anda ds o ou people. Ou employees a e also in e es ed,
and hey also wan o unde s and he e m sus ainabili y in he
con ex o he company” (Be a).
In summa y, mas e ing he dual ask o in eg a ing sus-
ainabili y epo ing and de i ing oppo uni ies om i is no
e o less. Acco ding o he mo e expe ienced a che ypes, es-
pecially he i s epo ing cycle is a esou ce-in ensi e p o-
cess in e ms o ime, expe ise, and s akeholde engagemen .
Especially he upda ed double ma e iali y concep , due o i s
ou side-in and inside-ou assessmen , esul s in a high ini-
ial bu den. Ul ima ely, i is necessa y i s o build on he
ounda ions o he di ec be o e a emp ing o exploi any
indi ec oppo uni ies.
5. Discussion
5.1. Theo e ical implica ions
The esul s o my analysis con ibu e o bo h he esea ch
s eam o amily i ms’ he e ogeneous sus ainabili y s a egy
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-1566 1561
and epo ing beha io and he esea ch s eam on he e ec s
o a sus ainabili y epo ing manda e.
Rega ding he i s esea ch s eam, my indings build on
he dis inc ion be ween a amily i m’s eac i e and p oac i e
s a egy owa d ex e nal demands (Campopiano & De Mas-
sis, 2015; Cennamo e al., 2012; de la C uz Déniz Déniz &
Cab e a Suá ez, 2005; Hsueh e al., 2023; Sha ma & Sha ma,
2011). I con ibu e o he li e a u e by de i ing h ee PFF
a che ypes. Rega ding amily i ms’ he e ogenous sus ain-
abili y s a egies, he analysis e ealed ha he a ibu es o
my a che ypes and hei co esponding sus ainabili y s a -
egy con i m and discon i m amily i m li e a u e in he ol-
lowing aspec s.
The PFFs belonging o he conse a i e sus ainabili y de-
nie a e cos -d i en and subjec o low ex e nal p essu es,
leading o a gene al a e sion o sus ainabili y (e.g., no sus-
ainabili y ep esen a i e, epo ing, ision, ISO acc edi a-
ion) and a eac i e app oach. Thus, he cases in my sam-
ple showed no mo i a ion o build hei SEW, like enhanc-
ing epu a ion o inc easing binding social ies wi h ex e nal
s akeholde s. This is consis en wi h he indings o Hsueh e
al. (2023) and Cennamo e al. (2012), who a gue ha hose
amily i ms place less emphasis on he (2) amily membe s’
iden i ica ion wi h he i m, which is ela ed o epu a ion, he
(3) binding social ies and he (5) enewal o amily ies o he
i m h ough dynas ic succession SEW dimension, leading o
a eac i e app oach. Ra he un ypical o he esul s o am-
ily business esea ch is he conse a i e sus ainabili y denie s’
high p e e ence o economic goals (Be one e al., 2010;
Ko la & De Massis, 2013). Mo eo e , my indings di e om
de la C uz Déniz Déniz and Cab e a Suá ez (2005), who con-
clude ha amily i ms ha adop a eac i e app oach do no
ha e su icien inancial esou ces o engage in sus ainabil-
i y. Acco ding o my indings, he p oblem lies mo e in he
unwillingness o elease a budge o sus ainabili y.
The PFFs belonging o he cau ious i s - ime epo e and
he isiona y ea ly adop e de eloped in insic sus ainabil-
i y alues and a e subjec o high ex e nal p essu es esul -
ing in a p oac i e sus ainabili y s a egy. They employ sus-
ainabili y manage s, ha e a sus ainabili y ision, engage in,
and communica e hei social ac i i ies, a e acc edi ed by
sus ainabili y o ganiza ions, and p epa e o he upcoming
CSRD. In line wi h Hsueh e al. (2023) and Cennamo e al.
(2012), hose amily i ms ca e abou hei ex e nally pe -
cei ed image, especially in local communi ies, a e o wa d-
looking, de elop a posi i e amily iden i y o u u e gen-
e a ions, which in sum indica es a salience o he (2), (3)
and (5) SEW dimension. Thus, hei goal is o build SEW
while gaining legi imacy. Beyond ha , my analysis e ealed
ha he PFFs in my sample ollowing a p oac i e app oach
a e la ge (i.e., u no e and headcoun ) and show a highe
numbe o gene a ional successions, ollowing de la C uz
Déniz Déniz and Cab e a Suá ez (2005) indings. The di -
e ence be ween he cau ious i s - ime epo e and he i-
siona y ea ly adop e in hei sus ainabili y epo ing is he
use o s anda ds. PFFs belonging o he cau ious i s - ime e-
po e do no adhe e o epo ing s anda ds, while he ision-
a y ea ly adop e epo ed o se e al yea s acco ding o o i-
cial s anda ds. This aligns wi h he indings o Campopiano
and De Massis (2015). In con as , bo h p oac i e a che ypes
a e hesi an o disclose sus ainabili y in o ma ion ha hey
ha e no pu pose ully selec ed o o sha e insigh s om e-
po ing p ac ices wi h indus y pee s. Ven u elli e al. (2021)
explain his eluc ance wi h he amily’s in ol emen in he
i m and he ea o losing hei SEW.
Mo eo e , I con ibu e o he li e a u e on amily i ms’
he e ogeneous sus ainabili y epo ing beha io (A ena &
Michelon, 2018; Au eli e al., 2020; Biswas e al., 2019;
Campopiano & De Massis, 2015; Ga ana e al., 2017; Te -
laak e al., 2018; Ven u elli e al., 2021) ia PFF a che ypes.
My amewo k shows ha he ype (i.e., challenge clus e )
and deg ee (i.e., sub-challenges) o challenge ega ding im-
plemen ing a sus ainabili y epo ing manda e depend on he
a che ype and i s co esponding sus ainabili y s a egy up o
a ce ain implemen a ion s age. This a ionale con inues
wi h he oppo uni ies. Each a che ype can bene i om di-
ec oppo uni ies a e mee ing he minimum equi emen s.
Only a p oac i e app oach can unlock indi ec oppo uni ies.
I seems ha a majo de e minan is he ype o sus ainabili y
s a egy, a cons uc o ex e nal o ces. Since he p io i iza-
ion o con igu a ion o SEW dimensions de e mines how
a amily i m eac s o ex e nal demands, SEW is a p e en-
i e le e o mi iga e challenges o gain oppo uni ies. This
easoning applies o implemen a ion s ages o sus ainabili y
epo ing in luenced by in insic mo i es such as he i s and
ou h challenge clus e o he gain o indi ec oppo uni ies.
Beyond ha , ollowing he esea ch call om A ena and
Michelon (2018) o Ven u elli e al. (2021), I ex end amily
business esea ch on sus ainabili y epo ing by ocusing on
PFF. Unde he a ibu es o a mul iple case s udy, I no only
elied on easily accessible SEW dimensions such as amily
con ol bu also amily membe s’ iden i ica ion wi h he i m
o enewal o amily bonds h ough dynas ic succession.
Rega ding he second esea ch s eam, my amewo k
u he ex ends esea ch on he e ec s o manda o y sus-
ainabili y epo ing (Fiech e e al., 2022; Ioannou & Se -
a eim, 2017; O ens ein e al., 2022) in gene al and on he
challenges and oppo uni ies o he CSRD in pa icula . My
amewo k p esen s ou challenge clus e s and oppo uni-
ies in six business unc ions along a i m’s alue chain based
on he CSRD in Ge man companies. Thus, I am no only
con ibu ing o he cu en sca ci y o s udies ocusing on he
upcoming CSRD (O ens ein e al., 2022) bu also on he link
be ween FOC and SOC (Gulenko, 2018).
5.2. Manage ial implica ions
Managing he dual mission o in eg a ing a sus ainabili y
epo ing manda e and bene i ing om his change p ocess
is challenging (Ga cia-To ea e al., 2023; Nig i & Del Baldo,
2018). Since he dominan coali ion, like he amily, is he
p ima y agen o success ully managing such an o ganiza-
ional change (Ko e , 1996), my indings a e highly ele an
o p ac i ione s. The amewo k se es as a guide and e-
eals implemen a ion challenges and oppo uni ies. As my
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-15661562
analysis shows, he in luence o a amily i m’s ypical SEW
is especially ele an o he i s and ou h challenge clus e
as well as o he shi om di ec o indi ec oppo uni ies.
None heless, apa om hose socioemo ionally in luenced
consequences, my amewo k is also ele an o non- amily
i ms ha wan o p epa e o he upcoming CSRD. The e-
o e, he ollowing manage ial implica ions a e wo old.
Fi s , I ecommend ha PFFs belonging o he cos -d i en
conse a i e sus ainabili y denie in eg a e sus ainabili y KPIs
in o hei decisions and link hem o inancial da a. In addi-
ion, hey should ecognize he po en ial oppo uni ies ha
may a ise om a sus ainabili y epo ing manda e h ough
my amewo k. Bo h sugges ions could acili a e o e coming
he inne obs acle o seeing no alue in sus ainabili y and i s
epo ing. Since a amily’s s ong iden i ica ion wi h he i m,
binding social ies and ansgene a ional alues a e d i e s
o ollowing a p oac i e sus ainabili y s a egy (Cennamo e
al., 2012; de la C uz Déniz Déniz & Cab e a Suá ez, 2005;
Hsueh e al., 2023; Sha ma & Sha ma, 2011), a conse a i e
sus ainabili y denie could pu ele ance on hese SEW di-
mensions o be mo i a ed going beyond legal equi emen s
and hus bene i ing om indi ec oppo uni ies. Conce ning
he ou h challenge clus e and he dilemma be ween he
hesi a ion o sha e in o ma ion wi h he public and he app e-
cia ion o eading he sus ainabili y epo s o indus y pee s
o mimic bes p ac ices, I ad ise he ollowing. Rega dless o
he a che ype, amilies who iden i y s ongly wi h hei i m
and ea hei image in local communi ies o sha ing con-
iden ial epo p ac ices wi h indus y pee s migh pa ici-
pa e in i m associa ions ou side hei egion and indus y
(see case Io a,The a).
Second, o all i ms, i espec i e o hei amily o lis ing
s a us, in eg a ing a sus ainabili y epo ing manda e such
as he CSRD equi es p ope o ganiza ion and da a man-
agemen . My analysis e ealed ha i ms wi h s anda dized
sus ainabili y managemen sys ems (e.g., ISO 14001) could
build on hese s uc u es, assigned oles, and da a. The e-
o e, I ecommend using any sus ainabili y acc edi a ion as
an o ien a ion o acili a e he de elopmen o p ojec s uc-
u es ega ding he implemen a ion o a sus ainabili y epo -
ing p ocess. Ne e heless, d awing on he bes p ac ices o
a che ypes wi h mo e expe ience in sus ainabili y epo ing,
i is e iden ha he sus ainabili y epo ing p ocess becomes
much smoo he a e one epo ing cycle, which should se e
as a mo i a ion o i ms. Las ly, he abundance o egula-
o y amendmen s o he epo ing equi emen s is an obs a-
cle ou side he company’s con ol. I migh be help ul o keep
in o med ia webina s o aining ma e ial om leading ad-
iso y i ms.
5.3. Limi a ions and u u e esea ch
My s udy is subjec o a ew limi a ions ha pa e he way
o u u e esea ch. The amewo k shows limi s ega ding i s
in e nal and ex e nal con ex . The challenges and oppo uni-
ies o he amewo k sui mainly Ge man PFFs (i.e., in e nal
con ex ) based on he EU’s o hcoming CSRD (i.e., ex e -
nal con ex ). Gi en he s ong in luence o he in e nal and
ex e nal con ex in analyzing he consequences o manda-
o y sus ainabili y epo ing (Au eli e al., 2020; Ch is ensen
e al., 2021; Gulenko, 2018), u u e esea ch could add ess
bo h limi a ions.
In e ms o he in e nal con ex , de eloping and es -
ing hypo heses on he iden i ied consequences would u -
he subs an ia e my indings. Howe e , ega dless o he e-
sea ch me hod, in amily business esea ch, i is essen ial o
cau iously gene alize he esul s due o he he e ogenei y o
amily i ms (Chua e al., 2012; E e e al., 2016). Elabo a -
ing u he on his a gumen , I mus conside ha he SEW
dimensions in luence my amewo k (Be one e al., 2012;
Gómez-Mejia e al., 2007). Con igu a ions o salien SEW di-
mensions a ec he ype and deg ee o implemen a ion chal-
lenges. As indica ed in he p e ious chap e , non- amily i ms
applying my amewo k mus conside his limi a ion. Thus,
i would be in e es ing o know how a dominan coali ion o
a non- amily i m implemen s he CSRD and o wha ex en
he consequences di e om my s udy. Also, a single longi u-
dinal case s udy could u he deepen he consequences and
conclude how exac ly a amily i m manages he pa h om
FOC o SOC. Fu he mo e, he indings a e limi ed o he in-
dus ies in he sample. The amewo k is suscep ible o he
in luence o indus y p essu e, which may lead o di e en
assigned sus ainabili y s a egies. Fo example, his limi a-
ion is e lec ed by my sample, no including a case wi h a
de ensi e sus ainabili y s a egy. Al hough I suspec ewe
companies a e exposed o low ins i u ional and high s ake-
holde p essu e due o he ickle-down e ec , his could also
lie in my sample’s limi ed numbe o indus ies. Fu u e e-
sea ch could alida e he indings in a di e en indus y se
up.
Rega ding he ex e nal con ex , my s udy p esen s ea ly
e idence. I iden i ied ou challenge clus e s based on he
o hcoming CSRD and i s binding ESRS s anda ds, which a e
no ye ansposed in o Ge man law. Al hough he in eg a-
ion should no de ia e as much as in he case o he NFRD,
a subsequen check on he con o mi y be ween he di ec i e
and na ional law is ad isable. Fu he mo e, i is di icul o
ex apola e he iden i ied consequences o i ms ou side he
EU. The mo i a ion o ins i u ions o o ce companies o p o-
duce a sus ainabili y epo a ies (Ch is ensen e al., 2021),
which also indica es di e en implemen a ion issues. Thus,
u he esea ch could eplica e o ex end he indings in di -
e en ins i u ional se ings.
6. Conclusion
By analyzing in e iew da a om mul iple cases on he
consequences o manda o y sus ainabili y epo ing, I c e-
a ed an induc i e amewo k ha illus a es which challenges
a company aces when implemen ing sus ainabili y epo ing
and how he manda e can u n in o business oppo uni ies.
The sha p scope expansion o he EU’s o hcoming CSRD
and he associa ed i s - ime imposi ion o a sus ainabili y e-
po ing manda e on mos Ge man p i a e amily i ms ga e
eason o ocus on his speci ic con ex . Building on amily
R. Ebne /Junio Managemen Science 9(2) (2024) 1540-1566 1563
business esea ch, my indings con ibu e o he li e a u e by
di e en ia ing PFFs based on hei cu en ma u i y o sus-
ainabili y epo ing and sus ainabili y s a egy ha is a con-
s uc o ex e nal o ces. This allowed me o de i e h ee PFF
a che ypes. The iden i ied implemen a ion challenges en ail
in insic and ope a ional ba ie s. Thus, amily i ms psycho-
logically ancho ed SEW dimensions ega ding ex e nal de-
mands (e.g., binding social ies) in luence he PFF a che ype’s
implemen a ion challenges (i.e., in insic ba ie s). Only a
SEW con igu a ion ha a o s p oac i e beha io owa ds ex-
e nal demands enables PFF o bene i om indi ec business
oppo uni ies. F om a p ac i ione ’s pe spec i e, he ope a-
ional obs acles a e ele an o all company ypes ha wan
o p epa e o he CSRD. Ul ima ely, my amewo k se es as
a guide o o e coming he obs acles in mee ing he sus ain-
abili y epo ing equi emen s o he EC, a key s akeholde
o Eu opean companies. Thus, I can p e en i ely assis in
main aining a company’s license o ope a e and ealize i s
ull po en ial.
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