Legitimacy through disclosure: how Dutch coffee firms use sustainability reporting
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2025-06-26
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en
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As sustainability reporting (SR) shifts from a voluntary practice to a mandatory regulatory requirement under the CSRD, companies face new challenges in constructing legitimacy. This study investigates how Dutch coffee companies use SR as a legitimacy mechanism in the context of mandatory disclosure. Based on legitimacy theory and the distinction between symbolic and substantive compliance, the study examines how companies pursue pragmatic, moral, and cognitive legitimacy through their legitimacy practices.
Using a qualitative design, this research combines document analysis of sustainability reports and newspaper articles with six semi-structured interviews with representatives from Dutch coffee firms. The findings show that mandatory SR has fostered internal changes, particularly by encouraging the use of quantitative indicators and formalising sustainability processes. While symbolic compliance remains present, its frequency declines as companies face stricter reporting expectations. Substantive compliance becomes more dominant, especially through role performance and regulatory adherence.
The findings of this study show that companies primarily aim for pragmatic legitimacy by aligning with stakeholder expectations, and moral legitimacy through ethical sourcing practices and procedural improvements. Cognitive legitimacy remains rare, as firms struggle with transparency challenges. Additionally, the study highlights doubt about the effectiveness of sustainability frameworks like Fairtrade, specifically for smaller firms, and raises questions about the communication value of SR in stakeholder groups such as the hospitality sector.
This research contributes to the sustainability disclosure literature by showing that reporting does not automatically grant legitimacy. Instead, it must be continuously constructed and maintained in response to regulatory, societal and internal expectations. These insights have implications for policymakers, stakeholders, and organisations navigating the shift to mandatory sustainability disclosure.
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Faculteit der Managementwetenschappen