The Pressure to Comply: An Experimental Study of CSRD and Innovation-Oriented Decision-Making

Sammanfattning

The Corporate Sustainability Reporting Directive (CSRD) represents a major expansion ofmandatory sustainability reporting within the European Union, increasing requirements fortransparency, accountability, and sustainability-related disclosure. While previous researchhas primarily examined the effects of sustainability reporting regulation on disclosurepractices and reporting quality, less attention has been given to how such regulation mayinfluence internal organisational decision-making. This thesis examines how CSRD-relatedregulatory pressure influences innovation-oriented decision-making in terms of risk tolerance,investment willingness, and innovation direction. Drawing on institutional theory, thebehavioural theory of the firm, and the attention-based view, a quantitative vignette-basedexperiment was conducted through an online survey involving 210 respondents. Participantswere randomly assigned to either a treatment condition containing CSRD-related reportingpressure or a control condition without such pressure. Additional subgroup analyses wereconducted to examine whether the effects differed among business professionals. Thefindings indicate that CSRD-related regulatory pressure influences innovation-orienteddecision-making, although the effects vary across dimensions. The strongest effects wereobserved for innovation direction, where respondents exposed to CSRD-related pressure weremore likely to prioritise compliance-oriented innovation alternatives. More moderate effectswere identified for risk tolerance, while evidence regarding investment willingness wascomparatively limited. The effects were generally stronger among business professionals thanamong students. The thesis contributes to research on sustainability reporting and innovationmanagement by demonstrating that mandatory sustainability reporting may influence not onlyexternal disclosure practices but also the internal evaluation and prioritisation of innovationopportunities. Overall, the findings suggest that CSRD-related regulatory pressure primarilyredirects innovation-oriented decision-making rather than restricting innovation activity,encouraging decision-makers to favour innovation initiatives that align with sustainabilityobjectives, reporting requirements, and stakeholder expectations.