Employee Sensemaking on the Importance of Sustainability Reporting in Sustainability Identity Change

Abstract

<p>This study examines employee sensemaking processes in order to understand the role of sustainability<br />reporting in organizational identity change. Through an analysis of 52 interviews with employees<br />in two Finnish companies, we develop sensemaking frames for understanding the role of<br />sustainability reporting in organizational identity change. The three sensemaking frames are individualistic,<br />relational and decoupled. Each of these sensemaking frames differs in stakeholder<br />orientation. They indicate that sensemaking influences the interpretation of how important sustainability<br />reporting is for organizational identity change towards sustainability. The study shows<br />how the individualistic and relational frames serve as sensemaking frames for framing sustainability<br />reporting as being possibly beneficial in organizational identity change. However, the<br />decoupled frame highlights the deficiencies of reporting, especially from the perspective of a collectivistic<br />stakeholder orientation. We propose that a better understanding of the decoupled<br />sensemaking frame helps to understand the justifications for the increasing criticism that has<br />been targeted at sustainability reporting.<br /></p>