Abstract

Purpose: As a key tool for promoting transparency, accountability and social responsibility, sustainability reporting plays an important role in improving the performance of business units and building trust among stakeholders. However, the implementation of these standards in Iran is associated with several challenges. The current research was conducted with the aim of identifying and analyzing the challenges and opportunities of sustainability reporting in Iranian reporting.
Method: This research is in the category of quantitative research and in terms of its purpose, it is also included in the category of applied research. The statistical population of this research is users of financial statements, financial statement preparers, auditors and university professors. The data of the research was collected through a questionnaire and it is also included in survey research. A research questionnaire based on a 5-point Likert scale has been developed. It was analyzed using exploratory factor analysis.
Results: The results of the research data analysis identified 13 key components including economic opportunities, accountability, competitiveness, and political, managerial, educational and technical challenges. The results of this research develop the theoretical literature in this regard. The results of the research showed that sustainability reporting can provide opportunities such as attracting foreign investment, reducing information asymmetry, increasing product quality, and improving brand position for business units. However, obstacles such as weak educational infrastructure, managers' negative attitude towards the importance of reporting, high costs, and lack of appropriate organizational culture have limited the implementation of this process. Also, political and structural challenges, including sanctions and weak corporate governance, are among the other obstacles identified in this research. This research suggests that through the training of managers and employees, strengthening of technological infrastructure, formulation of binding laws along with economic incentives and improvement of supervision of the implementation of standards can reduce the existing challenges.
Conclusion: Applying sustainability reporting in different sectors is facing a challenge. In addition, it has significant opportunities. In order to apply sustainability reporting, sufficient measures must be taken to solve the challenges. In order to apply sustainable reporting, in addition to Iran's reporting environment, other issues should also be considered.
Contribution: This study contributes to the enrichment of research regarding the attitude of accountants and stakeholders regarding sustainability reporting. Also, research in this sector can help business units to improve the attitude and responsiveness of business units so that they can successfully respond to the various needs of society.