The importance of sustainability reporting in the function of improving corporate social responsibility

A key challenge for companies today is to develop accounting systems that meet both national and global social responsibility requirements. Modern development increasingly calls for integrated reporting, combining traditional financial reports with non-financial reporting. With the adoption of the European Union directive on non-financial reporting, certain large enterprises and companies of public interest are now required to prepare and publish reports on the environmental and social impacts of their activities. The main goal of this research is to assess the current state and perspectives of nonfinancial reporting among domestic companies, aiming to enhance accounting solutions that improve corporate social responsibility and the company's public image. The research methodology employs descriptive, quantitative, and qualitative analyses, presenting practical solutions for non-financial reporting by selected large companies in the Republic of Serbia for 2021, 2022, and 2023. The findings highlight the necessity of revising traditional financial reporting to strengthen nonfinancial reporting and the potential benefits of implementing an integrated reporting framework in domestic companies. These results are particularly valuable for national accounting policymakers seeking to enhance non-financial reporting practices and for domestic companies aiming to gain deeper insights and improve their social responsibility.