In recent years, the notion of responsibility has profoundly reshaped the relationship between business and society. Economic activities are no longer assessed exclusively on the basis of financial performance; instead, they are increasingly evaluated in light of their environmental impacts, social consequences, and governance implications (Schaltegger et al., 2017; Laine, 2024). Climate change, biodiversity loss, social inequalities, and growing public scrutiny have intensified demands for transparency and accountability, transforming sustainability from a voluntary aspiration into a defining dimension of organizational legitimacy (Nicolò et al., 2025aRaimo et al., 2025a; Salvi et al., 2025). Within this broader transformation, sustainability reporting (SR) has emerged as a key mechanism through which organizations articulate, measure, and communicate their responsibility (Rossi and Luque-Vílchez, 2021; Ortiz-Martínez and Marín-Hernández, 2022). By translating complex social and environmental impacts into structured information, SR provides a visible interface between organizations and their stakeholders and has progressively evolved from a marginal disclosure practice into a central component of contemporary governance and accountability systems (Orazalin and Mahmood, 2020; Laine, 2024).This evolution has been further accelerated by recent regulatory developments, particularly within the European context. The introduction of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) marks a decisive shift toward a more standardized, comprehensive, and data-intensive SR regime (Carungu et al., 2025; Nicolò et al., 2025b; Raimo et al., 2025b). These initiatives aim to enhance the comparability, reliability, and decision-usefulness of non-financial information, while embedding SR more firmly within corporate governance and decision-making processes. As a result, SR is increasingly positioned not merely as a communication tool but as an integral component of contemporary accountability and responsibility frameworks.Despite this growing prominence, SR practice and research have long been dominated by a focus on large corporations (Massa et al., 2015). Reporting frameworks, regulatory initiatives, and empirical studies have overwhelmingly adopted large, often multinational firms as their implicit reference point. This orientation has reinforced the assumption that SR is inherently resource-intensive, highly formalized, and suitable primarily for organizations equipped with dedicated sustainability departments and sophisticated data infrastructures (Pizzi and Coronella, 2025; Momtaz and Parra, 2025). As a result, small- and medium-sized enterprises (SMEs) have frequently been positioned at the margins of the SR debate.This marginalization is paradoxical. SMEs represent the backbone of most economies, accounting for approximately 90% of all businesses worldwide and playing a crucial role in economic, social, and environmental terms (Guerrero-Baena et al., 2024). They are responsible for more than 60% of the overall environmental impact in Europe and up to 70% of industrial pollution worldwide (Journeault et al., 2021). When the cumulative effects of many small-scale activities are considered, SMEs collectively exert a substantial environmental and social impact (Arena and Azzone, 2012; Massa et al., 2015; Guerrero-Baena et al., 2024). From both an economic and a sustainability perspective, SMEs therefore play a decisive role in shaping development trajectories.Yet, this relevance is not reflected in SR practice. Empirical evidence consistently shows that SMEs account for only a small fraction of published sustainability reports, even in contexts where sustainability practices are relatively widespread. Guerrero-Baena et al. (2024) report that SMEs produce just 12.1% of the total number of sustainability reports recorded in the Global Reporting Initiative (GRI) database, with the remaining 87.9% originating from large organizations. This gap between impact and disclosure has been widely attributed to the structural constraints faced by SMEs. Limited financial resources, lack of specialized expertise, time constraints, and informal organizational structures are frequently cited as key barriers to SR adoption (Arena and Azzone, 2012; Pizzi and Coronella, 2025). In addition, most international reporting frameworks have been developed with large organizations in mind, resulting in standards that are perceived by SMEs as overly complex, rigid, and poorly aligned with their operational realities.While these explanations are well grounded, they risk offering an incomplete representation of the phenomenon. Early contributions in this field already suggested that SR in SMEs should not be interpreted merely as a scaled-down version of large-firm practices. Rather, SR can play a qualitatively different role in smaller organizations, acting less as a compliance-driven exercise and more as a process of sense-making, learning, and organizational change (Massa et al., 2015). When approached incrementally, SR can support SMEs in reflecting on their impacts, clarifying priorities, and integrating sustainability considerations into strategic and operational decisions (Guerrero-Baena et al., 2024).This process-oriented perspective challenges the view of SR as a static output. Rather than being limited to the production of a report, SR in SMEs often unfolds as a gradual and adaptive journey. Through data collection, employee involvement, and performance reflection, SMEs may develop greater awareness of their social and environmental footprint and strengthen their capacity for long-term planning (Massa et al., 2015). In this sense, SR becomes intertwined with broader processes of organizational learning and strategic development.Despite the growing recognition of these dynamics from a practical standpoint, academic research has only partially followed this trajectory. The SR literature has largely mirrored practice by privileging large corporations as its primary unit of analysis, thereby reinforcing a large-firm-centric understanding of disclosure processes, drivers, and outcomes (Massa et al., 2015; Rossi and Luque-Vílchez, 2021; Ortiz-Martínez and Marín-Hernández, 2022). Consequently, empirical evidence, theoretical frameworks, and methodological approaches have been predominantly developed and tested in contexts characterized by formalized governance structures, abundant resources, and advanced reporting infrastructures.A smaller part of the literature has examined SR in SMEs, yet this stream of research remains fragmented and underdeveloped. Existing contributions have mainly focused on identifying barriers to reporting adoption or on documenting isolated experiences, often through case-based approaches (e.g. Arena and Azzone, 2012; Massa et al., 2015; O’Reilly et al., 2024, 2025). While these studies offer valuable insights, they also reveal the absence of a coherent and cumulative research agenda capable of capturing the heterogeneity of SMEs and the evolving nature of SR practices in this context.Against this backdrop, there is a clear need to advance the SR literature by explicitly addressing SMEs as distinct and relevant actors within sustainability governance systems. This advancement requires moving beyond deficit-based narratives that portray SMEs primarily in terms of limitations and constraints, and instead acknowledging their agency, adaptability, and capacity to develop context-specific SR practices aligned with their organizational characteristics and stakeholder relationships.This special issue of the Journal of Global Responsibility responds to this need by providing a dedicated forum for exploring SR in SMEs from multiple and complementary perspectives. The contributions included in this collection jointly deepen the understanding of SR as a responsibility-driven process in the SME context, shedding light on how organizational dynamics, stakeholder relationships, technological developments, and institutional pressures shape reporting practices. By addressing both persistent challenges and emerging opportunities, the special issue aims to contribute to a more refined, inclusive, and context-sensitive understanding of SR in SMEs, offering insights that are relevant for scholars, practitioners, and policymakers seeking to foster more meaningful and proportionate forms of accountability beyond the large-firm setting.The remainder of this guest editorial is organized as follows. Section 2 introduces and discusses the papers included in the special issue, while Section 3 concludes the editorial by outlining the main theoretical and practical implications and highlighting avenues for future research.The ten papers accepted for publication in this special issue can be classified into three thematic clusters:The first cluster focuses on the relationship between SR and digital transformation in SMEs. Within this stream, Fülöp and Topor (2026) examine the impact of digital transformation on the SR practices of Romanian SMEs, with particular attention to environmental sustainability objectives. Using a quantitative survey and structural equation modeling, the study shows that digital technologies offer significant opportunities for collecting and analyzing sustainability-related data. At the same time, the findings highlight persistent challenges – such as limited financial resources, insufficient technological expertise, and regulatory uncertainty – that constrain the effective use of digital tools for SR. Similarly, Sivaiah and Vinodan (2026) investigate how SMEs can digitalize their SR processes through a structured, maturity-based adoption model. Drawing on a systematic literature review of 32 Scopus-indexed publications and an inductive thematic analysis, the authors develop a conceptual framework identifying four stages of digital maturity – initiation, development, integration, and optimization. Their results indicate that progressive digital advancement enhances the accuracy, efficiency, and strategic relevance of sustainability disclosures, while also revealing that SMEs often face significant barriers in advancing through these stages due to limited resources and technological capabilities. Within the same cluster, Trequattrini et al. (2026) examine the readiness of medium-sized industrial SMEs for the twin digital and sustainability transition by introducing the Digital-Sustainability Readiness Index (DSRI), a composite indicator designed to assess firms’ capacity to integrate digital technologies and sustainability practices. Using data from 24 sectoral–territorial clusters of Italian medium-sized enterprises and applying time-series analysis and ordinary least squares regression, the study finds a positive and statistically significant association between the DSRI and return on investment. The results suggest that digital and organizational readiness can act as strategic enablers of firm performance in the context of emerging SR requirements, with industry-specific factors playing a more decisive role than geographical location. Concluding this cluster, Campanella et al. (2026) investigate the factors influencing the adoption of FinTech services by SMEs and their implications for performance in achieving the Sustainable Development Goals. Drawing on the Unified Theory of Acceptance and Use of Technology and survey data from Italian innovative SMEs, the authors employ structural equation modeling to show that performance expectancy, social influence, facilitating conditions, and effort expectancy positively affect SMEs’ intention to adopt FinTech solutions. In addition, prior experience with digital technologies strengthens these relationships, highlighting the critical role of digital readiness in enabling SMEs to leverage FinTech as a driver of sustainability-oriented performance.The second cluster focuses on the relationship between SR, regulatory frameworks, and CSRD readiness in SMEs. Within this stream, Braun (2026) explores the role of SMEs in the evolving SR landscape of the European Union, with particular attention to the indirect implications of the CSRD. Using a doctrinal legal analysis of the CSRD and related European regulations, complemented by a systematic review of academic and regulatory literature, the author examines how SMEs are increasingly integrated into value chains and the European multilevel sustainability enforcement system. The findings indicate that, while the CSRD may generate potential benefits for SMEs – such as enhanced competitiveness, improved investment readiness, and alignment with future regulatory expectations – it also poses significant challenges related to limited environmental, social, and governance (ESG) expertise, data collection burdens, and difficulties in adapting to evolving reporting standards. The results further highlight that digitalization can play an enabling role in supporting compliance, provided it is implemented in a manner proportionate to SMEs’ capacities, thereby underscoring the importance of support from public authorities, larger firms, and industry associations. Also within this cluster, Kokkinou (2026) examines how digital transformation tools contribute to organizations’ readiness for the CSRD, with particular attention to the mediating role of data analytic capability. Drawing on organizational information processing theory and dynamic capability theory, the author investigates whether and how digital transformation enhances CSRD readiness among both SMEs and large organizations. Using survey data collected from European firms and partial least squares structural equation modeling, the findings show that the adoption of digital transformation technologies – especially those oriented toward supply chain and inter-firm integration – supports the development of data analytic capability, which in turn positively affects CSRD readiness. While the underlying mechanisms are similar across firm sizes, the results indicate that large organizations remain significantly more advanced than SMEs in building the capabilities required to comply with CSRD requirements. Concluding this cluster, Milanés-Montero et al. (2026) investigate the readiness of listed SMEs for the adoption of the forthcoming ESRS for listed SMEs by examining current voluntary sustainability disclosure practices. Drawing on agency theory and the resource-based view, the authors develop a voluntary sustainability disclosure index based on hand-collected data from Spanish SMEs and apply cluster analysis and ANOVA to identify the determinants of disclosure levels. The findings reveal an overall low level of voluntary SR, particularly with respect to materiality assessment disclosures, although a slight increase is observed between 2022 and 2023. Firm-specific factors – including business model orientation, accounting standards, size, and profitability – emerge as key drivers differentiating disclosure patterns, highlighting persistent disparities in SMEs’ preparedness for the forthcoming ESRS.The third cluster focuses on the relationship between SR, governance models, and stakeholder engagement in SMEs. Within this stream, Degregori et al. (2026) explore the integration of digital technologies into SR practices for SMEs through the experience of an Italian cooperative bank committed to ethical finance. Adopting a mixed-method approach that combines a qualitative case study with quantitative correlation analysis, the authors examine how a dual evaluation framework – integrating traditional financial assessments with a Value and Sustainability Assessment – supports SMEs in meeting social and environmental responsibility standards. The findings highlight the enabling role of AI-driven ESG rating systems and automated social reporting tools in providing real-time socio-environmental performance assessments and aligning SMEs with the Sustainable Development Goals. The results further reveal a negative correlation between ESG scores and probability of default, indicating that SMEs with higher ESG performance exhibit lower credit risk. In addition, the presence of trained social assessors and the use of digital tools contribute to enhancing transparency, accountability, and decision-making processes in SME SR. Also within this cluster, Bussoli et al. (2026) examine SR practices in Cooperative Credit Banks, focusing on the barriers and benefits associated with SR adoption in the Italian context. Using a qualitative single case study of an Italian cooperative credit bank, the authors identify four main areas related to barriers and benefits: technical and operational, economic and competitive, cultural and organizational, and regulatory. The findings show that SR supports the strengthening of corporate culture, stakeholder trust, and strategic positioning, while also revealing persistent challenges related to data integration, ESG indicator conversion, and resource allocation within cooperative banking organizations. Concluding this cluster, Ligorio and Caputo (2026) examine the role of stakeholder engagement in SMEs, addressing a research area that has been predominantly explored in the context of large corporations. Using a bibliometric and systematic literature review of 97 peer-reviewed articles indexed in Scopus, the authors identify the main thematic streams shaping stakeholder engagement research in SMEs. The analysis highlights environmental sustainability, innovation management, and collaborative strategies as central dimensions of effective stakeholder engagement in SMEs.This special issue aimed to advance the understanding of SR in SMEs by addressing a domain that has long remained underexplored in both academic research and policy debates. Collectively, the ten contributions included in this issue demonstrated that SR in SMEs cannot be interpreted merely as a simplified or delayed version of large-firm practices. Rather, SR emerges as a responsibility-driven, context-sensitive, and evolving process, shaped by organizational characteristics, governance arrangements, stakeholder relationships, digital capabilities, and regulatory pressures. Across the three thematic clusters, the papers highlighted that SMEs are increasingly exposed to SR expectations, whether through digital transformation dynamics, indirect regulatory effects, or stakeholder engagement mechanisms. At the same time, they revealed persistent structural constraints that limit SMEs’ ability to fully exploit the potential benefits of SR. Taken together, the contributions offer a detailed and multidimensional view of SR in SMEs, moving beyond deficit-based narratives and providing a richer understanding of how responsibility is enacted, negotiated, and communicated in smaller organizational contexts.From a theoretical perspective, this special issue contributes to SR literature in several important ways. First, it challenges the dominance of large-firm-centric frameworks by showing that SR in SMEs follows distinct logics, motivations, and trajectories. The findings across clusters suggest that theories commonly applied to large organizations – such as institutional theory, agency theory, and resource-based perspectives – require contextual refinement when used to explain SR practices in SMEs. Second, the contributions underscore the relevance of process-oriented and capability-based perspectives. SR in SMEs appears less as a static disclosure outcome and more as a dynamic learning process, closely intertwined with digital maturity, organizational readiness, and stakeholder engagement. In this regard, the special issue reinforces the value of integrating dynamic capability theory, organizational information processing theory, and stakeholder theory to better capture the evolution of SR practices over time. the special issue the understanding of SR as a governance mechanism within multilevel sustainability systems. The papers focusing on regulatory frameworks and CSRD readiness how SMEs are increasingly in indirect regulatory where pressures through value financial and This perspective contributes to the emerging literature on multilevel sustainability governance by SMEs as – – actors within broader accountability findings in this special issue also offer relevant implications for practitioners, and supporting SMEs. SME and the studies that SR can not only or communication but also strategic and When by digital tools and governance SR can enhance transparency, risk management, and long-term value policymakers and the evidence highlights the importance of in SR requirements. While regulatory initiatives such as the CSRD aim to transparency and comparability, the contributions in this issue show that SMEs face significant challenges related to data ESG expertise, and resource should therefore and including simplified standards, and digital infrastructures to SMEs’ From this standpoint, the voluntary for small- and medium-sized developed by the European Reporting in 2024, may a and proportionate for SR practices to the characteristics and of SMEs. – such as industry and – emerge as critical enablers of SR adoption in SMEs. papers how these actors can reporting practices by providing digital assessment frameworks, and these may the gap between regulatory expectations and SMEs’ operational realities.While this special issue the literature on SR in SMEs, it also several avenues for future First, studies are to examine how SR practices over time in SMEs, particularly in to regulatory and digital studies insights into learning processes, capability development, and Second, future research explore and to better how institutional cultural and industry characteristics shape SR adoption in SMEs. identify context-specific drivers and as well as practices. there is to further investigate the role of stakeholders and governance in shaping SR In future studies examine how different stakeholder structures, and cooperative or the and impact of SR in SMEs. the growing role of digital technologies research explore the implications of advanced and reporting for SMEs’ accountability as well as the potential associated with digital and technological
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