The role of commensuration in the institutionalisation of sustainability reporting

I draw on a qualitative study of the emergence and evolution of sustainability reporting in the Netherlands to understand the role of commensuration in institutionalisation processes. I find that three phases can be distinguished in the institutionalisation of sustainability reporting with different dimensions of commensuration dominating each phase. A first phase is characterized by environmental reporting based on a push for corporate accountability. Reporting has moral and values-based underpinnings and its meaning is shaped by cognitive commensuration. A second phase introduces triple bottom line reporting and reporting gets linked with the business case for CSR. A large amount of technical commensuration takes place, pushed by standard setters and consultants, in the development of reporting guidelines and indicators. The third phase sees the emergence of the integrated report and material sustainability indicators regarded as important for the core strategy and valuation of the firm. At this stage value commensuration, pushed by accountants and investors, starts to play a more prominent role. These findings contribute to our understanding of commensuration as a mechanism guiding the institutionalisation process of novel practices. Specifically, I suggest that cognitive commensuration helps to shape theorization, technical commensuration diffusion and value commensuration eventual institutionalisation. At the same time, for the sustainability reporting literature I add that commensuration entails pathologies that potentially lead us to an impoverished notion of sustainability whereby reality gets determined by what is measurable rather than by what contributes to a truly sustainability business community.