Preparing for the corporate sustainability reporting directive: case study evidence of initial compliance efforts

The introduction of the Corporate Sustainability Reporting Directive (CSRD) presents significant changes for companies that were previously not subject to such mandates. Drawing on a case study of a German-based company, with interview respondents involved in the CSRD implementation, we explore the institutional pressures faced and the associated challenges and opportunities. The company identifies a range of opportunities, such as product improvements, reputation and financial opportunities. The challenges include data measurement, collection and reporting, time pressure and limited human resources. Building on institutional theory and Oliver’s (1991) framework of strategic responses to institutional pressures, we analyze how multiple predictive dimensions interact in shaping the company’s response. In addition to regulatory demands, strong customer and market expectations intensify institutional pressures. Rather than resisting CSRD requirements, the company responds pragmatically. This case study adds to the literature on how formal regulation and informal pressure influence organizational change, even before a mandate is enforced.