Disclosure of Non-financial Information (NFI) by Colombian Food Companies and Its Association With Corporate Competitive Advantages
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2023
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AI-GENERATED ABSTRACT: Abstract: Recently, a growing focus has been on how businesses manage and communicate their non-financial information (NFI), referring to data that is not directly linked to a company's financial performance or statements and typically encompasses Environmental, Social, and Corporate Governance (ESG) information. Such data assists stakeholders in comprehending the key aspects of value creation beyond the company's financial statements while also assessing its sustainability and social impact. This thesis thoroughly examines the disclosure of Non-Financial Information (NFI) related to sustainability by two Colombian companies in the food and beverage industry, Grupo Nutresa S.A. and Colombina S.A., compared to Nestle S.A., the world's largest food company by revenue. Our analysis utilises an Embedded Multiple- Case Study approach to scrutinise sustainability reports, materiality analysis, stakeholder engagement strategies, the commitment to sustainable development goals (SDGs), and ESG scores, among other internal and external factors. The findings of this study reveal significant variations in the disclosure of NFI practices among Colombian companies, as well as in comparison to Nestle S.A. These differences could be attributed to factors such as the qualitative nature of most indicators, variations in the indicators used, and the wide variety of frameworks and standards available and voluntarily implemented, reinforcing the lack of standardisation and the difficulty in comparing companies' reports. This research will enhance comprehension of these inherent comparability issues and assist in improving ways of disclosing and reporting this information in the future. The study also shows that disclosing non-financial information (NFI) can provide several competitive advantages for companies. By being transparent in reporting, companies can improve their reputation, gain the trust of stakeholders, attract customers who prioritise social and environmental concerns and access favourable financing options. Additionally, it can foster innovation, enhance risk management, and improve operational efficiency, leading to long-term financial gains. Companies must develop comprehensive sustainability strategies that align with their business goals and integrate sustainability into their core operations to take full advantage of these benefits. Government regulations can also help standardise NFI disclosure practices, ensuring transparency and comparability within the industry. Keywords: non-financial information, NFI disclosure, ESG, sustainability, Grupo Nutresa S.A., Colombina S.A., Nestle S.A., sustainable development goals, stakeholder engagement, reporting standardisation