Sustainability Reporting in the Opinion of Managers in Food Companies in Poland

Abstract

Due mainly to tightened regulatory frameworks and rising stakeholder expectations, sustainability reporting has become essential to corporate governance. This study examines the perceptions of middle and senior management about sustainability reporting and the degree of implementation in Poland’s food industry. One hundred eighteen respondents from 26 food businesses participated in a poll to provide their opinions. This study examines the respondents’ awareness of ESG (Environmental, Social, and Governance) frameworks, their understanding of sustainability reporting, and compliance with pertinent standards. The results show that the industry is becoming more conscious of sustainability reporting. However, there are still a lot of differences in how it is interpreted and applied, especially regarding the size of the organization. Compared to smaller companies, managers at larger organizations typically have a deeper understanding of ESG principles and reporting standards. The most commonly cited issues in the field under study are the complexity of reporting frameworks, a lack of knowledge of ESG reporting standards, and a lack of internal resources. Most respondents agree that sustainability reporting is crucial for enhancing a company’s reputation and maintaining long-term competitiveness in the market. This article provides recommendations for expanding educational and training programs that could help increase awareness and develop managerial skills related to sustainability in the food sector.

1. Introduction

The concept of ESG (Environmental, Social, and Governance), which involves incorporating environmental, social, and corporate governance aspects into business operations and reporting, has gained significant importance over the past two decades. The introduction of ESG aimed to increase the transparency of corporate activities and support sustainable development strategies that combine business efficiency with social and environmental responsibility. The literature emphasizes that ESG is becoming one of the key elements in assessing enterprises, influencing their competitiveness, investment decisions, and management strategies.

The food sector in Poland plays a significant role in the economy, both in terms of GDP contribution and employment levels. Poland is one of the largest food producers in the European Union, and the export of Polish food products has been steadily increasing. However, this sector faces challenges in implementing ESG (Environmental, Social, and Governance) principles. New regulations, consumer pressure, and increasing environmental awareness force food companies to actively engage in environmental and social initiatives and implement good governance practices [1].

The transformation of the industry towards ESG not only contributes to environmental protection and improved working conditions but also enhances the competitiveness of enterprises in international markets. Research indicates that integrating ESG principles with branding strategies in the food sector positively impacts brand perception, customer loyalty, and financial performance [2].

Environmental issues are particularly significant, as food production, especially in the case of animal farming, generates high greenhouse gas emissions, consumes large amounts of natural resources such as water and soil, and contributes to environmental degradation through the use of pesticides and intensive land exploitation. One of the biggest challenges is also food waste and overproduction, leading to enormous losses of raw materials and energy. To comply with increasing regulatory requirements and meet consumer expectations, food companies are implementing strategies aimed at reducing their negative environmental impact, such as reducing plastic in packaging, optimizing logistics processes, and investing in renewable energy sources.

The social aspect in the ESG context is equally important, as the food industry is one of the largest employers in Poland, encompassing both large multinational corporations and small family-owned businesses. Key issues include working conditions and labor rights, particularly in food processing plants and agriculture, where challenges related to workplace safety and wages often arise. Another significant aspect is ethics in the supply chain, as more large companies require their suppliers to comply with ESG standards, helping to raise industry-wide standards. The issue of food safety and product quality is also of great importance, becoming a growing priority as consumer awareness increases.

In terms of corporate governance, the food sector must adapt to growing regulatory requirements and meet international ESG reporting standards. One of the key challenges is compliance with new European Union directives, such as the Corporate Sustainability Reporting Directive (CSRD) and the European Green Deal, which require companies to report their sustainability efforts transparently. Supply chain risk management is also becoming increasingly important, necessitating the selection of suppliers that meet ESG standards and eliminating unethical practices such as worker exploitation or excessive environmental degradation. Transparency and ESG reporting are becoming an integral part of the strategies of the largest food companies, which publish detailed sustainability reports to inform about their environmental and social responsibility initiatives.

Long-term development strategies increasingly involve the implementation of innovative, eco-friendly technological solutions that not only reduce environmental impact but also optimize costs and build a competitive advantage. Research indicates that investments in employee training in waste management can strengthen ESG performance in food industry enterprises [3].

In the context of the food sector, which substantially impacts both the environment and society, the importance of ESG is particularly pronounced. Companies in this industry face numerous challenges related to responsible resource management, reducing greenhouse gas emissions, and implementing ethical employment practices and stakeholder relations. Although ESG reporting is increasingly adopted by large enterprises, small and medium-sized food businesses in Poland still lack a systematic approach to these issues. This leaves a research gap concerning the level of awareness among managers of these companies, the barriers to implementation, and the actual impact of ESG on their operational activities.

This study aims to assess and recognize the extent of ESG implementation and sustainability reporting by managers of Polish food enterprises that are not required to report in this area. The analysis focuses on several key aspects: the level of managers’ knowledge about ESG and reporting, the sustainable development practices in use, the barriers to ESG implementation, and the potential benefits resulting from the adoption of these principles. While the existing literature provides numerous studies on the impact of ESG on financial performance, innovation, and business competitiveness, the perspectives of food sector managers who are not obligated to report on sustainability have not been extensively analyzed.

This study was conducted using a questionnaire survey directed at managers of selected food enterprises, and the results were subjected to a detailed assessment. Additionally, differences in ESG approaches depending on the company’s size were considered, allowing for the identification of specific challenges faced by small, medium, and large food enterprises.

This article’s structure includes a review of the literature on the importance of ESG and its impact on food enterprises and a discussion of the research methodology, including the applied research tool and sample selection process. The empirical section presents the study results, focusing on the level of ESG implementation and identifying barriers and benefits associated with its adoption. The final section discusses the implications for business practice and provides recommendations for ESG policy support for food companies not subject to mandatory reporting.

Through this research, this article fills an existing research gap by providing new insights into ESG awareness among managers of food enterprises that do not report on sustainable development. The study findings may serve as a foundation for further research on ESG implementation in the SME sector and for designing tools that support businesses in integrating sustainability principles into their operations.

2. Literature Review

Essential insights into their involvement in corporate governance, financial performance, and implementation issues can be gained from the research on sustainability and Environmental, Social, and Governance (ESG) reporting. In the literature on the subject (both Polish and international), no research findings have been found regarding recognizing managers’ opinions on ESG and sustainability reporting. Existing studies focus on the impact of ESG on financial performance, innovation, competitiveness, and corporate reputation. Furthermore, research on ESG considers the level of implementation of sustainability principles and reporting, as well as the impact of these phenomena on investor attitudes. To the best of our knowledge, no studies have analyzed managers’ opinions in food companies that are not legally required to report on ESG. In his analysis of the sustainability reporting process, Abela [4] emphasized how company management practices have incorporated sustainability reporting due to growing regulatory requirements like the EU Corporate Sustainability Reporting Directive (CRSD) [5]. These modifications foster a more profound comprehension of ESG and create fresh chances for business planning.

Wang, Pan, and Qian Wang examined the impact of mandatory and voluntary ESG disclosures on corporate earnings management practices. Using empirical data, the authors demonstrated that mandatory ESG reporting significantly reduces the use of aggressive earnings manipulation techniques, indicating its positive effect on the quality and transparency of financial reporting. Companies subject to mandatory ESG disclosure tend to operate under increased scrutiny from investors and regulatory bodies, which results in more reliable disclosure of both non-financial and financial information. In contrast, in the case of voluntary ESG disclosures, no significant reduction in earnings management was observed, suggesting that in such instances, ESG may serve more as a reputational tool rather than a genuine instrument for improving transparency [6].

In their thorough analysis of the theories behind ESG reporting, Del Gesso & Lodhi emphasized the importance of understanding the laws governing this area and how they affect sustainability reporting procedures [7]. They also noted that different markets and industries have varied standards caused by conflicting regulatory requirements. Christensen et al. examined how required CSR reporting affected companies, emphasizing the advantages of more transparency and the difficulties associated with adjusting to new rules [8].

The effect of ESG performance on the financial results of UK FTSE350 companies was studied by Ahmad et al. [9]. According to their findings, businesses with higher ESG scores have better long-term economic outcomes because they are more trusted by investors and have more efficient operations. This emphasizes how crucial stakeholder trust is when it comes to ESG reporting. In a meta-analysis of more than 2000 research, Friede et al. also found a favorable relationship between the financial results of the organizations under study and their ESG performance [10]. Furthermore, it was shown by Duque-Grisales & Aguilera-Caracuel that international geographical diversification of businesses enhances this relationship by allowing them to better adjust to local laws and stakeholder expectations [11].

Digital change, according to Fu & Li, amplifies the beneficial effects of ESG on financial performance, especially in the service and technology sectors [12]. They also underlined that adopting new digital solutions makes more accurate reporting and analysis of ESG data possible. Buallay pointed out that by strengthening ties with clients and suppliers and enhancing environmental risk management, ESG reporting in the food sector boosts financial efficiency [13].

Aureli et al. and Baumüller & Sopp extensively explored the challenges related to ESG reporting in Europe, emphasizing the need for a ‘double materiality’ approach [14,15]. This concept requires companies to consider their direct impacts on the environment and society and the external factors that influence their operations. However, one of the major obstacles, particularly for small- and medium-sized enterprises (SMEs), is the lack of resources, as highlighted by Cantele and Zardini. Their research underlines the necessity of tailored support for SMEs to enhance their capacity for ESG implementation [16].

Khan et al. warned against the dangers of greenwashing in their studies, which erode stakeholder trust and can lead to reputational damage and regulatory penalties [17]. Zhou et al. analyze the impact of media attention—both positive and negative—on how banks formulate the content of their ESG reports. The main objective of the study was to determine how external pressure, particularly in the form of negative media coverage, influences the scope, tone, and textual content of ESG disclosures. The results showed that banks under the influence of negative media attention tend to increase the level of detail and adopt a more positive tone in their disclosures. They also more frequently employ a strategy known as “green talk”—communication aimed at emphasizing environmentally friendly actions, regardless of their actual significance. The authors point out that the media play an important role as an informal oversight mechanism regarding the quality of ESG disclosures in the banking sector. The article makes a significant contribution to understanding the relationship between the reputation of financial institutions and their ESG reporting practices, while also highlighting the importance of content quality—not only in terms of quantitative indicators but also in the narrative aspects of reporting [18]. Cassells & Lewis also noted a significant discrepancy between SMEs’ attitudes toward environmental responsibility and their actual practices, revealing the need for more excellent educational and resource support [19]. Similarly, Lee & Suh found that adopting ESG reporting in SMEs depends heavily on the availability of knowledge and technological support [20].

Crossley et al. underscored the importance of legitimacy theory in understanding ESG practices within SMEs [21]. Their findings suggest businesses adopt sustainable practices to build stakeholder trust and secure legitimacy in their respective markets. Tsang et al. echoed these sentiments in their systematic literature review, advocating for more transparent regulations to assist SMEs in their ESG reporting efforts [22].

Mani et al. focused on the role of social responsibility SME supply chains, demonstrating how such practices can enhance financial performance and supplier relationships [23]. Meanwhile, Martínez et al. explored the limitations of sustainable development policies, particularly regarding gender management within corporate boards. Their findings suggest that addressing these limitations is essential for achieving broader ESG objectives [24].

Michalski focused on operationalizing integrated ESG strategies in the FMCG sector using a sustainable, balanced scorecard [25]. This scorecard is a strategic management tool that aligns business activities with the company’s vision and values, particularly sustainability. The findings confirmed that an integrated approach enhances operational efficiency and compliance with regulatory requirements, particularly in large food enterprises.

Nakelse & Dennis reviewed sustainable development indicators in the agri-food industry. They emphasized the need to develop sector-specific indicators for environmental and social diversity across regions [26]. Similarly, Grinberga-Zalite & Zvirbule demonstrated the positive impact of employee training in waste management on ESG outcomes in food industry enterprises [3]. Sun examines whether and how an innovative approach to ESG reporting influences the actual effectiveness of corporate activities in the environmental, social, and governance domains. The author analyzes data from companies applying an integrated reporting approach, in which ESG disclosures serve not only as a reporting obligation but also as a strategic management tool. The study results show that innovation in ESG reporting—understood as deeper, more transparent, and integrated data presentation—leads to a significant improvement in ESG performance in practice. Companies that implement integrated reporting elements more extensively achieve better sustainability outcomes, including increased energy efficiency, improved stakeholder relations, and enhanced risk management. The author emphasizes that this approach also influences organizational culture and decision-making by integrating ESG issues into core business processes. The article makes an important contribution to the discussion on the real added value of ESG disclosures, highlighting that it is not merely the presence of a report, but its quality and innovativeness that matter for improving a company’s actual sustainability performance [27].

Boiral & Heras-Saizarbitoria emphasized the importance of external verification for ESG reports, suggesting it enhances credibility and minimizes the risk of greenwashing [28]. Popescu et al. further noted that the lack of standardized ESG reporting frameworks remains a barrier to sustainable investment development [29]. Shimamura, Tanaka & Managi examined the relationship between the readability of ESG reports and ESG scores using advanced generative artificial intelligence methods. The study aimed to determine whether and to what extent the linguistic clarity of reports affects a company’s evaluation in terms of environmental, social, and governance performance. The application of a generative AI-based approach enabled the efficient analysis of large volumes of textual data and the identification of subtle differences in communication style that may influence the perception of transparency, credibility, and commitment to sustainability. The article provides an innovative perspective on ESG by combining linguistic analysis, AI technology, and non-financial analytics. The research findings may be highly relevant for companies preparing ESG reports as well as for developers of reporting standards [30]. Giese et al. outlined the fundamentals of ESG investing, demonstrating that sound practices increase corporate value by reducing risk and improving financial performance [31]. Similarly, Liu et al. examined greenwashing in ESG reporting, pointing out that a lack of transparency can undermine investor trust [32].

Camilleri analyzed how restaurant businesses incorporate sustainable development practices into their ESG reports. The author focuses on content analysis of reports published by international restaurant chains, taking into account elements of environmental and social accounting. He emphasizes that the restaurant sector has a significant impact on the natural environment—through resource consumption, waste generation, and CO₂ emissions—as well as on the social environment (e.g., working conditions, food safety). The study found that while many companies implement responsible practices, the way these practices are disclosed in ESG reports remains varied and often inconsistent. The author highlights the need for greater standardization of reporting and for integrating sustainability practices into management accounting systems. The article makes an important contribution to the literature on transparency and accountability in the restaurant industry, emphasizing the importance of corporate responsibility and the impact of ESG reporting quality on how organizations are perceived by stakeholders [33]. Conca et al. analyzed the impact of ESG reporting in the agri-food sector, showing that companies producing more detailed reports achieve better environmental and social outcomes [34]. Similarly, Gallo et al. highlighted that integrated ESG approaches in the food sector improve environmental performance and enhance consumer loyalty [35].

Chege & Wang studied the impact of technological innovation on SME performance in Kenya, demonstrating that digital technologies improve ESG monitoring and operational efficiency [36]. Huang, Wang, and Wang drew similar conclusions, examining the role of textual attributes in ESG reports on investor evaluation [37].

In the article by Giglio et al., the authors present the results of a large-scale empirical study on investors’ beliefs about ESG and their impact on investment portfolio structure. The analysis is based on data collected from individual investors and financial advisors, to understand how perceptions of ESG value shape actual investment decisions. The article provides valuable insights for policymakers, asset management firms, and investors themselves, emphasizing that subjective beliefs play a significant role in capital allocation toward sustainable investments. The authors demonstrate that the success of implementing ESG strategies depends not only on market facts but also on the narratives and perceptions that influence investment decisions [38].

Martha & Khomsiyah analyzed the impact of ESG performance on corporate value, highlighting that efficiency in ESG practices fosters investor trust and long-term financial stability [39]. Eccles & Klimenko explored how increasing investor pressure forces companies to take sustainability reporting more seriously [40]. Their analysis revealed that firms adapting to new ESG requirements are better equipped to address long-term risks. Oprean-Stan et al. examined the effects of poor ESG factor management on corporate performance, suggesting that integrating these elements into strategic management can lead to long-term stability [41]. In the Polish context, Zaporowska & Szczepański analyzed the application of ESG standards in operational risk management, underscoring their growing significance in the service sector [42].

Based on the existing literature, the formulated hypotheses regarding the relationship between company size and engagement in ESG reporting can be justified. These findings suggest that larger enterprises are more likely to engage in ESG-related activities, which may result from greater resources, regulatory pressure, and stakeholder expectations. A research hypothesis (H) was formulated, stating that the level of engagement in ESG reporting by managers of food companies in Poland depends on the entity’s size. Additionally, two auxiliary hypotheses were proposed: H1: The level of engagement of managers in the surveyed food companies in Poland in ESG reporting is significantly related to the organization’s size. H2: The more extensive the enterprise, the greater the knowledge of ESG issues and the higher the degree of its implementation.

The hypotheses formulated in this study align with previous research findings, emphasizing the impact of company size on its sustainable development activities.

Research indicates that larger enterprises demonstrate greater involvement in ESG reporting due to their resources, regulatory requirements, and stakeholder pressure. The process of sustainability reporting is increasingly integrated into corporate management strategies, mainly due to growing regulatory demands, such as the EU Corporate Sustainability Reporting Directive (CRSD). However, smaller enterprises often face challenges in implementing ESG due to limited resources. Studies on companies listed in the FTSE350 index have shown that firms with higher ESG ratings achieve better long-term economic performance, suggesting that larger enterprises, subject to greater scrutiny from investors and society, are more inclined to engage in ESG activities.

The literature supports the assumption that larger firms exhibit greater ESG engagement due to regulatory factors, broader knowledge, and better organizational resources. Research highlights a significant relationship between company size and ESG reporting involvement. An analysis of non-financial data reporting from 831 companies listed on the Warsaw Stock Exchange found that larger companies, especially those listed in the WIG20 index, demonstrate a higher level of maturity in managing ESG aspects compared to smaller firms from the mWIG40 and sWIG80 indexes. Furthermore, a report by the Polish ESG Association emphasized that large firms, both publicly traded and multinational, implement ESG reporting at a more advanced level than smaller enterprises, which results from their greater resources and experience in this field.

Additionally, an ESG guide for SMEs indicates that while the concept of ESG data reporting applies to all entities, implementation differs depending on company size and business model, with larger enterprises more frequently achieving a higher level of advancement in ESG reporting.

These studies collectively highlight the increasing importance of ESG reporting and sustainable development as integral components of corporate strategy. They emphasize the benefits of ESG implementation, including improved financial performance, enhanced stakeholder trust, and better risk management. However, challenges such as a lack of unified standards and varying implementation capabilities between large firms and SMEs persist. Future efforts should focus on supporting digital transformation and providing training for management teams to facilitate the effective adoption of ESG principles. The findings also stress the need for regulatory support, education, transparency, and technological integration to advance sustainability reporting practices further.

3. Materials and Methods

This study aimed to determine the level of engagement in ESG reporting from the perspective of managers in food companies in Poland, depending on the entity’s size. The food industry was selected because it plays a crucial role in the Polish economy in terms of both GDP contribution and employment levels. Moreover, ESG issues in the food industry are particularly important due to its environmental impact, regulatory requirements, and consumer expectations regarding sustainable development. This research was conducted using a structured interview questionnaire during the financial audit procedures of these entities, which allowed for the collection of reliable information. Responses were formulated using a 5-point Likert scale, and the results presented in this article only consider affirmative responses (“agree” and “strongly agree”). The questionnaire interview method was chosen due to its effectiveness in collecting subjective opinions of managers regarding ESG reporting in companies that are not required to report. Alternative approaches, such as the analysis of company documentation or statistical analysis of financial statements, would not provide insights into decision-makers perceptions of ESG challenges in such a large group of respondents. Qualitative interviews could yield more detailed information; however, their application would be more time-consuming and less comparable to quantitative analysis.

Companies not subject to the ESG reporting obligation were purposefully selected to gather the opinions of their managers and assess the extent of sustainable development implementation. The analysis included 118 respondents from 26 food companies, purposively selected as small, medium, or large based on employment size. The decision to classify companies based on the number of employees is consistent with definitions commonly used by Eurostat, the European Commission, and Polish statistical institutions. While financial indicators such as total assets and net turnover are relevant, the employee count was chosen for its clarity and availability in the analyzed dataset.

Table 1. Number of respondents by entity size.

Entity Size	Number of Respondents
Small (up to 50 Employees)	38
Medium (51–250 Employees)	37
Large (over 250 Employees)	43
Total	118

Source: own study.

presents the number of respondents according to the entity’s size. Respondents from small entities formed a group of 38 individuals. The group of medium-sized enterprises was slightly larger, comprising 37 respondents, while the large entity group comprised 43 respondents.

A research hypothesis (H) was formulated, stating that the level of engagement in ESG reporting by managers of food companies in Poland depends on the entity’s size. Auxiliary hypotheses:

H1. 

The level of engagement of managers in the surveyed food companies in Poland in ESG reporting is significantly related to the organization’s size.

H2. 

The more extensive the enterprise, the greater the knowledge of ESG issues and the higher the degree of its implementation.

The results presented in this article are only a part of the analyses conducted within the broader ESG research framework. This study was carried out between December 2023 and May 2024.

4. Results

This study’s findings on ESG reporting in Polish food businesses show notable differences in ESG engagement based on the company’s size. Managers of Polish food firms’ affirmative answers (%) are shown in

Table 2. Engagement in ESG reporting according to the opinions of managers in food companies in Poland (% of affirmative responses).

No.	Question	Small (n = 38)	Medium (n = 37)	Large (n = 43)
1	Our company regularly prepares reports, including ESG indicators.	30	45	75
2	ESG reporting is key to our company‘s transparency.	40	55	80
3	Our company has a clear division of responsibilities related to ESG reporting preparation.	35	50	78
4	Our reports include environmental indicators such as CO2 emissions and water usage.	25	40	70
5	Our ESG reports include social data such as employment and activities for local communities.	30	45	72
6	Our company monitors and reports governance indicators such as board structure and regulation compliance.	28	48	75
7	We regularly analyze our ESG indicators to improve our performance in this area.	33	50	80
8	ESG reporting is integrated with our financial reporting process.	22	38	70
9	We understand the importance of ESG indicators for investors’ and business partners’ decisions.	40	60	85
10	ESG indicators are essential for assessing the impact of our activities on the environment and society.	30	48	75
11	Our company uses international standards such as GRI (Global Reporting Initiative) for ESG reporting.	15	35	60
12	External entities regularly audit our company’s ESG reports.	10	25	50
13	Transparency in ESG reporting increases trust among our stakeholders.	45	65	85
14	Our company monitors progress in achieving ESG goals using clearly defined indicators.	32	50	75
15	Understanding ESG indicators is crucial for our board and management team.	28	42	70
16	ESG reporting helps us identify areas for improvement in the company’s operations.	30	48	78
17	ESG indicators should be mandatory in reporting for all companies in our industry.	50	65	85
18	Our company has a process for verifying the compliance of ESG indicators with applicable regulations.	25	40	70
19	Our company uses ESG indicators to assess operational and strategic risks.	20	38	65
20	ESG indicators are essential for assessing our market competitiveness.	35	52	75
21	Our ESG reports are publicly available to stakeholders and the local community.	15	32	55
22	ESG report preparation in our company is carried out closely with various organizational departments.	18	42	68
23	ESG indicators in our reports include both short-term and long-term company goals.	30	48	78
24	ESG reporting helps our company adapt to regulatory and market requirements.	45	60	80
25	ESG indicator reporting contributes to building a positive image of our company on the market.	38	50	70

Source: own study.

. The examined questions show that large businesses are most committed to ESG reporting. For example, whereas just 30% of small businesses and 45% of medium-sized companies frequently prepare reports that include ESG indicators, 75% of large enterprises do so. This discrepancy might result from shareholder expectations and significant regulatory pressure, which is particularly noticeable in large companies. Additionally, big businesses frequently have more financial and human resources, making establishing intricate sustainability reporting procedures easier.

Compared to 55% of medium-sized businesses and 40% of small businesses, 80% of managers of large enterprises affirmed the significance of ESG reporting as a crucial component of corporate transparency. This implies that more prominent organizations understand the advantages of openness, such as fostering confidence among stakeholders and investors. Furthermore, compared to 50% of medium-sized and 35% of small businesses, 78% of managers at large enterprises reported that their companies have a clear division of duties linked to ESG reporting. This is probably because larger firms have more sophisticated management systems that enable more effective work and function distribution. Furthermore, the law frequently mandates that big businesses report non-financial metrics, which calls for creating specialized ESG teams.

Including environmental indicators like CO₂ emissions and water use is a key component of ESG reporting. About 70% of large businesses track and report these metrics, compared to 25% of small businesses and 40% of medium-sized companies. Similarly, 72% of large enterprises include social indicators like employment and community involvement in their ESG reports, compared to 45% of medium-sized companies and 30% of small businesses. These results point to a higher social and environmental consciousness level in big companies, which are more subject to public scrutiny and demands from NGOs and customers. Notably, CO₂ emissions are tracked by small food businesses, even though this is not explicitly stated in an ESG report.

Additionally, the results indicate that management in large organizations is more likely to integrate financial operations with ESG reporting. 70% of large businesses used this strategy, compared to 38% of medium-sized and 22% of small businesses. The ability of major corporations to integrate ESG indicators into more comprehensive financial reporting systems may be ascribed to their more advanced organizational and technological infrastructure. ESG reporting is essential for investors and business partners, according to 85% of managers at large companies, compared to 60% of medium-sized and 40% of small businesses.

International standards like the Global Reporting Initiative (GRI) also differ significantly. Large company managers use these guidelines 60% of the time, compared to 35% and 15% for managers of medium-sized and small businesses, respectively. This suggests that smaller firms face significant obstacles when implementing international standards, most likely due to a lack of funding, expertise, and awareness.

The external audit of ESG reports is another crucial component; just 10% of small businesses, 25% of medium-sized businesses, and 50% of large businesses use this approach. External audits are essential for raising the caliber of non-financial reporting and bolstering the credibility of reports. Additionally, 85% of managers in large organizations believe that transparency in ESG reporting is essential to gaining the trust of stakeholders, compared to 65% in medium-sized businesses and 45% in small businesses. These discrepancies relate to smaller businesses’ views of ESG as expensive and time-consuming. Compared to 25% of medium-sized businesses and 50% of major corporations, only 10% of managers at small businesses think their companies have enough resources for ESG reporting. About 65% of managers from large organizations reported understanding ESG indicators as a tool for assessing operational and strategic risks, compared to 38% of medium-sized and 20% of small businesses. This suggests that smaller businesses may not fully understand the potential of ESG indicators. This study also showed that small business managers frequently participate in ESG reporting and sustainable practice implementation activities, although many are unaware that their work counts as ESG. Many are unaware that their actions comply with ESG requirements due to a lack of education. Without realizing that their actions could serve as the foundation for official ESG reporting, these managers often engage in activities about environmental management, employee care, or local projects.

This study concludes by pointing out apparent variations in ESG reporting engagement amongst businesses of different sizes. Big businesses address ESG more maturely regarding reporting procedures and understanding its significance. Lack of resources, expertise, and technology are the biggest obstacles preventing small and medium-sized enterprises from implementing ESG reporting effectively. These results highlight the necessity of providing smaller businesses with technological and educational support to satisfy the increasing market and regulatory expectations related to ESG. Small business managers’ competitiveness and appeal to investors and business partners could be increased by formalizing their ESG initiatives, enhancing transparency, and bringing them into compliance with international norms.

5. Discussion

This study’s conclusions, which highlight the benefits and difficulties associated with sustainable development practices in corporate management, are consistent with the body of research already available on ESG reporting. According to Abela & Christensen et al., corporate sustainability programs are shaped by legal frameworks and regulations like the EU Corporate Sustainability Reporting Directive (CRSD) [4,8]. These opinions are supported by the data on Polish food businesses, which indicate that larger firms exhibit more participation due to more critical stakeholder expectations and legal requirements. These businesses are better positioned to implement global standards like the Global Reporting Initiative (GRI) and incorporate ESG reporting with economic processes because of their superior people and financial resources. This study also supports the findings of Baumüller & Sopp and Aureli et al. about “double materiality”, which requires businesses to examine how their activities affect society and the environment and outside influences [14,15]. Larger Polish companies can better comply with these regulations since they provide thorough environmental and social metrics in their reports. However, this study also shows that, as Cantele & Zardini’s findings [16] demonstrate, smaller businesses face significant challenges, such as scarce resources and a lack of knowledge about ESG practices. This underscores the need for tailored support and educational initiatives to bridge these gaps.

Studies conducted by Ahmad et al. and Friede et al. have repeatedly shown that ESG performance and financial results are positively correlated, underscoring the significance of stakeholder trust and transparency [9,10]. These insights are reflected in the findings about Poland’s large enterprise managers acknowledging the importance of ESG reporting when making decisions about investors and business partners. It is crucial to remember that smaller businesses can gain from ESG reporting even while facing resource limitations. The obstacles noted by Chege & Wang and Lee & Suh [20,37] show that, despite their perception of it as an expensive and complicated procedure, the potential financial and reputational benefits are substantial.

This study adds credence to Del Gesso & Lodhi’s findings about inconsistent regulatory requirements and the absence of worldwide standards [7]. According to Popescu et al. [30], Poland’s small and medium-sized businesses (SMEs) are less likely to implement international frameworks, indicating difficulties in conforming to global ESG norms. As recommended by Cassells & Lewis and Tsang et al. [19,22], this discrepancy emphasizes the necessity of specialized assistance and educational programs to close these gaps.

Larger businesses in Poland are more likely to hire outside organizations to validate ESG reports, demonstrating the importance of external audits, as noted by Boiral & Heras-Saizarbitoria [29]. According to Rusu et al. [31], this method increases the credibility of reports and is consistent with the more considerable significance of openness in fostering stakeholder confidence. Smaller businesses, however, fall behind in this regard, primarily because of resource limitations.

Fu & Li [12] noted that the results demonstrate how digital transformation can enhance ESG reporting. It is crucial to remember that smaller businesses can gain from digital transformation just as much as larger ones, which can better integrate ESG indicators into larger management frameworks thanks to their advanced organizational and technological infrastructure. They may improve their operational effectiveness and reporting quality with the right help and resources, leveling the playing field and giving them more confidence to compete in the ESG market.

This study restates the significance of education, technology integration, and legislative assistance in promoting ESG practices. It highlights the differences in participation between businesses of different sizes and the necessity of focused efforts to assist smaller companies in implementing ESG practices. By tackling these issues, Polish food producers can improve their market competitiveness, better conform to global standards, and support sustainable development objectives.

6. Conclusions

This study’s conclusions, which emphasize advancements and enduring difficulties, offer essential insights into ESG reporting in Polish food businesses. Due to regulatory constraints, stakeholder expectations, and access to financial and technological resources, larger organizations exhibit a higher level of maturity in adopting ESG practices. These businesses are more equipped to use global standards like the Global Reporting Initiative (GRI), incorporate ESG reporting into economic procedures, and guarantee transparency through external audits. This level of maturity indicates a deeper comprehension of the strategic significance of ESG practices in boosting market competitiveness, increasing operational effectiveness, and fostering investor trust.

Significant obstacles that small and medium-sized businesses must overcome include a lack of resources, a lack of expertise, and a lack of awareness about ESG practices. Even though they frequently engage in sustainable practices informally, these obstacles keep businesses from fully participating in official ESG reporting. The study highlights the urgent need for specialized assistance to close this gap, such as training initiatives, financial incentives, and technical advancements that would allow smaller businesses to implement ESG principles and conform to global standards successfully.

The findings also demonstrate how digitization has revolutionized ESG reporting capabilities. Larger companies’ use of digital tools shows how technology can simplify data collection, processing, and reporting, providing a model for smaller businesses to follow with the right help. This report also highlights the significance of regulatory frameworks in encouraging the adoption of ESG practices while highlighting discrepancies in international standards that impede cross-sector and cross-national comparison.

This study’s conclusion highlights the need for focused efforts to encourage standardization by exposing notable disparities in the viewpoints of managers in large and small businesses on their approaches to ESG reporting. In addition to increasing firms’ responsibility and transparency, addressing these issues is crucial for boosting their competitiveness and ability to support global sustainability objectives. The results show that to establish an environment where ESG concepts may be widely accepted and successfully applied by businesses of all sizes, legislators, industry stakeholders, and academic institutions must work together.

Based on the research, specific recommendations can be made for different groups of stakeholders. The results suggest that food companies not subject to ESG reporting requirements should consider the gradual implementation of basic sustainability principles. This could not only enhance their competitiveness but also prepare them for potential future regulations. A key issue here is raising awareness among managers of small food enterprises regarding ESG and the benefits of non-financial reporting. It would be advisable to organize training sessions and develop simple, transparent tools that would facilitate the integration of ESG into the daily operations of small businesses.

From the perspective of regulators and policymakers, it is worth considering support mechanisms for small and medium-sized enterprises, including tax incentives and access to training programs and technological tools supporting ESG reporting. There is still a lack of ESG standards adapted to the realities of SMEs, which would allow for the gradual implementation of these principles without excessive administrative burden. Clear and industry-specific guidelines could help entrepreneurs make informed decisions about adopting ESG practices.

Investors, industry organizations, and customers also play a crucial role in developing ESG in the food sector. Investors increasingly consider ESG reporting essential in assessing a company’s risk and long-term stability. Industry organizations can play a key role in promoting best practices and facilitating the exchange of experiences between companies. Meanwhile, growing consumer awareness means companies actively implementing ESG practices can gain greater customer trust and improve their market position.

For academic and research institutions, a key area for further studies should be a deeper understanding of the barriers and motivations for ESG adoption across different economic sectors. There is a need to develop new educational models for managers to enable the practical implementation of ESG in companies’ daily operations. Collaboration between universities and businesses could facilitate knowledge transfer and contribute to the more effective adoption of sustainability principles in the food sector.

This study shows that while ESG is increasingly present in large enterprises, it remains a challenge for small and medium-sized enterprises, including those not subject to mandatory sustainability reporting. Increasing access to knowledge, simplifying future regulations, and creating incentive systems could help broaden the adoption of sustainability principles, benefiting both companies and their stakeholders.

When interpreting the findings, it is essential to consider the study’s limitations. First, the study is based on a sample of Polish food enterprises, which might not adequately represent the variety of practices and difficulties encountered by businesses in other sectors or geographical areas. Poland’s unique market, cultural, and regulatory characteristics might restrict the findings’ applicability in different settings.

Furthermore, this study does not thoroughly examine the variables affecting the degree of ESG reporting participation, such as supply chain complexity, industry-specific difficulties, or regional economic disparities. Additionally, the impact of external factors on adopting ESG principles, such as market rivalry or stakeholder pressure, has not been thoroughly examined.

This study excludes the opinions of other stakeholders, including investors, consumers, and regulatory agencies, whose opinions would offer a more thorough comprehension of the elements promoting or impeding ESG reporting. By extending the study’s scope, using mixed techniques, and involving a wider range of stakeholders and businesses, future research could overcome these limitations and improve the study’s conclusions.

The research has contributed new knowledge in three key areas: the level of ESG implementation in enterprises not subject to reporting obligations, the barriers related to its implementation, and the impact of managers’ awareness on engagement in ESG. The obtained results can serve as a basis for further studies on optimizing ESG strategies for SMEs and for developing regulations and tools better suited to their needs in supporting the implementation of sustainability principles.