Beyond reporting: transforming the finance function into a promoter of social value creation

Purpose In today’s business landscape, organizations face increasing expectations to deliver on social value goals. The finance function is under pressure to evolve from traditional reporting to actively promoting social value creation initiatives that encompass Environmental, Social and Governance (ESG), Corporate Social Responsibility (CSR) and Equality, Diversity and Inclusion (EDI). This study explores whether the finance function should limit itself to reporting on social value (the reporter role), or conversely take a leading role and transition from a compliance-oriented focus to a more active role in social value creation (the promoter role). Design/methodology/approach Utilizing a structured three-stage methodology, this research combines a literature review, interviews with senior finance experts and insights from round table sessions. The Balanced Scorecard framework is applied to structure the collected information. Findings The study results show a divided financial function, both in the literature and in practice. There are clearly proponents of limiting the finance function to the reporter role, while there are also many financial professionals who want to have the promoter role. This latter group does see a progressive model wherein finance functions can transition through three stages: reporting, integration into business partnering and leadership in social value initiatives. Research limitations/implications This study’s reliance on a limited set of academic and managerial sources may not capture the full range of perspectives on the finance function’s evolving role in social value creation. The relatively small number of participants in roundtable discussions, due to network limitations, could restrict the generalizability of findings. Future research should explore additional keywords, databases and expand participant numbers to enhance the diversity of insights. Bringing finance experts and roundtable participants together could provide a more comprehensive viewpoint on finance’s potential role as either a reporter or promoter of social value. Practical implications The study offers a structured pathway for finance functions transitioning from reporting to actively promoting social value creation. This process, structured across reporting, business partnering and leadership stages, provides finance professionals with a practical guide to expand their roles. Finance leaders may consider enhancing skills in sustainability and collaboration while addressing obstacles such as mindset shifts and compliance-focused constraints. The findings support finance functions in establishing internal dialogues on their role in social value, helping align strategic objectives with social impact initiatives to meet organizational and societal expectations. Originality/value This research addresses a key gap in the literature by offering a state of affairs regarding the position of the finance function toward the issue of social value creation in the organization. The research also offers a phased approach to those finance professionals who want to expand their role in social value creation.