The Credibility of Fashion and Luxury Companies’ Sustainability Reports and the Role of Gender Equality

The aim of this research consists of assessing the credibility of non-financial disclosures from companies in the fashion and luxury industries and recognizing the role gender equity plays in achieving sustainability goals. The pursuit of sustainability by countries and businesses is a subject that is being discussed more and more in the literature. It has a strong connection to the methods by which the implemented activities are not only carried out but also recorded and revealed. In this context, issues related to sustainability are particularly significant for businesses in the fashion and luxury industries. A variety of guidelines and rules have been established to outline the required reporting and disclosure of non-financial operations, with a focus on sustainability playing a major part. However, some businesses merely “check the box” when it comes to sustainability-related reporting, which has damaged their reputation because favorable results are extolled, and negative ones are left out. Therefore, to achieve this goal, a qualitative content analysis of reports produced in 2021 by No. 23 ranked enterprises among the top 100 global luxury brands was carried out. Based on Habermas' idealism, a credibility score was used to conduct the qualitative analysis. Credibility was considered a construct consisting of truthfulness, sincerity, adequacy, and comprehensibility. The findings demonstrate that non-financial reports from businesses in the fashion and luxury sectors typically have low credibility. This finding expands empirical research aimed at evaluating the credibility of statements regarding the achievement of sustainability objectives by businesses. The study also advances knowledge of sustainability reporting techniques used by businesses in the high-end apparel sector by highlighting best practices that other businesses might adopt.