Disclosing Innovation in Sustainable Business Models: A Stakeholder and Legitimacy Perspective

Companies have been pressured to act more responsibly and transparently due to the growing concerns about economic activities, social, environmental and governance consequences. In this regard, regulatory frameworks for sustainability reporting, such as the Corporate Sustainability Reporting Directive (CSRD) or European Sustainability Reporting Standards (ESRS), were established and imposed practices and requirements for sustainability-related disclosure. Innovation in business models offers companies opportunities to present their commitment to sustainability, contributing to corporate strategy and social impact. This study examines how innovation in sustainable business models is disclosed in the healthcare sector, focusing on stakeholder and legitimacy theories. A multiple case study analysis based on sustainability reports of two Romanian healthcare companies (Medlife and Regina Maria) has been used. The results show that innovation is observed in sustainability reports through the integrated studies that combat the SARS-CoV-2 pandemic and in the information about how the companies adapted their reporting to meet stakeholder expectations and maintain legitimacy. The study contributes to understanding how the healthcare sector companies align their sustainable business models with sustainability practices and regulatory frameworks. The originality of this study resides in the focus on examining the sustainable strategies of the healthcare sector in Romania, on their business model innovation, stakeholder, and legitimacy integration during crisis period.