NGOs are expected by their social mission not only to assess but to report on sustainability issues in response to the growing public awareness of the sustainability agendas. Since NGOs are globally renowned as watchdogs for advancing socio-economic development and sustainable societies, research on their efforts in this regard will help develop recommendations on how they can be better positioned as the watchdog. The purpose of this article is to review and assess the understanding of sustainability (reporting) in NGO literature as well as the barriers and drivers. The study investigates various practices of sustainability and identifies the drivers and barriers in sustainability reporting (SR). The authors reviewed 61 articles published between 2010 and 2020 on sustainability and assessed the strengths and weaknesses in the understanding of sustainability in literature as well as the reporting phenomenon in NGOs. The misconceptions in the definition of SR tend to weaken its relevance and applicability, and the reporting process is often focused on demonstrating the legitimacy of NGOs rather than improving their performance. As such, it provides more evidence in support of the need for a more holistic and all-inclusive definition that will aid regulation and enforcement. We also found that, although it is often assumed all NGOs share similar objectives, it is not always the case as there are as diverse objectives as there are numbers of NGOs and their reporting pattern varies in accordance with this diversity. The review makes a case for a more comprehensive definition of SR suitable for NGOs using four elements as well as providing suggestions for where research in this area might focus to enhance the overall body of knowledge. The study contributes to theory and practice by introducing new elements guiding the definition of SR in NGOs which supports accountability and proper functioning of a circular economy and promotes sustainable development.

Chinese merchant groups are commercial organizations that have developed over thousands of years. Given the importance of private firms to China’s sustainable development, this study investigates the impact of the traditional Chinese concept of merchant groups on corporate social responsibility (CSR) performance and cost of debt, using Chinese private listed firms during 2008–2020. We measure merchant group culture based on the company’s geographic location. Ordinary least squares regression models are used to test the hypotheses. According to the results, the CSR performance of firms from five traditional Chinese merchant groups is better than non-members. A positive relationship exists between the strength of merchant group culture and CSR performance; this relationship is stronger among merchant group companies. The closer the culture to CSR values, the better the CSR performance, which is negatively related to the cost of debt. The findings are in line with the peer effect theory. Therefore, the study provides evidence that it is essential to consider the traditional Chinese merchant group culture for firms’ CSR strategies beyond formal financial and regulatory factors in China. This study is a first step in exploring the impact of merchant group culture in China on CSR performance and the economic application of this relationship.