Knowledge Management Processess and Cultural Context in ESG Disclosure: A SIPOC Conceptual Framework

Abstract

Environmental, Social, and Governance (ESG) disclosure has become a central organisational practice through which sustainability-related knowledge is created, shared, and communicated to internal and external stakeholders. While prior research has extensively examined ESG reporting from regulatory, compliance, and performance-oriented perspectives, comparatively limited attention has been paid to the role of organizational culture in shaping the underlying knowledge management (KM) processes that support disclosure transparency. This gap is salient in culturally diverse organisational contexts, where ESG information depends on coordinated knowledge flows across hierarchical, functional, and inter-organisational boundaries. This paper develops a conceptual framework that integrates core KM processes with Hofstede’s cultural dimensions, focusing on power distance and uncertainty avoidance, to explain variations in ESG disclosure practices. A Suppliers, Inputs, Processes, Outputs, Customers-SIPOC based perspective is adopted as a KM mapping tool that structures sustainability-related knowledge flows from their sources, through organisational processing, to disclosure outputs and stakeholder use. Organisational culture is positioned as a contextual moderator influencing how ESG knowledge is sourced, shared, formalised, and validated. To support the conceptual development, a structured content analysis approach is proposed using a SIPOC-aligned coding scheme that captures key KM activities—knowledge sourcing, codification, sharing, and disclosure—in ESG reports. The coded indicators are interpreted through the lens of power distance and uncertainty avoidance, enabling a culturally sensitive understanding of ESG knowledge transparency. The framework is grounded in a logical reasoning mechanism that explains ESG disclosure outcomes as emerging from the interaction between knowledge management processes and organizational culture, with disclosure quality reflecting the effectiveness of sustainability-related knowledge management. By foregrounding cultural context in ESG-related knowledge management, this study contributes to KM research by clarifying how organizational culture shapes transparency and accountability in sustainability reporting. The proposed framework further provides a foundation for future empirical research through multi-country comparative analyses of ESG-related knowledge flows based on publicly available reports.