Applying legitimacy theory to understand sustainability reporting behaviour within South African integrated reports

2021 ◽  
pp. 1-23
Author(s):  
Shelly Herbert ◽  
Mark Graham
Keyword(s):  
South African ◽  
Sustainability Reporting ◽  
Legitimacy Theory ◽  
Reporting Behaviour

The role of business intelligence in sustainability reporting for South African higher education institutions

2018 ◽  
Vol 19 (7) ◽  
pp. 1185-1203 ◽  
Author(s):  
Andre Calitz ◽  
Samual Bosire ◽  
Margaret Cullen
Keyword(s):  
Higher Education ◽  
South Africa ◽  
South African ◽  
Business Intelligence ◽  
Higher Education Institutions ◽  
Sustainability Reporting ◽  
Regulatory Compliance ◽  
Content Type ◽  
Stakeholder Satisfaction ◽  
South African Higher Education

Purpose This paper aims to show that business intelligence (BI) is a key component of a sustainability-reporting framework for higher education institutions (HEIs). Design/methodology/approach Four questionnaires were administered to Registrars and managers at 21 South African HEIs and at selected international HEIs. The data analysis entailed both descriptive and inferential statistics. Findings The study confirmed that factors such as management buy-in, the availability of BI reports and the provision of reporting guidelines were positively related to effective strategic planning. The study shows that the use of BI by South African HEIs is still at a low maturity level. Research limitations/implications The case study used is the Nelson Mandela University in Port Elizabeth, South Africa. The implications are relevant for all 26 HEIs in South Africa. Practical implications HEIs must invest in technological tools, including BI to provide information in understandable and usable formats for management and other relevant stakeholders. Social implications BI reporting can assist all stakeholders to obtain the relevant and required information relating to HEI operations and strategic management initiatives and activities. Originality/value The study concludes that HEIs ought to invest in BI technologies that can assist the sustainability reporting process to ensure stakeholder satisfaction and regulatory compliance.

scholarly journals Fuzzy reporting as a way for a company to greenwash: perspectives from the Colombian reality

2017 ◽  
Vol 15 (2) ◽  
pp. 525-535 ◽  
Author(s):  
Orlando E. Contreras-Pacheco ◽  
Cyrlene Claasen
Keyword(s):  
Sustainability Reporting ◽  
Corporate Disclosure ◽  
Legitimacy Theory ◽  
Firm Level ◽  
Alternative Means ◽  
Sustainability Reports ◽  
A Company ◽  
Specific Concern ◽  
Theory Framework ◽  
Do So

Drawing on the legitimacy theory framework, this study introduces an alternative means to spot “fuzzy reporting” signals as a way to detect greenwashing at the firm level. Its approach is based on the way the sustainability reporting process can mislead stakeholders after critical incidents take place. In order to do so, a single environmental incident, which took place in Colombia, is analyzed in light of what happened before, during and afterwards, with special emphasis on the corporate disclosure process performed by the company involved. Results obtained give support to the assumption that fuzzy reporting can be objectively detected not only through the analysis of annual sustainability reports, but also by tracking other forms of corporate messages when a specific concern is carefully followed. This study’s contribution is two-fold. First, it builds on the theoretical notions of greenwashing and fuzzy reporting by illustrating a practical and objective way to identify some deceiving corporate practices. Second, it empirically evaluates this approach in a sensitive context in order to obtain better illustration and prepare the groundwork for further studies.

Value creation attempts via photographs in sustainability reporting: a legitimacy theory perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Irshad Ali ◽  
Sumit Lodhia ◽  
Anil K. Narayan
Keyword(s):  
Value Creation ◽  
Design Methodology ◽  
Sustainability Reporting ◽  
Legitimacy Theory ◽  
Systematic Method ◽  
Content Type ◽  
A Value ◽  
Sustainability Reports ◽  
And Performance ◽  
Practical Implications

Purpose This paper aims to investigate the use of legitimacy strategies via the usage of photographic disclosures in sustainability reporting as an attempt towards creating value. Design/methodology/approach This study used visual content analysis to identify disclosure trends and value creation themes from sustainability-related photographs in the annual and sustainability reports of Fonterra Co-operative Group over a ten-year period. The findings were interpreted using legitimacy theory. Findings The findings show a significant increase in the usage of photographs to legitimise and reinforce the organisation’s sustainability messages. The photographs are dominated by images signalling to stakeholders’ positive sustainability messages, as a systematic method for managing stakeholder expectations to maintain, gain and even repair legitimacy. A majority of photographs have supporting textual narrative, which could be construed as an attempt by the company to make their sustainability messages explicit and provide greater legitimacy of activities and performance with the ultimate aim of enhancing organisational value. Research limitations/implications This study contributes towards an in-depth understanding of attempts at seeking legitimacy and creating organisational value through the systematic usage of photographic disclosures in sustainability reporting. Practical implications This study has the potential to inform stakeholders on linkages between sustainability photographs, value creation and legitimacy. It can help inform and assist report preparers, designers and users on the potential of photographs as a substantive medium to manage legitimacy in sustainability reporting. Originality/value This paper adds to the scant literature on the growing use of photographs as a value adding apparatus in sustainability reporting. This paper also extends the applicability of legitimacy theory to visual disclosure and suggests that legitimacy can be systematically sought to create value.

The Sustainable Development Goals (SDGs): a rising tide lifts all boats? Global reporting implications in a post SDGs world

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amr Elalfy ◽  
Olaf Weber ◽  
Sean Geobey
Keyword(s):  
Sustainable Development ◽  
Sustainable Development Goals ◽  
Sustainability Reporting ◽  
Organizational Legitimacy ◽  
Global Reporting Initiative ◽  
Organizational Size ◽  
Legitimacy Theory ◽  
Regional Effect ◽  
Content Type ◽  
Development Goals

PurposeWe investigate the integration of the United Nation's Sustainable Development Goals (SDGs) into the Global Reporting Initiative (GRI)– based reporting thus exploring the factors that influence the adoption of the SDGs by organizations.Design/methodology/approachWe analyzed the GRI dataset provided by the GRI data secretariat. We analyzed 14,308 reports provided by 9,397 organizations between 2016 and 2017.FindingsLarger organizations are more likely to integrate the SDGs into their reporting than smaller organizations. Secondly, publicly listed firms are more likely to address the SDGs. Thirdly, industries with higher sustainability impacts are more likely to address the SDGs in their reporting. Fourthly, our data confirm a regional effect with regard to SDG reporting. Moreover, organizations that follow international sustainability guidelines and standards such as becoming a member of the GRI Gold Community or using the GRI Content Index services and having external assurance are more likely to report on the SDGs.Research limitations/implicationsCorporations play an essential role in the achievement of the SDGs, which shape the future of the world's sustainable development. Nevertheless, SDGs reporting needs more research to analyze the factors that can influence it. The study contributed to the academic literature on CSR and legitimacy theory by analyzing institutional and regional factors that impact SDGs reporting.Practical implicationsThe study provides insights about the integration of the SDGs into organizational reporting and accounting, including the adoption of the SDGs by small and medium enterprises (SMEs) and the benefits of the SDGs as a framework for strategic corporate sustainability.Social implicationsA global sustainability framework, such as the SDGs can be integrated into organizations sustainability reporting and accounting in a meaningful way.Originality/valueThis is the first study that analyzes the integration of the SDGs into GRI-based reporting. The study contributes to legitimacy theory by highlighting the factors, which contribute to the legitimacy-based adoption of the SDGs, including organizational size, being publicly listed, being from high-impact industries and certain global regions, etc. SDG reporting can help firms increase their organizational legitimacy across their stakeholders.

Biodiversity reporting and organised hypocrisy

2018 ◽  
Vol 15 (4) ◽  
pp. 437-464 ◽  
Author(s):  
Warren Maroun ◽  
Kieran Usher ◽  
Hafsa Mansoor
Keyword(s):  
South African ◽  
Business Models ◽  
Management Strategies ◽  
Sustainability Reporting ◽  
Environmental Issues ◽  
Mission Statements ◽  
Content Type ◽  
Corporate Reporting ◽  
Proactive Approach ◽  
Integrated Or

PurposeThis study aims to examine biodiversity reporting by South African food producers and retailers. It not only draws attention to the disconnect between reporting on an important environmental issue and the sense of commitment to environmental responsibility, but also shows that over time, organisations are becoming more proactive about biodiversity reporting.Design/methodology/approachThe research uses a content analysis of sustainability and integrated reports and organised hypocrisy as a theoretical framework for analysing biodiversity-related disclosures.FindingsConsistent with an organised hypocrisy framework, the research finds that the several companies rely on corporate reporting to emphasise actions and internal management strategies that are already producing favourable results. In contrast, mission statements, firm policy commitments and forward-looking analysis are avoided. There is, however, evidence to suggest that the gaps between corporate reporting and action may be giving companies the time to reform their practices, align biodiversity disclosures with genuine corporate action and move towards truly integrated business models.Research limitations/implicationsPoor biodiversity reporting raises questions about the extent to which companies are managing serious environmental issues that can have a direct impact on their business models. Improvements in biodiversity reporting also suggest that corporate reporting is maturing and that some organisations are beginning to understand the need for managing their biodiversity impact.Originality/valueThe paper offers empirical evidence on how the disconnect between organisational rhetoric and action is used to manage stakeholder expectations and negate the need for environmental reforms. In this manner, organised hypocrisy is framed as a specific legitimisation strategy. The research also shows that organised hypocrisy is not absolute; despite the opportunity to engage in organised hypocrisy, some companies are taking a more proactive approach to biodiversity reporting. As a result, it may be appropriate to see organised hypocrisy as part of a transition to higher quality integrated or sustainability reporting.

scholarly journals Corporate Sustainability Practices in Polluting Industries: Evidence from India, China and USA

2020 ◽  
Vol 15 (1) ◽  
pp. 161-168
Author(s):  
Prem Sagar Mishra ◽  
◽  
Ajay Kumar ◽  
Niladri Das
Keyword(s):  
Financial Reporting ◽  
Social Performance ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Legitimacy Theory ◽  
Reporting Practices ◽  
Corporate World ◽  
Financial Perspective ◽  
Sustainability Reports ◽  
Sustainability Practices

In recent years, the tilt of the corporate world towards non-financial reporting can be clearly seen from traditional accounting practices. Sustainability reporting disclosures are an important tool for providing information about the environmental and social performance of companies to their various stakeholders. From a financial perspective, for any firm, there is always a possibility of reporting more of the information that favours their interests or conceal that which is not in their favour. This study evaluates the annual and sustainability reports of 380 Indian, 400 Chinese and 400 USA companies from five highly polluting industries on the basis of GRI (global reporting initiatives) guidelines. From the result, it is inferred that the findings are consistent with the legitimacy theory. The result shows that the profitability and capital structure of firms in the sample do not affect the sustainability reporting practices significantly. In addition, larger firms have a tendency to disclose more information in their annual and sustainability reports than smaller firms.

scholarly journals Monitoring and evaluation of corporate social responsibility programmes in South Africa

2015 ◽  
Vol 5 (4) ◽  
pp. 314-318
Author(s):  
Renitha Rampersad
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
South African ◽  
Sustainability Reporting ◽  
Monitoring And Evaluation ◽  
Fiduciary Duty ◽  
The South ◽  
Corporate Sector ◽  
Corporate Social ◽  
The Impact

The South African corporate sector invests millions to support community development and social programs. One of the more fundamental issues about sustainability in a business context is the fact that directors have a fiduciary duty to take into account interests of those stakeholders other than investors/shareholders. This therefore places major importance on sustainability reporting through reports on governance, economic, social and environmental performance and is increasingly being regarded as a key form of stakeholder engagement, and the most accepted formal way of communicating measured outcomes to all stakeholders. A number of methodologies may exist for the development of Corporate Social Responsibility (CSR) strategies or “how-to guides” for community engagement and investment, however, it lacks development in the field of CSR Programme Evaluation. Integrated approaches to the measurement thereof are still in expanding stages of development and statistical data and/or empirical evidence is lacking at this point. Trust and relationships take time to build but are valuable assets, therefore a company must show it has listened and acted in response to stakeholder concerns, this means that ongoing communication and reporting back to stakeholders is a very important component in any engagement strategy. It is therefore important for the corporate sector to not only evaluate the effectiveness of their CSR Programmes, but also to measure the impact on both their beneficiary communities and their business and subsequently on the Return on Investment (ROI). This paper will highlight a case of the South African corporate sectors attempts to evaluate its effectiveness and impact on beneficiary communities and how they quantify the impact of the investment through successful CSR interventions

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