scholarly journals Hypocrisy and legitimacy in the aftermath of a scandal: an experimental study of stakeholder perceptions of nonfinancial disclosure

2021 ◽  
Vol 34 (9) ◽  
pp. 151-163
Author(s):  
Marco Bellucci ◽  
Diletta Acuti ◽  
Lorenzo Simoni ◽  
Giacomo Manetti
Keyword(s):  
Sustainability Reporting ◽  
Companion Paper ◽  
Socially Responsible ◽  
Content Type ◽  
Reporting Practices ◽  
Reporting Behaviors ◽  
Main Paper ◽  
Social Environmental ◽  
Practical Implications ◽  
Nonfinancial Disclosure

PurposeThis study aims to investigate how stakeholders perceive the company's nonfinancial disclosure after a scandal has occurred. More specifically, the authors examine whether and how sustainability reporting practices in the aftermath of a scandal can influence the perceptions of stakeholders in terms of hypocrisy and legitimacy.Design/methodology/approachThe present research represents a companion paper to another study in this issue that investigates the adaptation of companies' reporting behaviors after a scandal. The results of the initial qualitative study informed the subsequent quantitative study developed in this article. The authors build on the evidence of the main paper and perform a 2 × 2 between-subjects experiment to examine how stakeholders perceive the actions of companies that aim to restore their eroded legitimacy through social, environmental and sustainability (SES) reporting.FindingsThe results suggest that when companies take responsibility and develop remedial, socially responsible corporate activities are perceived as less hypocritical and more legitimate. Moreover, we show an interaction effect between taking responsibility and developing remedial socially responsible actions on hypocrisy and legitimacy perception.Originality/valueThe present research takes advantage of an experimental design to investigate the effects of the adaptation of SES reporting from the perspective of stakeholders. The study provides insightful theoretical and practical implications for managers regarding how to handle a reputational loss and avoid perceptions of hypocrisy.

scholarly journals Restoring an eroded legitimacy: the adaptation of nonfinancial disclosure after a scandal and the risk of hypocrisy

2021 ◽  
Vol 34 (9) ◽  
pp. 164-186
Author(s):  
Marco Bellucci ◽  
Diletta Acuti ◽  
Lorenzo Simoni ◽  
Giacomo Manetti
Keyword(s):  
Content Analysis ◽  
Sustainability Reporting ◽  
Corporate Disclosure ◽  
Legitimacy Theory ◽  
Socially Responsible ◽  
Content Type ◽  
Financial Scandals ◽  
Social Environmental ◽  
Corporate Social ◽  
Nonfinancial Disclosure

PurposeThis study contributes to the literature on hypocrisy in corporate social responsibility by investigating how organizations adapt their nonfinancial disclosure after a social, environmental or governance scandal.Design/methodology/approachThe present research employs content analysis of nonfinancial disclosures by 11 organizations during a 3-year timespan to investigate how they responded to major scandals in terms of social, environmental and sustainability reporting and a content analysis of independent counter accounts to detect the presence of views that contrast with the corporate disclosure and suggest hypocritical behaviors.FindingsFour patterns in the adaptation of reporting – genuine, allusive, evasive, indifferent – emerge from information collected on scandals and socially responsible actions. The type of scandal and cultural factors can influence the response to a scandal, as environmental and social scandal can attract more scrutiny than financial scandals. Companies exposed to environmental and social scandals are more likely to disclose information about the scandal and receive more coverage by external parties in the form of counter accounts.Originality/valueUsing a theoretical framework based on legitimacy theory and organizational hypocrisy, the present research contributes to the investigation of the adaptation of reporting when a scandal occurs and during its aftermath.

Communicating corporate social responsibility (CSR) in the coffee industry

2018 ◽  
Vol 9 (2) ◽  
pp. 139-164 ◽  
Author(s):  
Oliver James Bradley ◽  
Gloria Oforiwaa Botchway
Keyword(s):  
Vertical Integration ◽  
Sustainability Reporting ◽  
Sustainability Indicators ◽  
Content Type ◽  
Reporting Practices ◽  
Single Use ◽  
Systematic Development ◽  
Sustainability Challenges ◽  
Corporate Social ◽  
Practical Implications

PurposeThe purpose of this paper is to identify the sustainability indicators disclosed by ten British Coffee Association corporate members in their sustainability reporting and examine whether the indicators correspond to the sustainability challenges faced by the coffee industry, as identified in the literature.Design/methodology/approachA normative account of sustainability challenges was developed based on a review of extant literature. A content analysis of the sustainability reports and/or Webpages of the companies was conducted to identify quantitative and qualitative sustainability indicators. Frequency and thematic analysis enabled the subsequent examination.FindingsA total of 94 sustainability indicators (44 environmental, 30 social and 20 economic) were identified in company reporting. The indicators correspond to the sustainability challenges identified in the literature. In addition to broad challenges, indicators are used to communicate specific issues. A significant number (47) of single-use indicators were identified, communicating less frequently reported challenges. Some companies account for sustainability from bean to cup, attributed to crucial differences in organisational characteristics (degree of vertical integration). Furthermore, the findings highlight the discretionary nature of sustainability reporting, finding considerable variance in indicators disclosed.Research limitations/implicationsAs this paper relies on self-reported corporate disclosures, it critically examines the reporting practices of organisations, as opposed to verifying the activities associated with their claims. The authors minimised subjectivity by reducing the interpretation of what constituted “an indicator” using a clearly agreed definition and multiple rounds of coding.Practical implicationsThis paper examines the reporting practices of organisations, providing a useful insight and a competitor benchmark. By comprehensively examining the sustainability challenges faced by the coffee industry, it offers “sustainability context” that can be used by organisations to improve their accounting and reporting practices.Social implicationsThis paper acknowledges and addresses social initiatives that call for the systematic development of practical and appropriate sustainability indicators that can become embedded in policy and decision-making, affecting the measurement of progress and responses to important sustainability challenges.Originality/valueThis paper presents the first systematic review of sustainability indicator disclosure in an industry that faces significant sustainability challenges.

From voluntarism to regulation: effects of Directive 2014/95/EU on sustainability reporting in the EU

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Philipp Ottenstein ◽  
Saskia Erben ◽  
Sébastien Jost ◽  
Carl William Weuster ◽  
Henning Zülch
Keyword(s):  
Financial Reporting ◽  
Sustainability Reporting ◽  
Future Research ◽  
Information Quantity ◽  
Content Type ◽  
Listed Firms ◽  
Reporting Practices ◽  
Cross Cultural Differences ◽  
Practical Implications ◽  
The Eu

PurposeThe aim of this paper is to examine the effects of the European Non-financial Reporting Directive (2014/95/EU) on firms' sustainability reporting practices, especially reporting quantity (i.e. availability of information) and quality (i.e. comparability and credibility).Design/methodology/approachTo test the main hypotheses, the authors select 905 treated firms from the EU 28 + 2 countries for a difference-in-differences regression analysis of dependent variables from the Refinitiv ESG database.FindingsThe results suggest that the Directive influences sustainability reporting quantity and quality. Treated firms provide around 4 percentage points more sustainability information (i.e. availability) than propensity score matched control firms and are 19 percent more likely to receive external assurance (i.e. credibility). However, we also find that the Directive is not the decisive factor in the adoption of GRI guidelines (i.e. comparability).Research limitations/implicationsThe analysis is restricted to large listed firms and does not account for small, mid-sized and private firms. Further, cross-cultural differences which influence sustainability reporting are controlled for but not investigated in detail. The authors derive several suggestions for future research related to the NFR Directive and its revision.Practical implicationsThe authors’ findings have practical implications for the future development of sustainability reporting in the EU and for other regulators considering the adoption of sustainability reporting.Originality/valueThis study is the first to provide evidence on the NFR Directive's reporting effects across multiple countries. It adds to the growing literature on the consequences of mandatory sustainability reporting. Additionally, this paper introduces a novel measurement approach sustainability information quantity that could benefit researchers.

Linguistic perception of corporate responsibility disclosure: the case of Japanese Idemitsu

2016 ◽  
Vol 12 (2) ◽  
pp. 335-347 ◽  
Author(s):  
Amir Hossein Rahdari ◽  
Udo Braendle
Keyword(s):  
Corporate Responsibility ◽  
Stakeholder Management ◽  
Sustainability Reporting ◽  
Management Program ◽  
Linguistic Variables ◽  
Content Type ◽  
Significant Difference ◽  
Social Environmental ◽  
Fuzzy Linguistic ◽  
Practical Implications

Purpose This paper aims to examine a case to illustrate the linguistic perception of corporate responsibility disclosures. Design/methodology/approach In this study, a content analysis framework based on fuzzy linguistic variables is proposed to measure the level of sustainable and responsible practices perceived by the stakeholders. A case is examined to illustrate the linguistic perception of corporate responsibility disclosures. Findings The results demonstrated a significant difference between Perception of Disclosure, using linguistic variables and most common sustainability indicators, and a Boolean analysis based on sustainability reporting indicators. The approach helps companies in developing a more robust stakeholder management program and to better respond to stakeholders’ demands. Research limitations/implications Future studies can evaluate corporate responsibility and sustainability performance using linguistic variables. Practical implications The approach helps companies to better respond to stakeholders’ demands. Social implications The approach helps companies in developing a more robust stakeholder management program and to better respond to stakeholders’ demands. Originality/value Most of the studies on corporate responsibility disclosure analysis have focused on a binary response to the level of disclosure of a certain economic, social, environmental or governance issue; however, how a disclosed item is being perceived by the user has not been taken into consideration.

scholarly journals Mandatory Nonfinancial Disclosure and Its Consequences on the Sustainability Reporting Quality of Italian and German Companies

2019 ◽  
Vol 11 (17) ◽  
pp. 4612 ◽  
Author(s):  
Giorgio Mion ◽  
Cristian R. Loza Adaui
Keyword(s):  
Qualitative Content Analysis ◽  
Reporting Quality ◽  
Sustainability Reporting ◽  
Nonfinancial Information ◽  
Reporting Practices ◽  
The Law ◽  
Social Environmental ◽  
One Year ◽  
Nonfinancial Disclosure

Companies disclosing nonfinancial information through sustainability reporting practices provide markets with data on their social, environmental, and governance performance. The quality of sustainability reporting is much discussed in the literature because this quality affects factors such as the credibility of accountability and building stakeholders’ trust in the company. Nonetheless, the concept of quality is multidimensional, and empirical evidence relating to the quality of sustainability reporting presents different findings. Regulations on mandatory nonfinancial disclosure (NFD) open new perspectives for research on sustainability reporting quality (SRQ). This study explored the effect of introducing mandatory NFD on SRQ by focusing on the effects of new legislation (Directive 2014/95/EU) introduced in Italy and Germany. The analysis was conducted through qualitative content analysis of the sustainability reporting practices of Italian and German companies in the top lists of stock exchanges. Sustainability reporting practices of one year before (2016) and one year after (2017) the implementation of Directive 2014/95/EU were compared. The results of 132 observations demonstrated that the quality of sustainability reporting increased after implementation of the law on mandatory NFD. Further, the effect of the law seemed to reduce the differences in SRQ of the two countries before the introduction of mandatory NFD. The results suggested that obligatoriness of NFD affects SRQ together with other relevant determinants focused on by previous research (e.g., company size and industry type).

scholarly journals Creating value: sustainability and accounting for non-financial matters in the pre- and post-corona environment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sumit Lodhia ◽  
Umesh Sharma ◽  
Mary Low
Keyword(s):  
Developing Countries ◽  
Civil Society ◽  
Value Creation ◽  
Sustainability Reporting ◽  
Special Issue ◽  
Content Type ◽  
Reporting Practices ◽  
Economic Paradigm ◽  
Financial Issues ◽  
Practical Implications

Purpose This paper aims to introduce the special issue on “sustainability and accounting for non-financial matters: qualitative and quantitative research approaches”. This special issue was organised at the time when the entire globe was affected by the Coronavirus and accordingly, this paper has taken this opportunity to discuss the implications of this pandemic on accounting for non-financial issues, especially in relation to sustainability accounting research and practice. Design/methodology/approach An analysis of public documents and limited academic research on the Coronavirus was undertaken in this paper to highlight how life as it existed has fundamentally changed. The authors also review the papers published in this special issue and identifies research opportunities arising from the current environment. Findings The onslaught of the Coronavirus provides both challenges and opportunities for the practice of, and research into, accounting for non-financial matters, such as sustainability. The papers published in this special issue promote understanding and linking of sustainability reporting practices, to creating firm values, as well as identifying current and emerging challenges. The special issue explores criteria for the construction of accounting technology that is consistent with agnostic-based critical accounting and accountability, a business case for managers and practitioners to formulate strategic and management control systems in response to climate change issues, legitimacy and the use of photographs in sustainability reporting to create value, effective disclosures of business and sustainability ethics practiced by the firm for reputation building and value creation, indigenous accounting in mining companies, public sector policy framing of non-financial value, the barriers to sustainability reporting because of lack of awareness and knowledge and inadequate regulatory support in developing countries and the significance of sustainability accounting education to improve sustainability reporting practices in developing countries. Research limitations/implications Future research opportunities in relation to the impact of the Coronavirus on accounting for non-financial value are identified. Given that COVID-19 is a societal matter, the practical implications of the Coronavirus in accounting for non-financial value creation are highlighted. The Coronavirus has challenged the existing economic paradigm and non-financial issues will capture the attention of corporations, other institutions, civil society and governments. Practical implications The Coronavirus has challenged the existing economic paradigm and non-financial issues will capture the attention of corporations, other institutions, civil society and governments. Social implications Given that COVID-19 is a societal matter, the practical implications of the Coronavirus in accounting for non-financial value creation are highlighted. Originality/value This study, to the knowledge, is one of the pioneer academic studies that has explored the implications of the Coronavirus on accounting for non-financial value. In addition, this special issue includes papers that highlight how non-financial reporting matters are increasingly being given attention by companies to enhance business practices on sustainability through different perspectives.

Investigating interdependencies of sustainable supplier selection criteria: an appraisal using ISM

2020 ◽  
Vol 13 (2) ◽  
pp. 195-210 ◽  
Author(s):  
Avanish Singh Chauhan ◽  
Gaurav Kumar Badhotiya ◽  
Gunjan Soni ◽  
Prem Kumari
Keyword(s):  
Supplier Selection ◽  
Selection Criteria ◽  
Local Community ◽  
Pollution Prevention ◽  
Content Type ◽  
The Past ◽  
Micmac Analysis ◽  
Sustainable Supplier Selection ◽  
Social Environmental ◽  
Practical Implications

Purpose Because of the increased global competition and the need for environment consciousness, organisations have started focusing on incorporating sustainability dimensions into suppler selection criteria. In the past decade, sustainable supplier selection has received much attention from researchers as well as industry practitioners. The purpose of this paper is to identify various sustainable supplier selection criteria (SSSC) and underlying interdependencies among prominent selection criteria to develop a framework for sustainability dimensions. Design/methodology/approach The sustainable criteria for supplier selection were established through comprehensive literature review. An interpretive structural modelling (ISM) approach is used to investigate the interrelationships among these criteria. Findings A total of 21 SSSC under 3 dimensions (social, environmental and economic) are established. Ten criteria related to quality, capability, flexibility, waste management, pollution prevention, local community, employment practice, labour, etc. are exhibiting strong driving as well as dependence power, as demonstrated through ISM and matriced’ impacts croises-multiplication applique’ and classement (MICMAC) analysis. The findings show that delivery/service, eco design and rights of stakeholders are the “key” criteria having a high-driving and low-dependence power. These criteria require high attention from managers, while other criteria having low-driving and high-dependence power require secondary actions. Research limitations/implications The inter-relations for the development of ISM model and MICMAC analysis were obtained through the opinion of industry experts and academicians, which may tend to be subjectively biased. Further exploration is proposed to statistically validate the developed interdependency model. Practical implications This paper might act as a reference for the supplier development managers of organisations by providing an appraisal of various SSSC based on their interdependencies. Originality/value This study contributes to the knowledge base by proposing a framework of the interrelationships of the SSSC and also provides an additional perspective for managing these criteria based on ISM.

The moderating effect of environmental agencies on firms’ sustainability reporting in Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alhassan Haladu ◽  
Saeed Awadh Bin-Nashwan
Keyword(s):  
Environmental Policy ◽  
Social Issues ◽  
Developing Economies ◽  
Sustainability Reporting ◽  
Sustainable Growth ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Environmental Agencies ◽  
The Relationship ◽  
Practical Implications

Purpose An attempt is made in this study aims to examine the extent to which the role of environmental agencies in Nigeria, i.e. DEPARTMENT for Petroleum Resources (DPR), National Environmental Standard and Regulatory Enforcement Agency (NESREA) and Nigerian Stock Exchange (NSE), influences firms’ attributes on sustainability reporting. Design/methodology/approach Both primary and secondary data covers 2015-2019 were used to collate information for the analyzes. The analysis was done using Stata 13 to determine the moderating impact of policy administrators on the relationship between corporate attributes and sustainability reporting. Findings The findings showed a very low level of sustainability reporting (27.53%), with a high significant level. Moreover, a positive and significant relationship exists between the major corporate attributes and sustainability reporting. A highly significant moderating impact of environmental policy administrators exists on these attributes, except for board size. Research limitations/implications The theoretical and practical implications of this study show that there is an indication of the inefficiency of the environmental policy administrators in Nigeria as the significance of the political economy theory as it affects the interactive impact on sustainability reporting. Further research is recommended on political-economic theory so as to know the economic implications of the effects of corporate attributes on environmental disclosure as it impacts governments and societies. Practical implications Results show that there is an indication of inefficiency by Nigeria’s main environmental policy administrators such as DPR, NESREA and NSE as it affects environmental, economic and social issues by listed firms. Originality/value This work emphasizes the moderating impact of environmental agencies on the relationship between firms’ characteristics and sustainability disclosure through the GRI4 framework standard. More so, it applied company attributes essential for a firm’s sustainable growth and development in the developing economies of sub-Saharan Africa.

Sustainability reporting in justice systems: a comparative research in two European countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Floriana Fusco ◽  
Renato Civitillo ◽  
Paolo Ricci ◽  
Sylwia Morawska ◽  
Katarzyna Pustułka ◽  
...  
Keyword(s):  
Online Survey ◽  
Sustainability Reporting ◽  
European Countries ◽  
Comparative Approach ◽  
Political Debate ◽  
Content Type ◽  
Reporting Practices ◽  
Wide Range ◽  
Current Practices ◽  
Judicial Systems

Purpose That on accountability in public organizations is quite an old debate. Its introduction in judicial systems is, however, still viewed with some suspicion, due to its potential trade-off with independence and impartiality. Nevertheless, the need to respond to the demands for greater transparency and accountability has also pushed judicial organizations to establish a dialogue with a wide range of subjects. This study aims to explore the understanding and the current practices of sustainability reporting currently in place in judicial systems. Design/methodology/approach The study adopts a comparative approach, conducting an online survey in two European countries (Italy and Poland). The survey was built around the research questions and literature and administered between February and March 2020. Specifically, 804 courts were involved, of which 430 are in Italy and 374 in Poland. Findings Findings show that the current practices are still not widespread and there is still a lack of understanding of what sustainability reporting is, and therefore, of what its potential usefulness within the courts could be. Moreover, many differences between the two countries are pointed out, so it is possible to assume that the different cultural and institutional settings influence sustainability reporting practices. Finally, some interesting implications for policymakers are provided. Originality/value Judicial organizations are still poorly investigated in the literature, despite being at the center of a wide public and political debate. Moreover, the international comparative perspective adopted constitutes a further aspect of novelty.

How do public companies respond to national challenges through sustainability reporting? – The case of Sri Lanka

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dinithi Dissanayake ◽  
Carol A. Tilt ◽  
Wei Qian
Keyword(s):  
Sri Lanka ◽  
Developing Country ◽  
National Level ◽  
National Development ◽  
Sustainability Reporting ◽  
Annual Reports ◽  
Structured Interviews ◽  
Content Type ◽  
Integrative Social Contracts Theory ◽  
Reporting Practices

Purpose The purpose of this paper is to explore how sustainability reporting is shaped by the global influences and particular national context where businesses operate. Design/methodology/approach The paper uses both content analysis of published sustainability information and semi-structured interviews with corporate managers to explore how sustainability reporting is used to address unique social and environmental challenges in a developing country – Sri Lanka. The use of integrative social contracts theory in investigating sustainability reporting offers novel insights into understanding the drivers for sustainability reporting practices in this particular country. Findings The findings reveal that managers’ perceptions about usefulness of sustainability reporting, local contextual challenges and global norms influence the extent to which companies engage in sustainability reporting and the nature of sustainability information reported. In particular, Sri Lankan company managers strive to undertake sustainability projects that are beneficial not only to their companies but also to the development of the country. However, while company managers in Sri Lanka are keen to undertake sustainability reporting, they face different tensions/expectations between global expectations and local contextual factors when undertaking sustainability projects and reporting. This is also showcased in what is ultimately reported in company annual reports, where some aspects of sustainability, e.g. social, tend to focus more on addressing local concerns whereas other disclosures are on issues that may be relevant across many contexts. Research limitations/implications Important insights for government and other regulatory authorities can be drawn from the findings of this study. By capitalising on the strong sense of moral duty felt by company managers, policymakers can involve the business sector more to mitigate the social and environmental issues prevalent in Sri Lanka. The findings can also be used by other developing countries to enable pathways to engage with the corporate sector to contribute to national development agendas through their sustainability initiatives and projects. Originality/value While the usual understanding of developing country’s company managers is that they try to follow global trends, in Sri Lanka, this research shows how managers are trying to align their responsibilities at a national level with global principles regarding sustainability reporting. Therefore, this paper highlights how both hypernorms and microsocial rules can interact to define how company managers undertake sustainability reporting in a developing country.

Sign in / Sign up

Export Citation Format

Share Document