scholarly journals The quality of sustainability reports and impression management

2017 ◽  
Vol 30 (3) ◽  
pp. 643-667 ◽  
Author(s):  
Dominique Diouf ◽  
Olivier Boiral
Keyword(s):  
Impression Management ◽  
Management Strategies ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Structured Interviews ◽  
Content Type ◽  
Responsible Investment ◽  
Sustainability Performance ◽  
Sustainability Reports

Purpose The purpose of this research is to analyze the perceptions of stakeholders – more specifically, socially responsible investment (SRI) practitioners – of the quality of sustainability reports using the Global Reporting Initiative (GRI) framework. Design/methodology/approach This paper is based on 33 semi-structured interviews carried out with different stakeholders and experts (e.g. consultants, fund managers, analysts, consultants) in the field of SRI in Canada. Findings The perceptions of SRI practitioners shed more light on the elastic and uncertain application of the GRI principles in determining the quality of sustainability reports. Their perceptions tend to support the argument that sustainability reports reflect the impression management strategies used by companies to highlight the positive aspects of their sustainability performance and to obfuscate negative outcomes. Originality/value First, undertake empirical research on stakeholders’ perceptions – which have been largely overlooked – of the quality of sustainability reports. Second, shed new light on the impression management strategies used in sustainability reporting. Third, show the reflexivity and the degree of skepticism of practitioners with regard to the reliability of information on sustainability performance.

Determinants of GRI-based sustainability reporting: evidence from an emerging economy

2019 ◽  
Vol 10 (1) ◽  
pp. 140-164 ◽  
Author(s):  
Nurlan Orazalin ◽  
Monowar Mahmood
Keyword(s):  
Emerging Economies ◽  
Stock Exchange ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Publicly Traded ◽  
Content Type ◽  
Publicly Traded Companies ◽  
Reporting Practices ◽  
Sustainability Performance

Purpose The purpose of this paper is to investigate the extent and determinants of sustainability performance disclosures reported by publicly traded companies in Kazakhstan by using the Global Reporting Initiative (GRI) framework. Among the different possible determinants, stand-alone sustainability reporting (SR), reporting language, leverage, cash flow capacity, profitability, size, age and auditor type were selected to investigate their impacts on the quality and scope of sustainability information. Design/methodology/approach The study analyzes data from publicly traded companies at the Kazakhstani Stock Exchange for the years 2013–2015. To investigate the extent, nature and quality of sustainability reports, the study measures and analyzes economic, environmental and social performance parameters, as suggested in the GRI guidelines. Findings The results indicate that determinants such as stand-alone reporting, reporting language, firm profitability, firm size and auditor type substantially influence the extent, nature and quality of sustainability-reporting practices of Kazakhstani companies. Practical implications The findings of the study suggest that managers, practitioners, regulators and policy makers in emerging economies should adopt the GRI guidelines to report sustainability performance disclosures and focus on specific factors to improve the quality of sustainability disclosures. Originality/value This study is one of the first studies to investigate the extent, nature and possible determinants of corporate SR in central Asian-emerging economies.

scholarly journals Stakeholder engagement and dialogic accounting

2019 ◽  
Vol 32 (5) ◽  
pp. 1467-1499 ◽  
Author(s):  
Marco Bellucci ◽  
Lorenzo Simoni ◽  
Diletta Acuti ◽  
Giacomo Manetti
Keyword(s):  
Content Analysis ◽  
Stakeholder Engagement ◽  
Design Methodology ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Structured Interviews ◽  
Content Type ◽  
Engagement Process ◽  
Sustainability Reports ◽  
Depth Interviews

Purpose The purpose of this paper is to explain how sustainability reporting and stakeholder engagement processes serve as vehicles of dialogic accounting (DA), a form of critical accounting that creates opportunities for stakeholders to express their opinions, and the influence of dialogic interactions on the content of sustainability reports. Design/methodology/approach Content analysis is used to investigate reports published by 299 companies that have adopted Global Reporting Initiative guidelines. This paper studies how organizations engage stakeholders, the categories of stakeholders that are being addressed, the methods used to support stakeholder engagement, and other features of the stakeholder engagement process. Companies that disclose stakeholder perceptions, the difficulties met in engaging stakeholders, and actions aimed at creating opportunities for different groups of stakeholders to interact were subjects of discussion in a series of semi-structured interviews that focus on DA. Findings Companies often commit themselves to two-way dialogue with their stakeholders, but fully developed frameworks for DA are rare. However, signs of DA emerged in the analysis, thus confirming that sustainability reporting can become a platform for DA systems if stakeholder engagement is effective. Originality/value The findings contribute to the accounting literature by discussing if and how sustainability reporting and stakeholder engagement can serve as vehicles of DA. This is accomplished via a research design that is based on in-depth interviews and content analysis of various sustainability reports.

scholarly journals Compliance with materiality in G4-sustainability reports by electric utilities

2019 ◽  
Vol 14 (3) ◽  
pp. 583-608 ◽  
Author(s):  
Johannes Slacik ◽  
Dorothea Greiling
Keyword(s):  
Content Analysis ◽  
Information Needs ◽  
Electric Utility ◽  
Global Reporting Initiative ◽  
Actual Performance ◽  
Content Type ◽  
Reporting Practices ◽  
Reporting Practice ◽  
Sustainability Reports

Purpose Materiality as an emerging trend aims to make sustainability reports (SR) more relevant for stakeholders. This paper aims to investigate whether the reporting practice of electric utility companies (EUC) is in compliance with the materiality principle of the Global Reporting Initiative (GRI) when disclosing SR. Design/methodology/approach A twofold content analysis focusing on material aspects (MAs) is conducted, followed by correlation analysis. Logic and conversation theory (LCT) serves to evaluate the communication quality of documented materiality in SR by EUC. Findings The coverage and quality of documented MAs in SR by EUC do not meet the requirements for relevant and transparent communication. Materiality does not guide the reporting practice and is not taken seriously. Research limitations/implications Mediocre quality of coverage and communication in SR shows that stakeholders’ information needs are not considered adequately. The content analysis is limited in focusing on merely documented aspects rather than on actual performance. Originality/value This study considers the quality of communication of documented materiality through the lens of LCT. It contributes to the academic debate by introducing LCT as a viable theoretical perspective for analyzing SR. The paper evaluates GRI-G4 reporting practices in the electricity sector, which, while under-researched is crucial for sustainability. It also contributes to the emerging body of empirical research on the relevance of materiality as a guiding principle for sustainability reporting.

scholarly journals Impact of Sustainability Reporting on Brand Value: An Examination of 100 Leading Brands in Singapore

2020 ◽  
Vol 12 (18) ◽  
pp. 7392
Author(s):  
Lawrence Loh ◽  
Sharmine Tan
Keyword(s):  
Sustainability Reporting ◽  
Public Perceptions ◽  
Environmental Indicators ◽  
Global Reporting Initiative ◽  
Brand Value ◽  
Sustainability Performance ◽  
Sustainability Reports ◽  
Local Companies ◽  
Multi Stakeholder ◽  
Lagged Effect

The recent sustainability reporting (SR) mandate by the Singapore Exchange has heightened stakeholder awareness and propelled sustainability disclosures. Albeit encouraging, more than half of listed companies in Singapore do not produce sustainability reports. This signifies a lack of sustainability commitment, or perhaps, local companies have limited understanding on the potential value of sustainability. Our study aims to fill this gap by examining if (1) the 100 leading brands in Singapore similarly benefit from a higher brand value when they produce sustainability reports; (2) if more disclosure leads to higher brand value; (3) if a lagged effect is present. The methodology of this study included the collation of sustainability information from the 100 leading brands in Singapore, scoring each company’s sustainability performance using the Global Reporting Initiative (GRI) framework. Finally, we examine the correlations using regression analysis to compare the companies’ sustainability performance with the reputed brand rankings by Brand Finance. Our findings revealed that one-fifth of the 100 leading brands in Singapore do not engage in sustainability, despite the positive correlation between sustainability reporting and brand value. Our results also suggest that greater disclosure leads to higher brand value, yet social and environmental indicators are undermanaged. Moreover, there is a lagged effect as public perceptions take time to shape. Internalising a company’s sustainability vision through a multi-stakeholder consultative approach is critical. Brand managers and sustainability practitioners must be aware that failures to meet stakeholder expectations today may consequently impact investors’ decisions.

scholarly journals Coverage of G4-indicators in GRI-sustainability reports by electric utilities

2020 ◽  
Vol 32 (3) ◽  
pp. 359-378 ◽  
Author(s):  
Johannes Slacik ◽  
Dorothea Greiling
Keyword(s):  
Stakeholder Theory ◽  
Stock Exchange ◽  
Sustainability Reporting ◽  
Electric Utility ◽  
Electricity Sector ◽  
Global Reporting Initiative ◽  
Bottom Line ◽  
Content Type ◽  
Sustainability Reports ◽  
Coverage Rates

PurposeElectric utility companies (EUC) are expected to play a key role toward implementing ambitious climate change aims being under critical scrutiny by regulators and stakeholders. However, EUC provide an under-researched field regarding sustainability reporting with the focus on economic, social and ecological concerns. This paper aims to gain insights of the sustainability reporting practice of EUC and the coverage of indicators based on the Global Reporting Initiative (GRI)-Guidelines.Design/methodology/approachA twofold documentary analysis of 186 GRI-G4 sustainability reports by EUC globally is conducted to investigate the coverage rates of G4-indicators. Neo-institutionalism and strategic stakeholder theory serve as theoretical lenses. A regression analysis is used to examine ownership, stock-exchange listing, area of activity and region as potential drivers of sustainability reporting.FindingsResults show that the coverage of indicators based on triple-bottom-line dimensions is moderate in EUC leaving room for improvement. The coverage of sector-specific indicators lacks behind the coverage of standard disclosure indicators. Results show that private and listed EUC show better coverage rates than public and not-listed EUC.Research limitations/implicationsNeo-institutionalism shows limited homogenization in the sector. Strategic stakeholder theory demonstrates insufficient stakeholder compliance of public and not-listed EUC.Originality/valueThis study contributes to sustainability reporting research by focusing on the under-researched electricity sector. It provides practical reporting insights for EUC, the GRI and regulators.

“Green washing” or “authentic effort”? An empirical investigation of the quality of sustainability reporting by banks

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Habib Zaman Khan ◽  
Sudipta Bose ◽  
Abu Taher Mollik ◽  
Harun Harun
Keyword(s):  
Social Performance ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Content Type ◽  
Performance Factors ◽  
Holistic Understanding ◽  
Regulatory Guidelines ◽  
External Reporting ◽  
The Impact

PurposeThis study explores the quality of sustainability reporting (QSR) and the impact of regulatory guidelines, social performance and a standardised reporting framework (using the Global Reporting Initiative [GRI] guidelines) on QSR in the context of banks in Bangladesh.Design/methodology/approachUsing a sample of 315 banking firm-year observations over 13 years (2002–2014), a content analysis technique is used to develop the 11-item QSR index. Regression analysis is used to test the research hypotheses.FindingsInitially, QSR evolved symbolically in Bangladesh's banks but, over our investigation period, with QSR indicators gradually improving, the trends became substantive. The influences on QSR were sustainable banking practice regulatory guidelines, social performance and use of the GRI guidelines. However, until banks improve reporting information, such as external verification and trends over time, QSR cannot be regarded as fully substantive.Research limitations/implicationsThis study advances QSR research and debate among academic researchers. With regulatory agencies and stakeholders increasingly using sustainability reporting information for decision making, the information's quality is vital.Originality/valueThis study is the first on QSR in the banking industry context, with previous research mostly investigating the quantity of sustainability reporting. The current study also synthesises QSR with sustainability regulation and social performance factors which have rarely been used in the sustainability literature. To gain a holistic understanding of QSR, existing QSR measures are advanced by combining external reporting efforts with banks' internalisation initiatives.

Assessing the materiality of university G4-sustainability reports

2019 ◽  
Vol 31 (3) ◽  
pp. 364-391 ◽  
Author(s):  
Melanie Lubinger ◽  
Judith Frei ◽  
Dorothea Greiling
Keyword(s):  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Sociological Institutionalism ◽  
Content Type ◽  
External Stakeholder ◽  
Stakeholder Groups ◽  
Content Selection ◽  
Reporting Practice ◽  
Sustainability Reports ◽  
The University

Purpose Materiality, as a content-selection principle, is an emerging trend in sustainability reporting for making sustainability reports (SRs) more relevant for stakeholders. The purpose of this paper is to investigate whether materiality matters in the reporting practice of universities which have adopted the Global Reporting Initiative G4 Guidelines. Design/methodology/approach Strategic stakeholder theory and sociological institutionalism serve for deriving conflicting expectations about the compliance of universities with the materiality principle. In the empirical section of this paper, content analyses are conducted on the documented material aspects, followed by a correlation analysis for examining to which extent the identified material aspects are reported in the SRs. Findings Although universities document G4-19 stakeholder-material aspects according to different relevance levels and for internal and external stakeholder groups, the identified material aspects are not appropriately reported in the SRs. The adoption of the materiality principle is a superficial one and therefore more in line with the expectations of sociological institutionalism. Research limitations/implications The main limitation for this study is the small number of university SRs available. The chance to make SRs more relevant by focusing on stakeholder-material aspects is not used. Originality/value This paper reports the first study looking at the compliance between the documented material aspects and the content of SRs in a particular challenging organisational field, the university sector. This paper also adds to the emerging theoretical discussion about the extent universities implement materiality in SRs.

Creating sustainability reports that matter: an investigation of factors behind the narratives

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Habiba Al-Shaer ◽  
Khaldoon Albitar ◽  
Khaled Hussainey
Keyword(s):  
Sustainability Reporting ◽  
Asia Pacific ◽  
Global Reporting Initiative ◽  
Specific Content ◽  
Content Type ◽  
External Governance ◽  
Key Features ◽  
Sustainability Reports ◽  
Sustainability Report ◽  
Forward Looking

PurposeThis paper aims to provide a novel approach to examine sustainability report narratives by considering key features of these narratives including, forward-looking content, risk content, tone and sustainability-specific content.Design/methodology/approachUsing a sample of UK firms' sustainability reports from 2014 to 2018, the authors capture the report content by compiling a collection of words using a computational linguistic technique that attempts to identify specific attributes of sustainability reports.FindingsThe findings show the main factors that determine the content of sustainability reports are: (1) external governance-related factors, including the voluntary adoption of sustainability reporting assurance, the choice of assurance provider, stakeholder engagement and ownership concentration; (2) internal governance factors, including board quality and the existence of a sustainability committee; and (3) reporting behaviour including the publication of standardised Global Reporting Initiative (GRI) sustainability reports and financial reporting quality.Research limitations/implicationsThe authors limit our sample to companies operated in the UK. Future research can explore the results in other institutional contexts such as North America or Asia–Pacific where the governance of sustainability reporting and other factors determining the content of sustainability reports could be different. Also, it would be interesting to interview managers and other stakeholders to obtain their opinions with regard to sustainability reporting and assurance practices and to understand their opinions regarding the GRI guidelines and its appropriateness. This study combines different research streams to advance our understanding of sustainability disclosures and factors that determine sustainability narratives.Practical implicationsCorporate managers need to strengthen their internal and external governance mechanisms to enhance the comprehensiveness and credibility of sustainability reports and are encouraged to engage stakeholders in the sustainability reporting process. Policymakers can mandate the assurance of sustainability reports and establish reporting formats and standard words to control the tone of sustainability reports. Finally, researchers, professionals as well as policymakers need to monitor sustainable development goals and targets to increase awareness, knowledge and practices that can be operationalised to ensure a global society that can afford sustainable living.Originality/valueTo the best of our knowledge, no study has yet examined sustainability report narratives by considering key features of these reports, including forward-looking content, risk content, tone and sustainability-specific content.

Stakeholder engagement practices and impression management

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vincent Gagné ◽  
Sylvie Berthelot ◽  
Michel Coulmont
Keyword(s):  
Impression Management ◽  
Stakeholder Engagement ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Voluntary Disclosures ◽  
Content Type ◽  
Communication Modes ◽  
Engagement Process ◽  
Important Trend ◽  
Impression Management Tactics

Purpose The purpose of this paper is to assess the substantiveness of stakeholder engagement by examining voluntary disclosures tied to the engagement process. The objective is to draw a portrait of stakeholder engagement practices and determine whether they genuinely contribute to informing stakeholders or whether they are simply intended to manage stakeholders’ impressions. Design/methodology/approach The authors performed an exploratory content analysis on 113 sustainability reports published in 2018 in the Global Reporting Initiative database. The authors investigated disclosures tied to consulted stakeholders, communication modes and material issues resulting from the engagement process. The authors then assessed the substantiveness of these disclosures to determine the extent of the impression management tactics deployed in the stakeholder engagement disclosures made by Canadian companies. Findings Data analysis showed that more than a third of Canadian firms tend to make generic disclosures on their stakeholders’ engagement. As well, almost half the engagement modes disclosed are unidirectional and fewer than 33% of Canadian companies disclose on relevant sustainability issues. Furthermore, only 26% of the sample seek assurance on the information disclosed. Overall, the authors note an important trend in impression management used in sustainability reporting and underscore a potentially significant sectoral effect in the tactics used. Originality/value These data provide new insight into stakeholder engagement processes and highlight the strategies used by Canadian companies to manage their stakeholders’ impressions rather than their expectations. The study also contributes to a better understanding of the underexplored stakeholder engagement process and provides regulatory organisations with deepened insights to better frame stakeholder engagement disclosures.

Sustainability reports in Brazil through the lens of signaling, legitimacy and stakeholder theories

2017 ◽  
Vol 13 (1) ◽  
pp. 95-110 ◽  
Author(s):  
Hong Yuh Ching ◽  
Fábio Gerab
Keyword(s):  
Information Asymmetry ◽  
Reporting Quality ◽  
Sustainability Reporting ◽  
Two Dimensions ◽  
Social Dimensions ◽  
Content Type ◽  
Environmental Dimension ◽  
Sustainability Reports ◽  
Corporate Social

Purpose The purpose of this paper is to extend the applicability of stakeholder, legitimacy and signaling theories by examining to what extent proactive corporate social responsibility disclosures are interrelated to attempt to gain and maintain legitimacy, to gain support of the stakeholders and to reduce information asymmetry. Design/methodology/approach To test the theoretical arguments, a longitudinal approach over a five-year period of 145 companies’ sustainability reports and statistical analysis was applied to investigate the evolution of their quality. Findings The results show a significant increase in the quality of sustainability reporting, and the experience gained while writing these reports can contribute to this. Based on signaling and legitimacy theories, this paper suggests that improvement in sustainability reporting quality acts as an important signal to gain legitimacy in case of information asymmetry during the legitimacy process. Th disclosure for economic and social dimensions is better than that of the environmental dimension, and the improvement in quality over time is the because of synergies and interlinkages more between these two dimensions of sustainability, and to a lesser extent because of the environmental dimension. Practical implications Firms should view investing in sustainability reporting disclosure as a strategy for obtaining business legitimacy. Originality/value The results of this paper are of interest for several reasons: extend and broaden the use of signaling in studying its use on sustainability reporting; the use of three theories is an appropriate framework for empirical analysis of sustainability reporting disclosure quality in Brazil; and add to the scarce evidence of sustainability reporting in Brazil.

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