scholarly journals An empirical study of sustainability reporting assurance: current trends and new insights

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kholod Fahad Alsahali ◽  
Ricardo Malagueño
Keyword(s):  
Sustainability Reporting ◽  
Future Research ◽  
Firm Level ◽  
Accounting Firms ◽  
Content Type ◽  
Global Trends ◽  
Current Trends ◽  
Consulting Firms ◽  
Sustainability Reports ◽  
Practical Implications

Purpose This study aims to examine trends in the global assurance practices of sustainability reports, updating and broaden the extant literature and proving new insights that could guide future research. Design/methodology/approach The data were collected for 12,783 companies and exploratory descriptive analyses of sustainability reporting assurance practices were undertaken. Findings The study shows that assurance growth is lagging behind the growth in sustainability reporting. It reveals that assurer switching is a common practice amongst companies. There is an increasing trend towards the use of the International Standard for Assurance Engagements 3000 by non-accounting assurers. Additionally, in terms of assurance providers, the study finds that accounting firms are dominating the market, however, engineering firms are fast increasing their share of the sustainability assurance market, whilst consulting firms’ share is decreasing. However, the switch towards consulting firms is higher than the switch towards accounting firms in the last switch period. Practical implications Overall, the results of this study provide insights about companies’ assurance practices for regulators, assurance providers and companies interested in assuring their sustainability reports. Social implications This study is relevant for companies’ stakeholders, including investors, to enhance their understanding of companies’ current assurance practices. Originality/value Prior studies on the assurance practices of sustainability reports are limited in scope (concentrate on large companies) and depth (examine accounting vs non-accounting assures and consider the evolving patterns at the institutional rather than firm-level). This study presents developments and trajectories of assurance practices to inform researchers and practitioners on the global trends by bringing an updated and broader perspective on the topic.

Assessing sustainability reports of US universities

2018 ◽  
Vol 19 (7) ◽  
pp. 1158-1184 ◽  
Author(s):  
Remmer Sassen ◽  
Leyla Azizi
Keyword(s):  
Social Performance ◽  
Sustainability Reporting ◽  
Social Dimension ◽  
Future Research ◽  
Content Type ◽  
Political Incentives ◽  
The Social ◽  
Sustainability Reports ◽  
The University ◽  
Practical Implications

Purpose The purpose of this study is to assess sustainability reports of US universities to provide findings on the relative importance of disclosure topics. Design/methodology/approach The authors conducted content analysis by using a specific university-oriented catalogue of indicators to cover the specific sustainability-related aspects of this sector. Findings Sustainability reporting by universities is still in its early stages. The findings show a clear focus on the environmental dimension, whereas the university and the economic dimensions see lower levels of reporting. The social dimension is rarely addressed. Research limitations/implications Future research could use the results of this study as a basis for investigating stakeholder expectations towards universities’ sustainability reporting and developing university-specific sustainability reporting standards. Practical implications The results could be used to improve universities’ sustainability reporting, as “good” practices are now readily available. Social implications The level of reporting on the social dimension is very low. Therefore, developing political incentives to improve universities’ social performance might be of interest. Originality/value The investigated setting is unique and contributes several findings in a less-researched area along with several practical, social and research implications.

Materiality disclosure in sustainability reporting: fostering stakeholder engagement

2018 ◽  
Vol 34 (5) ◽  
pp. 1-4 ◽  
Author(s):  
Sie Bing Ngu ◽  
Azlan Amran
Keyword(s):  
Stakeholder Engagement ◽  
Sustainability Reporting ◽  
Corporate Sector ◽  
Content Type ◽  
Corporate World ◽  
Reporting Process ◽  
Global Companies ◽  
Sustainability Reports ◽  
Practical Implications

Purpose This paper aims to illustrate that stakeholder engagement is a fundamental step of the sustainability reporting process, as it assists in defining the materiality and relevance of the information communicated and enhances greater transparency and greater accountability to stakeholders. Findings In today’s corporate world, the role of stakeholder engagement has been recognized as being significant in completing the process for materiality disclosure in sustainability reporting, and it has become one of the vital elements in advancing sustainable development in the corporate sector. The materiality approach has been recommended as the instrument for scoping and defining the content for sustainability reporting or reports that only disclose issues that are considered material from the perspective of the stakeholders. This is relevant to both businesses and stakeholders. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the leading global companies in preparing their sustainability reports.

Materiality assessment: the case of Latin American listed companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yully Marcela Sepúlveda-Alzate ◽  
María Antonia García-Benau ◽  
Mauricio Gómez-Villegas
Keyword(s):  
Latin American ◽  
Social Issues ◽  
Construction Materials ◽  
Field Research ◽  
Principal Component ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
Future Research ◽  
Content Type ◽  
Sustainability Reports

Purpose This paper aims to propose a measurement of the materiality of environmental, social and governance information (ESG) reported by listed companies belonging to sensitive industries in Colombia, Mexico, Brazil, Chile and Argentina. This analysis is carried out from the insights of stakeholder theory, legitimacy theory and institutional theory. The research questions addressed are: What type of information is considered as material by Latin American companies? Does this information respond to the environmental and social issues within the context of Latin American companies and the needs of their stakeholders? Design/methodology/approach A materiality index is developed from principal component analysis and factor analysis, which are multivariate analysis statistical techniques used in various fields to develop indices. The designed index examines materiality in the sustainability reports of 65 companies for 2017 and 67 companies for 2018. These firms belong to the energy, mining, chemical, construction, construction materials and public services industries in Colombia, Mexico, Chile, Argentina and Brazil. Findings The results show medium-high materiality indices, mostly in Chilean, Mexican and Colombian companies. In addition, issues such as water management, climate change and occupational health and safety are particularly interesting for companies. For the two years studied and from the perspective of material aspects for the company and its stakeholders, energy, mining and utilities (drinking water and sewage) sectors obtained the highest scores. This shows that the disclosure of ESG information is higher in industries related to the exploitation of natural resources that cause adverse effects on the environment such as extractive industries. Both the analysis presented in this paper and the materiality measurement developed, allow social responsibility managers to have a standard on the level of importance allotted to the different topics disclosed in sustainability reports. Additionally, this study provides a perspective of the material issues recognized by sensitive industries with great environmental impact. Similarly, an analysis of the issues considered material by stakeholders is provided. This allows such issues to be compared, identifying similarities and differences among the issues regarded as material by a company and its stakeholders. Practical implications The paper opens the debate is open as to whether the information disclosed response to the needs of stakeholders or whether, on the contrary, the materiality analysis is a process that emerges simply from the interests of the company. These demands for qualitative and field research to complement quantitative studies such as this one to research the stakeholders’ engagement processes in context. Social implications The paper’s purpose a challenge for future research is to strengthen the use of various methodologies that allow knowing the participation processes in the definition of materiality in the ESG information and the companies’ engagement with stakeholders. This stimulates research in the region, which is still in its infancy. Originality/value The international literature contains few studies related to the assessment of materiality for sustainability reporting. So this paper contributes proposes measurement of materiality for ESG information.

scholarly journals The effect of Islamic values on voluntary corporate governance disclosure

2017 ◽  
Vol 8 (2) ◽  
pp. 182-202 ◽  
Author(s):  
Waleed M. Albassam ◽  
Collins G. Ntim
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Future Research ◽  
Government Ownership ◽  
Firm Level ◽  
Content Type ◽  
Listed Firms ◽  
Alternative Measures ◽  
Islamic Values ◽  
Practical Implications

Purpose The study aims to examine the effect of Islamic values on the extent of voluntary corporate governance (CG) disclosure. In addition, the authors investigate the effect of traditional ownership structure and CG mechanisms on the extent of voluntary CG disclosure. Design/methodology/approach The authors distinctively construct Islamic values and voluntary CG disclosure indices using a sample of 75 Saudi-listed firms over a seven-year period in conducting multivariate regressions of the effect of Islamic values on the extent of voluntary CG disclosure. The analyses are robust to controlling for firm-level characteristics, fixed-effects, endogeneities and alternative measures. Findings The authors find that corporations that depict greater commitment towards incorporating Islamic values into their operations through high Islamic values disclosure index score engage in higher voluntary CG disclosures than those that are not. Additionally, the authors find that audit firm size, board size, government ownership, institutional ownership and the presence of a CG committee are positively associated with the level of voluntary CG disclosure, whereas block ownership is negatively associated with the extent of voluntary CG disclosure. Practical implications The study has clear practical implications for future research, practice and broader society by demonstrating empirically that corporations that voluntarily incorporate Islamic values into their operations are more likely to be transparent about their CG practices and thereby providing new crucial insights on the effect of Islamic values on voluntary CG compliance and disclosure. Originality/value This is the first empirical attempt at explicitly examining the effect of Islamic values on the extent of voluntary CG disclosure. The authors also offer evidence on the effect of traditional CG and ownership structures on the extent of voluntary CG disclosure.

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.

Impression management tactics in sustainability reporting

2015 ◽  
Vol 11 (4) ◽  
pp. 677-689 ◽  
Author(s):  
Maria Sandberg ◽  
Maria Holmlund
Keyword(s):  
Impression Management ◽  
Design Methodology ◽  
Sustainability Reporting ◽  
Future Research ◽  
Content Type ◽  
Template Analysis ◽  
Impression Management Tactics ◽  
Practical Implications ◽  
Insight Into ◽  
Management Tactics

Purpose – The study aims to analyzes how companies present their actions to give the impression that they are sustainable actors. It identifies the organizational impression management tactics that companies use in sustainability reporting. Design/methodology/approach – A qualitative template analysis of two sustainability reports was conducted to inductively identify the organizational impression management tactics that companies use in sustainability reporting. Findings – The study identified eight organizational impression management tactics used in sustainability reporting, four of which relate to how companies present their actions while the remaining four are characteristic of the writing styles that companies use. Research limitations/implications – The study is exploratory in nature and does not claim to identify all existing impression management tactics. Therefore, future research is needed to confirm the results and identify possible additional tactics. Practical implications – Companies can use impression management tactics that more strongly aim to shape the impressions that stakeholders hold or tactics that more neutrally inform stakeholders of their actions. Companies need to make a choice between the two, considering that stakeholders’ expectations of sustainability reporting would be useful. Originality/value – The study shows the different ways that companies use impression management in sustainability reporting, thus lending insight into a perspective on sustainability reporting that has rarely been explored in previous research.

scholarly journals Innovation capabilities in agribusiness: evidence from Brazil

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Machado Leo ◽  
Guilherme Freitas Camboim ◽  
Ariane Mello Silva Avila ◽  
Fernanda Maciel Reichert ◽  
Paulo Antônio Zawislak
Keyword(s):  
Value Chain ◽  
New Technologies ◽  
Future Research ◽  
Firm Level ◽  
Content Type ◽  
Management And Development ◽  
Management Techniques ◽  
The Relationship ◽  
Chain Links ◽  
Practical Implications

Purpose This paper aims to identify the winning combination of innovation capabilities for selected Brazilian agribusiness firms along different value chain links. Design/methodology/approach Adopting a quantitative approach, the authors analyzed the relationship between innovation capabilities and innovative performance of 300 agribusiness firms through a multi-regression technique. Findings The results showed that transaction, management and development capabilities can improve agribusiness firms’ performance in underdeveloped value chains. Research limitations/implications For future research, the authors recommend analyzing further links such as traders and retailers to find the innovation capability for the entire agribusiness value chain. Practical implications Upstream firms should adopt new management techniques and tools, efficiently using their resources, while downstream firms should absorb and transform new technologies into products and processes. Social implications The authors suggest formulating public policies that propose the recombination of innovation capabilities to organize agribusiness firms and avoid commodity-oriented market dependence. Originality/value The literature on agribusiness explains innovation at the chain level, based primarily on scientific advancements rather than on innovation at the firm level. In this sense, this study provides empirical evidence that can help boost innovation in agribusiness firms.

Developing an indicator framework for measuring sustainable logistics innovation in retail

2018 ◽  
Vol 22 (1) ◽  
pp. 1-13 ◽  
Author(s):  
Petra Andersson ◽  
Helena Forslund
Keyword(s):  
Knowledge Creation ◽  
Design Methodology ◽  
Future Research ◽  
Measurement Scales ◽  
Content Type ◽  
Sustainable Logistics ◽  
Indicator Framework ◽  
Sustainability Reports ◽  
And Performance ◽  
Practical Implications

PurposeThe purpose of this paper is to develop an indicator framework for measuring sustainable logistics innovation (SLI) in retail. Design/methodology/approachA literature review in different theory areas was conducted to generate a literature-based SLI indictor framework. The literature-based framework was then compared to five-year sustainability reports of three Swedish retailers to identify SLI indicators and how to measure them. This comparison led to a developed framework. FindingsThe developed framework combines sustainability dimensions with logistics activities. It identifies SLI indicators and how to measure them. Significant gaps between the framework and sustainability reports prompted the creation of an agenda for future research. Items that further research should consider include broadening or deepening the framework, developing specifically social SLI indicators for all logistics activities and developing measurement scales for the SLI indicators. Research limitations/implicationsThe study presents an SLI indicator framework as an initial contribution towards knowledge creation, and following the agenda for further research could generate even more implications for research. Practical implicationsManagers need inspiration concerning which indicators to use to measure SLI and how. Social implicationsThe study addresses both environmental and social sustainability, as well as suggests SLI indicators. Originality/valueNo identified study has merged sustainable logistics innovation and performance measurement in retail.

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.

Determinants of greenhouse gas assurance provider choice

2017 ◽  
Vol 25 (1) ◽  
pp. 114-135 ◽  
Author(s):  
Wendy Green ◽  
Stuart Taylor ◽  
Jennifer Wu
Keyword(s):  
Greenhouse Gas ◽  
Design Methodology ◽  
Ghg Emissions ◽  
Future Research ◽  
Relative Importance ◽  
Accounting Firms ◽  
Content Type ◽  
Provider Choice ◽  
Geographical Dispersion ◽  
Practical Implications

Purpose This paper surveys corporate officers responsible for greenhouse gas (GHG) reporting and assurance to determine the attributes that influence their choice between an accounting and a non-accounting GHG assurance provider. Differences in the relative importance of these attributes between those selecting accounting and non-accounting assurers are also explored. Design/methodology/approach A survey questionnaire was completed by 25 corporate officers responsible for reporting and voluntarily assurance of GHG emissions in Australia. The questionnaire asked the respondents to indicate the relative importance of 41 company and assurer attributes in influencing their assurance provider choice. Findings Results indicate that attributes related to the assurance provider, such as team and team leader assurance knowledge, reputation, objectivity and independence, are more influential than attributes related to the nature of the company or the nature of the GHG emissions. Attributes such as geographical dispersion of operations were found to be differently important to this decision between companies purchasing assurance from accounting and non-accounting firms. Research limitations/implications The study’s main limitation is the small number of participants. Future research may extend this study by exploring the conditions under which companies voluntarily assure GHG emissions as well the motivations of responsible officers in their assurer choice. Practical implications This paper provides valuable insights to GHG assurers to assist their understanding of the attributes that are important to potential GHG assurance clients. Originality/value The study makes unique contributions to the assurer choice literature by not only addressing this issue in the context of the dichotomous GHG assurance market but also by addressing it from the perspective of the assurance purchaser.

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