scholarly journals Effects of social, environmental, and institutional factors on sustainability report assurance: evidence from European countries

2020 ◽  
Vol 28 (6) ◽  
pp. 1059-1087 ◽  
Author(s):  
Lorenzo Simoni ◽  
Laura Bini ◽  
Marco Bellucci
Keyword(s):  
Business Ethics ◽  
Stakeholder Theory ◽  
Environmental Performance ◽  
Signaling Theory ◽  
European Countries ◽  
Institutional Factors ◽  
Legitimacy Theory ◽  
Content Type ◽  
Social Environmental ◽  
Sustainability Report

Purpose The purpose of this study is to extend existing knowledge on the determinants of sustainability report (SR) assurance practices. Four different theories – stakeholder theory, institutional theory, signaling theory and legitimacy theory – are used to formulate several hypotheses regarding the main factors that can influence a company’s decision to assure its SRs. Design/methodology/approach Using a sample of 417 listed organizations based in different European countries over five years, the effects of stakeholder commitment, country orientation toward sustainability, firm environmental performance and business ethics controversies on the decision to assure SRs are assessed. Findings The results show that a company’s decision to assure its SRs is motivated by the need to maintain good relations with its stakeholders (which is in line with stakeholder theory and legitimacy theory), as well as by the willingness to signal their sustainability performance (which is in line with signaling theory) and to gain legitimacy. On the contrary, business ethics controversies do not seem to be relevant to a company’s assurance practices. Originality/value This paper provides new insights into the influence that social, environmental and institutional factors have on assurance strategies. New factors that previous research does not investigate – environmental performance, business ethics controversies and corporate governance – are tested. Factors that are already investigated in the literature are considered from an original perspective of introducing alternative measures (e.g. for the scope of national sustainability policies).

Air pollution and public finance: evidence for European countries

2019 ◽  
Vol 46 (7) ◽  
pp. 1398-1417 ◽  
Author(s):  
Maria Carratù ◽  
Bruno Chiarini ◽  
Antonella D’Agostino ◽  
Elisabetta Marzano ◽  
Andrea Regoli
Keyword(s):  
Public Finance ◽  
Air Pollution ◽  
Fiscal Policy ◽  
Environmental Quality ◽  
Public Debt ◽  
Environmental Performance ◽  
European Countries ◽  
Fiscal Consolidation ◽  
Trade Off ◽  
Content Type

Purpose The purpose of this paper is to investigate whether a statistically significant relationship exists between environmental quality, as measured by consumption-related air pollution, and public debt in Europe. In addition, since the debt burden is one of the most important indicators of fiscal soundness within the European Union (EU) Treaty and the subsequent fiscal compact, the authors propose a simple test to determine whether participation in EU Treaties has shaped the empirical relationship between fiscal policy/public debt and environmental performance. Design/methodology/approach To this end, the authors built a panel data set that covers 24 European countries over the period 1996–2015. Findings The aspect that the authors want to underline is a possible trade off, which is confirmed in the empirical analysis, between the public finance equilibrium and the maintenance of a public good such as air quality. However, there are important non-linearities that shape the interaction between public debt and environmental pollution. Similarly, threshold effects arise when the authors examine the interaction between EU regulation and public debt and when the authors separately examine high debt and low debt countries. When the authors account for the stabilization rules introduced by EU Treaties, a negative effect on pollution is evident; in this way, fiscal consolidation limits the positive effect of fiscal policy. Practical implications The results point out the existence of a potential trade-off between the role of EU as a regulator aiming to mitigate environmental pollution, and its role within the Stability and Growth Pact. The analysis highlights that fiscal consolidation policies, while facilitating the achievement of macroeconomic stability within EU, might have a negative side effect on the environment quality, which spreads beyond the borders of one single country. Originality/value While a number of studies have suggested that fiscal spending might contribute to the level of pollution in European countries, there is scant evidence of the effect of public debt on environmental performance. This lack of scientific knowledge is a serious shortcoming, since it may allow for an underrepresentation of the wide-ranging consequences of stabilization programmes targeting the debt-to-GDP ratio, which could affect environmental quality.

An analysis of sustainability report assurance statements

2017 ◽  
Vol 32 (6) ◽  
pp. 578-602 ◽  
Author(s):  
Adriana Rossi ◽  
Lara Tarquinio
Keyword(s):  
Design Methodology ◽  
Least Square ◽  
Legitimacy Theory ◽  
Content Type ◽  
Ordinary Least Square ◽  
Assurance Services ◽  
Higher Rank ◽  
Corporate Social ◽  
Sustainability Report ◽  
Theory Framework

Purpose This paper aims to achieve the following objectives. First, through a longitudinal study, the authors explore the trend of voluntary external assurance of sustainability reports among Italian listed companies from 2008 to 2012. Thus, the authors aim to analyse the content level of the assurance statements and to test whether it is affected by certain corporate variables and by the type of practitioner chosen. Design/methodology/approach A legitimacy theory framework is adopted to investigate the phenomenon of sustainability report assurance services in Italy. The authors developed an assurance statement disclosure index (ASDI) constructed on the basis of the standards ISAE 3000 and AA1000AS. Thus, the authors tested whether the ASDI is affected by certain corporate variables using an ordinary least square (OLS) regression model. To test how each specific item is related to the assurance provider, a contingency table was developed. Findings The results of this paper show many differences in the assurance statements content in particular with reference to the criteria used, conclusive comments and recommendations. The presence of a corporate social responsibility committee and an expert who serves on it is positively related to a higher rank on the ASDI. In contrast, Big4 firms seem to be associated with a lower disclosure rank. Finally, Big4 are positively associated with the indications of the provider’s characteristics and negatively with their conclusive comments and recommendations. Originality/value This paper presents some findings in an area where little evidence exists, that is, the effects of some variables on the quantity of information disclosed in the assurance statements.

Prioritizing sustainability strategies for global extractive sector firms

2012 ◽  
Vol 23 (6) ◽  
pp. 615-629 ◽  
Author(s):  
Philip R. Walsh
Keyword(s):  
Environmental Sustainability ◽  
Environmental Performance ◽  
Environmental Damage ◽  
Performance Practices ◽  
Content Type ◽  
Sustainability Strategies ◽  
Extractive Sector ◽  
Social Environmental ◽  
Social And Environmental Performance ◽  
Corporate Social

PurposeThis paper seeks to examine the importance of corporate social and environmental initiatives to extractive sector firms and by measuring the level of social, environmental and economic sustainability in 128 countries around the world and applying these measures to a framework comprised of a sustainability indices matrix, and identifying certain strategic approaches to social and environmental practices.Design/methodology/approachThe matrix contains eight categories of sustainability attainment and a k‐means cluster analysis is employed to identify what countries belong to each of these categories and to what extent these clusters identify countries with similar characteristics that may impact the focus of corporate social and environmental performance practices for extractive sector firms wishing to pursue projects in those countries.FindingsThe study finds that, in those jurisdictions where social and environmental sustainability is well established, extractive sector firms are required to deal with established rules and regulations that require a more reactive strategic approach. The various combinations of sustainability levels amongst the many countries around the globe require various combinations of strategies related to corporate social and environmental performance.Practical implicationsThe realization that, today, extractive sector firms who choose to ignore the need for appropriate corporate social and environmental performance are risking increased costs arising from social and environmental damage created by their projects supports the need to create pro‐active strategies for addressing social and environmental responsibility.Originality/valueThis paper's contribution is the development of a framework for measuring the component levels of sustainable development and clustering a large number of countries into specific categories with recommended approaches to social and environmental sustainability strategies.

scholarly journals Industry Characteristics and Patterns of Sustainability Reports

2019 ◽  
Vol 3 (2) ◽  
pp. 174
Author(s):  
Yavida Nurim ◽  
Eka Noor Asmara
Keyword(s):  
Stakeholder Theory ◽  
Performance Indicators ◽  
Environmental Performance ◽  
Social Performance ◽  
Sustainability Reporting ◽  
Main Issue ◽  
Indonesian Government ◽  
Performance Reporting ◽  
Sustainability Reports ◽  
Sustainability Report

Since 2002, the Indonesian Government has encouraged listed and unlisted companies to disclose sustainability reports comprised of three performance indicators—economic, environmental, and social—as Global Reporting Initiatives (GRI) guidance. The main issue is that different industry characteristics have different orientations of sustainability reporting because of the differences between their main stakeholders. In fact, several GRI criteria do not match every industry characteristic. For example, banking does not report on materials, emissions, or pollution as part of their environmental performance. This research aims to identify the patterns of sustainability reporting from 2015 to 2016, based on industry characteristics. The study compares environmental and social performance reporting patterns of the manufacturing and financial sectors. Results show that manufacturers are more concerned with environmental performance while the financial sector is more concerned with social performance. This evidence contributes to the stakeholder theory and efforts in sustainability report modelling.

scholarly journals The relationships between reporting format, environmental disclosure and environmental performance

2017 ◽  
Vol 18 (4) ◽  
pp. 425-444 ◽  
Author(s):  
Abeer Hassan ◽  
Xin Guo
Keyword(s):  
Environmental Performance ◽  
Strategic Communication ◽  
Environmental Information ◽  
Annual Reports ◽  
Equation Modeling ◽  
Legitimacy Theory ◽  
Environmental Disclosure ◽  
Content Type ◽  
New Perspective ◽  
The Relationship

Purpose The purpose of this paper is to assess whether European companies issue standalone environmental reports in an attempt to gain and maintain legitimacy with relevant stakeholders. This is achieved by creating and empirically testing a model of the relationships between corporate reporting format, industry membership, environmental disclosure, and environmental performance. Design/methodology/approach Data are collected from 100 large European companies in carbon and non-carbon-intensive industries. Hypothesis testing is conducted via structure equation modeling. Findings Evidence exists that companies which disclose environmental information in standalone environmental reports tend to provide higher levels of environmental information than companies which combine financial and environmental disclosure in annual reports. The findings support greenwashing as a new perspective of legitimacy theory: companies in carbon-intensive industry use standalone environmental reports to pose as good corporate citizens even when they are not. Research limitations/implications The sample companies are large European companies and this could limit the generalizability of research findings. The authors call for longitudinal studies examining how the relationship between reporting format and environmental disclosure changes. Practical implications This paper suggests that reporting format be considered a proactive, strategic communication-driven activity rather than a decision that managers passively make in response to external scrutiny. Originality/value The paper contributes to the literature by adding to the scarce evidence of the relationship between reporting format and environmental disclosure. Greenwashing as a new perspective of legitimacy theory is used to develop research hypotheses.

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.

Theoretical perspectives on corporate disclosure: a critical evaluation and literature survey

2014 ◽  
Vol 22 (3) ◽  
pp. 257-286 ◽  
Author(s):  
Mohamed A. Omran ◽  
Ahmed M. El-Galfy
Keyword(s):  
Agency Theory ◽  
Multinational Corporations ◽  
Stakeholder Theory ◽  
Contingency Theory ◽  
Universal Theory ◽  
Legitimacy Theory ◽  
Accounting Disclosure ◽  
Content Type ◽  
Reporting Practices ◽  
Theoretical Perspectives

Purpose – The purpose of this paper is to provide an extensive and critical overview of the theoretical perspectives used in the accounting disclosure literature including economic theories, political and social theories. Design/methodology/approach – The paper reviews and discusses in details the positive accounting theory (PAT), agency theory, signalling theory, political economy theory (PET), stakeholder theory, legitimacy theory and contingency theory to identify the situations suit each of these perspectives. Findings – The main finding shows that there is no universal theory applicable for all situations or societies. For example, PAT is probably used when a corporation believes that its primary responsibility is to use its resources and engage in activities designed to maximise its profits. On the other hand, the PET seems to better explain why some corporations appear to respond to government or public pressure for information about their social impact. The agency theory provides the required framework to evaluate accounting choices and disclosure decisions in market-based studies. While the legitimacy theory seems to be more suitable for multinational corporations working in developed/democratic countries, the stakeholder theory seems to be most suitable for multinational corporations working in developing/dictator countries; whereas a corporation can manage its stakeholders. The contingency theory supports our main finding that different theories are required for different situations, as it clearly indicates that management's preferences of reporting practices are related to the nature of environmental and organisational constraints rather than their relative income effects. Originality/value – The paper contributes to the limited body of literature concerning the accounting disclosure theories and to identify the main theoretical perspective that can be used in the accounting disclosure research.

The antecedents of corporate social and environmental responsibility discourse in Pakistan: Multiple theoretical perspectives

2019 ◽  
Author(s):  
Muhammad Farhan Basheer ◽  
Saqib Muneer ◽  
Muhammad Atif ◽  
Zubair Ahmad
Keyword(s):  
Institutional Theory ◽  
Least Squares ◽  
Agency Theory ◽  
Stakeholder Theory ◽  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Environmental Responsibility ◽  
Legitimacy Theory ◽  
Discourse Practices ◽  
Corporate Social

The primary purpose of the study is to explore the antecedents of corporate social and environmental responsibilities discourse practices in Pakistan. The industry sensitivity, government shareholding, block holder ownership, print media coverage, environmental monitoring programs, and strategic posture are examined as antecedents of corporate social and environmental responsibility practices. A multidimensional theoretical perspective namely stakeholder theory (ST), institutional theory (IT), agency theory (PAT), and legitimacy theory (LT) is used to conceptualize the phenomena. All the four of perspective theories (positive accounting theory, legitimacy theory, stakeholder theory, and institutional theory) claim that there are ‘pressures’ that impact the organization. How much ‘pressures’ are recognized, managed or satisfied differs from one perspective of theory to the other. To estimate the data, this study uses three sets of panel data models, i.e., the pooled ordinary least squares model (POLS) or constant coefficients model, fixed effects (FEM or least squares dummy variable/LSDV model) and random-effects models. The final sample is comprising of 173 firms over eight years from 2011 to 2017. The firms listed in PSX are included in the sample. Overall the findings of the study have shown agreement with the proposed results. However, the study has provided more support to the institutional theory and stakeholder theory. Keywords: Corporate Social Responsibility, Stakeholders Theory, Agency Theory, Pakistan

Empirical analysis on corporate environmental performance and environmental disclosure in an emerging market context

2020 ◽  
Vol 15 (6) ◽  
pp. 1061-1082 ◽  
Author(s):  
Merve Acar ◽  
Hüseyin Temiz
Keyword(s):  
Environmental Performance ◽  
Emerging Market ◽  
Positive Association ◽  
Corporate Environmental Performance ◽  
Tobit Regression ◽  
Environmental Reporting ◽  
Environmental Disclosure ◽  
Significant Positive Association ◽  
Content Type ◽  
Environmental Disclosures

PurposeThe purpose of this study is to investigate the association between environmental performance of firms and the level of voluntary environmental disclosure in emerging markets.Design/methodology/approachWe used tobit regression OLS and t-test methods to reveal the association between environmental performance and the level of voluntary environmental disclosure.FindingsWe find a significant positive association between the level of discretionary environmental disclosures and corporate environmental performance. The result is in line with the arguments of economics disclosure theory that argues environmentally good performers disclose more.Practical implicationsMany of the environmentally good firms in Turkey are also listed in the “BIST Sustainability Index,” and this situation can be the result of the relative power of external regulations. Accordingly, it can be suggested to increase the community and governmental pressures for environmental reporting but also gives importance to increase intrinsic motivations for companies to engage in disclosure practices.Originality/valueThis study shed light on relation between environmental performance and environmental disclosure in an emerging market context. Also, it is revisited that the relation between environmental performance and the level of environmental disclosure by testing two different predictions on the level of environmental disclosures.

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