scholarly journals Evolution of decision usefulness of sustainability reports

2016 ◽  
Vol 7 (2) ◽  
pp. 19-28
Author(s):  
Peter Nasiema Kamala
Keyword(s):  
Explanatory Power ◽  
Historical Context ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
Dramatic Improvement ◽  
Legitimacy Theory ◽  
The Public ◽  
Reporting Practices ◽  
Decision Usefulness ◽  
Sustainability Reports

This paper provides a historical context to sustainability reporting practices of listed companies by tracing their origin and developments to determine whether such developments have resulted in decision useful reports. Using a literature review, this paper highlights the developments in the sustainability reporting practices from the 1960s to date. The findings are interpreted using the lens of legitimacy theory. The findings indicate a dramatic improvement in the decision usefulness of sustainability reports produced by listed companies from the deceptive advertisements by companies in the 1960’s to relevant, reliable, timely, comparable, verifiable and understandable reports in year 2012. The findings further suggest a change in legitimizing strategies from manipulation of the public to an attempt to genuinely educate and inform the public, which confirms the explanatory power of legitimacy theory in explaining voluntary sustainability reporting. This paper makes a number of original contributions to the literature that attempts to explain the motives of sustainabi-lity reporting. First, it is one of the few studies that have employed legitimacy theory to explain the evolution of sustainability reports. Second, it is unique in that it uses legitimacy theory to explain the evolution of decision usefulness of sustainability reports

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

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

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

scholarly journals The Contribution of Higher Education Institutions to the SDGs. An Evaluation of Sustainability Reporting Practices

2021 ◽  
Vol 11 (3) ◽  
pp. 97
Author(s):  
Fabio Caputo ◽  
Lorenzo Ligorio ◽  
Simone Pizzi
Keyword(s):  
Higher Education ◽  
Higher Education Institutions ◽  
Sustainability Reporting ◽  
Three Dimensions ◽  
Public And Private ◽  
Level Of Involvement ◽  
The Public ◽  
Reporting Practices ◽  
Agenda 2030 ◽  
Sustainability Reports

The introduction of Agenda 2030 has impacted the public and private sectors. Agenda 2030 is a document that aims to promote collaboration and partnership between countries and the population for the achievement of 17 SDGs, which cover all the three dimensions of sustainability: environmental, social, and economic. Within the public organizations, higher education institutions (HEIs) have shown certain attention on the topic. In particular, for many HEIs, the publication of sustainability reports has represented an instrument to disclose and publicize their commitment to the 17 Sustainable Development Goals (SDGs). To shed light on the highly fragmented panorama of the disclosure of SDGs in the context of HEIs, the present study employed a content analysis on publicly available sustainability reports published only by the HEIs that adopted the GRI Standards as reporting guidelines. The results show the centrality of the social and environmental issues within the disclosed information. Moreover, the provision of a thematic analysis on the SDGs disclosure sections revealed the interest of the sampled HEIs in increasing the level of involvement of their stakeholders.

scholarly journals Sustainability reporting in Fiji listed companies: A voluntary disclosure perspective using legitimacy theory

2021 ◽  
Vol 18 (3, special issue) ◽  
pp. 410-422
Author(s):  
Shivneil Kumar Raj ◽  
Mohammed Riaz Azam
Keyword(s):  
Voluntary Disclosure ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
Annual Reports ◽  
Legitimacy Theory ◽  
Reporting Practices ◽  
Content Analysis Method ◽  
Prior Literature ◽  
Primary Focus ◽  
Corporate Social

The study examined the extent of sustainability reporting practices (voluntary disclosures — VD) of Fiji listed corporations. Using a theoretical framework informed by legitimacy theory, the authors predict the extent of both narrative and non-narrative VD. The study applied a content analysis method and examined archival data such as scholarly articles and 2019 annual reports data of listed companies. The means of triangulation was further augmented by backing the results of the study with prior literature on sustainability reporting. The findings highlight that narrative VD was evident in most annual reports. Non-narrative VD was adequate with a primary focus on corporate social responsibilities. From an overall perspective, VD was found to be very limited. The study contributes to providing insights into the paucity of literature in developing nations’ context on sustainability reporting practices

scholarly journals Sustainability Reporting Practices: Evidence from Bangladesh

2017 ◽  
Vol 7 (2) ◽  
pp. 61
Author(s):  
Sumaiya Akhter ◽  
Pappu Kumar Dey
Keyword(s):  
Human Rights ◽  
Content Analysis ◽  
Community Development ◽  
Annual Report ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
Employee Benefits ◽  
Global Reporting Initiative ◽  
Reporting Practices ◽  
Product Responsibility

The objective of this paper is to examine the nature and extent of sustainability reporting practices by the listed companies in Bangladesh. In order to fulfill this objective, the research has examined the content analysis of annual report (2015-2016) and website of the top 50 listed companies (according to market capitalization). Based on Global Reporting Initiative (GRI) G4 guidelines, the study investigates three broad areas i.e. economic, environmental and social with 40 indicators. The findings of the study demonstrate that organizations in Bangladesh address few sustainability issues. Companies focus more on community development which is 90%, followed by employment and employee benefits (67%). The level of disclosures in website is meagre where only 26% of the sample companies disclose at least one indicator. Organizations’ attention on issues like environment, human rights and product responsibility is limited in relation to other issues. The extent of disclosure is also poor that is 66% of the companies use less than 25 sentences in sustainability reporting. Moreover, only 16% of the sample companies use separate sustainability reporting section. The limited disclosures on sustainability issues may be because of voluntary sustainability reporting in Bangladesh.

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

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

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

Barriers for sustainability reporting: evidence from Indo-Pacific region

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dinithi Dissanayake ◽  
Sanjaya Kuruppu ◽  
Wei Qian ◽  
Carol Tilt
Keyword(s):  
Group Dynamics ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
Pacific Region ◽  
Structured Interviews ◽  
Content Type ◽  
Reporting Practices ◽  
Country Level ◽  
To Come ◽  
Set Up

Purpose The purpose of this paper is to provide insights into the barriers for sustainability reporting practices in five different countries in the Indo-Pacific region. Design/methodology/approach This paper uses surveys and semi-structured interviews to explore the main barriers faced by the managers of listed companies in undertaking sustainability reporting. Findings The findings of the study reveal that the main barriers for sustainability reporting are attributable to lack of knowledge and understanding, additional cost involved, time constraints, lack of awareness and education in sustainability reporting and a lack of initiatives from government. These vary between three groups of countries: those with more developed reporting, those with less developed reporting and those with strong cultural constraints to reporting. Research limitations/implications This study adapts Lewin’s field theory and three-step model of change to be applied to group dynamics at a broader country level rather than at an organisational level. Practical implications The barriers identified in this paper are important for reporting companies to come up with strategies to mitigate existing barriers and for regulatory authorities to provide subsidies and other incentives to supplement the efforts of these listed companies. Also, non-reporting companies could use the findings as a measure of cautiousness to set up the necessary processes to have a smooth sustainability reporting process in their companies. Originality/value This is one of the few studies that explore the barriers for sustainability reporting in five countries in the Indo-Pacific region.

CSR and sustainability reporting practices in India: an in-depth content analysis of top-listed companies

2019 ◽  
Vol 15 (8) ◽  
pp. 1033-1053 ◽  
Author(s):  
Priyanka Aggarwal ◽  
Ajay Kumar Singh
Keyword(s):  
Content Analysis ◽  
Firm Size ◽  
Ownership Structure ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Content Type ◽  
Reporting Practices ◽  
Industry Type

Purpose The purpose of this paper is to comprehensively analyze the corporate social responsibility (CSR) and sustainability reporting (SR) practices of Indian companies in terms of disclosure quantity and quality, and to investigate the differences in SR practices by SR dimension, industry, ownership structure, firm size and profitability. Design/methodology/approach Data are collected from annual reports/business responsibility reports (BRR)/CSR/sustainability reports of 60 top-listed companies in India. A comprehensive sustainability reporting index is developed. Content analysis technique is used. Inter-coder reliability is established. Findings Altogether, 18 items of the index are not disclosed by the majority of companies in India. SR quality is found significantly lower than the SR quantity. Moreover, SR practices significantly differ by dimension/category, industry-type and firm-size but are not influenced by ownership structure. However, the study fails to establish any conclusive relationship between SR and profitability. Practical implications The present study has several implications for corporates, practitioners, policymakers and stakeholders. The findings underscore the need for amendments in the Global Reporting Initiative guidelines and BRR framework of the Securities and Exchange Board of India to avoid patchy disclosures and ensure complete reporting by companies. Originality/value This study is among the foremost studies in India evaluating SR practices of top-listed companies in the wake of the mandatory BRR requirement from a quantitative as well as qualitative perspective using a multidimensional index.

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.

E-Business Disclosure for Sustainability on Selected Listed Companies in Indonesia's Stock Exchange Market

2014 ◽  
Vol 5 (3) ◽  
pp. 32-39
Author(s):  
Vincent Didiek Wiet Aryanto
Keyword(s):  
Environmental Management ◽  
Environmental Performance ◽  
Stock Exchange ◽  
Listed Companies ◽  
Environmental Responsibility ◽  
Exchange Market ◽  
Business Sustainability ◽  
The Public ◽  
Sustainability Reports ◽  
Sustainability Practices

To date, most listed corporations in Indonesia's Stock Exchange Market (BEI) disclose information on e-business sustainability concerning their environmental performance in response to stakeholder demand for environmental responsibility and accountability. How was e-business sustainability performed by some corporations on their websites? This article investigates the environmental management and business sustainability practices of the publicly listed companies in Indonesia as informed to the public by their websites. Based on a content analysis of the e-business sustainability reports, this article analyzes the content of corporate environmental and e-business sustainability disclosures with respect to the following areas: company compliance and company non-compliance to the sets of environment regulations and policies implied in the PROPER program.

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