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The Influence of External Stakeholders on Environmental, Social, and Governance (ESG) Reporting: Toward a Conceptual Framework for ESG Disclosure
Abstract
In recent years, governments and investors globally are compelling major corporate organizations to disclose important environmental, social and governance (ESG) issues. The continued flatlining of ESG reporting quality has led some parties to call on policymakers to take advantage of the distinct contextual pressure from external stakeholders to improve corporate ESG commitments. However, the relationship between external stakeholders and ESG disclosure remains ambiguous, both theoretically and empirically. Grounded in stakeholder theory, legitimacy theory, resource-based theory, and slack resource theory, this article reconceptualizes Ullmann’s 1985 model of corporate social performance to present a novel conceptual framework to examine the external stakeholders-ESG disclosure relationship. This article contributes to the literature by illustrating the mediating effect of the strategic posture and the moderating effect of corporate financial performance on corporate ESG discourse perpetuated by powerful stakeholders.
... Más del 80% de la literatura de este grupo hace referencia al uso de los criterios ASG para medir la RSE en la gestión interna de la empresa o en la medición de la ISR (De-Lucia et al., 2020;Forgione y Migliardo, 2020;Yook y Hooke, 2020;Ramirez et al., 2022;Arango-Home et al., 2023;Petridis et al., 2023;Plattek y Figueiredo, 2023). Estos estudios fundamentan sus resultados en la teoría de la legitimidad y la teoría institucional (Camilleri, 2018;Rintala et al., 2022;Wai-Khuen et al., 2023). ...
La Responsabilidad Social Empresarial (RSE)
es un importante componente para alcanzar los
objetivos corporativos, identificando estrategias
de sostenibilidad. Los factores ambientales,
sociales y de gobierno corporativo (ASG),
impactan en el rendimiento financiero; sin
embargo, en Latinoamérica es un enfoque
poco abordado. El objetivo del documento fue
identificar las tendencias en investigación sobre
la relación que guarda la RSE medida bajo los
criterios ASG y el desempeño financiero en
investigaciones enfocadas en Latinoamérica.
Se realizó una revisión sistemática de literatura
en el periodo 2000 a 2023, en la base de datos
Scopus-Elsevier, analizando la co-ocurrencia de
palabras clave en 107 documentos. El gobierno
corporativo y la eficiencia ambiental son la
base fundamental del desempeño financiero,
debido a que la previsión de riesgos disminuye
costos, mejora la reputación organizacional
e incrementa los rendimientos. Incorporar al
modelo de la Responsabilidad Social
Empresarial la medición bajo criterios ASG
abona a la competitividad empresarial.
... Stakeholder theory provides a convincing basis for ESG criteria as it offers a good perspective in explaining companies' relationships with their socio-economic stakeholders. ESG criteria, which prioritize responsibility towards the environment, governance and social stakeholders, are deeply related to stakeholder theory Fu et al., 2022;Wai-Khuen et al., 2023), so much so that combining a broader stakeholder awareness with social responsibility makes it easier for the company to adopt ESG criteria (Hu et al., 2023). ...
PURPOSE: Stakeholders such as consumers, nongovernmental organizations, and public institutions have increasingly pressured companies to adopt corporate social responsibility (CSR) policies. This trend has led to the integration of environmental, social, and governance (ESG) reporting into business strategies to achieve long-term competitive advantages and enhance financial performance. ESG reporting has become a critical tool for measuring corporate CSR efforts, contributing to the institutionalization of nonfinancial reporting standards. This study aims to determine how the adoption of ESG sub-dimensions affects the financial performance of companies in Turkey. METHODOLOGY: The study employed panel regression analysis on data from 21 companies listed in the Borsa Istanbul-100 index over the period 2011–2020 to investigate the relationship between ESG sub-dimensions and firm performance. FINDINGS: The findings indicate that adopting the environmental and governance sub-dimensions positively affects ROE and Tobin’s Q. However, the adoption of the governance sub-dimension negatively impacts Tobin’s Q while positively influencing ROE. No statistically significant results were found regarding the impact of ESG sub-dimensions on firms’ ROA ratios. IMPLICATIONS: The results of the research, based on the example of Turkey, are important to determine how companies’ social responsibility strategies in developing countries provide them with outputs in terms of environment, social and governance and whether social responsibility-based activities are truly sustainable strategy for companies in developing countries.The findings highlight the importance of considering the macroeconomic structure, legal system, and financial development of countries when evaluating CSR activities. The regulatory environment plays a significant role, as weaker legal protections can negatively affect the relationship between governance practices and firm performance. For practitioners, the insights suggest prioritizing environmental investments and carefully strategizing governance practices to align with investor expectations and regulatory frameworks. ORIGINALITY AND VALUE: By focusing on the BIST 100 companies, this study contributes to the limited literature on the role of ESG sub-dimensions in shaping financial performance in developing markets. This research provides valuable insights into how environmental, social, and governance practices specifically impact the financial outcomes of firms in Turkey, offering a nuanced understanding that can inform both academic discussions and practical strategies in similar contexts.
... As such, it contributes meaningfully to the ongoing discourse on corporate governance, sustainability, and the intricate balance between regulatory compliance and proactive ESG leadership. The study also examines the moderating roles of environmental uncertainty and managerial power in the relationship between executive policy cognition and ESG performance (Wai-Khuen et al., 2023). It finds that when faced with heightened environmental uncertainty and greater executive power, the influence of executive policy cognition on ESG performance becomes even more pronounced. ...
In the ever-evolving landscape of the knowledge-based economy, the assessment of Environmental, Social, and Governance (ESG) performance has emerged as a crucial metric for gauging companies’ sustainability and responsible conduct worldwide. This study focuses on A-share listed companies in China, spanning 2011 to 2020, to unravel the interplay between executive policy cognition and corporate ESG performance. Leveraging an analysis of keyword frequency within the “Management Discussion and Analysis” (MD&A) section of annual reports, we investigate how executive policy cognition shapes the ESG trajectory of these companies. Our findings unequivocally demonstrate that a heightened level of executive policy cognition catalyzes enhanced ESG performance, underscoring the pivotal role of top-level decision-makers in steering organizations toward sustainable practices. Moreover, our study reveals that the influence of executive policy cognition on ESG performance is further magnified in the face of environmental uncertainty and heightened executive authority. Beyond establishing this foundational connection, our research delves deeper, uncovering the multifaceted mechanisms through which executive policy cognition exerts influence. From spurring environmental engineering initiatives to fostering green innovation, initiating charitable endeavors, and engaging in other relevant channels, executive policy cognition emerges as a dynamic force in shaping comprehensive ESG performance. In a world where the knowledge economy reigns supreme, this study illuminates the transformative potential of executive policy cognition in driving corporate commitment to ESG principles. As we navigate the complexities of modern business, this research serves as a valuable compass, guiding organizations toward sustainable and responsible practices that transcend traditional profit maximization.
Forging government-business relationships is an important prerequisite for a country’s economic system to function efficiently. In sustainable development, such cooperation is especially relevant as the state is one of the key stakeholders for business survival and responsible corporate activities contribute to the achievement of national sustainability goals. The study identifies government relations (GR) management tools that are instrumental in successful implementation of ESG practices and investigates the relationship between GR management as a formalized function and the effectiveness of sustainable develop ment practices in Russian companies. Stakeholder theory constitutes the methodological basis of the study. The key research methods are correlation analysis and one-way analysis of variance (ANOVA). The data set of the study is represented by data from 86 largest Russian companies from the RAEX TOP-100 ESG Ranking as of December, 2023. The top tier companies demonstrate better financial performance and tend to single out GR as a separate function (division). System relationships between big busi ness and the state produce an overall positive effect in society and allow achieving financial stability. The larger the business and the scale of a company’s ESG projects, the greater the need for coordinated actions to reduce potential risks and losses. At the same time, cross-functional interaction between GR and other divisions of the firm enhances the effectiveness of its ESG practices. The findings prove that implementing the GR function is important for both private businesses and companies partially owned by the state.
Purpose
In the era of Industry 5.0, understanding the balance between environmental, social, and governance (ESG) and firm performance is crucial for mitigating climate change and enhancing financial outcomes. This paper aims to analyze the effect of ESG disclosure on the financial performance (FP) of renewable and clean energy (RCE) companies, focusing on the combined ESG disclosure and individual E, S, and G disclosure scores.
Design/methodology/approach
The study analyzed a panel data sample from 2015–2021, covering 41 RCE companies. By applying the K-means++ clustering technique, the research also explored how firm-specific features influence the relationship between ESG disclosure and FP. The Bloomberg database and audited financial reports were used to gather the data for the study.
Findings
The findings indicate that increased ESG disclosure positively influences FP. Further, a significant positive relationship exists between FP and a company’s E and S disclosure. However, firm-specific characteristics significantly influence this relationship. Findings suggest that a company’s commitment to comprehensive ESG efforts enhances financial efficiency rather than increasing costs.
Originality/value
This study adds to the ESG-FP literature by emphasizing global RCE companies, a key player in sustainability. Further, to the best of the author’s knowledge, the study’s uniqueness is attributed to its application of a two-step approach, combining ESG-FP analysis with K-means++ clustering to account for firm-specific characteristics. It also uniquely examines the individual impact of E, S, and G disclosure on the FP of global RCE companies. The findings offer valuable insights for businesses and policymakers in developing strategies that improve profitability while addressing climate change risks.
This study examines the influence of ESG (Environmental, Social, and Governance) ratings on the financial performance of listed companies in China from 2011 to 2021. With a sample of 21,289 A-share listed companies, the study employs a fixed-effects panel analysis, focusing on Return on Assets (ROA) and Return on Equity (ROE) as key financial indicators. The research incorporates comprehensive ESG ratings from the China Securities Index Company and Wind database, alongside control variables like company size, age, and industry. The findings reveal that ESG ratings significantly and positively affect financial performance, with companies exhibiting higher ESG scores demonstrating better asset management and profitability. The robustness of these results is confirmed through various tests, including substituting dependent and explanatory variables, and addressing multicollinearity concerns. The study emphasizes the increasing significance of ESG factors in the financial well-being of businesses. It demonstrates the connectedness between social responsibility and economic success. This study supports the use of stakeholder theories in examining the influence of ESG ratings on earnings management among listed companies. However, its scope is limited to China, making the findings potentially unsuitable for other developing nations.
Corporations, including Islamic finance and business, encounter challenges regarding governance, environmental, and social issues. Given the significance of ESG in Islamic finance and business, it is imperative to analyze its implementation and its compatibility with Islamic principles. The study tries to carry out the detail ESG in Islamic fundamental and elaborate the contribution ESG for Islamic Finance and Business. The current research adobt hybrid approach combining bibliometric and content analysis with 513 articles from scopus databesd. By using VOSviewer and content analysis the study findings that there is compatibility between Islamic values and ESG, and Islam has always placed an emphasis on sustainability with the exception of those pertaining to usury, maysir, and gharar. The success of ESG concept bring Islamic finance and business satisfy environmental and financial outcomes. This study discovered extensive research on the implementation of Environmental, Social, and Governance (ESG) principles in Islamic finance and business. The implications of the study, Islamic financial institutions and Islamic business can direct their attention to expanding the idea of sustainable financing and product environmentally friendly.
Having appeared relatively recently, foresight as a strategic planning tool has become widespread all over the world. However, experts often limit themselves to a narrow set of the most well-known, traditional tools and algorithms for individual countries. At the same time, modern realities require an active exchange of accumulated international experience in the field of strategic planning, the introduction of advanced foresight methods, as well as their further refinement in accordance with specific tasks and specialization of activities. The purpose of the study is to develop recommendations for adapting traditional foresight methods and algorithms to use in conditions of increasing complexity and uncertainty of business conditions, which will contribute to improving the accuracy of forecasts and making effective strategic decisions. The subject of the study is the theoretical aspects and practical experience of using foresight in the international context. The work is based on the method of scientific mapping, which allows analyzing and visualizing the results of research in the field of foresight. A bibliographic analysis of the publications presented in the Elsevier database over the past 23 years has allowed us to systematize knowledge and practical experience in the field of foresight in an international context. A total of 13241 scientific publications were reviewed. Modern approaches to understanding foresight, its role in forecasting in conditions of uncertainty, innovation, and value creation of organizations are considered, actual tasks for which it can be used are identified, and the specifics of organizing interaction between participants in foresight research are highlighted. Using the modeling method, the structure of the "foresight field" for the industry of the region is constructed. It is recommended to pay special attention to the stage of determining the cost items for conducting a foresight and evaluating their feasibility. The refined stage of the post-foresight includes an assessment of the results, the effectiveness of the implemented foresight, as well as planning further iteration of the foresight project. The results of the study contribute to the body of empirical work in the field of foresight and are intended for use by management practitioners and scientists interested in developing fresh ideas for new approaches in strategic management.
The increasing stakeholders’ scrutiny requires firms to communicate their non-financial performance to signal their commitment to sustainability. Building on the intention-based view and signalling, legitimacy and institutional theories, this study investigates whether corporate efforts to reduce information asymmetry and enhance their legitimacy led to higher quality and more transparent non-financial reporting practices. This study analyses reports from German, UK and Chinese companies over 14 years. It carries out quantitative and qualitative analysis of textual and visual content to evaluate disclosure density and accuracy of non-financial reports. The findings show limited progress in terms of the density and accuracy of the information disclosed by businesses since 2005. Also, they reveal cultural specificities in the reporting and approach to corporate social responsibility, along with a tendency to “create an appearance of legitimacy” by organisations. This study adds to the literature by studying the use of visual elements in non-financial reports. Moreover, it calls for strict policies and guidelines for the reporting of environmental and social issues by organisations. In particular, the inappropriate use of visual contents, the failure to provide quantitative information and managerial orientations show the need for completeness, transparency, and balance of information in reporting guidelines and regulations. The lack of authenticity and quality of the reports jeopardises the very purpose of non-financial reporting eroding trust in the system by all relevant social and economic stakeholders.
Purpose
The purpose of this paper is to investigate the relationship between ownership structure and corporate social responsibility (CSR). Specifically, this paper examines the impact of financial performance on the relationship between ownership structure and CSR.
Design/methodology/approach
This study uses panel data set of 200 French firms listed during 2007–2018 period. The direct and moderating effects were tested by using multiple regression technique.
Findings
The results indicate that investors have different attitudes toward CSR engagement. While institutional ownership affects positively CSR engagement, managerial ownership shows a negative effect. Findings also show that financial performance accentuates these effects.
Research limitations/implications
The findings have practical implications that may be useful to regulators and managers interested in enhancing CSR. For regulators, the results advise policymakers to restrict managerial ownership and promote institutional investments to improve CSR. For managers, the results suggest developing more sophisticated intervention mechanisms to deal with conflicting voices that could result from different owners’ attitudes toward CSR. As an extension to this research, further study can examine the impact of audit quality on CSR.
Originality/value
This study proposes the establishment of dynamic links between ownership structure and CSR around firm financial performance. In addition, it investigates not only the overall CSR ratings but also each of CSR pillars, namely, environmental, social and governance.
This study collates potential economic effects of mandated disclosure and reporting standards for corporate social responsibility (CSR) and sustainability topics. We first outline key features of CSR reporting. Next, we draw on relevant academic literatures in accounting, finance, economics, and management to discuss and evaluate the potential economic consequences of a requirement for CSR and sustainability reporting for U.S. firms, including effects in capital markets, on stakeholders other than investors, and on firm behavior. We also discuss issues related to the implementation and enforcement of CSR and sustainability reporting standards as well as two approaches to sustainability reporting that differ in their overarching goals and materiality standards. Our analysis yields a number of insights that are relevant for the current debate on mandatory CSR and sustainability reporting. It also points scholars to avenues for future research.
Research aims: This paper aims to examine the determinants that
influence companies to report material sustainability information in
their corporate annual reports.
Design/Methodology/Approach: To validate the determinants influencing
materiality disclosure, content analysis was conducted on the
annual reports of the top 113 Malaysian public listed companies in
2016, and the smart partial least squares technique was employed to
examine the proposed relationships.
Research findings: The empirical results indicate that board activity
and board independence play a significant role in the determination of
materiality disclosure. The results also reveal that board size, company
size, profitability, leverage and industry are insignificant predictors
of materiality disclosure. The results indicate that many listed companies
in Malaysia disclose some amount of material sustainability
information. However, the level of disclosure remains relatively low.
Theoretical contribution/Originality: Notwithstanding that materiality
is regarded as a key reporting principle in the preparation of
sustainability reports, research on the application of the materiality
concept in sustainability reporting remains to be an unexplored
theme in Malaysia. This work sheds light on materiality disclosure
in sustainability reporting of large companies operating in Malaysia
through the combined views of the stakeholder and legitimacy
theories.
The purpose of this paper is to study what are the characteristics that make firms less or more prone to greenwashing. We collect data from sustainability disclosures of the S&P top 100 companies, to investigate the determinants of greenwashing. We use content analysis to measure the level of reporting of the companies. We define the “greenwashing” variable as the difference between what the company says it does in terms of commitment to sustainability, and what the company actually does as evaluated by external parties (Bloomberg ESG scores). Our results show that companies in environmentally sensitive industries greenwash less than their counterparts in other industries, as well as companies following the GRI guidelines. Companies that issue a sustainability report and assure it greenwash less than those that do not do it. Contrary to our intuition, companies in industries with close proximity and high visibility greenwash more than their counterparts. A limitation of the paper is the inclusion in the sample of data from one country. Our findings have implications for policy-makers, particularly in Europe, where some European states have already regulated on green issues reporting and lately on blue issues. It might be interesting to consider both the industry effect and the relevance of reporting mechanisms when developing regulation and policies in order to improve the quality of sustainability reporting. We contribute to literature by proposing a new quantitative measure to assess greenwashing practices, to better understand the effect of industry and reporting mechanisms on greenwashing.
Shifting from short-term profit maximizing strategies to more sustainable long-term ones, the corporate world has been exerting extra effort to adopt environmental, social, and governance (ESG) performances. However, the loop question remains unsolved: is ESG financially-driven or is financial performance (FIN) ESG-driven? Building on the slack resources theory and bridging three management literatures, this analysis relies on a six-year panel dataset of multinational organizations from different industries. A distributed lag regression model is proposed to empirically investigate the impact of FIN performance on ESG and to test the moderator effect of total quality management (TQM). The findings reveal a stimulus effect between free cash flow (FCF) and ESG scores. While the interaction between TQM and FCF has a negative effect on ESG, the interaction between TQM and Tobin’s Q reveals a positive relationship with ESG. This study sheds further insights for both research and practice towards the operationalization of sustainability management.
Purpose
The paper aims to examine if corporate characteristics, general contextual factors and the internal context differentiate the quality and quantity of the disclosed non-financial Key Performance Indicators (KPIs).
Design/methodology/approach
The study is based on content analysis of the disclosures provided by large public interest entities operating in Poland after the introduction of the Directive 2014/95/EU. The quality of the KPIs disclosures is measured with the disclosure index. Regression analysis and selected statistical tests are used to examine the influence of the selected factors on the differences in the index value and corporate disclosure choices as regards the KPIs.
Findings
The study findings indicate that the sample companies provide a variety of non-financial KPIs in a manner that makes their effective comparison difficult. The research confirms that mainly industry, ecologists and the reporting standard determine the significant differences in the quality of the KPIs disclosures and the quantity of presented KPIs.
Research limitations/implications
The paper adds to the understanding of the differences in the quality of KPIs presentation and the choice of disclosed KPIs.
Practical implications
The paper includes suggestions on how to change corporate practice with regard to the non-financial KPIs disclosures.
Originality/value
We shed additional light on the importance of internal contextual factors such as the reporting standard and the reporters' experience in providing non-financial KPIs disclosures.
This research aims to contribute to the scientific debate about the lack of interlinkagesbetween mandatory non-financial reporting and sustainable business models. For ourpurposes, a counter-accounting analysis was conducted on the non-financial reportsof a sample of 145 Italian firms interested by the Directive 2014/95/EU effects.Specifically, the study adopts an empirical approach to evaluate environmentalinformation transparency, which represents one of the main critical issues concerningthe non-financial declarations prepared by European Italian Public Interest Entities(PIEs) to comply with Directive 2014/95/EU. The results highlight that corporategovernance and report characteristics affect environmental transparency. Furthermore,the results confirm the overall attitude to avoid the disclosure of unfavourable orunavailable environmental information through impression management strategies.Finally, the analysis underlines the opportunities for policymakers to rethink mandatorynon-financial reporting to sustain the ecological transition of European PIE
Integrated reporting (IR) represents an innovative approach to business reporting especially by Public Interest Entities (PIEs). In addition to financial capital, the integrated report includes material information about manufactured, intellectual, human, social and relational, and natural capitals. Although there has been a steady growth in empirical IR research, there is – as yet – no literature review on the business case for IR. Thus, the purpose of this study is to convey a detailed understanding of the governance-, (non) financial performance-, and reporting-related determinants of IR and its contribution to firm value in line with the business case argument. To do so, we selected 85 quantitative peer-reviewed archival studies on that topic. We have then differentiated said studies between those that focus on IR adoption versus those that focus on IR quality, with a legitimacy- and stakeholder-theory-based framework. This differentiation is crucial, to stress the challenges of greenwashing policies and information overload. Here, in contrast to former literature reviews on IR, we provide new insights into this emerging research topic and concentrate on archival IR research. We are also interested in recent moderator- and mediator analysis in archival IR research since the business case argument for IR may require a specific environment, in addition to the main variables we have included. We likewise give a detailed overview of included variables and proxies and compare their main statistical effects. Our literature review demonstrates that 1) board composition and 2) stakeholder pressure positively influence IR quality; whereas 3) (non) financial performance leads to increased IR adoption and quality. We also find that both IR adoption and IR quality are linked with positive consequences on firm valuation, as they lead to higher total performance measures. Last but not least, this analysis includes useful recommendations for future IR research.
This study examines disclosure on the sustainable development goals (SDGs) in firms’ annual reports. For a sample of European firms listed in the STOXX Europe-600 index and a reporting period of four years, we use textual analysis to assess both firms’ explicit reference to the SDGs in their annual reports as well as the implicit prevalence of SDG topics. In addition, we use content analysis to manually assess the quality of firms’ disclosure on the SDGs based on eleven reporting items. The results show a substantial increase in SDG reporting quality over time but a distinct lack of disclosure of quantitative and forward-looking information. Further analyses reveal the relevance of both financial and non-financial stakeholders. Specifically, SDG disclosure is particularly associated with a high relevance of socially responsible investors, customers or environment-related public pressure, while financial analysts, employees and the media are not associated with SDG disclosure.
This paper explores the relationship between two major concepts in business ethics - stakeholder theory and corporate social responsibility (CSR). We argue that CSR is a part of corporate responsibilities (company responsibilities to all stakeholders), and show that there is a need for both concepts in business ethics, and their applicability is dependent on a particular problem we want to solve. After reviewing some criticisms of CSR - covering wrongdoing and creating false dichotomies, we suggest that incorporating some findings from recent research on stakeholder theory can help align both concepts and overcome the criticisms. At the end of the article, we outline potential directions for future research on CSR.
While explaining managers’ motivations for publishing sustainability information, researchers utilize diversified postulations referring to three fundamental theories, such as legitimacy theory, stakeholder theory and institutional theory. Legitimacy theory claims that firms are selfish and seek for social approval to operate through disclosures, stakeholder theory holds that firms identify ‘powerful’ stakeholders and configure disclosures for them, and institutional theory signifies that firms pursue ‘isomorphism’, copy various aspects of society and industry field, and sustainability disclosure is one of those aspects. This paper aims to point out a single (suitable) theory from these three, to ease up the said explanation of managerial motivations. This is a literature review-based analysis. Before sealing the ‘single theory’, all the three theories are compared and each of those is (hypothetically) considered as the ‘single theory’, i.e., the pros and cons of each theory are analyzed, as if, each were the chosen-one. It is found that institutional theory is the only one that can complement both the stakeholder and legitimacy theories and can explain managerial motivations for sustainability disclosures, in most contexts. However, even if institutional theory is chosen as the ‘single-one’, in specific scenarios, stakeholder theory or legitimacy theory may turn out to be better than institutional theory. Academics and researchers may draw a conceptual framework—related to the said theories—from this study while understanding, explaining and prescribing sustainability disclosures related issues.
Within the 2030 Agenda, the United Nations have explicitly required that the Member States introduce within their jurisdictions new forms of regulations about non‐financial reporting practices. The aim of this paper is to investigate the effects related to the transposition of Directive 2014/95/EU by analyzing firm‐level, governance‐level, and report‐level determinants of business reporting on the Sustainable Development Goals (SDGs). To conduct such an analysis, this study defines and introduces the SDG Reporting Score (SRS)—a qualitative proxy representing a firm orientation toward SDG reporting. The study sample includes the non‐financial reports of 153 Italian Public Interest Entities. The results show a positive relationship between a firm's SRS and various determinants, such as the presence of independent directors on the board, expertise with non‐financial reporting, and length of the report. Finally, the highest levels of SRS are achieved by firms operating in environmental sensitive sectors.
This paper aims to investigate the literature on Corporate Social Responsibility (CSR) to provide a comprehensive overview of whether CSR would make a difference to organisational financial outcomes. The paper also provides a closer focus on CSR research in Vietnam. Through an extensive analysis of 86 most recent empirical studies from 2015 to 2020, we found that the contribution of CSR to firm financial performance has received significant support from the literature. Yet the overall findings are still inconsistent, and the majority of evidence is mainly from developed countries. The current literature on CSR and firm performance highlights some important issues, ranging from theoretical background, CSR measures, methodological issues, the need to consider intervening factors in CSR-firm performance relationship, and the need to extend this literature further in developing and emerging countries. The literature on CSR-firm performance research in Vietnam closely resembles these problems. Research in this country domain is still scarce in both quantity and quality, reflecting in a number of issues including the limited number of international publications, the absence of theory-driven research, and the less rigorous research design. Building on these findings, we recommend future research to (i) adopt the multi-theoretical approach for a more extensive view on whether and how CSR contributes to firm performance; (ii) obtain more rigorous methodological approaches to measure a wide range of CSR dimensions and address the issue of endogeneity in CSR-firm performance causal relationship; (iii) open the Pandora box to explore why and through which channels CSR can improve firm financial performance with the presence of situational factors; and (iv) build the literature with more evidence from different country contexts and from developing and emerging countries.
Firms are adopting integrated reporting (IR), despite being voluntary in many countries. Meanwhile, the disclosure of these additional non-financial information (NFI) requires economic, human and capital resources. The question posed is: why do firms spend time and resources to provide information that is not mandated by any standard or law? This study, through a theoretical perspective, examines why firms provide voluntary non-financial information. The study adopted a critical literature review research approach. The findings of various studies on IR/NFI disclosure were critically reviewed to identify areas of consensus and areas of peculiarity. The study found that the legitimacy, institutional, signalling and inter-generational equity theories explain the IR practice of manufacturing, mining, petroleum and pharmaceutical industries, whose activities are perceived to have a negative impact on the society and the environment. On the other hand, firms in a service and trading industry, which are perceived to have a little negative impact on the environment and society are shaped by stakeholder, signalling, institutional and agency theories. Besides, strategic theories like legitimacy, institutional, signalling, agency, and inter-generational equity theories explain the integration of NFI into corporate reporting by firms in capital markets or countries that are heavily regulated. This study makes a unique contribution to the literature on corporate reporting, which is in its embryonic stage by identifying and contextualising the various theories underpinning the integration of non-financial information into corporate reporting.
Purpose
The purpose of this study is to examine the moderating effect of sustainability reporting on the relationship between tax avoidance and firm value. This study also examines the moderating effect of sustainability reporting in both environmentally sensitive firms and non-environmentally sensitive firms.
Design/methodology/approach
This research uses moderated panel regression with 596 observations and 734 observations for cash effective tax rate (ETR) and generally accepted accounting principles effective tax rate (GAAP ETR) of firms listed on the Indonesian Stock Exchange between 2014 and 2016. Tax avoidance is measured by both cash ETR and GAAP ETR.
Findings
This paper shows that sustainability reporting moderates the relationship between tax avoidance (GAAP ETR) and firm value. The results show that GAAP ETR has a negative association with firm value in non-environmentally sensitive firms and a positive association with firm value in environmentally sensitive firms. Consequently, the sustainability report alters only the effect of GAAP ETR on firm value in non-environmentally sensitive firms. The results imply that, unlike environmentally sensitive firms, non-environmentally sensitive firms need sustainability reporting to reduce the reputational costs of tax avoidance.
Originality/value
How shareholders view tax avoidance remains unclear; research on this topic often fails to produce a uniform result. The present research fills this gap by using the existence of sustainability reporting as proof of companies’ ethical motivations to moderate the association of tax avoidance and firm value, which has not been discussed in previous research.
This paper contributes to the expanding landscape of methodological approaches and tools for investigating organizational sustainability communication. Our method allows for exploring two-way interactions between company risk and sustainability reporting. We present a basic but extendable method, while using only publicly available data. Our method adds additional features to established methods: It covers only risk (not returns), as theory mainly supports risk-reporting relationships and not return-reporting relationships. It tests for reverse causality of the risk-reporting relationship and links complementary explanations to different theoretical schools. Our method tests the model by employing data from a market with mandatory sustainability reporting to avoid self-selection bias.
Social media offers a platform for diffused stakeholders to interact with firms—alternatively praising, questioning, and chastising businesses for their CSR performance and seeking to engage in two-way dialogue. In 2014, 163,402 public messages were sent to Fortune 200 firms’ CSR-focused Twitter accounts, each of which was either shared, replied to, “liked,” or ignored by the targeted firm. This paper examines firm reactions to these messages, building a model of firm response to stakeholders that combines the notions of CSR communication and stakeholder salience. Our findings show that firm response to a stakeholder on social media is positively and most significantly associated with what we refer to as the stakeholder’s connective power but negatively associated with the firm’s own connective power. To a lesser extent, firm response is positively associated with the stakeholder’s normative power but negatively associated with the firm’s own normative power. Firm response is also shown to be positively associated with stakeholder urgency in terms of both the originality of a stakeholder message and the expression of positive sentiment.
Due to the lack of consensus on the Sustainable Disclosure (SD)–Sustainable Performance (SP) relationship and the absence of a robust theoretical framework base, this research tests this relationship. Based on Ullmann’s argument that the execution of corporate responsibility regarding SD, SP and EP (economic performance) is determined by the management’s (unobservable) overall strategy, we apply Partial Least Squares, introducing EP, size and membership in sensitive sectors and subjecting them to a multiplicity of external pressures (social, environmental and legislative) as determinants of the SD–SP link. There is a moderate SD–SP relationship, with a significant effect due to EP and conditioned by size. Specifically, (1) the companies that are concerned and which act sustainably have a higher SD, (2) the greater the EP, the greater its effect on this SD, but (3) when the sample is segmented by size, the moderating effect is only positive and significant for large companies. An awareness of the added value of the sustainable business model exists, more than simply reporting (actions beyond words), but the value that its profitability yields will not be determinant for SP, though it will affect SD, despite there being no direct relationship between performance and SD.
Recent studies have increasingly suggested leadership as a major antecedent to corporate social responsibility (CSR), empirical studies, which investigated the influence of various leadership aspects such as style and ethics on CSR and unraveled the mechanism through which leadership exerts its impact on CSR were restricted. Thus, the purpose of this research was to study the relationship between CEO ethical leadership and CSR by focusing on the mediating role of ethical culture and the intellectual capital facets (human capital and social capital) of the organization. Data for current research were collected through personally administered questionnaire through survey. Based on a sample of 250 respondents, the current study instituted that CEO ethical leadership positively affected CSR. Intellectual capital facets (human and social) and organizational ethical culture were observed to have a mediating effect on CEO ethical leadership and CSR relationship. Practical implications of the results are also given in the current study. Moreover, study limitations and directions for future study have also been presented.
The aim of this study is to explain how corporate governance affects environmental reporting through the mediating effect of strategic position. The data were collected from chief executive managers and chief financial managers of 197 large companies in Malaysia. The partial least squares technique was used to test the proposed relationships. The results show that managers’ strategic posture mediates the impact of four aspects of corporate governance, namely, board size, board independency, CSR committee presence, and institutional ownership on environmental reporting. These findings extend the literature on the relationship between corporate governance and environmental reporting by providing insight into the reasons for these relationships. The results of the study will be useful for managers of companies and investors to become knowledgeable about those aspects of corporate governance which lead to higher environmental reporting. This study can also inform policy-makers about the types of firms that are less likely to disclose environmental reports and to develop effective enforcement of regulations.
Even though literature studying the determinants of non-financial disclosure (NFD) is pervasive, Latin America has been overlooked in this tradition. In this sense, scholars have not evidenced which factors compel companies in this context to report this information despite its voluntary nature. Drawing on Stakeholder Theory as a basis, we derive eight possible antecedents of NFD from extant literature and test them in a sample of 643 Latin American firms for a 10 year span (2006–2015). Using a logit panel model, our evidence indicates that firm size, market-to-book ratio, systematic risk, and industry membership are factors that pressure companies to report. However, contrary to our conceptual development we find that profitability and regulatory quality inversely affects NFD. This leads us to posit that Latin America is unique in terms of reporting because agency costs may arise when disclosing data and also that feeble regulations could summon firms to fill this void through NFD. We thus contribute to this strand by revealing that stakeholders in this milieu are essentially different than in developed countries, and therefore the underlying reasons to engage in NFD also differ.
This study examines the relation between a firm’s business strategy and its corporate social responsibility (CSR) performance. Using a comprehensive measure of business strategy based on the Miles and Snow (Organizational strategy, structure, and process, McGraw-Hill, New York, 1978, Organizational strategy, structure, and process, Stanford University Press, Stanford 2003) theoretical framework, we find that firms following an innovation-oriented strategy (prospectors) are associated with better CSR performance than those following an efficiency-oriented strategy (defenders). Specifically, compared with defenders, prospectors engage in more socially responsible activities, fewer socially irresponsible activities, and perform better in both stakeholder- and third-party-related CSR areas. Taken together, our results suggest that business strategy is an important determinant of CSR performance. Prospectors take advantage of CSR, as their innovation-oriented strategy allows them not only to benefit more from CSR, but also to have more tolerance for the uncertainty, risk, and long time-horizon associated with CSR engagement.
In this chapter, we explain why firms selectively responding to the most powerful, legitimate, and urgent demands of their stakeholders will not bring about sustainability and offer suggestions on what we should do in light of this shortcoming. Sustainability issues tend to be wicked problems that require cooperation across parties and over time to define and resolve. Stakeholder pressures can bring sustainability to the fore, but government intervention is necessary to drive meaningful action to resolve such issues. Without government intervention, self-interested stakeholders can pressure firms to move away from the complex, long-term challenges of wicked problems. Yet, stakeholder pressure is also necessary, as without it, industries may self-regulate in self-serving ways. Our analysis thus suggests that collaboration between business, government, and other stakeholders is necessary to resolve the wicked problems of sustainability. We therefore urge the stakeholder literature to move beyond its libertarian underpinnings by (re)incorporating government into models of effective corporate governance.
In the new global economy, corporate social responsibility has become a central issue of most of the government but a number of cases of business owners being socially irresponsible are dramatically increasing. Therefore, this study has thoroughly examined most contributing factor of corporate social responsibility adoption among SMEs. It is undeniable, that the contributions of SMEs toward the corporate social responsibility are increasing in the society along with the number of SMEs gradually increase in the market and play a significant role in the corporate social responsibility to improve the economic and social development of the nation. The purpose of this research is to examine further in-depth the relevant factors that influence the managers of SMEs in the adoption of corporate social responsibility practices. Quantitative data were collected using the self-administered questionnaire that was distributed to a sample of 384 respondents. In this study, Pearson Correlation Analysis and Multiple Linear Regressions were used to test the importance of all of the four independent variables which are profit maximization, philanthropy responsibility, external pressure, and moral responsibility. The results indicated that all of the tested motivational factors that influence adoption of corporate social responsibility have significant association with corporate social responsibility of SMEs. Therefore, it can be concluded that the result may provide some insight to business leaders with more practical perspectives about motivational factors of corporate social responsibility in Malaysia. © 2017, Universiti Kebangsaan Malaysia Press. All rights reserved.
There has, in recent times, been an increasing interest in understanding corporate social (and environmental) responsibility (CSR) and, in particular, CSR reporting in developing countries. However, many of these studies fail to investigate fully the contextual factors that influence CSR and reporting in those countries, preferring to rely on theories and hypotheses developed from studies undertaken in the West, particularly the US, UK and Australasia.
It may be argued that this is appropriate as many emerging economies are experiencing growth and moving towards having a more market-based orientation. Notwithstanding this, a large number of these countries have an entirely different socio-political environment, with different political regimes, legal systems and cultural influences. These factors have a significant effect on the applicability of theories such as stakeholder theory, legitimacy theory and accountability theory, which are commonly used to explain the phenomenon of reporting.
In State Capitalist countries, such as China, an important influence on companies is the political ideology that underpins the nation’s government. The nature and impact of ideology and hegemony in China has been under-studied and, therefore, investigating how the ideology, and competing forces that may mitigate its influence, manifest themselves in Chinese reporting are essential. In the Middle East, countries such as Saudi Arabia have no free press, are ruled by a royal family, have a market dominated by the oil industry, and potential religious influences. Such socio-cultural differences mean societies develop different understandings of concepts such as sustainability and social responsibility. Finally, countries such as Sri Lanka have some similarities to other developing countries, but their economy is set against a background of a recent civil war – operating in a post-conflict economy is a factor rarely considered in social and environmental disclosure, yet has important influence on policy in these areas.
This paper discusses three contextual issues that warrant more and improved consideration in CSR research, with particular emphasis on CSR reporting research.
In recent years, companies receive pressure to release environmental, social, and governance (ESG) disclosure, since these are perceived as critical issues by society. Despite this pressure, ESG disclosure practices considerably vary by firm. Prior academic literature investigated country- and firm-level factors determining such variation, alternatively adopting the institutional and legitimacy theory. By combining these theories in a unique framework, this study investigates the extent to which social structures (i.e., institutional theory) and social legitimization (i.e., legitimacy theory) influence ESG disclosure practices and each pillar. Results obtained using a cross-country sample of 14,174 firm-year observations during 2005–2012 provide evidence that country-level characteristics such as a political system (Legal Framework and Corruption), labor system (Labor Protection and Unemployment Rate), and cultural system (Social Cohesion and Equal Opportunities) significantly affect firms’ ESG disclosure practices. However, their impact is heterogeneous in that they either reduce or enhance disclosure levels and may differ by pillar. Results for firm-level characteristics related to a firm’s visibility (Analysts Coverage, Cross Listing, Leverage, and Size) demonstrate a positive and homogeneous effect on ESG disclosure and each pillar. These results inform policy makers and regulators aiming to enhance ESG disclosure levels of the risk they incur when managing variables related to social structure and the benefits of exposing firms to higher visibility.
ABSTRACT
This paper constructs an integrated theoretical framework for explaining Corporate Social Responsibility (CSR) practices by organisations. Three mainstream theories, namely legitimacy theory, stakeholder theory and institutional theory all of which have been employed in the CSR literature are integrated by considering theoretical predictive motivations of CSR practices.
The three theories have similarities and are interrelated; and we argue they are not competing, but complementary. Most importantly, they can be integrated and linked to CSR practices in order to explain motives of such practices in a multi-theoretical perspective.
This theoretical framework can be employed as a theoretical foundation for empirical studies relating to the reasons for CSR practices in various contexts. It attempts to obtain deep insights through more than one single theory in order to obtain fuller understanding of CSR practices. Further, it can be employed to check the extent to which these theories help to explain such practices.
We investigate real effects of a widespread corporate social responsibility (CSR) reporting mandate. In 2014, the European Union (EU) passed Directive 2014/95 (hereafter, “CSR Directive”), mandating large listed EU firms to prepare annual nonfinancial reports beginning from fiscal year 2017 onward. We document that firms within the scope of the directive respond by increasing their CSR activities and that they start doing so before the entry‐into‐force of the directive. These real effects are concentrated in firms that are plausibly more strongly affected by the directive, i.e., those with previously low levels of both CSR reporting and CSR activities. Using various alternative outcome variables (e.g., new CSR initiatives, improvements in CSR infrastructure, or firm performance), we show that these real effects reflect meaningful increases in CSR beyond firms’ potential attempts to “greenwash” CSR performance. Finally, we conduct tests that increase our confidence that the documented real effects are attributable to the CSR Directive and not general EU trends in CSR. This article is protected by copyright. All rights reserved
The discourse of corporate sustainability performance (CSP) has created an increasing motivation for companies to improve their competitive advantage. This study examines the drivers leading to a high level of CSP within non-financial Turkish companies listed in the Borsa Istanbul Sustainability Index. Drawing on both stakeholder and agency theories, we formulate a set of hypotheses that link CSP with ownership structure, board diversity, and firm-specific characteristics. Based on logit and probit models, the empirical results tend to confirm the positive influence of foreign and institutional ownerships in shaping CSP and indicate that CSP is positively linked with board size and the proportion of independent board members. Further, the findings show that companies with a leading level of CSP have a lower return than companies with mediocre CSP based on a market-based measure, Tobin’s Q.
Stakeholder engagement, an essential component of the sustainability reporting strategy, is changing, as is the position of the different stakeholders in this evolving scenario. In this paper, we explore the effect of the pressure that a specific group of stakeholders, investors, exerts on the quality of the sustainability information disclosed. We intend to analyze if there has been a change in the role that investors play in sustainability reporting. By focusing on investors, we are paying attention to one of the less studied groups within the sustainability stakeholders. To this aim, we carry out a content analysis of the sustainability information disclosed by U.S. (shareholder‐oriented country) and Spanish (stakeholder‐oriented country) listed companies during the years 2013 to 2016. Our findings confirm the key role that investors play in the companies' sustainability strategies, demanding more and better sustainability information. We also find a reduction in the quality of sustainability disclosures in Spanish companies in the last year of our sample, showing a relevant change in this country that has been leading the sustainability rankings until now. The results of this paper are useful to investors and companies, as they reflect the changes on the information they demand, and for regulators, in order to create the adequate legal framework that will improve the quality of reporting. Regulators and financial agents should acknowledge this new scenario to adapt norms and actions accordingly.
Purpose
The purpose of this paper is to investigate the impact of various determinants at the country level, the industry level, the firm level and the corporate governance (CG) level on the extent of corporate social responsibility (CSR) disclosure in the group of developing and developed nations.
Design/methodology/approach
The data set comprises 310 companies listed on stock exchanges of developing and developed markets (Brazil – IBrX 100, 42 companies; Russia – Broad Market Index; 48 companies; India – Bombay Stock Exchange (BSE) 100, 50 companies; China – Shanghai Stock Exchange (SSE) 180, 27 companies; South Africa – The Financial Times Stock Exchange (FTSE)/Johannesburg Stock Exchange (JSE) All Share index, 49 companies; the USA – New York Stock Exchange (NYSE) 100, 47 companies; and the UK – London Stock Exchange (LSE) 100, 47 companies). CSR disclosure is measured through CSR disclosure index. Five separate regression models are run to investigate the impact of the factors that affect the extent of CSR disclosure.
Findings
The findings reveal that CSR disclosure is influenced by factors both at micro and macro levels. Governance environment, globalization and income inequality are found to be significant determinants of CSR disclosure for developing countries. International listing significantly influences CSR disclosure in the developed countries. The results also exhibit that board with large proportion of independent directors, high presence of CSR committee and environmental sensitive industries are more likely to engage in CSR disclosure practices in developing as well as in developed nations.
Research limitations/implications
This study implicates that varied factors – at country level, industry level, firm level and CG level – need assessment to know their impact differently in countries at different stages of economic development. However, longitudinal study covering longer period would lead to better generalization of results.
Practical implications
The findings of this present study implicate that managers must evaluate country’s political, social and economic forces and not just rely on company-level indicators affecting disclosure. Policymakers in emerging nations must emphasize on improving country governance features to enhance CSR disclosure of companies. Developing countries must respect and conform to rules and regulations while going global. More endeavors should be made to raise awareness about the benefits of CSR disclosure on reducing income inequality among companies listed on stock exchanges of developing countries. Emerging nations should follow developed nations in assuming responsibility toward stakeholders in foreign markets. This study also recommends regulatory bodies in both developing and developed countries to frame stringent policies regarding CG for improving CSR disclosure by companies.
Originality/value
This study overcomes the limitations of prior literature by considering both country- and company-specific determinants in prominent group of developing (Brazil, Russia, India, China and South Africa) and developed (the USA and the UK) countries.
Purpose
This paper aims to examine whether the perceived pressures from stakeholders with high potential to cooperate and/or threaten the firm’s survival affect the decision to adopt carbon management strategies (CMSs).
Design/methodology/approach
A logistic panel regression model is estimated using longitudinal data from Australia’s Top-200 listed firms over seven years from 2009 to 2015. The authors test the firm’s propensity to adopt CMSs conditioned on the influence of four groups of stakeholders: the regulators, institutional investors, media and creditors. Data on CMSs adopted by firms are sourced from Thomson Reuters ASSET4 database, the Carbon Disclosure Project survey, annual reports, company websites and sustainability reports.
Findings
The authors show that stakeholder pressures are associated not only with the adoption or non-adoption of CMSs but also with the type of CMSs adopted. Three types of CMSs are identified, namely, compensation, reduction and innovation strategies. The findings reveal that CMS adoption and the firms’ propensity to adopt compensation and reduction strategies are significantly related to perceived pressures from the regulators, media and creditors. While pressure from the regulators is also associated with the firms’ propensity to adopt innovation strategies, a more advanced type of CMSs, the potential pressure from the media and creditors are not significantly related.
Practical implications
The findings imply that a firm’s adoption of CMSs is not merely about managing stakeholders in the regulatory sphere but also about taking into account the perceived pressures from non-regulatory stakeholders and the context-dependent nature of their influences. The authors show that by influencing the voluntary disclosure of carbon emissions, the government continues to be effective in encouraging firms to take action on climate change despite the abolition of the carbon tax in Australia.
Social implications
This study highlights that, apart from a heavy-handed approach, regulators can adopt softer forms of regulation such as the National Greenhouse and Energy Reporting (NGER) Act and a less invasive, stakeholder-driven approach to encourage firms to adopt CMSs and thereby work towards climate change mitigation.
Originality/value
This study extends the literature by showing that perceived pressure from some stakeholders found to be influential in relation to some corporate decisions (such as environmental strategy adoption and climate-change-related disclosure) may not necessarily be influential in relation to CMS adoption.
Purpose
The purpose of this study is twofold: first, to introduce two determinants of environmental, social and governance (ESG) disclosure transparency, namely, audit quality and public media exposure; and second, to investigate the impact of ESG transparency on firm-level investment efficiency.
Design/methodology/approach
Ordinary least square (OLS) regressions are applied to explore the relationship between the two variables of interest (audit quality and public media exposure) and ESG transparency on a sample of publicly listed Canadian firms during the period 2008 to 2017. Then, an econometric model is used to investigate the association between ESG transparency and investment efficiency under two identified scenarios, under-investment and over-investment.
Findings
Results show that audit quality and public media exposure are two main drivers of ESG transparency, hence, commitment to high-quality audits and exposure to high public media coverage drive firms to disclose more extensive and transparent ESG information. The authors also find a negative association between ESG transparency and firm-level investment inefficiency. Thus, ESG transparency generates influential incremental information that helps mitigate the information asymmetry between firms and stakeholders while fostering better resource allocation through investment efficiency.
Originality/value
This study contributes to the corporate social responsibility (CSR) and ESG literature by identifying audit quality and public media exposure as two determinants of ESG transparency; and by noting that higher ESG transparency has a significant economic effect on capital investment decisions through higher firm-level investment efficiency.
Firms' choices on corporate social responsibility (CSR) and environmental, social and governance (ESG) implementation strategies can arguably have a positive impact on their value and performance. This “doing well by doing good” view remains debated in the literature. Our study contributes to this debate by investigating the impact of firms' engagement in ESG policies on their innovation capacity levels. More specifically, we apply a nonparametric frontier analysis framework to a sample of 320 Japanese firms over the period 2008–2016. Our study provides evidence of a nonlinear relationship between ESG policy adoption and firms' innovation capacity. In other words, our findings are consistent with a process of “indirect value-creation” under which firms' CSR/ESG policy adoption initially enhances their ability to pursue innovation activities and, then, eventually affects positively their value creation and financial/operational performance.
The purpose of this chapter is to outline the development of the idea of "stakeholder management" as it has come to be applied in strategic management. We begin by developing a brief history of the concept. We then suggest that traditionally the stakeholder approach to strategic management has several related characteristics that serve as distinguishing features. We review recent work on stakeholder theory and suggest how stakeholder management has affected the practice of management. We end by suggesting further research questions.
There has been an intense debate on when stakeholder pressures are effective in driving firms to contribute to sustainable development. Drawing upon institutional theory and slack resources theory, we theorize that country-level sustainability performance interacts with slack resources in shaping corporate responsiveness to stakeholder pressures. Empirical results based on the data from 6th International Manufacturing Strategy Survey and secondary data of the Human Development Index and the Environmental Performance Index support our hypotheses. As hypothesized, in countries with low level sustainability performance, firms with considerable slack resources are more responsive to stakeholder pressures than their peers with limited slack resources. In contrast, in countries with high levels of sustainability performance, there are no significant differences between firms with and without considerable slack resources in their responsiveness to stakeholder pressures. This study contributes to a better understanding of organizational responses to stakeholder pressures. Moreover, it suggests that stakeholders, depending on country-level sustainability performance, should adopt different strategies to stimulate firms to participate in sustainable development.
This book is an easily accessible and comprehensive guide which helps make sound statistical decisions, perform analyses, and interpret the results quickly using Stata. It includes advanced coverage of ANOVA, factor, and cluster analyses in Stata, as well as essential regression and descriptive statistics. It is aimed at those wishing to know more about the process, data management, and most commonly used methods in market research using Stata.
The book offers readers an overview of the entire market research process from asking market research questions to collecting and analyzing data by means of quantitative methods. It is engaging, hands-on, and includes many practical examples, tips, and suggestions that help readers apply and interpret quantitative methods, such as regression, factor, and cluster analysis. These methods help researchers provide companies with useful insights.
Purpose
Based on Natural-resource-based View (NRBV), this study aims at clarifying the dimensions of green procurement and the mechanisms involved in the relationship between green procurement and firm performance.
Design/methodology/approach
Secondary data was to measure all the variables in 206 Chinese A-share companies’ annual reports, social responsibility reports, environmental reports, and sustainability reports, which were published by Guotai Junan Securities Co., Ltd. and Wind Information Co., Ltd.
Findings
The results indicate that, although both product-based and process-based green procurement have a positive effect on firm performance, these Chinese companies focus on the impact of product-based green procurement on their operational efficiency as well as the moderating role played by stakeholder satisfaction.
Originality/value
Although studies on green procurement have increased in recent years, issues such as how to measure green purchasing behaviors and how green procurement affects firms’ operational and financial performance are still unexplored. Based on previous literature, two dimensions have been defined for green procurement in this study to develop corresponding measurements, namely, product-based green procurement and process-based green procurement.. Besides, this study considers operational efficiency as the mediator and stakeholder satisfaction as the moderator when constructing a new conceptual model to illustrate the relationship between green procurement and firm performance.
Based on a survey and content analysis of 76 empirical research articles, this article reviews the factors driving Corporate Social Responsibility (CSR) disclosure in both developed and developing countries. We find that firm characteristics such as company size, industry sector, profitability, and corporate governance mechanisms predominantly appear to drive the CSR reporting agenda. Furthermore, political, social, and cultural factors influence the CSR disclosure agenda. We find crucial differences between the determinants of CSR disclosure in developed and developing countries. In developed countries, the concerns of specific stakeholders, for example, regulators, shareholders, creditors, investors, environmentalists and the media are considered very important in disclosing CSR information. In developing countries, CSR reporting is more heavily influenced by the external forces/powerful stakeholders such as international buyers, foreign investors, international media and international regulatory bodies (e.g. the World Bank). Furthermore, in contrast to developed countries, firms in developing countries perceive relatively little pressure from the public with regards to CSR disclosure. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
The growing popularity of explaining firm performance through dynamic capabilities has motivated plenty of conceptual development in the field. However, empirical approaches to measuring dynamic capabilities have so far not been under comprehensive scrutiny. The authors; purpose is to assess the extent to which different ways of measuring dynamic capabilities in quantitative studies correspond to the theoretical essence of the concept, and develop recommendations for future research. They find that four types of operationalizations have been used: (1) managers’ evaluations; (2) financial data; (3) company's experience, actions and performance; and (4) managers’ or employees’ experience, actions and performance. Based on their analysis, the authors provide eight recommendations for future research that relate to identifying ordinary and dynamic capabilities, avoiding common method bias, taking into account the quality and fitness rather than the quantity of dynamic capabilities, and acknowledging the cumulativeness of dynamic capabilities through the use of longitudinal data. They conclude that refining the dynamic capability operationalizations would help to formulate competing hypotheses and to increase the theoretical precision of the field.
This study examines the determinants of online corporate social responsibility (CSR)
reporting of the insurance industry in Ghana. Specifically, it explores the impact of firm age, size and
origin on online corporate social responsibility (CSR) reporting using data from 31 private insurance
companies in Ghana. We employ Ordinary Least Squares regression analysis in the estimation of the influence of the predictive variables on firms’ online CSR disclosure. Our findings indicate positive insignificant
association between online CSR disclosure and firm specific characteristics (i.e. firm age, size and origin). These findings are robust to different specifications. Research directed towards online CSR
communications amongst private insurance firms in the context of emerging market a
re almost non‐existent. This study therefore makes an important contribution by addressing the
imbalances of CSR reporting in Ghanaian insurance firms.
This commentary provides a reflection on 25 years of social and environmental accounting (SEA) research within Critical Perspectives of Accounting (CPA). It is shown that CPA has been a major vehicle for disseminating SEA research with the published research coming from a variety of ‘critical’, ‘middle-of-the-road’, and ‘managerial’ perspectives. A number of topic areas attract attention with the most populated topic area relating to ‘new imaginings’ of accounting, with useful insights provided in terms of the use of counter, shadow, and dialogic accounts’ which reflect multiple voices and perspectives. It is emphasised within the commentary that SEA researchers need to examine the political foundations of their work. Important issues associated with SEA researchers’ role with engagement (both in terms of how they are undertaking their research, as well as where they are disseminating their results), in challenging existing practice, and in fostering a more enlightened and balanced form of education are also addressed.
This article synthesizes the large but diverse literature on organizational legitimacy, highlighting similarities and disparities among the leading strategic and institutional approaches. The analysis identifies three primary forms of legitimacy: pragmatic, based on audience self-interest; moral, based on normative approval: and cognitive, based on comprehensibility and taken-for-grantedness. The article then examines strategies for gaining, maintaining, and repairing legitimacy of each type, suggesting both the promises and the pitfalls of such instrumental manipulations.