Beyond Volume: A Legitimacy‐Theory Analysis of the Substance of Corporate Sustainability Reporting

Sustainability reporting has become increasingly crucial for businesses worldwide, communicating environmental, social, and governance (ESG) performance to stakeholders. Despite the growing importance of sustainability reporting, there remains a gap in understanding how financial indicators influence the disclosure process, particularly in Vietnamese enterprises. This paper aims to address this gap by investigating the influence of financial indicators on the sustainability reporting practices of Vietnamese companies. Employing a mixed-methods approach, combining a quantitative analysis of financial data with a qualitative assessment of sustainability reports, the research seeks to uncover the nuanced relationship between financial performance metrics and the quality and extent of sustainability disclosures. The research was conducted to identify, evaluate, and measure financial factors affecting the quality of companies’ sustainability reports in Vietnam. The research is based on scoring the sustainable development reports of the top 100 listed joint stock companies on the HOSE—Ho Chi Minh City Stock Exchange. Based on the research model of Dissanayake, in the case of Vietnam, we build a scoring model for the sustainable development report based on GRI standards and add additional criteria appropriate to the situation of each listed company on the Vietnam stock exchange. Based on the research overview, our team tested hypotheses related to the short-term current ratio, total asset turnover ratio (AT), return on equity ratio (ROE), and debt-to-equity ratio (DE). The empirical results show that the AT and ROE significantly positively affect the sustainability reports; the DE hurts the sustainability reports. The findings are expected to provide valuable insights into the factors shaping sustainability reporting practices in Vietnam and contribute to the existing literature on corporate disclosure and sustainability.

Today, the issue of corporate sustainability is noted both in academic literature and in the business environment, and there are many companies and organizations that want to make their operations sustainable and communicate different dimensions of sustainability in their business to stakeholders through sustainability reporting. This paper seeks to provide a framework for corporate sustainability reporting by reviewing existing literature on sustainability reporting, taking into account the expertise of domestic experts, to provide a roadmap for developing corporate sustainability reports in Iran. The statistical population of this study includes professionals and academics, including university teachers and post- graduate students in business majors. Our sample was determined via judgment sampling and data was obtained through 119 designed questionnaires. The results of this research is summarized in a Corporate Sustainability Reporting Framework for Iran, which is developed based on Seven research questions related to preparers of sustainability reports; determinants of sustainability reporting; the content of sustainability reports; corporate governance mechanisms necessary for sustainability reporting; challenges and risks with regard to sustainability reporting; benefits of sustainability reports; and assurance of sustainability reports.

Sustainability Reporting and XBRL

As an open system and a social institution, companies’ responsibilities have gone beyond the provision of shareholder wealth. Today, companies are expected to conform the principles of good corporate citizenship and corporate governance, and disclose corporate activities in an accountable, honest and transparent manner. In this context, sustainability reporting is an important tool for communicating organizational performance related to economic, social and environmental issues with respect to corporate social responsibility (CSR) practices. The aim of this study is to analyze the annual corporate social responsibility or sustainability reports published by transnational corporations in the context of the triple bottom line (TBL) approach and to determine the similarities and differences of CSR practices applied in Turkey and Italy. The annual corporate sustainability or corporate social responsibility reports of the transnational corporations listed in Forbes CSR ranking were examined to identify the CSR practices in Turkey and Italy. Content analysis and the triple bottom line dimensions developed by Ho and Taylor (2007) and Rondinelli (2006) were implemented to evaluate the CSR reports. The results of the study indicate that the corporations compose their sustainability reports with reference to the triple bottom line approach. Data of environmental issues like water and energy consumption, disposal of waste and CO2 emissions are given in absolute numbers. Reports also include projections about goals in percentage and tables. Corporate social responsibility projects in Turkey and Italy enabled us to identify and analyze the manner renewable energy, waste disposal, use of global resources, intercultural problems, entrepreneurship and healthy eating issues are being handled in a comparative perspective. © 2013European Journal of Research on Education by IASSR.

Preface. 1. Sustainability Accounting and Reporting: Development, Linkages and Reflection. An Introduction Stefan Schaltegger, Martin Bennett and Roger Burritt.-Part I Conceptual Developments of Sustainability Accounting.- 2. Corporate Sustainability Accounting. A Catchphrase for Compliant Corporations or a Business Decision Support for Sustainability Leaders? Stefan Schaltegger and Roger Burritt.- 3. Towards a Monetised Triple Bottom Line for an Alcohol Producer. Using Stakeholder Dialogue to Negotiate a 'Licence to Operate' by Constructing an Account of Social Performance David Bent.- 4. Integrating Sustainability into Traditional Financial Analysis Juan Pineiro Chousa and Noelia Romero Castro.- 5. The Concept of Corporate Resource Efficiency Accounting. A Case Study in the Electronic Industry Timo Busch, Christa Liedtke and Severin Beucker.- 6. Accounting for Health and Safety Costs. Review and Comparison of Selected Methods Pall Rikhardsson.- 7. Implementing Standard Costing with an Aim to Guiding Behaviour in Sustainability Orientated Organisations Thomas Heupel.- Part II Linking Environmental and Sustainability Accounting with Economic Success.- 8. Achieving Environmental-Economic Sustainability through Corporate Environmental Strategies. Empirical Evidence on Environmental Shareholder Value Marcus Wagner.- 9. The Impact of Carbon Constraints on Competitiveness and Value Creation in the Automotive Industry Niki Nikolaus Rosinski.- 10. Traditional Accounting Return Ratios and Business Sustainability. An Incompatible Relationship in the Context of Greek Strategic Business Units Benjamin Karatzoglou.- 11. Is there a Market Payoff forBeing Green at the Lima Stock Exchange? Samuel Mongrut Montalvan and Jesus Tong Chang.- 12. Integrating and Reporting an Organisation's Economic, Social and Environmental Performance. The Expanded Value Added Statement Laurie Mook.- Part III Reporting External Accounting Frameworks and Benchmarking.- 13. Corporate Sustainability Reporting. An Overview Christian Herzig and Stefan Schaltegger.- 14. Taking the GRI to Scale. Towards the Next Generation of Sustainability Reporting Guidelines Ralph Thurm.- 15. The JEPIX Initiative in Japan. A New Ecological Accounting System for a Better Measurement of Eco-Efficiency Nobuyuki Miyazaki.- 16. The Green-Budget Matrix Model. Theory and Cases in Japanese Companies Yoshihiro Ito, Hiroyuki Yagi and Akira Omori.- 17. Quality of Physical Environmental Management Accounting Information. Lessons from Pollutant Release and Transfer Registers Roger Burritt and Chika Saka.- 18. Benchmarking Environmental Performance in the English University Sector. The Experience of the Higher Education Environmental Performance Improvement (HEEPI) Project Martin Bennett , Peter Hopkinson and Peter James.- Part IV National Experiences and Developments in Environmental and Sustainability Accounting.- 19. Environmental Management Accounting in Czech Companies that have Implemented Environmental Management Systems Jaroslava Hyrslova and Miroslav Hajek.- 20. Corporate Environmental Accounting and Reporting in China. Current Status and the Future Hua Xiao.- 21. Development of Corporate Environmental Accounting in Korea. Case Studies and Policy Implications Byung-Wook Lee, Seung-Tae Jung and Jeong-Heui Kim.- 22. Understanding

This paper examines the relationship between corporate sustainability reporting and firm market value added (MVA). The study sample comprised 32 listed companies on the Nigerian Exchange Group (NXG), studied for ten years from 2012 to 2021. Data for the key independent variables of the study were collected through content analysis of the sustainability and annual reports of the companies studied. The method of content analysis conducted in the current study differentiates between quantitative and qualitative disclosures by firms. Results of the Generalised Method of Moments (GMM) technique indicate a positive, non-significant relationship between social sustainability disclosure and MVA. It also shows a significant positive relationship between economic sustainability reporting and MVA. However, a negative, non-significant relationship was shown between environmental sustainability reporting and MVA. Findings of this study have strong practical implications for policymakers as it calls for regulatory gaps to protect ecologically responsible corporate citizens. Managers of corporate firms can leverage on insights from this study to build unique identity and resilience for long term value creation.

This study explores the relationship between corporate sustainability reporting and green finance investment, highlighting the significance of transparency in promoting sustainable investments.  This research seeks to elucidate the impact of corporations' environmental, social, and governance (ESG) disclosures on the allocation of green financing investments across diverse sectors.  It outlines essential facilitators, including digital tools and technology, that improve transparency in sustainability reporting and support the efficacy of green finance mechanisms.  This study examines the influence of company sustainability practices on the appeal of green investments in response to the increasing global demand for sustainable financing.  The research adopts a qualitative methodology, leveraging secondary data to investigate the intricate relationship between sustainability reporting and green finance.  The findings indicate that comprehensive sustainability reporting is a crucial catalyst for green investments, as companies offering extensive ESG disclosures draw greater capital.  The implementation of digital tools, including blockchain and artificial intelligence, enhances the transparency and trustworthiness of ESG data, hence cultivating investor trust and encouraging green investments.  Nonetheless, obstacles such as varied reporting requirements and geographical inequities persist as impediments to the complete realisation of green finance's promise.  The study offers both theoretical and practical contributions.  It enhances the literature on green finance by underscoring the significance of transparency in corporate sustainability initiatives.  It provides actionable information for governments, financial institutions, and enterprises on enhancing sustainability reporting and utilising digital platforms to attract green investments.  Notwithstanding the constraints of the study, including dependence on secondary data and a sector-specific emphasis, it facilitates future enquiries into the enduring effects of sustainability reporting and the efficacy of nascent technologies in green financing.  The study advocates for more examination of the efficacy of global compared to regional sustainability reporting requirements and posits that addressing legislative fragmentation is crucial for maximising the potential of green finance investments.  This study establishes a foundation for subsequent research aimed at enhancing sustainable practices and digital solutions within the green finance sector.

This empirical analysis examines the relationship between corporate sustainability reporting and financial performance among Indian listed companies. In recent years, sustainability has gained prominence in corporate strategy due to increasing regulatory requirements, investor interest, and stakeholder expectations. The study explores how sustainability reporting, as disclosed through corporate sustainability reports (CSR), affects the financial performance of companies. Using a sample of Indian companies listed on major stock exchanges, the study analyzes data on sustainability disclosures, financial performance indicators (such as return on assets, return on equity, and market valuation), and various control variables. The analysis employs statistical methods, including regression models, to identify the correlation and potential causal linkages between sustainability reporting and financial performance. The findings suggest a positive relationship between comprehensive sustainability reporting and financial performance, indicating that companies with better sustainability practices tend to experience higher financial returns and market valuation. The results also highlight the role of regulatory frameworks, industry-specific factors, and company size in shaping the strength of this relationship. This study contributes to the growing body of literature on corporate sustainability by providing insights specific to the Indian context, where sustainability reporting practices are evolving. It suggests that companies engaging in transparent and detailed sustainability reporting may achieve not only environmental and social benefits but also financial gains, making sustainability a strategic priority for long-term value creation.

ABSTRACTThe purpose of this paper is to explore the linkages between corporate sustainability reporting and public policy. Interviews with experts from 35 different Canadian corporations that produce a sustainability report were held to address this issue. The interviews specifically focused on exploring how public policy influences sustainability reporting, investigating how corporate sustainability reporting influences public policy, and identifying the barriers to linking sustainability reporting with public policy. The majority of participants explained that their corporation's sustainability reporting has not been heavily influenced by public policy. Even in the relatively few cases where the participating corporations were required to report on sustainability‐related information (i.e. financial and insurance companies), there was little indication that public policy was strongly considered in reporting. Although several participants felt that their sustainability reports could or should influence public policy, there were also indications that corporations are looking for additional guidance on reporting from government. In fact, the lack of direction from government was cited as a key barrier to improved linkages between corporate sustainability reporting and public policy. Future research should focus on addressing this problem, particularly at the individual sector level. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

Sustainability reporting is a responsibility practice that towards sustainable development goals as related to corporate performance measurement, explaining and being accountable to internal and external stakeholders. Non-financial information relating to operating activities can be disclosed through sustainability reports. Sustainability reporting is a vital step of managing change towards a sustainable global economy—one that combines long-term profitability with environmental care and social justice. Sustainability reports developed using the GRI Reporting Framework covers results and consequences the emerged in the context of organization's commitments, strategy and management approach during the reporting period. Through the Global Reporting Initiative (GRI) Sustainability Reporting Framework, the GRI works to increase the transparency and exchange of sustainability-related information. The Borsa Istanbul Sustainability Index, published since 2014 is an important development for the business in Turkey which is aimed sustainable development. Sustainability reports have been prepared on a voluntary basis in Turkey and in many countries. In line with global developments the number of business is increasing who prefer to explain activities of economic, environmental and social dimensions through corporate sustainability reports in Turkey as well. This study conceptually reviews sustainability reporting and its benefits for the business. In order to see the effectiveness of the sustainability reports, sustainability reports of business in the BIST sustainability index will be subjected to content analysis basis GRI Reporting Principles on voluntary basis.

In this study, a firm's performance is investigated in relation to the impact of corporate governance mechanisms and sustainability reporting. Content analysis is employed to evaluate and calculate a company's sustainability reporting by utilizing the disclosure of SDGs and external assurance in its sustainability report. CEO Duality, Insider Ownership, Board Size, Remuneration Committee, and Nomination Committee are the metrics used to evaluate corporate governance. In this study, the performance of 100 firms listed in the Fortune 500 in the industrials, materials, and energy sectors is evaluated over a five-year period (2019-2023) using Tobin's Q and return on assets. The effect of corporate governance mechanisms and sustainability reporting is determined through regression analysis, and the purposive sampling method is employed in this investigation. The findings of this study indicate that ROA and Tobin's Q are significantly and positively influenced by ownership concentration. The disclosure of SDGs has a detrimental impact on ROA. Still, it does not substantially impact Tobin's Q. The use of external assurance on a sustainability report, the CEO Duality, the Nomination committee, and the Remuneration committee have no impact on Tobin's Q or ROA. This study contributes to understanding corporate governance and sustainability's nuanced effects on firm performance, highlighting ownership concentration as a key driver and revealing contrasting impacts of sustainability disclosure. JEL classification numbers: L25, M14, Q56. Keywords: Corporate Governance, Sustainability Reporting, SDGs, Firm Performance.

Human economic activities have caused major damage to Earth’s ecosystems during recent times. This have led businesses to adopt sustainability practices throughout their operations and reporting systems. This research investigates the degree to which major banks in Central-Eastern Europe (CEE) include planetary and social boundaries within their sustainability reports. The research examines 59 official sustainability and non-financial reports from major banks in Austria, Poland, Hungary, Romania and the Czech Republic through a longitudinal content analysis from 2017 to 2023. The research shows that sustainability reporting in CEE banks is inconsistent because they focus strongly on climate change but show weak engagement with biodiversity loss and freshwater consumption and land-system change. The corporate disclosures focused more on social boundaries which included education, jobs, income, gender equality and healthcare. The study shows that climate change mentions increased after 2019 when the European Union launched its Green Deal and social indicators reached their peak during the COVID-19 pandemic. The study shows that corporate sustainability reporting has become more compliance-based instead of transformational, despite rising regulatory and stakeholder expectations. The research adds to sustainability discourse by revealing reporting practice deficiencies and providing guidance for improvement. The research demonstrates that financial institutions operating in Central-Eastern European economies need to develop a more complete sustainability framework. The research findings demonstrate the need for stronger regulatory frameworks and corporate sustainability dedication to establish a resilient equitable global economy.

Corporate sustainability reporting is currently a prominent issue in the global business world, with companies worldwide actively publishing sustainability reports to meet the demands of different stakeholders regarding social, environmental, economic, and governance concerns. The existing literature has proved that companies that participate aggressively in corporate sustainability reporting tend to have higher firm value, experience tremendous growth rates in terms of size and profitability, have a high capital and asset base, are lowly geared, and gain a competitive edge in the industry in which they operate. The study examines the link between corporate sustainability reporting and the financial performance of firms listed at the Nairobi Securities Exchange. Corporate governance, social, environmental, and economic pillars were used as indicators of corporate sustainability reporting. The Global Reporting Initiative framework will be employed to establish the corporate sustainability reporting scores and construct the sustainability reporting index. Financial performance was measured by return on assets. The study is anchored on the stakeholder theory supported by legitimacy and the tripled bottom-line theories. The target population comprises sixty-seven companies listed in Kenya. Secondary data was collected from the company integrated reports, published accounts, and the accounts filed with the Nairobi Securities Exchange for the period 2011 to 2020. The study adopted a cross-sectional correlational research design. Descriptive statistical tests carried out include mean, standard deviation, kurtosis and skewness. Correlation analysis was done to test and establish the direction of the relationship between the study variables. Regression analysis was employed to test the hypotheses of the study. Generally, the study findings are that corporate sustainability reporting had a significant positive effect on financial performance. The empirical results of this study showed that corporate sustainability reporting led to improved financial performance among listed companies, although sustainability reporting in Kenya was purely voluntary. Therefore, Kenya’s Capital Markets Authority should consider making corporate sustainability reporting compulsory for all listed companies. Further research can be extended to include non-listed companies and the application of other sustainability reporting frameworks. Keywords: Corporate Sustainability Reporting, Financial Performance, Global Reporting Initiative, Nairobi Securities Exchange.

The purpose of this paper is to identify the performance indicators disclosed in corporate sustainability reports. To perform this study we examined Italian Listed companies that produced a sustainability report in 2012. The indicators were identified using a content analysis. We analysed the core and additional indicators disclosed in sustainability reports as well as all the indicators required by sector supplements adopted by companies. Our results show that indicators are widely disclosed in Italian sustainability reports. Social indicators are on average the most commonly used indicators, particularly those concerning labour practices, followed by the economic and then the environmental indicators. The Oil and Gas and Utilities industry sectors disclosed a superior amount of indicators compared to all other sectors. These industry sectors also show a more homogeneous behaviour, also as regards disclosure of core and additional indicators. This study provides one of the first detailed analyses of the different category of GRI indicators used by Italian companies producing sustainability reports.

The Research Handbook on Sustainability Reporting intends to show the multifaceted, complex, and multi-layered aspects of research on sustainability reporting, which is done in the handbook’s seven parts and 28 chapters by 59 researchers from 14 countries around the world. The chapters are arranged in themes. Part I ‘Introduction’ sets the scene for the sustainability reporting<br/>developments. The chapter considers how sustainability reporting practice has developed and the key influences in that development. Part II ‘Frameworks and Standard Setters’ contains six chapters that consider the evolution of the sustainability reporting arena and the important role of reporting standard setters within it. Part III ‘Sustainability Reporting’ consists of four chapters<br/>focusing on the rather underexplored issue of sustainability reporting in management control and internal audit. Part IV ‘Sustainability Reporting and Capital Markets’ has four chapters that examine capital market consequences of sustainability reporting, and the role of sustainability reporting regulation. Part V ‘Governance’ is comprised of three chapters that focus on the interplay<br/>between corporate governance and sustainability reporting. The five chapters in Part VI Sustainability Reporting – Around the World’ emphasise the multidimensional aspects of sustainability reporting across the world today. The final Part VII ‘Sustainability Reporting – Methods, Theories and Outlook’ contains five chapters that shed light on different methodological and theoretical aspects applied in sustainability reporting research. Drawing from all chapters, the concluding chapter of The Research Handbook on sustainability Reporting attempts to provide an outlook of future research avenues in sustainability reporting.