Board governance mechanisms and sustainability reporting quality: A theoretical framework

Elaigwu Moses,Ayoib Che-Ahmad,Salau Olarinoye Abdulmalik,Collins G Ntim

doi:10.1080/23311975.2020.1771075

Abstract

The presumed poor performance in terms of sustainability commitments and Sustainability Reporting Quality (SRQ) of quoted companies have incentivized stakeholders’ agitation relating to the Economi...

Highlights

The concept of Sustainability Reporting Practice (SRP) is about meeting stakeholders’ sustainability information needs relating to the Economic, Environmental, and Social (EES) impacts of companies’ business operations (World Commission on Environment and Development (WCED), 1987)
This study is informed by the fact that extant literature (e.g., Ahmad, 2017) posits that transparency in sustainability disclosures remains a weak tradition in Malaysia and that most companies engage in SRP for merely disguising compliance with regulations for the sake of obtaining legitimacy and portraying their reputation (Zahid et al, 2016)
The indisputable importance of the future of the planet earth, the people, resources, and the welfare of stakeholders warrants the concept of sustainability reporting practice to be studied

Summary

Introduction

The concept of Sustainability Reporting Practice (SRP) is about meeting stakeholders’ sustainability information needs relating to the Economic, Environmental, and Social (EES) impacts of companies’ business operations (World Commission on Environment and Development (WCED), 1987). This study is motivated by the scanty research concerning the association between corporate governance and SRQ (Hussain et al, 2018; Loza Adaui, 2020; Yusoff et al, 2015) and the necessity of SRQ in ameliorating the negative impact of companies’ operations on stakeholders and the wider society to achieve sustainable development which is the essence of SRPs. this study is informed by the fact that extant literature (e.g., Ahmad, 2017) posits that transparency in sustainability disclosures remains a weak tradition in Malaysia and that most companies engage in SRP for merely disguising compliance with regulations for the sake of obtaining legitimacy and portraying their reputation (Zahid et al, 2016).

Literature review and research proposition

Findings

Conclusion and recommendations