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Abstract
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.
Highlights
The explosion of the sustainability concept [1], and its reporting [2], has been developed mainly as a result of both the proliferation of the Sustainable Development concept emerging from the Brundtland Report (1987) and as a response to stakeholder demands [3].Our interest in this research lies in examining how corporations behave with respect to sustainability in terms of strategy, performance and communication
Having analyzed that there are disparate empirical results regarding the relationship between Sustainability Performance (SP) and Sustainability Disclosure (SD), we provide new evidence about this relationship
Given that previous research works [72,82] have shown that this model alone does not fully explain the disclosure of information on social responsibility and the search for the company’s sustainability, it was necessary to complete this model and incorporate other variables that have been analyzed in the literature according to other theoretical postulates, such as the search for legitimacy or the fulfillment of responsibility
Summary
Our interest in this research lies in examining how corporations behave with respect to sustainability in terms of strategy, performance and communication. In this paper we analyze two topics which are widely discussed in the literature: Sustainability Disclosure (SD) and Sustainability Performance (SP). We will consider how to quantitatively measure both topics, which we will argue when developing both the theoretical constructs and the hypotheses. In the face of the consistency of the need to seek corporate social responsibility (CSR) beyond maximizing the shareholders’ profit [11], the focus has been on the analysis of how SP impacts business competitiveness and how environmental and social management can be integrated better with economic business goals [12] and, the analysis of the integration of sustainability in business strategy [12,13]
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