Stakeholder capitalism: a new perspective on corporate 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.

The need to provide stakeholders with the information whether the corporate sustainability obligations imposed on business have been met or not, necessitated environmental and social data to be reported and presented alongside financial information relating to operating activities.This study puts forth conceptual explanations related to sustainability, and sustainability reporting framework for sustainability reporting, organizations and indexes, and then reveals the sustainability reporting situation in Turkey. To this end, in line with data in the corporate sustainability portal as of May 2015, corporate sustainability reports in Turkey were analysed. According to the data obtained from this portal, a total of 181 corporate sustainability reports were published by 72 organizations in Turkey between the years 2005-2014. 130 of these reports were based on the GRI reporting guidelines.This study on corporate sustainability reporting contains 26 benchmarks related to organizations issuing reports and the reports themselves. In this study, sector distribution of the organizations issuing corporate sustainability reports, their sizes, publicity, availability on the stock market, the number of employees, turnover, GRI OS (Global Reporting Initiative - Organizational Stakeholders) membership, UNGC (United Nations Global Compact) membership and types of issued corporate sustainability reports, the release years, the reporting periods, the report language, GRI application levels, GRI application statements, reference, auditing, audit providers, industry attachment, stakeholder panel/expert opinion have been identified as the criteria.

In the contemporary business environment, there is an increasing demand for companies to disclose information regarding their corporate sustainability practices. An increasing number of construction companies transparently publish their sustainability practices through corporate sustainability reports under the headings of economic, environmental, social and governance. In the context of current practices, construction companies publish corporate sustainability reports by using different reporting frameworks, especially in areas beyond financial aspects, including standards established by the Global Reporting Initiative (GRI) as well as various legal obligations such as the Corporate Sustainability Reporting Standard (CSRS). This diversity makes it difficult to compare reported data and draw meaningful conclusions. Therefore, this research aims to simplify the reported information by reducing corporate sustainability themes to the most relevant ones for construction companies. Sustainability reporting frameworks and guidelines were examined through thematic analysis; then, the materiality and validity of sustainability themes for construction “companies were assessed using the Delphi analysis technique. Themes such as “Energy” in the environmental dimension, “Health and safety issues” in the social dimension, “Financial performance” in the economic dimension and “Board structure” in the governance dimension were identified as the corporate sustainability themes with the highest degree of impact, with an acceptable consistency ratio as a result of the analyses. As a result of the study, a reporting framework was developed consisting of a total of twenty-six themes for construction companies. The identification of material themes facilitates the integration of construction companies into the corporate sustainability reporting process and provides benefits for the innovation and sustainability of the 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

Corporate citizenship, social responsibility and sustainability reports could be analyzed from a philosophical viewpoint. In this article, we will use Paul Ricoeur’s hermeneutic philosophy to assess the narrativity of such reports. Out of a philosophical viewpoint, our exploratory study analyzes the contents of ten reports: two corporate citizenship reports (Disney; Abbott), three corporate social responsibility reports (WhiteWave; Comcast NBCUniversal; MGM Resorts International), and five sustainability reports (Whole Foods Market; Marriott; Johnson & Johnson; Toyota; Honda). Those reports are arising in-time and are thus referring to past corporate events and phenomena (past-focused perspective). Sometimes such reports introduce a corporate world-dream that could emphasize various issues such as human dignity and inclusiveness/diversity, global health, and planetary stewardship (future-focused perspective). They could even convey a subversive ideal that could strongly shake the foundations of business. The way business corporations are understanding corporate citizenship and sustainability could, more or less radically, change the way we are doing business. However, those corporate citizenship, social responsibility and sustainability reports do not have any emplotment. They are thus stories that cannot be considered as narratives. We could call them “would-be” narratives.

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.

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.

Objective - The objective of this paper is to investigate the relationship between family ownership and corporate sustainability reporting to determine how the role of board independence affects the relationship between those variables within Malaysian listed companies. Methodology/Technique – The annual reports of 771 listed companies from 2014 to 2016 were analyzed using content analysis methods. The study uses agency theory to develop the hypotheses. Findings - The study found that family ownership is negatively related to corporate sustainability reporting. The finding shows that independent directors are unable to influence the relationship between family ownership and corporate sustainability reporting. The findings of this study are expected to provide insight to authorities in relation to the factors that could enhance corporate sustainability reporting primarily in family-owned companies. Novelty - Previous studies have only focused on environmental and social dimensions of corporate sustainability, whilst this study addresses all the 3 dimensions of sustainability (economic, environmental, and social). This paper is one of the first attempts to investigate the roles of board independence on the relationship between family ownership and corporate sustainability reporting in Malaysia. Type of Paper: Empirical. JEL Classification: M14, M41. Keywords: Sustainability Reporting; Family Ownership; Corporate Governance; Independent Director Reference to this paper should be made as follows: Aman, Z; Saleh, N; Shukur, Z.A; Jaafar, R. (2021). The Moderating Effect of Board Independence on the Relationship between Family Ownership and Corporate Sustainability Reporting in Malaysia, Accounting and Finance Review, 5(4): 31 – 43. https://doi.org/10.35609/afr.2021.5.4(4)

Sustainability Reporting and XBRL

This study explored the impact of corporate governance mechanisms on firms' sustainability reporting within the context of a developing country. Focusing on four key dimensions of corporate governance—board director independence, board diversity, ownership structure, and board size—this research aims to elucidate how these factors influence firms' commitments to sustainability reporting. The paper employed a qualitative and desk top approach to explore extant literature on the subject matter. The findings obtained from the various literature examined indicate that board director independence and board diversity are associated with enhanced sustainability reporting, indicating that these governance mechanisms play a pivotal role in fostering transparency and accountability in environmental, social, and governance (ESG) matters. The results for ownership structure and board size show a more mixed outcome, showing that governance factors affect sustainability practices in more complicated ways for listed firms in a developing country. This study contributes to the extant literature by revealing the relationship between corporate governance and sustainability reporting in a developing country context, offering valuable insights for policymakers, corporate leaders, and stakeholders aiming to promote sustainable development. The paper recommends that to promote sustainability reporting and practices, regulatory bodies and firms in developing countries need to adopt policies that encourage the recruitment of board members from diverse backgrounds, including gender, ethnicity, age, and professional experience as this diversity can bring a wider range of perspectives and innovative approaches to sustainability challenges.

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.

Large companies now commonly release corporate sustainability (CS) reports in which they describe their approach to handle sustainability challenges. To guide environmental sustainability efforts in the industry, the life cycle assessment (LCA) methodology has been recognized as an important tool by researchers and policy makers. But to what extent has the LCA methodology been present in companies' narratives through their CS reports up to now? To answer this question, we map references to the LCA methodology in CS reports over the past two decades at geographical, sectoral, and company levels through keyword searching within an extensive database (~45,000 CS reports), analyze trends, and highlight challenges, opportunities, and recommendations to strengthen the presence of LCA in CS reports. The results show that LCA generally remains weakly present in CS reporting, with some geographical and sectoral variations. Recommendations to strengthen LCA presence in CS reports are derived for method developers, policy makers, and companies.

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.

SYNOPSIS The number of companies reporting their corporate sustainability (CS) activities has significantly increased over the last decade. The result being a wide variability in the types of activities being reported and the ways the information is presented. An unanswered question is whether the information being reported by companies following the Global Reporting Initiative (GRI) CS framework is of interest to arguably one of the primary stakeholder groups, customers. Our study seeks to fill this knowledge gap by comparing the content of CS reports to results from a large-scale consumer stakeholder survey. By performing factor analysis on stakeholder evaluation of the importance of CS activities, we find that consumers see different dimensions than those put forth by the GRI framework, thereby suggesting a disconnect between corporate sustainability reporting and stakeholder views and interests. Our results indicate that risk and compliance are dimensions of interest to customers, while the GRI economic dimension is not viewed as important. Additionally, a new dimension of social justice is the most important to consumer stakeholders. Furthermore, the study highlights particular activities within each factor that are most important to the consumer stakeholder group. This research has implications for preparers of sustainability reports and organizations, such as the GRI, that establish guidance for sustainability reporting.