Abstract
How do nature-inspired enterprises be accountable to the natural environment formed? Natural environment is one of the basic elements of the business. Firms should be sensitive to environment, so they should develop environmental transparency and accountability. This paper develops a framework to understand how environmental transparency and stakeholder governance create environmental accountability, following an “action cycle” informed by four accountability criteria—identifiability, awareness of monitoring, expectations of evaluation, and social pressure. The paper analyzes the environmental transparency practices of 50 companies listed in the annual Best Global Green Brands report, the Global RepTrak 100, and The Climate A-List of the CDP (formerly the Carbon Disclosure Project). The results show that exemplar firms improve the “what”, “how”, and “how much” factors in terms of environmental information to identify what will be disseminated to whom when the information follows the criteria of accountability, which allow stakeholders to effectively adopt a governance role. This paper provides a 2 × 2 matrix for firms and stakeholders to better understand how accountability leadership is driven by environmental transparency, stakeholder governance and accountability criteria. The practical implications of environmental transparency are highlighted, specifically in terms of strategies for building accountability to meet the growing expectations of transparency and accountability.
Highlights
While some natured-inspired enterprises are created voluntarily, environmental solutions among many large enterprises are often driven by stakeholder governance
The emerging literature argues that Environmental transparency (ET) is an important means for increasing accountability important for creating nature-inspired enterprises
Fung et al (2004), the information integration theory, the accountability theory, and the idea of stakeholder governance recently promoted by the editors from the Academy of Management Review as a hard problem (Amis et al, 2020)
Summary
While some natured-inspired enterprises are created voluntarily, environmental solutions among many large enterprises are often driven by stakeholder governance. We apply four accountability criteria (identifiability, awareness of monitoring, expectations of evaluation and social pressure) to characterize what information (contents), how much information (details) and how the information (channels) is disseminated in order to support stakeholder governance [11]. Based on this framework, we establish a 2 × 2 matrix to identify firms that are strong or weak in environmental transparency and governance from the 50 companies listed in the annual Best Global Green Brands report, the Global RepTrak 100, and The. Climate A-List of the CDP (formerly the Carbon Disclosure Project)
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