Year-end Sale % OFF 
Abstract
Corporate sustainability reporting is a contributor to strategic legitimacy (Chelli, Durocher, & Fortin, 2018) and certain traditional corporate characteristics (size, industry vulnerability) can influence the level of sustainability reporting (Drempetic, Klein, & Zwergel, 2020). However, limited literature exists in regards to sustainability reporting by Canadian companies operating in emerging countries. Content analysis of sustainability reports examined the current use of the Global Reporting Initiative (GRI) framework. Principal component analysis (PCA) provided a sustainability reporting index (SRI) measure for each firm using factor scores. Correlations and independent-samples t-testing tested the association of the level of reporting to a firm’s size, industry, level of internationalization, and level of activity in emerging economies. A review of 234 large Canadian-based, publicly-traded companies found a total of 86 companies employed the GRI framework, and data from these companies was used in this study. Asset size and vulnerable industries had no significant association with the level of sustainability reporting contrary to prior studies. Operating in emerging economies resulted in greater levels of sustainability reporting when compared to firms that do not. This finding is consistent with the external legitimacy strategy and contributes to the limited literature in this area
Highlights
An increasing number of companies around the world seek to pursue their economic goals while engaging in actions that protect the environment, ensure social justice and pursue good governance practices
We examined the 234 companies that comprise the S&P/Toronto Stock Exchange (TSX) composite index and found that while 65% (153 out of 234) of the companies engaged in some sustainability reporting only 86 of these companies used the Global Reporting Initiative (GRI) sustainability framework and these companies tended to engage in those sustainability measures that were mainly required by law or where they would be subject to the most scrutiny
Our findings are consistent with that of Searcy et al (2016) and, for the investment community, should reinforce concern that the voluntary nature of sustainability reporting for publicly-traded companies continues to allow for opaque reporting of sustainability measures, and exposure of the firm to the risk of future lawsuits and business interruptions that could have a negative impact on shareholder value
Summary
An increasing number of companies around the world seek to pursue their economic goals while engaging in actions that protect the environment, ensure social justice and pursue good governance practices. These economic, social and governance (ESG) measures jointly determine the extent to which a firm engages in sustainability initiatives. Multinational firms encounter many stakeholders in the different countries in which they are present and often deal with varying regulations and government guidelines. Requirements in emerging economies are quite often very different from those in more mature economies and stakeholder concern for activities in developing countries can be heightened as a result
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
