Corporate Environmental Disclosure Research Articles

The corporate environmental disclosures on the internet: the case of IBEX 35 Spanish companies

This paper seeks to investigate the practices of corporate environmental disclosures of the IBEX 35 Spanish firms on their websites. Three areas are studied: (1) the disclosure of non-financial environmental reporting; (2) the disclosure of financial environmental reporting; and (3) the analysis of some aspects of the corporate websites that, in our opinion, could affect the availability of the corporate environmental reporting. The main findings of this paper are: (a) environmental disclosures made by firms present a slight concentration of the data; (b) the compliance of the standards of GRI guide is a key variable for non-financial environmental disclosures on the internet; (c) financial environmental reporting disclosed in the financial statements is quite limited, and (d) there is a need to link non-financial environmental reporting and financial environmental reporting, so that the user of the information can have a greater detail of the influence of environmental concerns in the management of the firm.

The impact of the web on information and communication modes: the case of corporate environmental disclosure

The World Wide Web (web) considerably enhances corporations' ability to convey their strategies and other relevant information directly to their key stakeholders. However, it is not widely known if and how the advent of the web has modified the way corporations determine their disclosure strategies. Focusing on environmental reporting and using a cost/benefits framework, the study's purpose is twofold. First, we assess the extent of web-based environmental disclosure as well as its determinants. Second, we compare the determinants of print- and web-based environmental reporting. Results suggest that information costs and a firm's proprietary costs as well as its level of media exposure are the key determinants of both print- and web-based environmental disclosure. Results also suggest that environmental disclosure is determined by a firm's context (age of fixed assets, size, SEC regulations), with industry-wide trends and practices playing an important role in explaining both print and web environmental disclosure. Furthermore, results show an extensive overlap between print disclosure and web disclosure, with the use of the web as a disclosure platform still being driven by traditional print-based considerations. Hence, it appears that the web's potential as a reporting platform is not fully exploited.

DO CORPORATIONS PERCEIVE MANDATORY PUBLICATION OF POLLUTION INFORMATION FOR KEY STAKEHOLDERS AS A LEGITIMACY THREAT?

In recent decades several researchers have investigated the relationship between corporate environmental performance and environmental disclosures. A number of these studies have also investigated the positive/negative content of the disclosures, particularly following the occurrence of negative environmental events or media coverage. Limited research has investigated the usefulness of regulated public external disclosures of corporate environmental performance information as a driver of annual report environmental disclosure behaviour. The mandatory Australian National Pollutant Inventory now provides interested parties with access to information on corporate pollution emissions. This represents a change to the corporate operating environment and represents a potential threat to corporate legitimacy. This paper reports the results of research investigating the release of corporate pollution emission information on the National Pollutant Inventory and changes in corporate environmental disclosures in annual reports.

Application of Stakeholder Theory to the Quantity and Quality of Australian Voluntary Corporate Environmental Disclosures

This study provides a comprehensive, integrated theory for explaining social responsibility disclosures. The relevant theory applied is Ullmann's (1985) three dimensional model of social responsibility disclosure. The research question asked is: Can Ullmann's stakeholder theory be operationalized to help explain the quantity and quality of environmental disclosures in annual reports in a voluntary reporting setting? Quantity is measured by the number of sentences devoted to environmental issues reported in the annual report while quality of disclosures is measured by a index scored by users of financial statements with financial reporting qualifications. Both quantity of disclosure and quality of disclosure are highly correlated. The sample consists of 102 of the largest companies listed on the Australian Stock Exchange. Ordinary least squares regression is used to determine if variables selected to measure stakeholder power, strategic posture and economic performance are significant in explaining the quantity and quality of environment disclosures in annuals reports. The stakeholder power dimension of Ullmann's framework measured by shareholder, regulator and lobby groups is significant in explaining environmental disclosures. The strategic posture dimension of Ullmann's model measured by content of the mission statement and existence or otherwise of environmental or social responsibility committees also find strong statistically significant support in the results. The third dimension of economic performance is not supported by the results. Consistent with prior studies, size is found to be a significant predictor of disclosure practices.

An examination of the corporate social and environmental disclosures of BHP from 1983‐1997

This study examines the social and environmental disclosures of BHP Ltd (one of the largest Australian companies) from 1983 to 1997 to ascertain the extent and type of annual report social and environmental disclosures over the period, and whether such disclosures can be explained by the concepts of a social contract and legitimacy theory. This research is also motivated by the opportunity to compare and contrast results with those of Guthrie and Parker, in whose study the social and environmental disclosures made by BHP Ltd were also the focus of analysis. In testing the relationship between community concern for particular social and environmental issues (as measured by the extent of media attention), and BHP’s annual report disclosures on the same issues, significant positive correlations were obtained for the general themes of environment and human resources as well as for various sub‐issues within these, and other, themes. Additional testing also supported the view that management release positive social and environmental information in response to unfavourable media attention. Such results lend support to legitimation motives for a company’s social and environmental disclosures. A trend in providing greater social and environmental information in the annual report of BHP in recent years, and its variable pattern, was also evidenced.

Incentives and disincentives for corporate environmental disclosure

AbstractThe year 2000 saw the launch of AA1000, a standard designed to enable corporate ethical performance to be judged. If such ethical performance is interpreted as social and environmental behaviour our view is that it should lead to more social and environmental disclosure. Yet the willingness to communicate corporate social and environmental performance still seems to be limited. Of the social and environmental disclosures that exist many appear to be rather fragmented and disparate. In this paper we explore the apparent paradox between concern for the environment and the limited amount of corporate environmental disclosure (CED) that takes place. Through an empirical study, the incentives and disincentives for CED are identified. Findings from the study identify a difference between the information requirements of ‘users’ and the willingness of ‘preparers’ to provide. The paper makes some tentative policy suggestions with the intention of bringing the two parties closer together. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

Corporate environmental disclosures: are they useful in determining environmental performance?

Our paper focuses on the environmental disclosures made by 51 United States (US) manufacturing firms for 1992 and 1993. Content analysis of annual report disclosures, made within the president's letter, the management's discussion and analysis (MD&A), and note sections, was used in conjunction with environmental ratings of US corporations, as compiled by the Council on Economic Priorities (CEP). Our study investigated whether disclosures differed between firms who had been rated good, mixed or poor in their environmental activities and whether these disclosure differences could be used to differentiate between actual environmental performance levels. Our study also investigated how a change in disclosure standard for one section of the annual report changes disclosures in other sections of the annual report. The results are important in light of Dunlap and Scarce's (1991, p. 657) findings that public concern about the environment was at an all-time high, and Epstein and Freedman's (1994, p. 106) finding that individual investors consider annual report information about environmental activities to be more desirable than information about any other social activity.

Green Strategy Costing: Early Days

Environmental impact and management is becoming a major priority for corporate strategists. while considerable information on corporate environmental disclosure practices in annual reports is now available, little is known about the internal environmental decision and control information systems in use, and corporate attitudes particularly to environmental costing. This paper reviews international green strategy developments and their implications for management accounting practice and examines environmental information and costing approaches and attitudes in a small number of Australian companies.

Corporate Environmental Disclosure Strategies: Determinants, Costs and Benefits

In response to investors' and other stakeholders' concerns about corporate environmental policies, many firms are voluntarily increasing their level of environmental disclosure since there is a scarcity of alternative information sources. Using a cost-benefit framework, this study intends to identify determinants of corporate environmental reporting by Canadian firms subject to water pollution compliance regulations during the 1986–1993 period. Results suggest that information costs and a firm's financial condition are key determinants of environmental disclosure. Firm size, the regulatory regime governing corporate disclosure, and industry, also contribute to explaining environmental disclosure.

An evaluation of the voluntary corporate environmental disclosures: A Korean evidence

An evaluation of the voluntary corporate environmental disclosures: A Korean evidence

A Study of the Environmental Disclosure Practices of Australian Corporations

Abstract This paper analyses the environmental disclosure practices of Australian corporate entities. The paper documents three separate but related investigations. First, in a review of a sample of annual reports for the 1991 financial year, it is apparent that environmental disclosure practices adopted by the sample are self-laudatory, with companies promoting positive aspects of their environmental performance, but failing to disclose negative aspects. Second, in a review of corporate disclosure practices in the period 1980 to 1991, environmental disclosure made by the sample significantly increases across time. This change is linked to an apparent increase in societal concern relating to environmental issues. Finally, using a questionnaire administered to environmental lobby groups, it appears that the extent of corporate environmental disclosure is positively associated with the environmental lobby groups' concern about the environmental performance of companies within particular industries.

Corporate environmental disclosures: Competitive disclosure hypothesis using 1991 annual report data

This paper studies the scope and accuracy of environmental disclosures made in corporate annual reports. It also attempts to provide a modest test of the voluntary disclosure hypothesis in the context of environmental disclosures. A scoring procedure is used to examine the scope of environmental disclosures for 168 companies in six industries and 18 countries, and the relationship between the mean scores and environmental performance is analyzed for a subsample of companies. The results indicate (1) significant variations in environmental disclosures and hence no clear support for the voluntary disclosure hypothesis, and (2) no apparent association between disclosure and environmental performance.

Moving Forward toward Environmental Excellence: Corporate Environmental Audits, Disclosure, and Stakeholder Empowerment

Moving Forward toward Environmental Excellence: Corporate Environmental Audits, Disclosure, and Stakeholder Empowerment

Corporate Environmental Disclosure: Is Business Measuring up to its Responsibilities?

Corporate Environmental Disclosure: Is Business Measuring up to its Responsibilities?

How green are UK company accounts? An exploration of changing corporate environmental disclosures

How green are UK company accounts? An exploration of changing corporate environmental disclosures

An evaluation of environmental disclosures made in corporate annual reports

This paper evaluates the quality and accuracy of environmental disclosures made in corporate annual reports. Annual report disclosures made by 26 firms in environmentally sensitive industries are examined. An indexing procedure is used to measure the contents of the disclosures, and the relationship between the disclosure contents and the firms' environmental performance is tested. The study provides a detailed measure of environmental disclosure contents. Results indicate that corporate environmental disclosures are incomplete and are not related to the firms' actual environmental performance.