Ratings of corporations’ environmental activities and capabilities influence billions of dollars of “socially responsible” investments as well as some consumers, activists, and potential employees. In one of the first studies to assess these ratings, we examine how well the most widely used ratings—those of Kinder, Lydenberg, Domini Research & Analytics (KLD)—provide transparency about past and likely future environmental performance. We find KLD “concern” ratings to be fairly good summaries of past environmental performance. In addition, firms with more KLD concerns have slightly, but statistically significantly, more pollution and regulatory compliance violations in later years. KLD environmental strengths, in contrast, do not accurately predict pollution levels or compliance violations. Moreover, we find evidence that KLD’s ratings are not optimally using publicly available data. We discuss the implications of our findings for advocates and opponents of corporate social responsibility as well as for studies that relate social responsibility ratings to financial performance.

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How Well do Social Ratings Actually Measure Corporate Social Responsibility? - eScholarship

Using surveys data from controllers of 79 larger companies, this study examines the extent to which firms integrate sustainability measures into their strategic performance measurement systems (SPMS) and align these measures with strategy. The authors explain why practices vary across companies.

Integrating sustainability measures into strategic performance measurement systems: An empirical study

In recent decades, non-financial reporting has been widely debated in the literature relating to both public and private sectors. Non-financial reporting is used to increase accountability and transparency, and to adapt to external pressures and stakeholder expectations. The focus on external factors, i.e., transparency and stakeholders, has largely precluded research into the quality of non-financial reporting. Nevertheless, the quality and reliability of sustainability reports have been widely questioned in the literature. Non-financial reporting may provide purely symbolic actions to manage expectations. This paper analyzes the level of diffusion and quality of non-financial reporting tools in the public utility sector. We use the principles of the GRI (Global Reporting Initiative) framework to measure quality, i.e., clarity and accuracy, timeliness and stakeholder engagement, comparability, and reliability. We use a qualitative exploratory approach with a mix of primary and secondary sources. The results show that despite the increasing use of non-financial reporting in organizational life, it is not diffused within public utilities. We address the issue of quality, and find that, overall, the accuracy/clarity and comparability of non-financial reporting is satisfactory; timeliness and stakeholder engagement appear to be acceptable, while reliability does not appear to be acceptable.

Quality and Diffusion of Social and Sustainability Reporting in Italian Public Utility Companies

Since the concept of sustainability emerged as a new business paradigm, sustainable management has become one of the main topics among academic researchers and business practitioners. It is widely agreed that supply chain capabilities play a pivotal role in meeting customers' needs better through well-balanced integration of green marketing and eco-friendly SCM. However, many of previous studies mainly focused on the environmental aspect of sustainable management, lacking of comprehensive insight into its impact on customer relationship. Aiming to fill this literature gap, this paper empirically investigates the influence of sustainable management activities (SMA) on customer satisfaction (CS) and long-term orientation (LTO). The data were collected from 214 users of Korean flagged shipping service (shippers, freight forwarders and third party logistics service providers in Korea) and structural equation modelling (SEM) was employed to test the hypothesised relationships. The findings in this study are expected to contribute to establishing the strategy for effective sustainable management to enhance customer satisfaction and retention.

A study of the influence of sustainable management activities on customer satisfaction and long-term orientation in the shipping industry: evidence from users of Korean flagged shipping service

\nPurpose\nThis study aims to furnish the systematic literature review on integrated reporting (IR) and answer three research questions: How has the IR concept been developed recently across the different countries? How can the literature of IR be allocated among different focus areas/themes? What are the future opportunities available for IR?\n\n\nDesign/methodology/approach\nThe methodology involves selection, classification and categorization of 110 articles on IR into their focus areas, journals, time distribution, continent-wise distribution, research methodologies and keywords analysis.\n\n\nFindings\nThe findings of the study suggest that there is a need of the following: increasing the case studies and empirical research in developing assurance models, analysis of the perception of shareholders in Asian countries, harmonization of financial and non-financial standards, research on the IR of non-listed companies.\n\n\nPractical implications\nIt provides insights to practitioners regarding the challenges faced by the economies and internal organization. It might help researchers and academics to focus on developments of IR in different countries. It might also help regulators to develop some policies, models and frameworks for its future implementation.\n\n\nOriginality/value\nIt furnishes the outline of 110 articles published in eminent journals from the year 2011 to beginning of 2020.\n

A systematic literature review on integrated reporting from 2011 to 2020

Increasing a company's profitability is the central argument for corporate accountability. In this respect, the paper expanded the concept of economic performance to include social and environmental dimensions of sustainable performance. This research discussed the lack of a strong connection betweenperformance assessment and reporting on sustainable development initiatives at the company level. It introduced a possible approach to performance, as seenthrough the prism of stakeholders, as general information users, and ofmanagement, as the internal user. The research hypothesis was based on aliterature review of the concepts of performance and reporting in the context ofsustainable development. The paper offered an empirical evidence of the connection between macroeconomic growth illustrated by major indicators and the corporations’ willingness of voluntarily reporting sustainable performance. Following this, the paper introduced, as constructive research, discussions on integratingsustainable performance key indicators within reporting process by using balanced scorecard as managerial tool. The reason that supported the discussions was linked to the opportunities for company growth and disclosure developments,generating the necessary support for accountability, sustainability and value creation.

	 

	Key words: Integrated reporting, sustainable performance, social, environmental, responsible management, balanced scorecard.

Maria Violeta Cimpoeru

Papers

Social and environmental performance indicators: Dimensions of integrated reporting and benefits for responsible management and sustainability