Non-financial reports, anti-corruption performance and corporate reputation

Abstract

Objective -This paper analyzes whether the anti-corruption reporting practices of the companies are a reflection of adequate anti-corruption systems put in place by companies, or whether the disclosure is merely a tool for companies to improve their reputation and thus maintain their legitimacy.Design/methodology/approach -We apply the PLS method to the collected data in a content analysis of the sustainability reports of 31 companies within the Ibex 35 in December 2008.Theoretical foundation -In the analysis, we use both the legitimacy theory and the stakeholder theory, because we consider them as complementary theories and consistent with our approach.Findings -The results show that regarding the corruption issue there is a negative relationship between disclosure and performance, that is, companies with poor performance disclose more. On the other hand, the results reflect the existence of a positive relationship between disclosure and reputation, i.e. report information to interested parties enhances the perception of stakeholders about the company. This finding could be justified by the above two theories. However, we can't conclude that companies with good performance disclose information to key stakeholders in order to strengthen relations, as stated by the stakeholder theory.Practical implications -this study provides evidence of how companies use non-financial reporting-specifically anti-corruption data-to improve corporate reputation. It is also noted that reporting practices not necessarily have to be in accordance with the actual anticorruption practices of firms.

Priority Stakeholders’ Perception: Social Responsibility Indicators

“…Only after this responsibility is met should organizations address the other interests of their stakeholders [6,8,10,11]. It appears that the composite indicator was very close to what the literature has been presenting as an economic and financial category [15,93,131]. This demonstrates that the stakeholders' perspectives are already recognized by the literature in this regard.…”

“…Their importance does not allow them to be ignored in this research. Thus, the first stage was configured by the construction of a list containing 95 social responsibility indicators, from the literature review of several theoretical and empirical articles on the topic [58][59][60]62,63,65,74,[76][77][78][79][80]82,[85][86][87][88][89][90]92,93,95,96,98,101,115]. The indicators were selected considering they should be related to the identified social responsibility dimensions; present in the largest number of reviewed literatures; or considered important and or complementary for the disclosure of PHEOs.…”

“…Other methodologies used to construct an indicators list are empirical literature reviews [88,[92][93][94][95], specifically at universities [96]. As well as guidelines established by institutions organizations that recommend information on social responsibility that needs to be disclosed [97][98][99], specifically at universities [100,101].…”

Supporting the Sustainable Development of Companies Through the Use of Social Responsibility Practices In International Affairs

“…Some studies confirm that economic entities publish social and environmental information only to be within the limits of legality in the field in which they operate. It has also been found that less performing entities publish performance-related information [3].…”

“…We can say that the companies in the technology industry would be most able to implement social responsibility programs, having the advantage of the latest technological discoveries, which facilitate their activity, these corporations being suitable to conclude collaborations/coalitions in order to design a better future. Large IT companies say they are investing considerable amounts in order to discover renewable energy sources, they are investing in the education sector and they are supporting young people in finding a job, they are taking measures to reduce water consumption and carbon emissions, they are investing in the medical sector, advocates for well-being and safety at work [3]. The technological sector can also be used effectively to influence the public's decision, in order to act in favor of developing the social environment.…”