On managing hypocrisy: The transparency of sustainability reports

Higgins, Colin; Tang, Samuel; Stubbs, Wendy

doi:10.1016/j.jbusres.2019.08.041

Cited by 87 publications

(76 citation statements)

References 82 publications

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“…The introduction of such a requirement could increase the transparency of these companies and eliminate or diminish the skepticism and suspicions of a commitment made in words but not through deeds. Greater openness to the outside world can also increase the trust and legitimacy of the reporting company as well as increasing their competitive advantage in the target market [37]. In this context, the data collected by this study, despite being partial, can be used as a valuable and useful starting point for managers facing the issues of effectively signaling their companies' commitments and managing the negative and positive impacts that this type of disclosure has on the company itself.…”

Section: Final Discussion: Theoretical and Empirical Contributionsmentioning

confidence: 96%

“…A less evident, but equally important, risk is not being able to strongly communicate the beneficial nature and positive impacts generated. The result is ambiguity: the company changes its nature to be transparent but then gets lost when trying to send a strong signal to the right receivers and promptly collect their feedback [37].…”

Section: Final Discussion: Theoretical and Empirical Contributionsmentioning

confidence: 99%

“…At the end of a thorough literature review on the subject, Schnackenberg provides this definition of transparency, "Transparency is the perceived quality of intentionally shared information from a sender" [5]. The signaling environment, as described by Connelly et al [37], can thus be further interpreted as the set of conditions and dynamics that influence the level of transparency perceived by subjects belonging to a system of relations.…”

Section: Final Discussion: Theoretical and Empirical Contributionsmentioning

confidence: 99%

See 2 more Smart Citations

Signaling the Adoption of the Benefit Corporation Model: A Step towards Transparency

2021

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Using the signaling theory as a reference, this research conducts an in-depth analysis of the adoption of the benefit corporation model, a legal and governance framework introduced into Italian regulations in 2016 following legislation introduced by many US states between 2010 and 2013. Focusing on the experience of Italian benefit corporations, we explore how these businesses manage their signaling environment (signaler, signal, receiver, and feedback) to obtain greater transparency. The analysis focuses on companies’ bylaws, websites, and non-financial reports and suggests that the adoption of this new hybrid business model will only translate into an opportunity for greater transparency for one in four benefit corporations. The ability to strengthen the effects of adopting this model, adequate resources, and a long-term approach are required. The model, therefore, appears to present an opportunity for larger companies that have already invested adequately in the development of communication (web) and reporting (report) tools. The results seem to suggest that, on the contrary, for small companies with less experience, transformation into a benefit corporation may generate a risk of ambiguity.

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Section: Final Discussion: Theoretical and Empirical Contributionsmentioning

confidence: 96%

Section: Final Discussion: Theoretical and Empirical Contributionsmentioning

confidence: 99%

Section: Final Discussion: Theoretical and Empirical Contributionsmentioning

confidence: 99%

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Signaling the Adoption of the Benefit Corporation Model: A Step towards Transparency

2021

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“…Discrepancies between SES disclosure and action can be viewed as a way for companies to attempt to ward off criticism and give false impressions of actual CSR practices (Schoeneborn et al, 2020). If companies do not recognize their responsibilities but admit to developing remedial CSR activities, stakeholders might charge them with duplicity if they perceive the information as incoherent (Higgins et al, 2020). Thus, we expect that an interaction effect between the disclosure of remedial actions and the admission of fault exists.…”

Section: Hypothesis Development On Remedial Actions and Admission Of Responsibilitymentioning

confidence: 99%

Hypocrisy and legitimacy in the aftermath of a scandal: an experimental study of stakeholder perceptions of nonfinancial disclosure

Bellucci

Acuti

Simoni

et al. 2021

AAAJ

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PurposeThis study aims to investigate how stakeholders perceive the company's nonfinancial disclosure after a scandal has occurred. More specifically, the authors examine whether and how sustainability reporting practices in the aftermath of a scandal can influence the perceptions of stakeholders in terms of hypocrisy and legitimacy.Design/methodology/approachThe present research represents a companion paper to another study in this issue that investigates the adaptation of companies' reporting behaviors after a scandal. The results of the initial qualitative study informed the subsequent quantitative study developed in this article. The authors build on the evidence of the main paper and perform a 2 × 2 between-subjects experiment to examine how stakeholders perceive the actions of companies that aim to restore their eroded legitimacy through social, environmental and sustainability (SES) reporting.FindingsThe results suggest that when companies take responsibility and develop remedial, socially responsible corporate activities are perceived as less hypocritical and more legitimate. Moreover, we show an interaction effect between taking responsibility and developing remedial socially responsible actions on hypocrisy and legitimacy perception.Originality/valueThe present research takes advantage of an experimental design to investigate the effects of the adaptation of SES reporting from the perspective of stakeholders. The study provides insightful theoretical and practical implications for managers regarding how to handle a reputational loss and avoid perceptions of hypocrisy.

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“…During the past two decades, SR has increasingly become a common managerial practice among companies (Higgins et al , 2020) and growing attention has been paid to it by academic literature (Bini and Bellucci, 2020). Accordingly, several research streams arose.…”

Section: Literature Review Theoretical Framework and Research Objectivesmentioning

confidence: 99%

The challenges of sustainability reporting and their management: the case of Estra

Micco

Rinaldi

Vitale

et al. 2020

MEDAR

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Purpose The purpose of this paper is to investigate the challenges that companies could face over time when dealing with sustainability reporting (SR) and focusses on potential mechanisms they may adopt to cope with them. Design/methodology/approach The investigation is conducted adopting the theoretical framework proposed by Baret and Helfrich (2018) and using a longitudinal case study. Findings The authors found that the challenges that gradually arose induced the evolution of SR. Dissemination, employees’ involvement, managerial commitment and routinization/institutionalization of reporting practices appeared to be useful mechanisms to face the related challenges. Conversely, the authors found that stakeholders’ engagement scarcely affected SR. Furthermore, the legislation impacted the extent and quality of disclosed contents and fostered the standardization of the reporting process. Practical implications In analysing how Estra faced SR challenges, this paper emphasizes the mechanisms that can be used to properly manage them, in a gradual and holistic way. Hence, this study offers a useful example for companies approaching SR for the first time. Originality/value The authors adopt a holistic theoretical perspective providing evidence on how SR development within a company depends on the continuous and integrated management of its multiple challenges, also suggesting that its interdependencies with the definition and execution of sustainability should be exploited.

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On managing hypocrisy: The transparency of sustainability reports

Cited by 87 publications

References 82 publications

Signaling the Adoption of the Benefit Corporation Model: A Step towards Transparency

Signaling the Adoption of the Benefit Corporation Model: A Step towards Transparency

Hypocrisy and legitimacy in the aftermath of a scandal: an experimental study of stakeholder perceptions of nonfinancial disclosure

The challenges of sustainability reporting and their management: the case of Estra

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