The social reputation of European companies: Does anti‐corruption disclosure affect stakeholders' perceptions?

Abstract

Corruption is a very important topic in society but also for businesses. However, there are few empirical studies that analyze corruption from the point of view of disclosure by companies and none that analyze its effect in corporate reputation. The aim of this paper is to use stakeholder theory to analyze the potential power of reporting in influencing stakeholders' perceptions and communication tools, such as sustainability reports, to bolster corporate reputation in relation to the social issue of corruption. Based on a regression analysis using data from the 70 largest European companies, we find that disclosure positively correlates with social reputation in the anti-corruption area. The study addresses a gap in the literature by highlighting the fact that this global and key social issue has not yet been analyzed empirically.

Regional Anti-Corruption and CSR Disclosure in a Transition Economy: The Contingent Effects of Ownership and Political Connection

“…Existing research indicates that the intensive industry competition encourages firms to disclose CSR information [38]. This finding is also consistent with cross-country studies that indicated that firm level corruption was negative associated with firm social reputation [35] and CSR performance [36], and that the level of corruption in a country was negatively related to firms' CSR information disclosure [33]. Our explanation of this finding is that when firms are less likely to seek "rents" from corruption under the pressure of intensive anti-corruption actions, they are more likely to disclose CSR information.…”

“…The central government of China is aware of the harm caused by corruption and has vigorously implemented a high-pressure anti-corruption policy. There is evidence of the relationships between firm level corruption and firm social reputation [35] and CSR performance [36] as well as a relationship between country level corruption and a firm's CSR information disclosure [33]. Will anti-corruption actions in transition economies impact on firms' disclosure of CSR?…”

Corruption and sustainable development: The impact on income shifting in European international groups

“…Breen et al () find that both women in top management positions and female owners are associated with less corruption. Recently, Álvarez Etxeberria and Aldaz Odriozola () show that corporate anticorruption disclosure positively influences firms' reputations.…”

Os Escândalos De Corrupção Na JBS S.A. E As Estratégias De Legitimidade Organizacional De Lindblom

“…In the corporate context, several publications have analyzed the relationship between the company's reputation and the contents of social and environmental reports (e.g., Koprowski et al, 2019;Odriozola & Baráibar-Diez, 2017). Other types of reports can also be included when addressing, for example, the image of a "corrupt" company and its relationship with interest groups (e.g., Barros, Rodrigues, & Panhoca, 2019;Etxeberria & Odriozola, 2017).…”

“…The underlying assumption is that companies adopt communication strategies in their financial reports to assure their survival (Dowling & Pfeffer 1975;Odriozola & Baráibar-Diez, 2017). Such strategies are particularly aimed to: 1) influence the society's perceptions (Barros, Rodrigues, & Panhoca, 2019;Deegan, 2002;Guthrie & Parker, 1990), 2) lead interested parties to support the company with positive responses (Barros, Rodrigues, & Panhoca, 2019), and 3) consequently, gain or preserve social legitimacy (Etxeberria & Odriozola, 2017;Neu, Warsame, & Pedwell, 1998).…”