The use of social media as a legitimation tool for sustainability reporting

Abstract

Purpose This paper aims to examine the use of social media for sustainability reporting by the largest Australia companies as a means of seeking legitimacy from stakeholders. Design/methodology/approach Qualitative content analysis was applied to examine social and environmental disclosures posted by Australian companies on three social media platforms – Facebook, Twitter and LinkedIn, and to observe stakeholder interaction in relation to the social and environmental postings. Findings The findings of this study indicate a limited use of social media by the top 50 Australian Stock Exchange (ASX) listed companies for sustainability reporting as only 46 per cent of the companies used Facebook, Twitter and/or LinkedIn. Nevertheless, those companies which actively used social media were able to seek legitimacy through information disclosure and dialogue with stakeholders. Social issues such as community support, employees, gender equality and diversity dominated the three social media platforms when compared to environmental issues and all disclosures had a positive tone. These disclosures in turn framed the dialogue with stakeholders, leading to use of social media platforms that companies preferred and enabling a close control over online discussions. Research limitations/implications This study highlights that social media sustainability communication focuses on symbolic legitimacy strategies, leading to companies managing the impressions of their stakeholders and controlling the dialogue with them. Practical implications This study provides an understanding of the actual practice of social media sustainability communication and has implications for both organisations and their stakeholders. Originality/value This study provides in-depth insights into the use of social media to transform sustainability reporting, an issue that has limited coverage in prior literature and extends the application of legitimacy theory to social media communication.

Exploring Corporate Social Responsibility in the Italian wine sector through websites

“…Considering the growing request for transparency and accountability, scholars have begun to investigate alternative reporting channels. Websites have emerged as a more useful tool for improving disclosure to stakeholders (Douglas et al, 2004;Lodhia et al, 2020;Manes-Rossi et al, 2018;Nicol o et al, 2020a, b).…”

“…The literature on website-based corporate disclosure has demonstrated that these channels provide more flexibility, lower costs, timeliness and speed regarding CSR communication (Rodriguez-Bolivar et al, 2013). Moreover, Lodhia et al (2020) have highlighted that social media has changed reporting dynamics, incorporating dialogue and engagement with stakeholders to seek legitimacy. In keeping with these arguments, several scholars have investigated CSR disclosure through websites in different sectors (Table 1): universities (e.g.…”

“…Considering the growing request for transparency and accountability, scholars have begun to investigate alternative reporting channels. Websites have emerged as a more useful tool for improving disclosure to stakeholders (Douglas et al , 2004; Lodhia et al , 2020; Manes-Rossi et al , 2018; Nicolò et al , 2020a, b). The literature on website-based corporate disclosure has demonstrated that these channels provide more flexibility, lower costs, timeliness and speed regarding CSR communication (Rodriguez-Bolivar et al , 2013).…”

“…However, according to their approach toward stakeholders, the legitimacy level differs among organisations (Deegan, 2002). Companies that require social and political support need a higher level of legitimacy than others (Patten, 1991; Lodhia et al , 2020).…”

“…Legitimacy and institutional theories have focused mainly on disclosure through static and periodic communication tools, such as annual and sustainability reports (Lodhia et al , 2020). Recently, websites and social media have replaced this static approach to disclosing interactive communication among stakeholders (Lodhia, 2018).…”