No abstract

This study aims to examine the trends in the sustainability performance indicators disclosed in sustainability reports by Canadian companies. Our sample is comprised of eight companies in four sectors and our observations cover a 19-year period. The results of our analysis show a general increase over time of sustainability performance indicators disclosed, as well as varying degrees of coverage of the three sustainability dimensions. While the focus was more on environmental performance in the early 2000s, social performance indicators, such as employment practices and human rights, have now gained more traction. In addition, the scope of sustainability performance indicators disclosed in sustainability reports reached a plateau around 2010. Our results highlight the need for a standardised approach to sustainability reporting that would help overcome the shortcomings of voluntary initiatives and improve the overall comparability of voluntary reporting mechanisms.

Purpose The purpose of this paper is to assess the substantiveness of stakeholder engagement by examining voluntary disclosures tied to the engagement process. The objective is to draw a portrait of stakeholder engagement practices and determine whether they genuinely contribute to informing stakeholders or whether they are simply intended to manage stakeholders’ impressions. Design/methodology/approach The authors performed an exploratory content analysis on 113 sustainability reports published in 2018 in the Global Reporting Initiative database. The authors investigated disclosures tied to consulted stakeholders, communication modes and material issues resulting from the engagement process. The authors then assessed the substantiveness of these disclosures to determine the extent of the impression management tactics deployed in the stakeholder engagement disclosures made by Canadian companies. Findings Data analysis showed that more than a third of Canadian firms tend to make generic disclosures on their stakeholders’ engagement. As well, almost half the engagement modes disclosed are unidirectional and fewer than 33% of Canadian companies disclose on relevant sustainability issues. Furthermore, only 26% of the sample seek assurance on the information disclosed. Overall, the authors note an important trend in impression management used in sustainability reporting and underscore a potentially significant sectoral effect in the tactics used. Originality/value These data provide new insight into stakeholder engagement processes and highlight the strategies used by Canadian companies to manage their stakeholders’ impressions rather than their expectations. The study also contributes to a better understanding of the underexplored stakeholder engagement process and provides regulatory organisations with deepened insights to better frame stakeholder engagement disclosures.

The object of this study is to examine how board members’ performance is evaluated and how they are compensated. In the last decade, the board of directors of publicly traded firms has been under strict surveillance by market participants and regulatory bodies. However, although market regulators require the full disclosure of executive and directors’ compensation plans, very few guidelines exist as to how directors should be evaluated. Hence, by thoroughly examining the information disclosed in management proxies, this study shows that publicly traded Canadian firms do indeed evaluate board members’ performance. However, the information disclosed regarding the evaluation of board members is parsimonious and mostly generic. Based on a sample of 173 Canadian firms, our findings also indicate that equity based incentive plans through differed share units (DSUs) are most often used as means to compensate directors

This study aims to analyse the link between the votes cast at directors’ elections and the quality of corporate governance practices. The regression analyses on the secondary data were performed using a sample of Canadian companies listed on the Toronto Stock Exchange and included in corporate governance rankings published by the Canadian newspaper The Globe and Mail and carried out by the University of Toronto’s Clarkson Centre for Business Ethics. The results show that shareholders only slightly take the quality of a firm’s corporate governance practices into account when electing directors. Our findings also indicate that more than 96% of the votes cast are in favour of the candidates nominated and show very little variance. This study differs from previous studies by focusing directly on the election of directors rather than on stock prices to examine how shareholders express their expectations about the quality of corporate governance practices