Assurance of Sustainability Information: A Study of Media Pressure

Abstract

This research examines sustainability assurance practices and more specifically whether media pressure influences companies' decision to implement a voluntary sustainability assurance. The sample consists of companies listed on the French SBF 120 over a period of four years (2007)(2008)(2009)(2010). The study conducts logistic regressions with longitudinal panel data to empirically test the influence of explanatory factors on the use of sustainability assurance. It appears that the variables related to media pressure explain the establishment of sustainability assurance. Moreover, the size of the company, the industry and the positioning of companies in corporate social responsibility also influence the use of assurance of sustainability information. On the theoretical level, the research contributes to a better understanding of practices of sustainability assurance by offering an explanatory model of this practice. On a managerial level, it contributes to the understanding of corporate behavior. This research may allow users of sustainability information to judge the relevance of sustainability reporting.

Research on extended external reporting assurance: Trends, themes, and opportunities

“…Some studies investigate other firm‐level determinants of assurance. For example, Gillet‐Monjarret (2015) finds that media pressure is associated with the assurance decision. Branco et al.…”

The market for sustainability assurance services

“…A study by Gillet-Monjarret, (2015) examined the role played by media pressure in encouraging organisations to demand SA. Gillet-Monjarret, (2015) analysed French listed compared SA demands over a four-year period from 2007 to 2010 and compared these against newspaper articles providing positive, negative and neutral media coverage of organisations. The study finds that higher levels of negative media exposure positively influence the demand for SA.…”

“…This may also encourage the adoption of SA. For example, the "Grenelle 2 Law" in France requires encourages organisations to undertake sustainability reporting and to secure assurance third-party assurance over their sustainability reports (Gillet-Monjarret, 2015).…”

“…example, O"Dwyer et al, (2011) use legitimacy theory to understand how SAPs attempt to create legitimacy for this new form of assurance. In comparison,Gillet- Monjarret (2015) applies legitimacy theory to explain why French reporters facing media pressure are more likely to secure assurance over their sustainability reports Belal (2002),. uses stakeholder theory to assess to what extent sustainability reports and SA statements are inclusive of stakeholder views and perspectives Perego and Kolk, (2012).…”

Managers’ Perceptions On Stakeholder Power In Relation To Esg Reporting

“…With regard to ESG reporting, companies engaged with main stakeholder groups rather than addressing stakeholders on a single basis, which included internal stakeholders, transient stakeholders, professional bodies, local communities, and regulators (Kaur & Lodhia, 2018). Thus, this present study examines a wider group of stakeholders which include shareholders, employees, customers, government, and community, the commonly examined stakeholder groups (Freeman, 1984) with the addition of media groups (Blanc et al, 2017;Deegan & Islam, 2014;Elijido-Ten, 2011;Gillet-Monjarret, 2015;Manetti & https://doi.org/10.15405/epsbs.2020.12.05.15 Corresponding Author: Sharifah Buniamin Selection and peer-review under…”