Benefits of Triple Bottom Line Disclosures on Corporate Performance: An Exploratory Study of Corporate Stakeholders

Abstract

Advocates of CSR argue that transparency and accountability are essential components of a successful sustainability strategy. In this context, sustainability reporting is one such tool for communicating organisational performance with respect to organisational CSR practices. This empirical paper examines the connection between such reporting practices and corporate performance from a stakeholder perspective. Using a sample of 141 respondents, comprising 21 corporate managers; 55 corporate employees and 65 consumers and investors, this study examined the connection between sustainability reporting and corporate performance. Four hypotheses were formulated and tested in the study. In addition to descriptive statistics, Kolmogorov-Smirnov (K-S), One Sample t-test and Multiple Regression Technique (MRT) were used in analyzing the primary data. The results of the data analysis showed a positive connection between sustainability reporting and corporate performance. Both consumers and investors were inclined to product purchase of green corporations. This would have the dual effect of increased market share and market capitalization of the companies. Employees were inclined to work in green corporations safeguarding their interests and healthy work environment. And corporate managers agreed that cost of recycling was generally cheaper than new purchase. Based on this, the study recommends the adoption of sustainability reports for organisations seeking sustainable corporate performance. The improved transparency and accountability levels of traditional financial reports through inclusion of TBL principles could serve as a labyrinth safeguarding corporations against legal hassle and surmounting stakeholder pressure. Thus, ultimately leading to improved market share, improved employee motivation and reduced labour turnover in such organisations.

Integrated reporting of environmental, social, and governance and financial data: Does the market value integrated reports?

“…First, companies attract customers (Schuler and Cording, ); second, enhance corporate reputation (Cho et al, ); and third, appeal to socially responsible investors (Dhaliwal et al, ). In line with this, other existing literature found ESG performance disclosure to be value relevant (Berthelot, Coulmont, & Serret, ; Ekwueme, Egbunike, & Onyali, ; Schadewitz & Niskala, ).…”

Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria

“…Another reason for the lack of convergence identified among the previous studies is the pattern of financial performance measures adopted. Most of the previous studies, such as employed just one category of financial performance, which may not capture other dimensions of company financial performance indicators [11,15],. Thus, in line with the recommendations of Nwobu [15] that future studies should expand the sample size in order to improve the results of existing studies, there is a possibility that conducting an updated research encompasses all listed oil and gas companies in a panel based study using the most current available data with complete information for a period of ten financial years (2007 -2016), and adopting three (3) different financial performance proxies (ie) Return on Asset, Return on Equity, and Return on Capital Employed would go a long way in reconciling the observed conflicting evidences in prior studies.…”

Exploring the environmental strategy of big energy companies to drive sustainability

“…The Triple Bottom Line model allows companies to focus on sustainability by focusing on three main domains: economic, social, and environmental sustainability (Ekwueme, Egbunike, & Onyali, ). Although this model is historically used as an accounting framework (Elkington, ; Norman & MacDonald, ), it is widely used in the extant literature, as it is referred to as one of the most successful CSR models (Norman & MacDonald, ).…”

“…The Triple Bottom Line model allows companies to focus on sustainability by focusing on three main domains: economic, social, and environmental sustainability (Ekwueme, Egbunike, & Onyali, 2013).…”