Corporate Accountability Towards Species Extinction Protection: Insights from Ecologically Forward-Thinking Companies

Abstract

This paper contributes to biodiversity and species extinction literature by examining the relationship between corporate accountability in terms of species protection and factors affecting such accountability from forward-thinking companies. We use triangulation of theories, namely deep ecology, legitimacy, and we introduce a new perspective to the stakeholder theory that considers species as a ‘stakeholder’. Using Poisson pseudo-maximum likelihood (PPML) regression, we examine a sample of 200 Fortune Global companies over 3 years. Our results indicate significant positive relations between ecologically conscious companies that are accountable for the protection of biodiversity and species extinction and external assurance, environmental performance, partnerships with socially responsible organizations and awards for sustainable activities. Our empirical results appear to be robust in controlling for possible endogeneities. Our findings contribute to the discussion on the concern of species loss and habitat destruction in the context of corporate accountability, especially in responding to the sixth mass extinction event and COVID-19 crisis. Our results can also guide the policymakers and stakeholders of the financial market in better decision making.

Corporate accountability for biodiversity and species extinction: Evidence from organisations reporting on their impacts on nature

“…However, more optimistic findings from Maroun (2018) show impression management may be present, or, alternatively, an optimistic view of transparent reporting is present, which is consistent with findings of who evidence genuine concern for rhinoceros from companies in South Africa. This is reinforced by recent study of Roberts et al (2021) who introduce the concept to stakeholder theory that to protect and conserve nature, species should be considered as a main stakeholder in business operations. For the purpose of this paper, we aim to take the view of genuine concern present in disclosure.…”

“…The emergence of B/E accounting exclusively has contributions in literature from the United Kingdom and Germany (Atkins et al, 2014), South Africa (Atkins et al, 2018; Maroun & Atkins, 2018) and the UK public sector (Gaia & Jones, 2017; Weir, 2018). Global studies on corporate accountability for B/E has received little attention except for recent studies from Adler et al (2018) and Roberts et al (2021) on biodiversity, extinction and species disclosures.…”

“…As a result, biodiversity loss and ecosystem collapse are now recognised as one of the top five global risks and have critical implications for humanity (World Economic Forum, 2020). Consequently, business organisations must comprehend the intrinsic value of nature and realise the demise is either directly or indirectly linked to corporate activity (Adler et al, 2018; Atkins & Atkins, 2018; Hassan, Roberts, et al, 2020; Roberts et al, 2021). Gray and Milne (2018) are of the view capitalistic objectives have driven species mass extinctions, and if organisational behaviour does not change, human extinction cannot be unthinkable.…”

“…We present examples from these forward‐thinking companies to be followed as guidance in post‐Covid‐19 reporting. Our paper contributes to assisting companies achieving the global United Nations Sustainability Goals by 2030, as companies must reassess and report on their relationship with nature to prevent further pandemics (Roberts et al, 2021). We believe presenting examples from company's pre‐pandemic will assist post‐pandemic B/E disclosure.…”

Sustainability assurance practices: a systematic review and future research agenda

“…The pace of change continues to increase to pursue a sustainable model of capitalism. Pressures from the community for better corporate behaviour has also increased due to highly publicised corporate environmental disasters (Kamran et al 2021 ; Liu et al 2021 ; Roberts et al 2021a , 2021b ; Shad et al 2020 ). This trend has increased the demand for more environmental information and activities.…”