Is there any difference between the theory and practice for the association between environmental sustainability and firm performance in Pakistan?

Khan, Musa; Rahman, Haseeb Ur; Baloch, Qadar Bakhsh; Ahmad, Adnan; Zahid, Muhammad

doi:10.1002/bsd2.164

Cited by 13 publications

(14 citation statements)

References 64 publications

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“…= 2.010, t = 1.91). This result confirms our conjecture where one of the determinants of the firm's ESG reporting is CIM (Baumgartner, 2014; Khan et al, 2021), which is proxied by its output, the INVEFF (Lu et al, 2016). At the same time, this result also rejects our second hypothesis.…”

Section: Resultssupporting

confidence: 87%

“…Thus, although several indicators could explain ESG reporting quality, we posit that integration between these drivers, measured by INVEFF, is one of the best possibilities in enhancing ESG reporting quality. In addition, failure in integrating aforementioned drivers would resulting a failure of knowledge integration within the firm (Acharya et al, 2022), which commonly representation of investment inefficiencies as shortage of required information (Benlemlih & Bitar, 2018; Cook et al, 2019), and in the end, management will find it difficult to maximize these drivers in producing a qualified ESG reporting as those factors not strategically integrated (Khan et al, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Even if a firm has several drivers that have been previously proven to improve ESG performance and reporting, if these drivers are not properly integrated, a failure in knowledge integration will arise within the firm (Acharya et al, 2022) which it will indirectly affecting on how firm's reporting capability (Garcia, 2021). In addition, Khan et al (2021) argue that integrated management strategies is closely related to firm's sustainability reporting. However, to our best knowledge, there is limited studies that test on how corporate integration management (CIM) could influence ESG reporting.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Investment efficiency and environmental, social, and governance reporting: Perspective from corporate integration management

Harymawan

Nasih

Agustia

et al. 2022

Corp Soc Responsibility Env

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This article examines the relationship between investment efficiency (INVEFF) and environmental, social, and governance (ESG) reporting. We posit corporate integration management (CIM), which is reflected by the level of INVEFF, is a crucial driver for the better quality of ESG reporting. But there is a second possibility which ESG reporting is viewed as a different firm's burden, and therefore, it is a form of inefficiency. We test our hypothesis in Indonesia's unique setting of nonfinancial listed firms from 2010 to 2018. We find that INVEFF is confirmed as one of the critical drivers for enhancing ESG reporting quality. Our result is consistent during several robustness checks. Furthermore, we document that a positive relationship between INVEFF and ESG reporting is not incurred in all circumstances. Our study is one of few studies that focus on quantitative measurement of CIM and examines its relationship with ESG reporting.

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Section: Resultssupporting

confidence: 87%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Investment efficiency and environmental, social, and governance reporting: Perspective from corporate integration management

Harymawan

Nasih

Agustia

et al. 2022

Corp Soc Responsibility Env

View full text Add to dashboard Cite

show abstract

“…), as it supports communication to the board, improves company management and awareness and drives company change'. A similar conclusion is observed in Asia, Latin America and Africa (Cordova et al, 2021), Turkey (Yas ar et al, 2019) and Pakistan (Khan et al, 2021).…”

Section: Discussionsupporting

confidence: 74%

The mediating effect of sustainability strategy between sustainability committees and business performance: can persistent assessment condition this effect?

Arceiz

Rio

Pérez-Grueso

2022

SAMPJ

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Purpose This study aims to analyse the role of persistence in the assessments carried out by sustainability agencies in the interaction between sustainability committee characteristics, sustainability strategies and performance. Design/methodology/approach The authors accessed a sample of European sustainable multinational and transnational companies (EMNs) for the period 2008–2017 from RobecoSAM universe. Using a set of simultaneous equation models, the authors test the effect of the sustainability committee on sustainability performance considering the sustainability strategy as a mediating element. Moreover, the authors analysed if the persistent assessment of sustainability agencies conditions the previous interaction. Findings Persistence of the sustainability assessment performed by an external agency is necessary to support the sustainability strategy and the sustainability committee, legitimating an organization in its institutional context. Practical implications This study provides practitioners with relevant insights into the identification of the sustainability strategy followed by an EMN and the effects associated with it can be useful for social and economic agents in decision-making processes. Social implications A persistent assessment could be a signal over time of the evolution of organizations, reinforcing the monitoring mechanisms. It is a stimulus to EMNs as they obtain both an indicator of their levels of performance and public recognition. Originality/value The lack of similarity in the levels of sustainable performance observed among companies can be explained by the persistence, which is an omitted variable in previous studies.

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“…Even though existing literature substantially investigated the sustainability reporting based on GRI standards in developed countries (Amran and Haniffa, 2011), limited literature is available in developing and underdeveloped countries (Dissanayake et al , 2019; Ashraf et al , 2020; Khan et al , 2021). Therefore, sustainability reporting remains incomplete, biased and less standard in developing countries (Patten and Shin, 2019).…”

Section: Introductionmentioning

confidence: 99%

Evaluating sustainability reporting on GRI standards in developing countries: a case of Pakistan

Khan

Fujimoto

Uddin

et al. 2023

IJLMA

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Purpose This study aims to examine sustainability reporting through the lens of global reporting initiative (GRI) standards in developing economies, particularly in Pakistan, from the perspective of stakeholder theory, legitimacy theory, and system theory. Design/methodology/approach Qualitative and quantitative analyses on economic, social and environmental areas of sustainability reporting based on the GRI standards are applied across 57 organizations listed on the Pakistan stock exchange over the years 2016–2020. Findings The results from the content analysis and descriptive statistics show that overall sustainability reporting increased persistently over time and limited organizations disclose economic, social and environmental sustainability based on GRI standards. Moreover, the result from the two-tailed correlation analysis shows positive relations between economic, social and environmental sustainability reporting. Research limitations/implications Following the GRI standards, the regulators, government and policymakers need to assess the sustainability reporting based on GRI standards to improve corporate operations' transparency, stakeholder trust and legitimacy. The organizations should move beyond the compliance of regulatory norms and adopt the globally accepted sustainability GRI standards to improve sustainability reporting. The same kind of sustainability reporting is also advised for other countries with similar backgrounds and sustainability challenges. Social implications The integrated sustainability reporting framework based on GRI standards enables the organizations to work as a system of interconnected economic, social and environmental sustainability to resolve the issue of sustainability reporting, ensure the trust of multiple stakeholders and legitimize their business operations in society. Originality/value To the best of the authors' knowledge and thorough review of literature, this is the first study that examines the sustainability reporting based on GRI in the developing country of Pakistan to extend the findings of previous studies from conventional sustainability reporting to the globally accepted GRI based sustainability reporting. Using system theory, this study provides an additional contribution to the consideration concerning sustainability reporting based on GRI standards in the context of Pakistan.

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Is there any difference between the theory and practice for the association between environmental sustainability and firm performance in Pakistan?

Cited by 13 publications

References 64 publications

Investment efficiency and environmental, social, and governance reporting: Perspective from corporate integration management

Investment efficiency and environmental, social, and governance reporting: Perspective from corporate integration management

The mediating effect of sustainability strategy between sustainability committees and business performance: can persistent assessment condition this effect?

Evaluating sustainability reporting on GRI standards in developing countries: a case of Pakistan

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