Motivations and impacts of sustainability reporting in the Indo‐Pacific region: Normative and instrumental stakeholder approaches

Abstract

Despite the elusive debate on different stakeholder approaches to sustainability reporting in the developed world, few studies have so far explored stakeholder influences on management perceptions of the motivations for and the impact of sustainability reporting in the developing country contexts. Using a survey questionnaire complemented by a series of interviews with business managers in five countries in the Indo-Pacific region, this study investigates the motivations and impacts of the rapidly growing sustainability reporting practice in this emerging area. The study finds that corporate sustainability reporting in the Indo-Pacific region is generally driven more by normative and regulatory stakeholder pressures than by economic considerations, especially for larger companies and companies with more overseas presence. However, in terms of the perceived impacts of sustainability reporting, economic benefits feature more prominently in both survey and interview data. It appears that companies believe they receive a win-win outcome by "doing good," although their "doing good" is more from a normative and regulatory call than from a belief in business cases.

Online sustainability information disclosure of mold companies

“…Besides that, disclosing sustainability information attracts better employees and increases their motivation, commitment and loyalty, which is translated into financial benefits (Branco and Rodrigues, 2008). Qian et al (2020) also highlight that corporate sustainability reporting provides an opportunity for companies to distinguish themselves from competitors in the global marketplace, becoming by this way as a major driver for sustainability reporting. Another study that addresses organizations in the Indo-Pacific region enhances "reputation" as a major influence of sustainability reporting.…”

Environmental sustainability engagement of firms: The roles of social capital, resources, and managerial entrepreneurial orientation of small and medium enterprises in Vietnam

“…Given the liability of smallness of SMEs (i.e., limited resources to allocate for climate change mitigation initiatives) (Calza, Parmentola, & Tutore, 2020), a significant research question focuses on how they compensate for this liability to gain access to resources to support their EM initiatives. Although previous studies have examined the role of financial resources, technology, managerial know‐how, corporate governance, government regulations or business support programmes and industry forces (Amran, Lee, & Devi, 2014; Calza, Parmentola, & Tutore, 2020; Halme & Korpela, 2014; Jansson, Nilsson, Modig, & Hed Vall, 2017; Knight et al, 2019; Liao, 2018; Qian, Tilt, Dissanayake, & Kuruppu, 2020), research on the role of the more intangible yet strategically beneficial resources such as social capital that are external to SMEs is rather limited. This research gap in the literature points out the remaining opportunities for research that explore how SMEs leverage their social capital that represent potential pools of resources that they can exploit to their advantage (Calza, Parmentola, & Tutore, 2020; Canevari‐Luzardo; Liao, 2018; Nahapiet & Ghoshal, 1998).…”

How do public companies respond to national challenges through sustainability reporting? – The case of Sri Lanka

“…By using ISCT, this paper offers a novel perspective on how the global hypernorms of sustainability reporting as well as local microsocial/contextual considerations are important drivers for sustainability reporting. Prior studies have mainly focused on iterating the significance of particular contexts in shaping sustainability reporting practices (de Villiers et al , 2014; Tilt, 2018) and/or distinct areas of sustainability reporting such as the motivations and barriers experienced in developing countries (Dissanayake et al , 2020; Qian et al , 2020). Hence, the findings of this paper contribute to the existing literature by expanding on senior-level management’s strategic considerations for sustainability reporting and delving into interrelationships between global and local contextual factors.…”

“…Given these differences in contexts, and increased level of business operations across international borders, it is necessary to understand how local sustainability issues in emerging economies are placed in the global phenomenon of sustainability reporting and/or sustainable development. Previous research confirms that sustainability reporting has risen over the years including adoption of frameworks such as GRI (Qian et al, 2020). However, what is less known is whether emphasis is placed, by senior-level corporate managers, on undertaking sustainability reporting merely for credibility/legitimacy purposes or if there is some level of integration between prioritising global norms with overcoming the social and environmental issues experienced in the contexts where these large businesses operate.…”