Why companies might under‐communicate their efforts for sustainable development and what can be done?

Falchi, Alice; Grolleau, Gilles; Mzoughi, Naoufel

doi:10.1002/bse.2991

Cited by 29 publications

(24 citation statements)

References 66 publications

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“…One of the most popular among the Malaysia and Indonesia publicly listed companies is green innovation. Green innovation is an effort to position the company as the most sustainable firm to win over stakeholders and draw the attention of investors (Falchi et al 2022).…”

Section: Discussionmentioning

confidence: 99%

“…In addition, Southeast Asian countries like Malaysia and Indonesia aim for low-carbon countries but require green intentions and initiatives. One of the most popular Malaysia and Indonesia publicly listed companies is green innovation (Mustaffa et al 2022); green innovation is an effort to position the company as the most sustainable firm to win over stakeholders and draw the attention of investors (Falchi et al 2022).…”

Section: Introductionmentioning

confidence: 99%

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Hope-hype of green innovation, corporate governance index, and impact on firm financial performance: a comparative study of Southeast Asian countries

Khan

Johl

Luthra

2023

Environ Sci Pollut Res

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The current production and conception have impacted the environmental hazards. Green innovation (GI) is the ideal solution for sustainable production, consumption, and ecological conservation. The objective of the study is to compare comprehensive green innovation (green product, process, service, and organization) impact on firm financial performance in Malaysia and Indonesia, along with the first study to measure the moderation role of the corporate governance index. This study has addressed the gap by developing the green innovation and corporate governance index. Collected panel data from the top 188 publicly listed firms for 3 years and analyzed it using the general least square method. The empirical evidence demonstrates that the green innovation practice is better in Malaysia, and the outcome also shows that the significance level is higher in Indonesia. This study also provides empirical evidence that board composition has a positive moderation relationship betwixt GI and business performance in Malaysia but is insignificant in Indonesia. This comparative study provides new insights to the policymakers and practitioners of both countries to monitor and manage green innovation practices.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Hope-hype of green innovation, corporate governance index, and impact on firm financial performance: a comparative study of Southeast Asian countries

Khan

Johl

Luthra

2023

Environ Sci Pollut Res

View full text Add to dashboard Cite

show abstract

“…One of the most popular amongst the Malaysia and Indonesia publicly listed companies is green innovation. Green Innovation is an effort to position the company as the most sustainable rm to win over stakeholders and draw the attention of investors (Falchi et al, 2022).…”

Section: Discussionmentioning

confidence: 99%

“…In addition, Southeast Asian countries like Malaysia and Indonesia aim for low-carbon countries but require green intentions and initiatives. One of the most popular amongst Malaysia and Indonesia publicly listed companies is green innovation; Green Innovation is an effort to position the company as the most sustainable rm to win over stakeholders and draw the attention of investors (Falchi et al, 2022). This wave has been observed in operating and non-operating business operations and the R&D activities of various multinational companies.…”

Section: Introductionmentioning

confidence: 99%

Vinculum of Green Innovation, Corporate Governance Index, and Impact on Financial Firm Performance: A Comparative Study of Two Southeast Asian Countries

Khan

Johl

Luthra

2023

Preprint

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The current production and conception have impacted the environmental hazards. Green Innovation (GI) is the ideal solution for sustainable production, consumption, and ecological conservation. The objective of the study is to compare comprehensive green innovation (covering product, process, service & organization) impact on firm financial performance in Malaysia and Indonesia, along with the first study to measure the moderation role of the corporate governance index. This study has addressed the gap by developing the green innovation and corporate governance index. Collected panel data from the top 188 publicly listed firms for three years and analyzed it using the General Least Square (GLS) method. The empirical evidence demonstrates that the green innovation practice is better in Malaysia, and the outcome also shows that the significance level is higher than in Indonesia. In addition, this study provides empirical evidence that board composition has a positive moderation relationship betwixt GI and business performance in Malaysia but is insignificant in Indonesia. This comparative study provides new insights to the policymakers and practitioners of both countries.

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“…It is quite common and a fixture for most companies, with approximately 85% of companies engaging in CSR activities (Governance and Accountability Institute, 2018). It is well known that firms actively communicate their CSR activities to the public to engender, among other positive consequences, perceptions of ethicality (Alhouti et al, 2021; see Falchi et al, 2022 for an alternative view). For example, consumers often assume that firms engaged in CSR consider and prioritize the interests of others beyond their immediate self‐interest (Mish & Scammon, 2010).…”

Section: Introductionmentioning

confidence: 99%

Fluency and the perceived ethicality of corporate social (ir)responsibility

Grolleau

Mzoughi²,

Wright

2022

Psychology and Marketing

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Corporate social responsibility (CSR) has remained a focus in business and society for decades. Existing research, however, has only begun to examine moral violations, or incidences of corporate social irresponsibility (CSI). In this article, we identify perceptual fluency-the ease with which information is processed-as an influential factor. Through three experiments, we reveal that individuals view incidences of CSI as less unethical when perceptual fluency is low (vs. high). This occurs because decreased perceptual fluency encourages deliberative processing, which impacts the perceived ethicality of CSI incidences. These results replicate across different countries, product categories, and CSI typologies. We also identify the type of corporate action as an important boundary condition; as perceptual fluency did not impact the perceived ethicality of analogous CSR incidences. We also find that the effect is influenced by the individual moral philosophy of the consumer, with the effect occurring only for those higher in moral relativism. Overall, these results empirically disentangle competing theoretical accounts linking perceptual fluency with moral judgment, and show that businesses and other parties should consider the fluency of CSI communications along with the moral philosophy of their customers and other stakeholders.

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Why companies might under‐communicate their efforts for sustainable development and what can be done?

Cited by 29 publications

References 66 publications

Hope-hype of green innovation, corporate governance index, and impact on firm financial performance: a comparative study of Southeast Asian countries

Hope-hype of green innovation, corporate governance index, and impact on firm financial performance: a comparative study of Southeast Asian countries

Vinculum of Green Innovation, Corporate Governance Index, and Impact on Financial Firm Performance: A Comparative Study of Two Southeast Asian Countries

Fluency and the perceived ethicality of corporate social (ir)responsibility

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