Main Article Content
Abstract
This study investigates the trends and benefits of corporate transparency and environmental reporting, responding to various stakeholders' increasing demand for transparency. Employing a mixed-methods research design, this study combines qualitative, in-depth interviews with industry experts and quantitative analysis of secondary data from corporate reports, financial statements, and sustainability disclosures. This approach ensures a comprehensive understanding of the subject. The study reveals the growing demand for transparency, adoption of standardized reporting frameworks, and digital transformation are vital trends enhancing corporate transparency practices. Environmental reporting notably improves corporate reputation, supports risk management, and drives innovation. However, challenges such as inconsistent reporting standards, greenwashing, resource requirements, and data complexity were identified as significant obstacles. The research highlights the importance of tailored transparency strategies, especially for SMEs, and suggests the need for more standardized and universally accepted reporting frameworks. The study's original combination of qualitative and quantitative methods provides valuable insights for academic and practical applications, guiding policymakers and industry leaders in promoting comprehensive and effective transparency practices. Future research should focus on developing scalable solutions for transparency and assessing the long-term impacts of these practices.
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References
- Adams, C. A., & Frost, G. R. (2008). Integrating sustainability reporting into management practices. Accounting Forum, 32(4), 288-302. https://doi.org/10.1016/j.accfor.2008.05.002
- Bebbington, J., Larrinaga, C., & Moneva, J. M. (2008). Corporate social reporting and reputation risk management. Accounting, Auditing & Accountability Journal, 21(3), 337-361. https://doi.org/10.1108/09513570810863932
- Bouten, L., Everaert, P., Van Liedekerke, L., De Moor, L., & Christiaens, J. (2011). Corporate social responsibility reporting: A comprehensive picture? Accounting Forum, 35(3), 187-204. https://doi.org/10.1016/j.accfor.2011.06.007
- Caputo, F. (2021). Corporate governance and report characteristics in enhancing environmental information transparency. Journal of Environmental Management, 289, 112545. https://doi.org/10.1016/j.jenvman.2021.112545
- Chen, J. (2023). Sharing air pollution data to improve corporate environmental disclosure. Environmental Research Letters, 18(1), 015004. https://doi.org/10.1088/1748-9326/aca6d0
- Cho, C. H., Michelon, G., Patten, D. M., & Roberts, R. W. (2015). CSR disclosure: The more things change...? Accounting, Auditing & Accountability Journal, 28(1), 14-35. https://doi.org/10.1108/AAAJ-12-2013-1549
- Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4-5), 303-327. https://doi.org/10.1016/j.aos.2007.05.003
- Dilla, W. N., Janvrin, D. J., & Raschke, R. L. (2010). Interactive data visualization: New directions for accounting information systems research. Journal of Information Systems, 24(2), 1-37. https://doi.org/10.2308/jis.2010.24.2.1
- Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835-2857. https://doi.org/10.1287/mnsc.2014.1984
- Eccles, R. G., Serafeim, G., & Krzus, M. P. (2011). Market interest in nonfinancial information. Journal of Applied Corporate Finance, 23(4), 113-127. https://doi.org/10.1111/j.1745-6622.2011.00357.x
- Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210-233. https://doi.org/10.1080/20430795.2015.1118917
- Frostenson, M., Helin, S., & Sandström, J. (2012). The standards of CSR: A case study of the Swedish industry. Journal of Business Ethics, 111(2), 265-278. https://doi.org/10.1007/s10551-012-1203-2
- García-Sánchez, I. M., Rodríguez-Ariza, L., & Frías-Aceituno, J. V. (2015). The cultural system and emissions disclosure. International Business Review, 24(5), 758-771. https://doi.org/10.1016/j.ibusrev.2015.01.001
- Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3), 405-440. https://doi.org/10.1016/S0165-4101(01)00018-0
- López, M. V., Garcia, A., & Rodriguez, L. (2007). Sustainable development and corporate performance: A study based on the Dow Jones Sustainability Index. Journal of Business Ethics, 75(3), 285-300. https://doi.org/10.1007/s10551-006-9253-8
- Lyon, T. P., & Maxwell, J. W. (2011). Greenwash: Corporate environmental disclosure under threat of audit. Journal of Economics & Management Strategy, 20(1), 3-41. https://doi.org/10.1111/j.1530-9134.2010.00282.x
- Mgilane, L. (2023). Environmental reporting trends among manufacturing firms: A focus on social and environmental activities. Sustainability Accounting, Management and Policy Journal, 14(1), 109-130. https://doi.org/10.1108/SAMPJ-10-2022-0456
- Porter, M. E., & van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97-118. https://doi.org/10.1257/jep.9.4.97
- Verrecchia, R. E. (2001). Essays on disclosure. Journal of Accounting and Economics, 32(1-3), 97-180. https://doi.org/10.1016/S0165-4101(01)00025-8
References
Adams, C. A., & Frost, G. R. (2008). Integrating sustainability reporting into management practices. Accounting Forum, 32(4), 288-302. https://doi.org/10.1016/j.accfor.2008.05.002
Bebbington, J., Larrinaga, C., & Moneva, J. M. (2008). Corporate social reporting and reputation risk management. Accounting, Auditing & Accountability Journal, 21(3), 337-361. https://doi.org/10.1108/09513570810863932
Bouten, L., Everaert, P., Van Liedekerke, L., De Moor, L., & Christiaens, J. (2011). Corporate social responsibility reporting: A comprehensive picture? Accounting Forum, 35(3), 187-204. https://doi.org/10.1016/j.accfor.2011.06.007
Caputo, F. (2021). Corporate governance and report characteristics in enhancing environmental information transparency. Journal of Environmental Management, 289, 112545. https://doi.org/10.1016/j.jenvman.2021.112545
Chen, J. (2023). Sharing air pollution data to improve corporate environmental disclosure. Environmental Research Letters, 18(1), 015004. https://doi.org/10.1088/1748-9326/aca6d0
Cho, C. H., Michelon, G., Patten, D. M., & Roberts, R. W. (2015). CSR disclosure: The more things change...? Accounting, Auditing & Accountability Journal, 28(1), 14-35. https://doi.org/10.1108/AAAJ-12-2013-1549
Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4-5), 303-327. https://doi.org/10.1016/j.aos.2007.05.003
Dilla, W. N., Janvrin, D. J., & Raschke, R. L. (2010). Interactive data visualization: New directions for accounting information systems research. Journal of Information Systems, 24(2), 1-37. https://doi.org/10.2308/jis.2010.24.2.1
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835-2857. https://doi.org/10.1287/mnsc.2014.1984
Eccles, R. G., Serafeim, G., & Krzus, M. P. (2011). Market interest in nonfinancial information. Journal of Applied Corporate Finance, 23(4), 113-127. https://doi.org/10.1111/j.1745-6622.2011.00357.x
Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210-233. https://doi.org/10.1080/20430795.2015.1118917
Frostenson, M., Helin, S., & Sandström, J. (2012). The standards of CSR: A case study of the Swedish industry. Journal of Business Ethics, 111(2), 265-278. https://doi.org/10.1007/s10551-012-1203-2
García-Sánchez, I. M., Rodríguez-Ariza, L., & Frías-Aceituno, J. V. (2015). The cultural system and emissions disclosure. International Business Review, 24(5), 758-771. https://doi.org/10.1016/j.ibusrev.2015.01.001
Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3), 405-440. https://doi.org/10.1016/S0165-4101(01)00018-0
López, M. V., Garcia, A., & Rodriguez, L. (2007). Sustainable development and corporate performance: A study based on the Dow Jones Sustainability Index. Journal of Business Ethics, 75(3), 285-300. https://doi.org/10.1007/s10551-006-9253-8
Lyon, T. P., & Maxwell, J. W. (2011). Greenwash: Corporate environmental disclosure under threat of audit. Journal of Economics & Management Strategy, 20(1), 3-41. https://doi.org/10.1111/j.1530-9134.2010.00282.x
Mgilane, L. (2023). Environmental reporting trends among manufacturing firms: A focus on social and environmental activities. Sustainability Accounting, Management and Policy Journal, 14(1), 109-130. https://doi.org/10.1108/SAMPJ-10-2022-0456
Porter, M. E., & van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97-118. https://doi.org/10.1257/jep.9.4.97
Verrecchia, R. E. (2001). Essays on disclosure. Journal of Accounting and Economics, 32(1-3), 97-180. https://doi.org/10.1016/S0165-4101(01)00025-8