A REVIEW OF THE LITERATURE ON CORPORATE SUSTAINABILITY REPORTING AND ITS EFFECT ON FINANCIAL PERFORMANCE
Author(s):
Pragati Singh, Dr. S.P. Agrawal
Keywords:
Stakeholder Engagement, Sustainability Reporting, Global Reporting Initiative (GRI), Corporate Financial Performance, Corporate Governance, Corporate Social Responsibility (CSR), Environmental Responsibility.
Abstract
In recent years, stakeholder pressure on firms to implement sustainable practices has become a hot topic. This can be due to an increasing knowledge of the environment's implications and a desire to safeguard the world. Based on a review of prior research, this study explored the influence of corporate sustainability reporting systems on business performance. Even though many studies have studied this link in the past, there seems to be an absence of uniformity in the conclusions. The study's findings have been unpredictable and conflicting, ranging from favourable to unfavourable associations, to statistically irrelevant or combined results, depending on a variety of factors such as value higher than expected gains, shareholders viewing sustainability efforts as a cost item, investors not acknowledging disclosure, companies that use reporting as a validation tool for reputation, inadequate regulatory action, sustainability reporting metrics selection, and financial reporting metrics. We did note, however, that most data indicated a favourable association. This program attempts to critically review existing research to focus future research and provide more consistent and trustworthy results. This inquiry looked at 35 pieces of literature and revealed 13 studies that had beneficial results, eight studies that had strong negative impacts, five studies that had no significant association, and nine articles that had mixed findings. Sustainability reporting requirements, legislation, and standards are likewise anticipated to grow more stringent and compulsory in the not-too-distant future. Consequently, corporations should begin reporting on sustainability as soon as practicable to prevent regulatory action in the future. The credibility of sustainability reporting is another key challenge that must be addressed. To overcome this problem, organizations should have their sustainability reports independently assessed by renowned assurance firms such as KPMG, EY, and others, to create a reputation among stakeholders as trusted reporters. Without the trust and confidence of its stakeholders, a business will not be able to operate.
Article Details
Unique Paper ID: 155591

Publication Volume & Issue: Volume 9, Issue 1

Page(s): 1135 - 1153
Article Preview & Download


Share This Article

Conference Alert

NCSST-2021

AICTE Sponsored National Conference on Smart Systems and Technologies

Last Date: 25th November 2021

SWEC- Management

LATEST INNOVATION’S AND FUTURE TRENDS IN MANAGEMENT

Last Date: 7th November 2021

Go To Issue



Call For Paper

Volume 8 Issue 4

Last Date 25 September 2021

About Us

IJIRT.org enables door in research by providing high quality research articles in open access market.

Send us any query related to your research on editor@ijirt.org

Social Media

Google Verified Reviews

Contact Details

Telephone:6351679790
Email: editor@ijirt.org
Website: ijirt.org

Policies