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How do Independent Directors Behave with Respect to Sustainability Disclosure?

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  • Isabel‐María García‐Sánchez
  • Jennifer Martínez‐Ferrero

Abstract

This paper examines how independent directors behave with respect to sustainability disclosure, attending to its comparability, utility, and reliability, and the moderating effect of the level of socially responsible performance. A large sample of international companies from the period 2006–2014 was used to develop our models of analysis. This research evidences that independent directors show an initial opposition to this voluntary disclosure policy unless there is a higher sustainable development and performance. Several disclosure aspects are examined where, first, utility and comparability of sustainability disclosure are fomented by independent directors only under a greater social and environmental performance. Second, this performance reinforces the positive orientation of independents towards the external assurance of social and environmental disclosure. Thus, the initial opposition of independent directors towards a sustainability disclosure is avoided if there is a greater responsible performance that reduces their reputation risks associated with potentially misleading information. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment

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  • Isabel‐María García‐Sánchez & Jennifer Martínez‐Ferrero, 2018. "How do Independent Directors Behave with Respect to Sustainability Disclosure?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 609-627, July.
    • Handle: RePEc:wly:corsem:v:25:y:2018:i:4:p:609-627
    DOI: 10.1002/csr.1481
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    3. Andrew Osei Agyemang & Kong Yusheng & Angelina Kissiwaa Twum & Emmanuel Caesar Ayamba & Maxwell Kongkuah & Mohammed Musah, 2021. "Trend and relationship between environmental accounting disclosure and environmental performance for mining companies listed in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 12192-12216, August.
    4. Joel A. Martínez-Regalado & Cinthia Leonora Murillo-Avalos & Purificación Vicente-Galindo & Mónica Jiménez-Hernández & José Luis Vicente-Villardón, 2021. "Using HJ-Biplot and External Logistic Biplot as Machine Learning Methods for Corporate Social Responsibility Practices for Sustainable Development," Mathematics, MDPI, vol. 9(20), pages 1-16, October.
    5. Isabel María García‐Sánchez & María‐Elena Gómez‐Miranda & Fátima David & Lazaro Rodríguez‐Ariza, 2019. "Analyst coverage and forecast accuracy when CSR reports improve stakeholder engagement: The Global Reporting Initiative‐International Finance Corporation disclosure strategy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1392-1406, November.
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    7. Qi Wang & Maoxia Sun & Kongwen Wang, 2023. "Do Reputation Incentives Matter? Busy Directors and Corporate Social Responsibility in China," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    8. Cinthia Leonora Murillo‐Avalos & Mitzi Cubilla‐Montilla & Miguel Ángel Celestino Sánchez & Purificación Vicente‐Galindo, 2021. "What environmental social responsibility practices do large companies manage for sustainable development?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 153-168, January.
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    10. Lozano, M. Belén & Martínez-Ferrero, Jennifer, 2022. "Do emerging and developed countries differ in terms of sustainable performance? Analysis of board, ownership and country-level factors," Research in International Business and Finance, Elsevier, vol. 62(C).
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