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Sustainability Reporting and Firm Performance: A Thematic Empirical Review

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  • Nnedu, Stanley Chinonso

    (Accounting Department, Veritas University, Abuja, Nigeria)

Abstract

This study investigates the relationship between sustainability reporting and firm performance through a comprehensive thematic review, focusing on the economic, social, and environmental dimensions. Data was collected through a rigorous search of relevant academic literature published between 2018 and 2024. Employing content analysis, the study synthesizes empirical findings across various sectors and regions. The analysis reveals that sustainability reporting can enhance financial performance by improving transparency, stakeholder trust, and operational efficiency. However, its impact is highly context-dependent. Economic reporting fosters investor confidence and reduces financing costs but may signal inefficiencies in emerging markets. Social reporting strengthens brand loyalty and stakeholder engagement but involves high implementation costs that could strain short-term financial outcomes. Environmental reporting is particularly effective in resource-intensive sectors, enhancing regulatory compliance and investor trust. The conclusions emphasize the need for tailored reporting strategies aligned with sectoral, regional, and stakeholder dynamics to maximize benefits and mitigate risks. Recommendations include integrating sustainability practices into core business strategies to drive long-term value creation and adopting sector-specific approaches to balance profitability with societal expectations. Future research should explore moderating variables such as governance quality, industry sensitivity, and stakeholder pressure to deepen understanding of how sustainability reporting influences financial outcomes. This study advances knowledge on sustainability reporting as a strategic tool for corporate success and offers actionable insights for businesses, policymakers, and researchers.

Suggested Citation

  • Nnedu, Stanley Chinonso, 2024. "Sustainability Reporting and Firm Performance: A Thematic Empirical Review," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(12), pages 901-912, December.
    • Handle: RePEc:bjc:journl:v:11:y:2024:i:12:p:901-912
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    References listed on IDEAS

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    1. José V. Frias‐Aceituno & Lazaro Rodriguez‐Ariza & I.M Garcia‐Sanchez, 2013. "The Role of the Board in the Dissemination of Integrated Corporate Social Reporting," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(4), pages 219-233, July.
    2. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    3. M. López & Arminda Garcia & Lazaro Rodriguez, 2007. "Sustainable Development and Corporate Performance: A Study Based on the Dow Jones Sustainability Index," Journal of Business Ethics, Springer, vol. 75(3), pages 285-300, October.
    4. Giovanna Michelon & Giacomo Boesso & Kamalesh Kumar, 2013. "Examining the Link between Strategic Corporate Social Responsibility and Company Performance: An Analysis of the Best Corporate Citizens," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(2), pages 81-94, March.
    5. Thomas Dyllick & Kai Hockerts, 2002. "Beyond the business case for corporate sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 11(2), pages 130-141, March.
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