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Detecting Green-Washing or Substantial Organizational Communication: A Model for Testing Two-Way Interaction Between Risk and Sustainability Reporting

Author

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  • Klarissa Lueg

    (Center for Narratological Studies (CNS), University of Southern Denmark, Universitetsparken 1, 6000 Kolding, Denmark)

  • Rainer Lueg

    (Department of Business and Economics, University of Southern Denmark, Universitetsparken 1, 6000 Kolding, Denmark
    Institute of Management, Accounting and Finance, Leuphana University, Universitätsallee 1, 21335 Lüneburg, Germany)

Abstract

This paper contributes to the expanding landscape of methodological approaches and tools for investigating organizational sustainability communication. Our method allows for exploring two-way interactions between company risk and sustainability reporting. We present a basic but extendable method, while using only publicly available data. Our method adds additional features to established methods: It covers only risk (not returns), as theory mainly supports risk-reporting relationships and not return-reporting relationships. It tests for reverse causality of the risk-reporting relationship and links complementary explanations to different theoretical schools. Our method tests the model by employing data from a market with mandatory sustainability reporting to avoid self-selection bias.

Suggested Citation

  • Klarissa Lueg & Rainer Lueg, 2020. "Detecting Green-Washing or Substantial Organizational Communication: A Model for Testing Two-Way Interaction Between Risk and Sustainability Reporting," Sustainability, MDPI, vol. 12(6), pages 1-9, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2520-:d:336094
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    Cited by:

    1. Tomasz Witold Trojanowski & Pawel Tadeusz Kazibudzki, 2021. "Prospects and Constraints of Sustainable Marketing Mix Development for Poland’s High-Energy Consumer Goods," Energies, MDPI, vol. 14(24), pages 1-25, December.
    2. Rainer Lueg, 2022. "Constructs for Assessing Integrated Reports—Testing the Predictive Validity of a Taxonomy for Organization Size, Industry, and Performance," Sustainability, MDPI, vol. 14(12), pages 1-13, June.
    3. Jannika Kutzschbach & Parvina Tanikulova & Rainer Lueg, 2021. "The Role of Top Managers in Implementing Corporate Sustainability—A Systematic Literature Review on Small and Medium-Sized Enterprises," Administrative Sciences, MDPI, vol. 11(2), pages 1-19, April.
    4. Fabio Korinth & Rainer Lueg, 2022. "Corporate Sustainability and Risk Management—The U-Shaped Relationships of Disaggregated ESG Rating Scores and Risk in the German Capital Market," Sustainability, MDPI, vol. 14(9), pages 1-15, May.
    5. Klarissa Lueg & Rainer Lueg, 2021. "Deconstructing corporate sustainability narratives: A taxonomy for critical assessment of integrated reporting types," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1785-1800, November.
    6. Alfonso Del Giudice & Silvia Rigamonti, 2020. "Does Audit Improve the Quality of ESG Scores? Evidence from Corporate Misconduct," Sustainability, MDPI, vol. 12(14), pages 1-16, July.

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