IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i12p5052-d1414272.html
   My bibliography  Save this article

What Drives the Sustainability Reporting Intentions of Firms?

Author

Listed:
  • Charles Ofori-Owusu

    (Department of Accounting, University of Ghana Business School, Legon, Accra P.O. Box LG 78, Ghana)

  • Godfred Matthew Yaw Owusu

    (Department of Accounting, University of Ghana Business School, Legon, Accra P.O. Box LG 78, Ghana)

  • Cletus Agyenim-Boateng

    (Department of Accounting, University of Ghana Business School, Legon, Accra P.O. Box LG 78, Ghana)

  • Edem Emerald Sabah Welbeck

    (Department of Accounting, University of Ghana Business School, Legon, Accra P.O. Box LG 78, Ghana)

Abstract

Global leaders have adopted sustainable development goals to address critical issues like climate change, biodiversity loss, and pollution from both human activities and firms. Over the years, there has been a demand for stricter regulations, accountability, and improved sustainable business practices by stakeholders. In the field of accounting, voluntary disclosure of firms’ sustainability efforts has become an important component of firm reporting architecture. Despite being a voluntary practice in many jurisdictions, sustainability reporting has become essential for firms to demonstrate their commitment to meeting sustainability goals, ensuring future growth, and achieving long-term success. This study examines firms’ sustainability reporting intentions and further investigates the dominant factors that drive such intentions, relying on the extended version of the Theory of Planned Behaviour. Data for the study were gathered from managers of member firms with the Association of Ghana Industries. Using a total of 518 valid responses, the study’s hypotheses were tested employing the partial least square structural equation modelling technique. The results indicate that subjective norm, perceived behavioural control, dynamic capabilities, cultural tightness–looseness, sustainability commitment, and perceived benefit are good predictors of firms’ sustainability reporting intentions. However, the results suggest an inverse relationship exists between attitude, perceived cost, and intention to engage in sustainability reporting. The findings highlight some of the critical factors driving sustainability reporting behaviour among firms.

Suggested Citation

  • Charles Ofori-Owusu & Godfred Matthew Yaw Owusu & Cletus Agyenim-Boateng & Edem Emerald Sabah Welbeck, 2024. "What Drives the Sustainability Reporting Intentions of Firms?," Sustainability, MDPI, vol. 16(12), pages 1-17, June.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:12:p:5052-:d:1414272
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/12/5052/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/12/5052/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luke McGrath & Stephen Hynes & John McHale, 2022. "The Air we Breathe: Estimates of Air Pollution Extended Genuine Savings for Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(1), pages 161-188, March.
    2. de Villiers, Charl & Alexander, Deborah, 2014. "The institutionalisation of corporate social responsibility reporting," The British Accounting Review, Elsevier, vol. 46(2), pages 198-212.
    3. Xiaofang Chen & P.R. Weerathunga & Mohammad Nurunnabi & K.M.M.C.B. Kulathunga & W.H.M.S. Samarathunga, 2020. "Influences of Behavioral Intention to Engage in Environmental Accounting Practices for Corporate Sustainability: Managerial Perspectives from a Developing Country," Sustainability, MDPI, vol. 12(13), pages 1-30, June.
    4. Coral B. Ingley, 2008. "Company growth and Board attitudes to corporate social responsibility," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 4(1), pages 17-39.
    5. Prabanga Thoradeniya & Janet Lee & Rebecca Tan & Aldónio Ferreira, 2015. "Sustainability reporting and the theory of planned behaviour," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 28(7), pages 1099-1137, September.
    6. Efrat, Kalanit & Hughes, Paul & Nemkova, Ekaterina & Souchon, Anne L. & Sy-Changco, Joseph, 2018. "Leveraging of Dynamic export capabilities for competitive advantage and performance consequences: Evidence from China," Journal of Business Research, Elsevier, vol. 84(C), pages 114-124.
    7. Federico Contu & Daniela Di Santo & Conrad Baldner & Antonio Pierro, 2023. "Examining the Interaction between Perceived Cultural Tightness and Prevention Regulatory Focus on Life Satisfaction in Italy," Sustainability, MDPI, vol. 15(3), pages 1-10, January.
    8. Md Moazzem Hossain & Manzurul Alam & Muhammad Azizul Islam & Angela Hecimovic, 2015. "Do stakeholders or social obligations drive corporate social and environmental responsibility reporting? Managerial views from a developing country," Qualitative Research in Accounting & Management, Emerald Group Publishing Limited, vol. 12(3), pages 287-314, August.
    9. Ramona Zharfpeykan & Davood Askarany, 2023. "Sustainability Reporting and Organisational Factors," JRFM, MDPI, vol. 16(3), pages 1-18, March.
    10. Moez Essid & Nicolas Berland, 2018. "Adoption of environmental management tools: the dynamic capabilities contributions," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 9(3), pages 229-252, July.
    11. Wendy Stubbs & Colin Higgins & Markus Milne, 2013. "Why Do Companies Not Produce Sustainability Reports?," Business Strategy and the Environment, Wiley Blackwell, vol. 22(7), pages 456-470, November.
    12. Owusu Acheampong & Courage Simon Kofi Dogbe & Faisal Iddris, 2022. "Sustainability Reporting by Owner-Managers of SMEs: The Perspective of Theory of Planned Behavior (TPB)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 20(97), pages 27-46.
    13. Salim, Taghreed Abu & El Barachi, May & Mohamed, Ahmed Alfatih D. & Halstead, Susanne & Babreak, Nasser, 2022. "The mediator and moderator roles of perceived cost on the relationship between organizational readiness and the intention to adopt blockchain technology," Technology in Society, Elsevier, vol. 71(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Colin Higgins & Wendy Stubbs & Markus Milne, 2018. "Is Sustainability Reporting Becoming Institutionalised? The Role of an Issues-Based Field," Journal of Business Ethics, Springer, vol. 147(2), pages 309-326, January.
    2. Cecília Carmo & Mercedes Miguéis, 2022. "Voluntary Sustainability Disclosures in Non-Listed Companies: An Exploratory Study on Motives and Practices," Sustainability, MDPI, vol. 14(12), pages 1-22, June.
    3. Marco Fasan & Chiara Mio, 2017. "Fostering Stakeholder Engagement: The Role of Materiality Disclosure in Integrated Reporting," Business Strategy and the Environment, Wiley Blackwell, vol. 26(3), pages 288-305, March.
    4. Merriam Haffar & Cory Searcy, 2018. "Target‐setting for ecological resilience: Are companies setting environmental sustainability targets in line with planetary thresholds?," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 1079-1092, November.
    5. Davide Giacomini & Paola Zola & Diego Paredi & Mario Mazzoleni, 2020. "Environmental disclosure and stakeholder engagement via social media: State of the art and potential in public utilities," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1552-1564, July.
    6. Mădălina Dumitru & Justyna Dyduch & Raluca-Gina Gușe & Joanna Krasodomska, 2017. "Corporate Reporting Practices in Poland and Romania – An Ex-ante Study to the New Non-financial Reporting European Directive," Accounting in Europe, Taylor & Francis Journals, vol. 14(3), pages 279-304, September.
    7. Ramona Zharfpeykan, 2021. "Representative account or greenwashing? Voluntary sustainability reports in Australia's mining/metals and financial services industries," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2209-2223, May.
    8. Dongxue Wang & Yugang He, 2025. "Navigating Structural Shocks: Bayesian Dynamic Stochastic General Equilibrium Approaches to Forecasting Macroeconomic Stability," Mathematics, MDPI, vol. 13(14), pages 1-25, July.
    9. Nina Evans & Janet Sawyer, 2010. "CSR and stakeholders of small businesses in regional South Australia," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 6(3), pages 433-451, August.
    10. Breeda Comyns, 2016. "Determinants of GHG Reporting: An Analysis of Global Oil and Gas Companies," Journal of Business Ethics, Springer, vol. 136(2), pages 349-369, June.
    11. Wang, Ruizhe & Chua, Wai Fong & Simnett, Roger & Zhou, Shan, 2024. "Is greater connectivity of financial and non-financial information in annual reports valued by market participants?," The British Accounting Review, Elsevier, vol. 56(6).
    12. Xue, Xingnan & Hu, Nan, 2023. "Economic policy uncertainty and imitation behaviors of corporate social responsibility practices: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 89(C).
    13. Warren Maroun, 2020. "A Conceptual Model for Understanding Corporate Social Responsibility Assurance Practice," Journal of Business Ethics, Springer, vol. 161(1), pages 187-209, January.
    14. Alessandro Lai & Gaia Melloni & Riccardo Stacchezzini, 2016. "Corporate Sustainable Development: is ‘Integrated Reporting’ a Legitimation Strategy?," Business Strategy and the Environment, Wiley Blackwell, vol. 25(3), pages 165-177, March.
    15. Tassisius Muzivi, 2022. "An Effective and Prompt Assessment of Good Corporate Governance on Public Sector Entities- Evaluation of Ideal Best Practices," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(1), pages 690-698, January.
    16. Inova Fitri Siregar & Tubagus Ismail & Muhammad Taqi & Nurhayati Soleha, 2024. "Influence of ESG on Sustainability Reporting: Mediation Rule of Green Innovation and Investor Sentiment," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 452-463, January.
    17. Meike Nicole Schulte & Cody Morris Paris, 2024. "Working the system—An empirical analysis of the relationship between systems thinking, paradoxical cognition, and sustainability practices," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4154-4171, September.
    18. Viktor Fredrich & Siegfried Gudergan & Ricarda B. Bouncken, 2022. "Dynamic Capabilities, Internationalization and Growth of Small- and Medium-Sized Enterprises: The Roles of Research and Development Intensity and Collaborative Intensity," Management International Review, Springer, vol. 62(4), pages 611-642, August.
    19. Ruchi Agarwal, 2018. "A multiple perspective view to rampant fraudulent culture in the Indian insurance industry," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 16(4), pages 416-437.
    20. David Teh & Tehmina Khan, 2024. "Sustainability-Focused Accounting, Management, and Governance Research: A Bibliometric Analysis," Sustainability, MDPI, vol. 16(23), pages 1-46, November.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:12:p:5052-:d:1414272. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.