Corporate Sustainability Reporting: A Study in Disingenuity?

Posted: 10 Jul 2008

See all articles by Guler Aras

Guler Aras

Yildiz Technical University

David Crowther

De Montfort University

Date Written: 2008


Over recent years there has been a focus in corporate activity upon the concept of corporate social responsibility (CSR) and one of its central platforms, the notion of sustainability, and particularly sustainable development. We argue in this paper that the use of such a term has the effect of obfuscating the real situation regarding the effect of corporate activity upon the external environment and the consequent implications for the future. One of the effects of persuading that corporate activity is sustainable is that the cost of capital for the firm is reduced as investors are misled into thinking that the level of risk involved in their investment is lower than it actually is. We analyse the effects of this misrepresentation and argue for a fuller debate about sustainability.

Keywords: Corporate Social Responsibility (CSR),Corporate Social Responsibility (CSR),Corporate Sustainability, Cost of capital, Environmental information, Risk reduction, Sustainability, Sustainable development

JEL Classification: M14, M41, G39

Suggested Citation

Aras, Guler and Crowther, David, Corporate Sustainability Reporting: A Study in Disingenuity? (2008). Journal of Business Ethics, 2008, Available at SSRN:

Guler Aras

Yildiz Technical University ( email )

+90 212 3832515 (Phone)
+90 212 2594202 (Fax)


David Crowther (Contact Author)

De Montfort University ( email )

Milton Keynes, MK7 6HP
United Kingdom


Do you want regular updates from SSRN on Twitter?

Paper statistics

Abstract Views
PlumX Metrics