Financial Performance, Pollution Measures and the Propensity to Use Corporate Responsibility Reporting: Implications for Business and Legal Scholarship

17 Pages Posted: 21 Jul 2009 Last revised: 6 Oct 2014

See all articles by Adam J. Sulkowski

Adam J. Sulkowski

Babson College

D. Steven White

University of Massachusetts at Dartmouth - Charlton College of Business

Date Written: September 6, 2009

Abstract

Thousands of companies around the world, including a majority of the Global Fortune 250, voluntarily report on their environmental, societal, and economic impacts, a practice known as corporate responsibility (CR) reporting. The practice is alternatively known as corporate social responsibility (CSR) reporting, sustainability reporting, citizenship reporting, or triple bottom line (TBL) reporting.

A brief history of regulation-by-disclosure and CR reporting is presented. The authors then review related business and legal scholarship. Two broad lines of inquiry emerge: first, are CR disclosures associated with businesses that perform well financially, and, second, are CR disclosures associated with businesses that perform well environmentally. The authors test both of these relationships simultaneously using logistic regression. The authors discuss the results of the statistical testing and conclude with suggestions for future lines of research. This article therefore makes a significant contribution to legal and management scholarship by determining the impact that financial and environmental variables have on whether or not a company utilizes CR reporting. The results should provoke further research in the fields of both business and law.

Keywords: Corporate responsiblity reporting, financial performance, pollution, Tobin's Q, Logistic regression

JEL Classification: G3, H87, K32, M14

Suggested Citation

Sulkowski, Adam J. and White, D. Steven, Financial Performance, Pollution Measures and the Propensity to Use Corporate Responsibility Reporting: Implications for Business and Legal Scholarship (September 6, 2009). Available at SSRN: https://ssrn.com/abstract=1436184 or http://dx.doi.org/10.2139/ssrn.1436184

Adam J. Sulkowski (Contact Author)

Babson College ( email )

231 Forest St.
Babson Park, MA 02457-0310
United States

HOME PAGE: http://www.babson.edu/Academics/faculty/profiles/Pages/sulkowski-adam.aspx

D. Steven White

University of Massachusetts at Dartmouth - Charlton College of Business ( email )

Department of Management & Marketing
285 Old Westport Road
North Dartmouth, MA 02747-2300
United States
5089998267 (Phone)

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