Joanna Ho, Cody Lu and Lorenzo Lucianetti
This paper aims to examine whether and how two firm-level factors jointly moderate the relation between corporate social responsibility (CSR) activities and firm performance: (1…
Abstract
Purpose
This paper aims to examine whether and how two firm-level factors jointly moderate the relation between corporate social responsibility (CSR) activities and firm performance: (1) the “alignment” between a firm's CSR activities and risk preferences and (2) performance measurement systems (PMS).
Design/methodology/approach
Using survey responses from top managers of private Italian companies and matching archival data on the financial performance of these companies, the authors show that the positive effect of CSR activities on firm performance is contingent upon CSR–risk alignment, which creates competitive advantages, and the extent to which the firm's PMS are supportive of its strategic initiatives.
Findings
The findings suggest that to extract economic benefits from CSR activities, firms must align CSR activities with their risk preferences and rely on PMS to overcome the causal ambiguity between CSR activities and competitive advantage.
Originality/value
Overall, this study contributes to both the CSR–firm performance and consequences of PMS literature and holds significant practical implications.
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Joanna Dyczkowska, Joanna Krasodomska and Fiona Robertson
Stakeholder capitalism (SC) advocates that organisations should focus on creating long-term value for all key stakeholders rather than maximising short-term profits for…
Abstract
Purpose
Stakeholder capitalism (SC) advocates that organisations should focus on creating long-term value for all key stakeholders rather than maximising short-term profits for shareholders. This paper aims to explore whether and how business organisations have applied stakeholder capitalism principles (SCPs) during the COVID-19 pandemic and how these efforts were communicated in integrated reports.
Design/methodology/approach
This study is based on the content analysis of the text extracted from the integrated reports of 22 companies categorised as excellent in the 2020 EY Excellence in Integrated Reporting Award 2020. The research material consisted of paragraphs that reflected how the company observed the SCPs in practice.
Findings
The stakeholder responsibility principle was the most represented by the examined companies, followed by the principles of continuous creation, stakeholder engagement and stakeholder cooperation. The COVID-19 pandemic has propelled the necessity of implementing innovative solutions to counteract the virus's spread. It has also spurred the need for two-way digitalised communication between the executives and stakeholders. The new situation also required collaborative approaches in the forms of partnerships, joint initiatives and programmes to ensure employee safety and help communities recover from the social and economic impacts of the pandemic.
Originality/value
This study links SC with integrated reporting (IR) and contributes to the literature by providing new insights into how SCPs have been applied during the COVID-19 pandemic. This discussion suggests that whereas these principles determine how the companies must act to satisfy stakeholders expectations, integrating reporting may help develop a report that is stakeholder-oriented and which responds to their information needs.
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Ewelina Zarzycka and Joanna Krasodomska
The paper aims to examine if corporate characteristics, general contextual factors and the internal context differentiate the quality and quantity of the disclosed non-financial…
Abstract
Purpose
The paper aims to examine if corporate characteristics, general contextual factors and the internal context differentiate the quality and quantity of the disclosed non-financial Key Performance Indicators (KPIs).
Design/methodology/approach
The study is based on content analysis of the disclosures provided by large public interest entities operating in Poland after the introduction of the Directive 2014/95/EU. The quality of the KPIs disclosures is measured with the disclosure index. Regression analysis and selected statistical tests are used to examine the influence of the selected factors on the differences in the index value and corporate disclosure choices as regards the KPIs.
Findings
The study findings indicate that the sample companies provide a variety of non-financial KPIs in a manner that makes their effective comparison difficult. The research confirms that mainly industry, ecologists and the reporting standard determine the significant differences in the quality of the KPIs disclosures and the quantity of presented KPIs.
Research limitations/implications
The paper adds to the understanding of the differences in the quality of KPIs presentation and the choice of disclosed KPIs.
Practical implications
The paper includes suggestions on how to change corporate practice with regard to the non-financial KPIs disclosures.
Originality/value
We shed additional light on the importance of internal contextual factors such as the reporting standard and the reporters' experience in providing non-financial KPIs disclosures.
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Joanna Krasodomska and Ewelina Zarzycka
The paper aims to explore the effect of stakeholder pressure on the disclosure of key performance indicators (KPIs) and the patterns of this disclosure in large public interest…
Abstract
Purpose
The paper aims to explore the effect of stakeholder pressure on the disclosure of key performance indicators (KPIs) and the patterns of this disclosure in large public interest entities (PIEs).
Design/methodology/approach
The study is based on the content analysis of the disclosures provided by 169 large (PIEs) operating in Poland in 2019. The data was hand-collected from the companies’ non-financial statements. The research hypotheses were empirically tested with the use of linear regression.
Findings
The explanation for the disclosure of KPIs can be found in stakeholder theory, operationalized by stakeholder pressure linked to industry. In line with the expectations, business-related KPIs are disclosed by companies operating in industries with high pressure from investors, environment-related KPIs are presented by companies operating in environmentally sensitive industries and companies operating in industries with high pressure from employees disclose society-related KPIs. According to the results of the study, reporting on employee-related KPIs is accompanied by environmental and social KPI disclosures.
Originality/value
The study contributes to the literature on corporate non-financial disclosures as it provides new insights into non-financial KPI disclosures in a new and relatively unexplored institutional setting established by the Directive 2014/95/EU. While researchers recognize the stakeholders’ environmental and social concerns, there is nevertheless a lack of understanding of their implications for KPIs in measuring social practice. The research fills that gap by addressing the specific impact of different stakeholder groups on the disclosure of KPIs.
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Anna Dębicka, Karolina Olejniczak and Joanna Skąpska
As a new concept for humane entrepreneurship (HumEnt) evolves, many new research questions arise. At the exploratory stage, the authors found it relevant to examine and discuss…
Abstract
Purpose
As a new concept for humane entrepreneurship (HumEnt) evolves, many new research questions arise. At the exploratory stage, the authors found it relevant to examine and discuss the perception of the fundamental assumptions of the HumEnt concept and activities undertaken in this area by business practice.
Design/methodology/approach
To thoroughly understand the studied phenomenon, a combination of quantitative and qualitative methods was used. An exploratory survey was obtained from 126 purposefully selected enterprises in Poland; then, a single case study was analysed.
Findings
The conducted analysis showed differences between the activities of enterprises and the perception of the HumEnt concept among employees that are especially noticeable at different levels of the management hierarchy.
Research limitations/implications
The multifaceted nature of the results obtained is limited by the inability to infer international differences, to capture trends over time and to generalise to the total population of enterprises.
Practical implications
Although the surveyed companies recognise the importance of the HumEnt concept, it is not tantamount to its execution. The research results may be valuable, especially for smaller enterprises, where the business practice may require support in applying the HumEnt approach.
Originality/value
The research explored both the actual state confirmed by the actions taken and the perception of the importance of individual elements of HumEnt. A knowing–doing gap has been demonstrated between these planes. Moreover, thanks to a two-stage study, practices were selected that can be successfully implemented also in small and medium-sized enterprises.
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Joanna Krasodomska, Paweł Zieniuk and Jadwiga Kostrzewska
This paper aims to identify the changes in the share of large public interest entities (PIEs) in European Union (EU) Member States providing Sustainable Development Goal (SDG…
Abstract
Purpose
This paper aims to identify the changes in the share of large public interest entities (PIEs) in European Union (EU) Member States providing Sustainable Development Goal (SDG) reporting prior to (2017) and after (2019) the implementation of Directive 2014/95/EU and the factors that influence their decisions to provide SDG reporting in 2019.
Design/methodology/approach
The authors use the multilevel theory of social change in organizations as the theoretical background. The sample consists of 341 PIEs based in the EU Member States, for which reports published in 2017 and 2019 are available in the global reporting initiative sustainability disclosure database. The authors analyzed the data using the statistical significance test of equal proportions and the logistic regression model.
Findings
The study findings allow to identify a significant positive change in the share of companies providing a reference to SDGs in 2019 compared with 2017. The research confirms that companies’ engagement in United Nations Global Compact and previous experience in sustainability reporting positively influences the decision to report on SDGs in 2019. Contrary to the expectations, industry, size, SDG implementation score, future orientation of government and corporate governance score do not seem to be relevant factors influencing PIEs’ disclosures.
Originality/value
The paper adds to the understanding of the differences in SDG reporting within the EU, which is seen as a frontrunner in implementing the 2030 Agenda and the SDGs.
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Kenneth Cafferkey, Brian Harney, Keith Townsend and Jonathan Winterton