Jacqueline Jarosz Wukich, Erica L. Neuman, Timothy J. Fogarty
{"title":"Show me? Inspire me? Make me? An institutional theory exploration of social and environmental reporting practices","authors":"Jacqueline Jarosz Wukich, Erica L. Neuman, Timothy J. Fogarty","doi":"10.1108/jaoc-01-2023-0013","DOIUrl":null,"url":null,"abstract":"Purpose Albeit gradual and uneven, the emergence of social and environmental reporting by publicly held corporations has been a major development in the last few decades. This paper aims to explore patterns of the emergence of these disclosures. Using an institutional theory lens, this paper considers mimetic, normative and coercive possibilities. Design/methodology/approach US publicly traded company data from 2013 to 2019 is used to test the hypotheses. Mimetic forces are proxied with corporate board interlock frequency. Normative ones use the extent of gender diversity on corporate boards. Measures of business climate and industry regulatory sensitivity proxy coercive potentiality. Findings Studied in isolation, each of the three forces through which organizations pursue the heightened legitimacy of enhanced environmental and social disclosures has credibility. The strongest support exists for mimetic and normative mechanisms, perhaps because the US government has been reluctant to make these expanded disclosures mandatory. Research limitations/implications In the world of voluntary action, more attention to diffusion is needed. For these purposes, better proxies will be needed to study change. Social and environmental information should be separated for individual analysis. Practical implications At least in the USA, companies are attentive to what other companies are doing. There is something to be said for the ethical dimension of corporate transparency. Social implications Governmental action in this area has not been effective, at current levels. Corporate leadership is essential. Critical information is shared about disclosure by board members. Originality/value Although institutional theory makes several appearances in this area, to the best of the authors’ knowledge, the current study is the first empirical archival study to examine the three forces simultaneously, providing evidence as to the relative magnitude of each institutional force on environmental and social disclosures. Should these disclosures not be mandated by government, this study shows pathways for enhanced disclosures to continue to spread.","PeriodicalId":46141,"journal":{"name":"Journal of Accounting and Organizational Change","volume":null,"pages":null},"PeriodicalIF":2.4000,"publicationDate":"2023-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Accounting and Organizational Change","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/jaoc-01-2023-0013","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose Albeit gradual and uneven, the emergence of social and environmental reporting by publicly held corporations has been a major development in the last few decades. This paper aims to explore patterns of the emergence of these disclosures. Using an institutional theory lens, this paper considers mimetic, normative and coercive possibilities. Design/methodology/approach US publicly traded company data from 2013 to 2019 is used to test the hypotheses. Mimetic forces are proxied with corporate board interlock frequency. Normative ones use the extent of gender diversity on corporate boards. Measures of business climate and industry regulatory sensitivity proxy coercive potentiality. Findings Studied in isolation, each of the three forces through which organizations pursue the heightened legitimacy of enhanced environmental and social disclosures has credibility. The strongest support exists for mimetic and normative mechanisms, perhaps because the US government has been reluctant to make these expanded disclosures mandatory. Research limitations/implications In the world of voluntary action, more attention to diffusion is needed. For these purposes, better proxies will be needed to study change. Social and environmental information should be separated for individual analysis. Practical implications At least in the USA, companies are attentive to what other companies are doing. There is something to be said for the ethical dimension of corporate transparency. Social implications Governmental action in this area has not been effective, at current levels. Corporate leadership is essential. Critical information is shared about disclosure by board members. Originality/value Although institutional theory makes several appearances in this area, to the best of the authors’ knowledge, the current study is the first empirical archival study to examine the three forces simultaneously, providing evidence as to the relative magnitude of each institutional force on environmental and social disclosures. Should these disclosures not be mandated by government, this study shows pathways for enhanced disclosures to continue to spread.
期刊介绍:
The main objective of the journal is to provide a platform for researchers and practitioners from multiple disciplines to disseminate information on organizational and accounting systems change. To achieve this, the journal will be directed at mapping out contemporary changes in the new global business environment. It will seek to explain the new techniques, processes, and philosophies associated with the rise of strategy-oriented accounting and information systems.