Article Sidebar

Download
PDF
Statistic
Read Counter : 490 Download : 299

Main Article Content

Abstract

Purpose: This study investigates the role of corporate transparency in environmental reporting, emphasizing its impact on accountability, stakeholder trust, and sustainable business practices. It examines current trends, benefits, and challenges associated with environmental reporting frameworks while exploring how digital technologies enhance reporting accuracy and credibility.


Research Design and Methodology: This study analyzes peer-reviewed articles, industry reports, and regulatory frameworks published after 2018. The focus includes globally recognized standards such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Task Force on Climate-related Financial Disclosures (TCFD), along with technological advancements like blockchain, big data analytics, and artificial intelligence (AI).


Findings and Discussion: The study finds that transparent environmental reporting enhances corporate accountability, strengthens stakeholder relationships, and facilitates access to sustainable investments. Companies adopting robust frameworks effectively manage environmental risks and build stakeholder trust. However, challenges persist, including inconsistent standards, greenwashing risks, and the need for third-party verification. Digital technologies are key solutions for enhancing reporting accuracy, verifiability, and comprehensiveness.


Implications: This study provides practical recommendations for companies, policymakers, and stakeholders, advocating for standardized frameworks and technological integration. It highlights the need for future research to address sector-specific challenges and assess the long-term impact of transparent environmental reporting on corporate sustainability.

Keywords

Corporate Transparency Environmental Reporting Sustainability Digital Technologies Stakeholder Accountability

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Farooq, U. (2023). Corporate Transparency and Environmental Reporting: Trends and Benefits. Advances: Jurnal Ekonomi & Bisnis, 1(6), 357 – 370. https://doi.org/10.60079/ajeb.v1i6.249
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Aluchna, M., & Roszkowska-Menkes, M. (2019). Non-financial Reporting. Conceptual Framework, Regulation and Practice BT - Corporate Social Responsibility in Poland: Strategies, Opportunities and Challenges (A. Długopolska-Mikonowicz, S. Przytuła, & C. Stehr (eds.); pp. 213–236). Springer International Publishing. https://doi.org/10.1007/978-3-030-00440-8_14
  2. Aluchna, M., Roszkowska‐Menkes, M., & Khan, S. (2023). Corporate governance perspective on environmental reporting: Literature review and future research agenda. Corporate Social Responsibility and Environmental Management, 31(3), 1550–1577. https://doi.org/10.1002/csr.2643
  3. Arvidsson, S., & Dumay, J. (2022). Corporate ESG reporting quantity, quality, and performance: Where for environmental policy and practice now? Business Strategy and the Environment, 31(3), 1091–1110. https://doi.org/10.1002/bse.293 7
  4. Attig, N., Rahaman, M., & Trabelsi, S. (2023). Creditors at the Gate: Effects of Selective Environmental Disclosure on the Cost of Debt. Corporate Governance: An International Review. https://doi.org/10.1111/corg.12599
  5. Awa, H. O., Etim, W., & Ogbonda, E. (2023). Stakeholders, stakeholder theory and Corporate Social Responsibility (CSR). International Journal of Corporate Social Responsibility, 9(1), 11. https://doi.org/10.1186/s40991-024-00094-y
  6. Barker, R. (2025). Corporate sustainability reporting. Journal of Accounting and Public Policy, 49, 107280. https://doi.org/https://doi.org/10.1016/j.jaccpubpol.2023.107280
  7. Bellucci, M., Acuti, D., Simoni, L., & Manetti, G. (2021). Hypocrisy and legitimacy in the aftermath of a scandal: an experimental study of stakeholder perceptions of nonfinancial disclosure. Accounting, Auditing & Accountability Journal, 34(9), 182–194. https://doi.org/10.1108/AAAJ-01-2021-5113
  8. Bennett, M., James, P., & Klinkers, L. (2017). Sustainable measures: Evaluation and reporting of environmental and social performance. Routledge.
  9. Botzem, S. (2012). The politics of accounting regulation: Organizing transnational standard setting in financial reporting. Edward Elgar Publishing.
  10. Boyer-Allirol, B. (2013). Faut-il mieux réglementer le reporting extrafinancier? Revue Française de Gestion, 237(8), 73–95. https://shs.cairn.info/revue-francaise-de-gestion-2013-8-page-73?lang=fr
  11. Brockett, A., & Rezaee, Z. (2012). Corporate sustainability: Integrating performance and reporting. John Wiley & Sons.
  12. Buhmann, A., Paßmann, J., & Fieseler, C. (2020). Managing Algorithmic Accountability: Balancing Reputational Concerns, Engagement Strategies, and the Potential of Rational Discourse. Journal of Business Ethics, 163(2), 265–280. https://doi.org/10.1007/s10551-019-04226-4
  13. Bui, H., & Krajcsák, Z. (2023). The impacts of corporate governance on firms’ performance: from theories and approaches to empirical findings. Journal of Financial Regulation and Compliance, 32(1), 18–46. https://doi.org/10.1108/JFRC-01-2023-0012
  14. Camilleri, M. A. (2015). Valuing Stakeholder Engagement and Sustainability Reporting. Corporate Reputation Review, 18(3), 210–222. https://doi.org/10.1057/crr.2015.9
  15. Căpăţînă, S., & Buşmachiu, E. (2023). Trends in ESG performance reporting (environment, social, and governance) in enterprise. Journal of Research on Trade, Management and Economic Development, 21(1), 78–93. https://doi.org/10.59642/jrtmed.1.2023.06
  16. Crane, B. (2020). Revisiting who, when, and why stakeholders matter: Trust and stakeholder connectedness. Business & Society, 59(2), 263–286. https://doi.org/10.1177/0007650318756983
  17. Darnall, N., Ji, H., Iwata, K., & Arimura, T. H. (2022). Do ESG reporting guidelines and verifications enhance firms’ information disclosure? Corporate Social Responsibility and Environmental Management, 29(5), 1214–1230. https://doi.org/10.1002/csr.2265
  18. Durand, R., Paugam, L., & Stolowy, H. (2019). Do investors value sustainability indices? Replication, development, and new evidence on CSR visibility. Strategic Management Journal, 40(9), 1471–1490. https://doi.org/10.1002/smj.3035
  19. Eccles, R. G., & Klimenko, S. (2019). The investor revolution. Harvard Business Review, 97(3), 106–116.
  20. Efunniyi, C. P., Abhulimen, A. O., Obiki-Osafiele, A. N., Osundare, O. S., Agu, E. E., & Adeniran, I. A. (2023). Strengthening corporate governance and financial compliance: Enhancing accountability and transparency. Finance & Accounting Research Journal, 6(8), 1597–1616. https://doi.org/10.51594/farj.v6i8.1509
  21. Field, C. B. (2012). Managing the risks of extreme events and disasters to advance climate change adaptation: special report of the intergovernmental panel on climate change. Cambridge University Press.
  22. Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge university press.
  23. García‐Sánchez, I., Martínez‐Ferrero, J., & Garcia‐Benau, M. (2019). Integrated reporting: The mediating role of the board of directors and investor protection on managerial discretion in munificent environments. Corporate Social Responsibility and Environmental Management, 26(1), 29–45. https://doi.org/10.1002/csr.1655
  24. García‐Sánchez, I., & Noguera‐Gámez, L. (2017). Integrated reporting and stakeholder engagement: The effect on information asymmetry. Corporate Social Responsibility and Environmental Management, 24(5), 395–413. https://doi.org/10.1002/csr.1415
  25. Gerged, A. M., Arslan, H. M., Abbas, A., Chen, S., & Manzoor, S. (2023). A bibliometric review of corporate environmental disclosure literature. Journal of Accounting Literature, 46(2), 214–237. https://doi.org/10.1108/jal-01-2022-0006
  26. Ibrahim, M., Auwal, B. M., Balarabe, A. S., & Isa, I. A. (2023). Sustainability Reporting Frameworks A Comparative Analysis of Reporting Standards and their Implications for Accounting and Reporting. International Journal of Accounting, Finance and Administrative Research, 1(2), 32–47. https://ijafar.com.ng/index.php/ijafar/article/download/75/28
  27. Kandpal, V., Jaswal, A., Santibanez Gonzalez, E. D. R., & Agarwal, N. (2023). Corporate Social Responsibility (C.S.R.) and E.S.G. Reporting: Redefining Business in the Twenty-First Century BT - Sustainable Energy Transition: Circular Economy and Sustainable Financing for Environmental, Social and Governance (ESG) Practices (V. Kandpal, A. Jaswal, E. D. R. Santibanez Gonzalez, & N. Agarwal (eds.); pp. 239–272). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-52943-6_8
  28. Khan, M., Serafeim, G., & Yoon, A. (2016). Corporate sustainability: First evidence on materiality. The Accounting Review, 91(6), 1697–1724. https://doi.org/10.2308/accr-51383
  29. Matos, P. (2020). ESG and responsible institutional investing around the world: A critical review.
  30. Mohammed Abdul, S. S. (2023). Navigating blockchain’s twin challenges: Scalability and regulatory compliance. Blockchains, 2(3), 265–298. https://doi.org/10.3390/blockchains2030013
  31. Morin-Esteves, C., Gendron, C., & Ceccarelli, A. (2016). Les rapports de développement durable: dialogues autour de la définition et de la mesure de la performance extrafinancière des entreprises. RIODD 2016.
  32. Ngwa, C. U., Ojeh, A., Ezema, K. O., Agu, J. C., & Edeh, I. T. (2025). THE EFFECT OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTING ON CORPORATE REPUTATION IN NIGERIA. American Research Journal of Economics, Finance and Management, 13(1), 1–23. https://doi.org/10.5281/zenodo.14780328
  33. Petrov, S. V. (2023). Analyzing the transparency of corporate non-financial reporting. Economic Analysis: Theory and Practice, 23(1). https://doi.org/10.24891/ea.23.1.150
  34. Sun, Y. (2023). The real effect of innovation in environmental, social, and governance (ESG) disclosures on ESG performance: An integrated reporting perspective. Journal of Cleaner Production, 460, 142592. https://doi.org/https://doi.org/10.1016/j.jclepro.2023.142592
  35. Uyar, A. (2016). Evolution of corporate reporting and emerging trends. Journal of Corporate Accounting & Finance, 27(4), 27–30. https://doi.org/10.1002/jcaf.22157
  36. Vázquez-Burguete, J. L., Licandro, O., Ortigueira-Sánchez, L. C., & Correa, P. (2023). Do Enterprises That Publish Sustainability Reports Have a Better Developed Environmental Responsibility and Are They More Transparent? Sustainability, 16(14), 5866. https://doi.org/10.3390/su16145866
  37. Wong, C. W. Y., Wong, C. Y., Boon-Itt, S., & Tang, A. K. Y. (2021). Strategies for building environmental transparency and accountability. Sustainability, 13(16), 9116. https://doi.org/10.3390/su13169116
  38. Yu, E. P., Guo, C. Q., & Luu, B. Van. (2018). Environmental, social and governance transparency and firm value. Business Strategy and the Environment, 27(7), 987–1004. https://doi.org/10.1002/bse.2047