Benefits of Triple Bottom Line Disclosures on Corporate Performance: An Exploratory Study of Corporate Stakeholders

C. M. Ekwueme, C. F. Egbunike, C. I. Onyali
2013 Journal of Management and Sustainability  
Advocates of CSR argue that transparency and accountability are essential components of a successful sustainability strategy. In this context, sustainability reporting is one such tool for communicating organisational performance with respect to organisational CSR practices. This empirical paper examines the connection between such reporting practices and corporate performance from a stakeholder perspective. Using a sample of 141 respondents, comprising 21 corporate managers; 55 corporate
more » ... 55 corporate employees and 65 consumers and investors, this study examined the connection between sustainability reporting and corporate performance. Four hypotheses were formulated and tested in the study. In addition to descriptive statistics, Kolmogorov-Smirnov (K-S), One Sample t-test and Multiple Regression Technique (MRT) were used in analyzing the primary data. The results of the data analysis showed a positive connection between sustainability reporting and corporate performance. Both consumers and investors were inclined to product purchase of green corporations. This would have the dual effect of increased market share and market capitalization of the companies. Employees were inclined to work in green corporations safeguarding their interests and healthy work environment. And corporate managers agreed that cost of recycling was generally cheaper than new purchase. Based on this, the study recommends the adoption of sustainability reports for organisations seeking sustainable corporate performance. The improved transparency and accountability levels of traditional financial reports through inclusion of TBL principles could serve as a labyrinth safeguarding corporations against legal hassle and surmounting stakeholder pressure. Thus, ultimately leading to improved market share, improved employee motivation and reduced labour turnover in such organisations. Decision: Since: F calculated > F table value ; 5.618 > 2.37 (at 0.05 critical value). Reject the null hypothesis and accept the alternate. Thus, sustainability reporting improves employee motivation and reduce labour turnover in organisations. This decision is strengthened by the fact that the significant value of the F statistics (0.000) is less than 0.05, which means that the variation explained by the model is not due to chance. Discussion of Findings, Conclusion and Recommendations The results of this study corroborate previous studies (see Fauzi et al., 2010; with varying organizational measurement factors) thus, establishing the relationship between sustainability reporting and organizational performance. More specifically, our findings reveal that:  Consumers consider product content and other vital information pertaining to a product before purchase and would generally consume more of products that meet their health and safety needs;  Consumers were also particular about the nature of investment companies are involved in, and would generally buy the products of companies that contribute a substantial amount to society's wellbeing; www.ccsenet.org/jms
doi:10.5539/jms.v3n2p79 fatcat:p2oqzhm56jbrpa7qr4e6vuxxvu