Abstract

Purpose- The purpose of this paper is to examine the relationship between the quality of sustainability reports (QSR) and corporate financial performance (CFP). Since the global reporting initiative (GRI) reporting guideline is widely adopted by organizations over the world, the reporting organizations that report their corporate social responsibility (CSR) information under GRI reporting guidelines.

Design/methodology/approach- In this study total of 6,519 samples are obtained from the GRI report list in the reporting period from the year 2009 to 2013 for analysis.

Findings- The results demonstrate higher QSR results in better profitability and CFP but QSR exceeding a certain level in return increase the utilization of the firm’s resources and this leads to a decrease in overall profitability. Besides, the study proved that continuing investment in sustainability reporting and the decrease in a firm’s profitability affect the overall profitability – Returns on asset (ROA) and Returns on sales (ROS) of the organization.

Originality/value- Provides the empirical study on the relationship between QSR and CFP based on the GRI report list in the reporting period from 2009 to 2013.

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.