The consequences of mandatory corporate sustainability reporting
By: Ioannis Ioannou, George Serafeim
Contributors: Serafeim, George; Harvard Business School
Edition: Rev.
Series: Working paper / Harvard Business School -- 11-100; Working paper (Harvard Business School) -- 11-100.
Publisher: Harvard Business School
Published: 2011
Place of publication: [Boston]
Language: eng
Number of pages: 45
Description: We examine the effect of mandatory sustainability reporting on several measures of socially responsible management practices. Using data for 58 countries, we show that after the adoption of mandatory sustainability reporting laws and regulations, the social responsibility of business leaders increases. We also document that both sustainable development and employee training become a higher priority for companies, and that corporate governance improves. Furthermore, we find that companies implement more ethical practices, reduce bribery and corruption, and that managerial credibility increases. These effects are larger for countries with stronger law enforcement and more widespread assurance of sustainability reports. We confirm these findings using firm-level environmental, social and governance metrics and a differences-in-differences research design.
Notes: "March 2011, revised May 2012" -- Publisher's website.

Includes bibliographical references.