Corporate sustainability reporting quality has been frequently criticised as being unbalanced, presenting an overly positive view or failing to address material issues. The purpose of this article is to provide a fresh explanation for poor quality sustainability reporting and to propose how quality issues may be addressed. The theoretical framework combines the legitimacy and accountability perspectives using Akerlof's (1970) Market for Lemons theory. Akerlof's approach is extended by differentiating between three types of information in sustainability reports namely search, experience and credence. The article concludes that the type of information must be considered when determining measures to improve report quality.

ESADE

Back to home

Comyns , Breeda; Figge , Frank; Hahn, Tobias; Barkemeyer , Ralf

Sustainability reporting: The role of "Search", "Experience" and "Credence" information

09/2013
Corporate sustainability reporting quality has been frequently criticised as being unbalanced, presenting an overly positive view or failing to address material issues. The purpose of this article is to provide a fresh explanation for poor quality sustainability reporting and to propose how quality issues may be addressed. The theoretical framework combines the legitimacy and accountability perspectives using Akerlof's (1970) Market for Lemons theory. Akerlof's approach is extended by differentiating between three types of information in sustainability reports namely search, experience and credence. The article concludes that the type of information must be considered when determining measures to improve report quality.
More Knowledge
Sustainability reporting: The role of "Search", "Experience" and "Credence" information
Comyns , Breeda; Figge , Frank; Hahn, Tobias; Barkemeyer , Ralf
Accounting Forum
Vol. 37, n 3, 09/2013, p. 231 - 243

Download full text (There might be some restrictions due to copyright or licenses)

  • File 1 (0.50Mb) pdf

Related publications

Back to home