IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v26y2024i8d10.1007_s10668-023-03537-x.html
   My bibliography  Save this article

Is sustainability reporting disclosing what is relevant? Assessing materiality accuracy in the Spanish telecommunication industry

Author

Listed:
  • Raúl León

    (University of Zaragoza)

  • Aitor Salesa

    (University of Zaragoza)

Abstract

Companies have highly adopted sustainability reporting practices. Nonetheless, there are still some important research gaps related to the contents that sustainability reports should include and the appropriate frameworks to define them. This research contributes to the study of sustainability reporting practices of companies from a sectorial perspective, and it is focused on applying the materiality principle. It combines a qualitative and a quantitative approach to assess the materiality and the quality of GRI reports among sustainability dimensions and companies within an industry. To this end, an innovative research method based on scores is proposed and applied to a sample of companies in the telecommunications industry. The results indicate that while the GRI sustainability issues declared as material are more likely to be reported, there are still incoherencies in using materiality analysis as a threshold for reporting. Furthermore, there is no evidence that the materiality or quality of the reports differs among companies or sustainability dimensions. The findings suggest that materiality analysis, as companies present it, may lead to incoherencies in treating GRI aspects and indicators.

Suggested Citation

  • Raúl León & Aitor Salesa, 2024. "Is sustainability reporting disclosing what is relevant? Assessing materiality accuracy in the Spanish telecommunication industry," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 21433-21460, August.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:8:d:10.1007_s10668-023-03537-x
    DOI: 10.1007/s10668-023-03537-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-023-03537-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-023-03537-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Font, Xavier & Guix, Mireia & Bonilla-Priego, Ma Jesús, 2016. "Corporate social responsibility in cruising: Using materiality analysis to create shared value," Tourism Management, Elsevier, vol. 53(C), pages 175-186.
    2. Robert G. Eccles & Michael P. Krzus & Sydney Ribot, 2015. "Models of Best Practice in Integrated Reporting 2015," Journal of Applied Corporate Finance, Morgan Stanley, vol. 27(2), pages 103-115, June.
    3. Chan, Chien Aun & Gygax, André F. & Leckie, Christopher & Wong, Elaine & Nirmalathas, Ampalavanapillai & Hinton, Kerry, 2016. "Telecommunications energy and greenhouse gas emissions management for future network growth," Applied Energy, Elsevier, vol. 166(C), pages 174-185.
    4. Cho, Charles H. & Laine, Matias & Roberts, Robin W. & Rodrigue, Michelle, 2015. "Organized hypocrisy, organizational façades, and sustainability reporting," Accounting, Organizations and Society, Elsevier, vol. 40(C), pages 78-94.
    5. Aitor Salesa & Raúl León & José M. Moneva, 2022. "Is Business Research Shaping the Circle? Systematic and Bibliometric Review of Circular Economy Research," Sustainability, MDPI, vol. 14(14), pages 1-24, July.
    6. Rodrigo Lozano, 2020. "Analysing the use of tools, initiatives, and approaches to promote sustainability in corporations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 982-998, March.
    7. Idoya Ferrero-Ferrero & Raúl León & María Jesús Muñoz-Torres, 2021. "Sustainability materiality matrices in doubt: may prioritizations of aspects overestimate environmental performance?," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 64(3), pages 432-463, February.
    8. Robert G. Eccles & Tim Youmans, 2016. "Materiality in Corporate Governance: The Statement of Significant Audiences and Materiality," Journal of Applied Corporate Finance, Morgan Stanley, vol. 28(2), pages 39-46, June.
    9. José Moneva & Beatriz Cuellar, 2009. "The Value Relevance of Financial and Non-Financial Environmental Reporting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(3), pages 441-456, November.
    10. Martins, Nuno Ornelas, 2018. "The Classical Circular Economy, Sraffian Ecological Economics and the Capabilities Approach," Ecological Economics, Elsevier, vol. 145(C), pages 38-45.
    11. Janine Maniora, 2018. "Mismanagement of Sustainability: What Business Strategy Makes the Difference? Empirical Evidence from the USA," Journal of Business Ethics, Springer, vol. 152(4), pages 931-947, November.
    12. Robert G. Eccles & Michael P. Krzus & Jean Rogers & George Serafeim, 2012. "The Need for Sector-Specific Materiality and Sustainability Reporting Standards," Journal of Applied Corporate Finance, Morgan Stanley, vol. 24(2), pages 65-71, June.
    13. Kang, Yoolee & Ryu, Min-Ho & Kim, Seongcheol, 2010. "Exploring sustainability management for telecommunications services: A case study of two Korean companies," Journal of World Business, Elsevier, vol. 45(4), pages 415-421, October.
    14. Alessandro Lai & Gaia Melloni & Riccardo Stacchezzini, 2017. "What does materiality mean to integrated reporting preparers? An empirical exploration," Meditari Accountancy Research, Emerald Group Publishing Limited, vol. 25(4), pages 533-552, October.
    15. Periyasami Anbarasan & Sushil, 2018. "Stakeholder Engagement in Sustainable Enterprise: Evolving a Conceptual Framework, and a Case Study of ITC," Business Strategy and the Environment, Wiley Blackwell, vol. 27(3), pages 282-299, March.
    16. Jane Andrew & Max Baker, 2020. "Corporate Social Responsibility Reporting: The Last 40 Years and a Path to Sharing Future Insights," Abacus, Accounting Foundation, University of Sydney, vol. 56(1), pages 35-65, March.
    17. Elena Escrig-Olmedo & María Ángeles Fernández-Izquierdo & Idoya Ferrero-Ferrero & Juana María Rivera-Lirio & María Jesús Muñoz-Torres, 2019. "Rating the Raters: Evaluating how ESG Rating Agencies Integrate Sustainability Principles," Sustainability, MDPI, vol. 11(3), pages 1-16, February.
    18. Brunsson, Nils, 1993. "Ideas and actions: Justification and hypocrisy as alternatives to control," Accounting, Organizations and Society, Elsevier, vol. 18(6), pages 489-506, August.
    19. Silvia Ruiz & Silvia Romero & Belen Fernandez‐Feijoo, 2021. "Stakeholder engagement is evolving: Do investors play a main role?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1105-1120, February.
    20. Kim Ceulemans & Rodrigo Lozano & María Del Mar Alonso-Almeida, 2015. "Sustainability Reporting in Higher Education: Interconnecting the Reporting Process and Organisational Change Management for Sustainability," Sustainability, MDPI, vol. 7(7), pages 1-23, July.
    21. Phillips, Robert & Freeman, R. Edward & Wicks, Andrew C., 2003. "What Stakeholder Theory is Not," Business Ethics Quarterly, Cambridge University Press, vol. 13(4), pages 479-502, October.
    22. Edgley, Carla & Jones, Michael J. & Atkins, Jill, 2015. "The adoption of the materiality concept in social and environmental reporting assurance: A field study approach," The British Accounting Review, Elsevier, vol. 47(1), pages 1-18.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roberto Aprile & David Alexander & Federica Doni, 2023. "Enhancing the materiality principle in integrated reporting by adopting the General Systems Theory," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2219-2233, September.
    2. Bianca Alves Almeida Machado & Lívia Cristina Pinto Dias & Alberto Fonseca, 2021. "Transparency of materiality analysis in GRI‐based sustainability reports," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 570-580, March.
    3. Chiara Mio & Marco Fasan & Antonio Costantini, 2020. "Materiality in integrated and sustainability reporting: A paradigm shift?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 306-320, January.
    4. Kurniawan, Putu Sukma, 2018. "An Analysis of Information Materiality on Corporate Sustainability Report Using Information Materiality Map: A Review in Mining Industry in Indonesia," INA-Rxiv 7dzha_v1, Center for Open Science.
    5. Karaman, Abdullah S. & Orazalin, Nurlan & Uyar, Ali & Shahbaz, Muhammad, 2021. "CSR achievement, reporting, and assurance in the energy sector: Does economic development matter?," Energy Policy, Elsevier, vol. 149(C).
    6. Warren Maroun, 2020. "A Conceptual Model for Understanding Corporate Social Responsibility Assurance Practice," Journal of Business Ethics, Springer, vol. 161(1), pages 187-209, January.
    7. Klarissa Lueg & Rainer Lueg, 2021. "Deconstructing corporate sustainability narratives: A taxonomy for critical assessment of integrated reporting types," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1785-1800, November.
    8. Lucas Amaral Lauriano & Juliane Reinecke & Michael Etter, 2022. "When Aspirational Talk Backfires: The Role of Moral Judgements in Employees’ Hypocrisy Interpretation," Journal of Business Ethics, Springer, vol. 181(4), pages 827-845, December.
    9. Hannah Jun & Minseok Kim, 2021. "From Stakeholder Communication to Engagement for the Sustainable Development Goals (SDGs): A Case Study of LG Electronics," Sustainability, MDPI, vol. 13(15), pages 1-19, August.
    10. Marta Vicente-Lama & Pilar Tirado-Valencia & Mercedes Ruiz-Lozano & Magdalena Cordobés-Madueño, 2023. "The impact of sectoral guidelines on sustainability reporting in ports: the case of the Spanish ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 25(3), pages 499-519, September.
    11. Olivier Boiral & David Talbot & Marie‐Christine Brotherton, 2020. "Measuring sustainability risks: A rational myth?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2557-2571, September.
    12. Joan Fontrodona & Joan Enric Ricart & Pascual Berrone, 2018. "Ethical Challenges in Strategic Management: The 19th IESE International Symposium on Ethics, Business and Society," Journal of Business Ethics, Springer, vol. 152(4), pages 887-898, November.
    13. Arthur Nascimento Ferreira Barros & Raimundo Nonato Rodrigues & Luiz Panhoca, 2019. "Information on the fight against corruption and corporate governance practices: evidence of organized hypocrisy," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 16(2), pages 145-160, July.
    14. Diletta Acuti & Marco Bellucci & Giacomo Manetti, 2024. "Preventive and Remedial Actions in Corporate Reporting Among “Addiction Industries”: Legitimacy, Effectiveness and Hypocrisy Perception," Journal of Business Ethics, Springer, vol. 189(3), pages 603-623, January.
    15. She, Chaoyuan & Michelon, Giovanna, 2019. "Managing stakeholder perceptions: Organized hypocrisy in CSR disclosures on Facebook," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 61(C), pages 54-76.
    16. Eurídice Mamede de Andrade & Lúcia Lima Rodrigues & José Paulo Cosenza, 2020. "Corporate Behavior: An Exploratory Study of the Brazilian Tax Management from a Corporate Social Responsibility Perspective," Sustainability, MDPI, vol. 12(11), pages 1-21, May.
    17. Rodrigo Lozano, 2023. "Analysing organisations' engagement with and impacts to sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5721-5733, December.
    18. Jane Andrew & Max Baker, 2020. "Corporate Social Responsibility Reporting: The Last 40 Years and a Path to Sharing Future Insights," Abacus, Accounting Foundation, University of Sydney, vol. 56(1), pages 35-65, March.
    19. Sheehan, Norman T. & Vaidyanathan, Ganesh & Fox, Kenneth A. & Klassen, Mark, 2023. "Making the invisible, visible: Overcoming barriers to ESG performance with an ESG mindset," Business Horizons, Elsevier, vol. 66(2), pages 265-276.
    20. Luca Fornaciari & Caterina Pesci, 2018. "Global financial crisis and relevance of GRI disclosure in Italy. Insights from the stakeholder theory and the legitimacy theory," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2018(1), pages 67-102.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:26:y:2024:i:8:d:10.1007_s10668-023-03537-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.