Analysis of the Role of National Culture in the Relationship between Performance and Environmental Disclosure

Authors

DOI:

https://doi.org/10.24857/rgsa.v16.2907

Keywords:

culture, environmental performance, environmental disclosure, sustainability

Abstract

Purpose: This study aims to investigate the role of culture in the relationship between performance and the level of environmental disclosure.

Theoretical framework: Hofstede's model was used with the cultural dimensions of power distance, individualism, masculinity, uncertainty avoidance, long-term orientation and indulgence. Clarkson et. al. (2008) presents the basis for verifying the level of disclosure from a checklist of items present in the entities' sustainability reports. The proxy for environmental performance was defined in different ways by authors, the present study uses the Corporate Knights magazine’s Ranking Global 100, which lists the 100 most sustainable entities in the world.

Method/design/approach: Ordinary least squares regression was used with stacked data collected for the years 2018 and 2019.

Results and conclusion: The results found show a positive and significant relationship between disclosure and environmental performance only when cultural dimensions were included as mediators in the relationship, contrary to models that relate the two aspects directly or even with the inclusion of cultural dimensions as independent variables. It was found that the positive relationship decreases as a function of individualism and power distance levels and intensifies in countries with higher levels of masculinity.

Research implications: The study contributes to the literature about the relationship between performance and environmental disclosure, adding a new perspective.

Originality/Value: Provides evidence to standard-setters and regulators of the importance of considering cultural aspects when implementing or analyzing compliance with guidelines on the level of disclosure and environmental performance.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

Author Biographies

Thaís Monteiro de Souza Barbosa, Universidade Federal de Pernambuco, Pernambuco

Possui graduação em Ciências Contábeis pela Universidade Federal de Pernambuco (2015) com pós graduação em Contabilidade Pública e Responsabilidade Fiscal pela Uninter (2018). Atuou em escritório de contabilidade como estagiária durante a graduação. Trabalhou um ano e meio na KPMG como trainee e assistente em Auditoria entre set/2014 e mar/2016. Em out/2016 assumiu como Analista Contábil na Copergás, saindo em maio/2017 para assumir o mesmo cargo na Compesa. Durante a atuação na Compesa, na Gerência de Compliance, Gestão de Riscos e Controle Interno, participou da equipe de implantação do programa de Compliance com adequação da companhia às exigências da lei 13.303/2016, revisando normas e políticas. Também acompanhava a implantação das recomendações da Auditoria Interna, definindo e acompanhando medidas de controle interno.

Henrique Carvalho Bezerra Morais, Universidade Federal de Pernambuco - UFPE

Doutorando em Ciências Contábeis pela Universidade Federal de Pernambuco, Mestre em Ciências Contábeis pela Universidade Federal do Rio de Janeiro e graduado em Ciências Contábeis pela Universidade Federal do Pará. Na docência, atuo principalmente nos seguintes temas: 1) Tecnologia da Informação e Sistemas Contábeis. 2) Contabilidade Financeira (de introdutória à avançada), Comercial e Geral; 3) Análise das Demonstrações Financeiras; 4) Métodos Quantitativos Aplicados à Contabilidade, Economia e Administração; 5) Contabilidade de Custo e Contabilidade Gerencial; Na pesquisa, atuo principalmente nos seguintes temas: 1) Contabilidade Financeira com foco na qualidade informacional; 2) Cultura regional, nacional e organizacional.

Fábio Henrique Ferreira de Albuquerque, Instituto Superior de Contabilidade e Administração de Lisboa

Doutor em Ciências Económicas e Empresariais, mestre em Auditoria e licenciado em Contabilidade. A sua experiência profissional inclui a atuação técnica em distintas entidades nas áreas da contabilidade, relato e estatística, bem como a prestação de serviços de consultoria e formação empresarial sobre as normas internacionais e nacionais de contabilidade e relato financeiro e na gestão do risco em Auditoria. Autor de estudos e artigos técnicos e científicos e membro do corpo editorial e paper reviewer de diversas revistas científicas. Co-autor de livros sobre a normalização contabilística nacional.

Daniel José Cardoso da Silva, Universidade Federal de Pernambuco - UFPE, Pernambuco

Doutor em Controladoria e contabilidade pela Universidade de São Paulo (USP), Mestre e Bacharel em Contabilidade pela Universidade Federal de Pernambuco. Possui experiência em concessão e avaliação de risco de crédito atuando como gestor por aproximadamente 20 anos em instituições financeiras como o Banco do Estado de Pernambuco, Banco ABN/AMRO - REAL e CAIXA Econômica Federal. Foi Coordenador do Curso de Ciências Contábeis da FAREC (Faculdade do Recife) e Professor da FAPE (FAculdade Pernambucana). Professor Assistente em regime de dedicação exclusiva na UFAL - Universidade Federal de Alagoas. Desde junho de 2013 é Professor na Universidade Federal de Pernambuco Atua como pesquisador, lliderando o grupo de pesquisas: Cultura & Contabilidade, pela UFPE.

References

Adams, C. A., & Kuasirikun, N. (2000). A comparative analysis of corporate reporting on ethical issues by UK and German chemical and pharmaceutical companies. European Accounting Review, 9(1), 53–79. https://doi.org/10.1080/096381800407941

Brockett, A., & Rezaee, Z. (2012). Corporate sustainability : integrating performance and reporting. John Wiley & Sons.

Brundtland, G. H. (1987) Report of the World Commission on Environment and Development (WCED): Our Common Future. Oxford Oxford Univ. Press, 1163–1163.

Cho, C. H., Guidry, R. P., Hageman, A. M., & Patten, D. M. (2012). Do actions speak louder than words? An empirical investigation of corporate environmental reputation. Accounting, Organizations and Society, 1, 14–25. https://doi.org/10.1016/j.aos.2011.12.001

Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4–5), 303–327. https://doi.org/10.1016/j.aos.2007.05.003

Corporate Knights. (2014). About us. Corporate Knights. https://www.corporateknights.com/about-us/ Access on 9 feb. 2022

Coulmont, M., Loomis, S., Berthelot, S., & Gangi, F. (2015). Determinants and impacts of sustainability disclosure. In Sustainability Disclosure: State of the Art and New Directions (pp. 25–79). Emerald Group Publishing Limited. http://dx.doi.org/10.1108/s1479-351220150000030002

Cowan, S., & Deegan, C. (2010). Corporate disclosure reactions to Australia’s first national emission reporting scheme. Accounting & Finance, 2, 409–436. https://doi.org/10.1111/j.1467-629x.2010.00361.x

Freedman, M., & Wasley, C. (1990). The association between environmental performance and environmental disclosure in annual reports and 10Ks. Advances in Public Interest Accounting, Vol. 3 No. 2, 183–193.

Gallego‐Álvarez, I., & Pucheta‐Martínez, M. C. (2020). How cultural dimensions, legal systems, and industry affect environmental reporting? Empirical evidence from an international perspective. Business Strategy and the Environment, 29(5), 2037–2057. https://doi.org/10.1002/bse.2486

Gallego-Álvarez, Prof. I., & Ortas, Prof. E. (2017). Corporate environmental sustainability reporting in the context of national cultures: A quantile regression approach. International Business Review, 26(2), 337–353. https://doi.org/10.1016/j.ibusrev.2016.09.003

Garcia- Sanchez, I. M., Cuadrado- Ballesteros, B., & Frias- Aceituno, J. V. (2016). Impact of the institutional macro context on the voluntary disclosure of CSR information. Long Range Planning, 49(1), 15– 35. https://doi.org/10.1016/j.lrp.2015.02.004

Gray, S. J. (1988). Towards a theory of cultural influence on the development of accounting systems internationally. Abacus, 24(1), 1–15. https://doi.org/10.1111/j.1467-6281.1988.tb00200.x

Halkos, G. E., & Tzeremes, N. G. (2013). National culture and eco-efficiency: An application of conditional partial nonparametric frontiers. Environmental Economics and Policy Studies, 15(4), 423–441. https://doi.org/10.1007/s10018-013-0066-6

Herbohn, K., Walker, J., & Loo, H. Y. M. (2014). Corporate social responsibility: The link between sustainability disclosure and sustainability performance. Abacus, 50(4), 422–459. https://doi.org/10.1111/abac.12036

Ho, F. N., Wang, H. M. D., & Vitell, S. J. (2012). A global analysis of corporate social performance: The effects of cultural and geographic environments. Journal of business ethics, 107(4), 423-433. http://www.jstor.org/stable/41476261

Hofstede, G. (1980). Culture’s consequences: International differences in work-related values. SAGE Publications.

Hofstede, G., & Hofstede, G. (2001). Culture’s consequences: Comparing values, behaviors, institutions and organizations across nations. SAGE Publications.

Hofstede, G., & Hofstede, G. J. (2005). Cultures and organizations: Software of the mind (2nd ed.). McGraw Hill Professional.

Hofstede, G., & Minkov, M. (2010). Long- versus short-term orientation: New perspectives. Asia Pacific Business Review, 16(4), 493–504. https://doi.org/10.1080/13602381003637609

Hofstede, G. (2011). Dimensionalizing cultures: The hofstede model in context. Online Readings in Psychology and Culture, 2(1). https://doi.org/10.9707/2307-0919.1014

Horak, S., Arya, B., & Ismail, K. M. (2018). Organizational sustainability determinants in different cultural settings: A conceptual framework. Business Strategy and the Environment, 27(4), 528–546. https://doi.org/10.1002/bse.2018

Hummel, K., & Schlick, C. (2016). The relationship between sustainability performance and sustainability disclosure – Reconciling voluntary disclosure theory and legitimacy theory. Journal of Accounting and Public Policy, 5, 455–476. https://doi.org/10.1016/j.jaccpubpol.2016.06.001

Ioannou, I. & Serafeim, G., The Consequences of Mandatory Corporate Sustainability Reporting (May 1, 2017). Harvard Business School Research Working Paper No. 11-100 , Available at SSRN: https://ssrn.com/abstract=1799589

Koprowski, S., Mazzioni, S., Baú Dal Magro, C., & Silva da Rosa, F. (2021). National culture and corporate social responsibility. Review of Business Management, 23(3), 488–502. https://doi.org/10.7819/rbgn.v.23i3.4115

KPMG. (2020). The time has come - Survey of sustainability reporting 2020. https://assets.kpmg/content/dam/kpmg/lk/pdf/2020/12/the-time-has-come-survey-of-sustainability-reporting.pdf

KPMG. (2021). Get ready for ISSB sustainability disclosures. KPMG. https://home.kpmg/xx/en/home/insights/2021/12/issb-sustainability-disclosures-talkbook.html

Kumar, S., Giridhar, V., & Sadarangani, P. (2019). A cross-national study of environmental performance and culture: Implications of the findings and strategies. Global Business Review, 20(4), 1051–1068. https://doi.org/10.1177/0972150919845260

Lu, J., & Wang, J. (2020). Corporate governance, law, culture, environmental performance and CSR disclosure: A global perspective. Journal of International Financial Markets, Institutions and Money, 70, 101264. https://doi.org/10.1016/j.intfin.2020.101264

Luo, L., & Tang, Q. (2013). The impact of national culture on voluntary carbon disclosure: Evidence from carbon disclosure project (CDP) 2011. Annual Congress European Accounting Association.

Pacto Global. (2022). ODS. Pacto Global. https://pactoglobal.org.br/ods/ Access on 9 feb. 2022

Patten, D. M. (2002). The relation between environmental performance and environmental disclosure: a research note. Accounting, Organizations and Society, 8, 763–773. https://doi.org/10.1016/s0361-3682(02)00028-4

Peng, Y.-S., & Lin, S.-S. (2009). National culture, economic development, population growth and environmental performance: The mediating role of education. Journal of Business Ethics, 90(2), 203–219. https://doi.org/10.1007/s10551-009-0036-x

Petruzzella, F., Salvi, A., & Giakoumelou, A. (2017). THE IMPACT OF NATIONAL CULTURE ON CORPORATE ENVIRONMENTAL PERFORMANCE: How much does your origin say about how green you are? Journal of Environmental Sustainability, 5(1), 4.

Pinheiro, A. B., da Silva, R. A., Sampaio, T. S. L., & Carraro, W. B. W. H. (2022). The Role of Cultural Values in Carbon Disclosure: A Global Perspective. Revista De Gestão Social E Ambiental, 16(1), e02866. https://doi.org/10.24857/rgsa.v16.2866

Richardson, P. J., & Boyd, R. (2005). Not by genes alone: How culture transformed human evolution. University of Chicago Press.

Ringov, D., & Zollo, M. (2007). The impact of national culture on corporate social performance. Corporate Governance: The International Journal of Business in Society, 7(4), 476–485. https://doi.org/10.1108/14720700710820551

Roy, A., &; Goll, I. (2014). Predictors of various facets of sustainability of nations: The role of cultural and economic factors. International Business Review, 23(5), 849–861. https://doi.org/10.1016/j.ibusrev.2014.01.003

Tata, J., & Prasad, S. (2015). National cultural values, sustainability beliefs, and organizational initiatives. Cross Cultural Management, 22(2), 278–296. https://doi.org/10.1108/ccm-03-2014-0028

Trumpp, C., Endrikat, J., Zopf, C., & Guenther, E. (2013). Definition, Conceptualization, and Measurement of Corporate Environmental Performance: A Critical Examination of a Multidimensional Construct. Journal of Business Ethics, 2, 185–204. https://doi.org/10.1007/s10551-013-1931-8

USP. (2022). O que é contabilidade. FEA USP. https://www.fea.usp.br/contabilidade-e-atuaria/graduacao/o-que-e-contabilidade Access on 9 feb. 2022

Van der Laan Smith, J., Adhikari, A., & Tondkar, R. H. (2005). Exploring differences in social disclosures internationally: A stakeholder perspective. Journal of Accounting and Public Policy, 24(2), 123–151. https://doi.org/10.1016/j.jaccpubpol.2004.12.007

Venkatraman, N., & Ramanujam, V. (1986). Measurement of Business Performance in Strategy Research: A Comparison of Approaches. Academy of Management Review, 4, 801–814. https://doi.org/10.5465/amr.1986.4283976

Vitolla, F., Raimo, N., Rubino, M., & Garzoni, A. (2019). The impact of national culture on integrated reporting quality. A stakeholder theory approach. Business Strategy and the Environment, 28(8), 1558–1571. https://doi.org/10.1002/bse.2332

Wiseman, J. (1982). An evaluation of environmental disclosures made in corporate annual reports. Accounting, Organizations and Society, 1, 53–63. https://doi.org/10.1016/0361-3682(82)90025-3

Wooldridge, J. M. (2009). On estimating firm-level production functions using proxy variables to control for unobservables. Economics letters, 104(3), 112-114. https://doi.org/10.1016/j.econlet.2009.04.026

Published

2022-06-28

How to Cite

Barbosa, T. M. de S. ., Morais, H. C. B. ., Ferreira de Albuquerque, F. H., & Cardoso da Silva, D. J. . (2022). Analysis of the Role of National Culture in the Relationship between Performance and Environmental Disclosure. Revista De Gestão Social E Ambiental, 16(1), e02907. https://doi.org/10.24857/rgsa.v16.2907

Issue

Section

Artigos