REFLECTIONS OF ESG PRACTICES AND ADHERENCE TO SDG IN CORPORATE REPUTATION AND MARKET VALUE
Keywords:
SDG, Corporate Reputation, Market-book, Sustainability ReportsAbstract
The objective of the study is to analyze the influence of environmental, social and governance (ESG) practices and engagement with the Sustainable Development Goals (SDGs) on the corporate reputation and market value of publicly traded companies listed in [B]³. For that, descriptive research was carried out, with a quantitative approach and with archival data. The period of analysis corresponds to the years 2016 to 2022, with 1,120 observations collected from Economática, CSRHub, sustainability reports, Merco ranking and [B]³. The results indicated that the adoption of SDGs helps to improve corporate reputation. Better ESG performance proved to be a major factor in improving corporate reputation and increasing market-to-book. Companies with the concomitant presence of SDG adoption and better ESG performance demonstrated higher values in corporate reputation and market-to-book. The disclosure of environmental, social and governance information, in line with the corporate commitment to sustainable development, clarifies the company's positioning and its interactions with stakeholders, impacting on the brand's appreciation and its market value.
References
AGGARWAL, P. Impact of sustainability performance of company on its financial performance: a study of listed Indian companies. Global Journal of Management and Business Research Finance, v. 13, n. 11, p. 61-70, 2013.
ALBUQUERQUE, R; KOSKINEN, Y.; ZHANG, C. Corporate social responsibility and firm risk: Theory and empirical evidence. Management Science, v. 65, n. 10, p. 4451-4469, 2019. https://doi.org/10.1287/mnsc.2018.3043.
ALSAYEGH, M. F.; RAHMAN R. A. R.; HOMAYOUN, S. Corporate economic, environmental, and social sustainability performance transformation through ESG disclosure. Sustainability, v. 12, n. 9, p. 3910, 2020. https://doi.org/10.3390/su12093910.
ANTONCIC, M.; BEKAERT, G.; ROTHENBERG, R.; NOGUER, M. Sustainable Investment-Exploring the Linkage between Alpha, ESG, and SDG's. ESG, and SDG's (August 2020), 2020. http://dx.doi.org/10.2139/ssrn.3623459.
BOIRAL, O.; HERAS-SAIZARBITORIA, I.; BROTHERTON, M. Corporate sustainability and indigenous community engagement in the extractive industry. Journal of Cleaner Production, v. 235, p. 701-711, 2019. https://doi.org/10.1016/j.jclepro.2019.06.311.
BOFINGER, Y.; HEYDEN, K. J.; ROCK, B. Corporate social responsibility and market efficiency: Evidence from ESG and misvaluation measures. Journal of Banking & Finance, v. 134, p. 106322, 2022. https://doi.org/10.1016/j.jbankfin.2021.106322
BURKE, J. J.; CLARK, C. E. The business case for integrated reporting: Insights from leading practitioners, regulators, and academics. Business Horizons, v. 59, n. 3, p. 273–283, 2016. https://doi.org/10.1016/j.bushor.2016.01.001
BRANCO, M. C.; RODRIGUES, L. L. Corporate social responsibility and resource-based perspectives. Journal of Business Ethics, v. 69, n. 2, p. 111-132, 2006.
BROOKS, C.; OIKONOMOU, I. The effects of environmental, social and governance disclosures and performance on firm value: A review of the literature in accounting and finance. British Accounting Review, v. 50, n. 1, p. 1–15, 2018. https://doi.org/10.1016/j.bar.2017.11.005.
BUCHANAN, B.; CAO, X. X.; CHEN, C. Corporate social responsibility, firm value, and influential institutional ownership. Journal of Corporate Finance, v. 52, p. 73-95, 2018. , https://doi.org/10.1016/j.jcorpfin.2018.07.004.
CHAUHAN, Y.; KUMAR, S. B. Do investors value the non financial disclosure in emerging markets? Emerging Markets Review, [S. l.], v. 37, p. 32–46, 2018. https://doi.org/10.1016/j.ememar.2018.05.001
CALEGARI, I. P.; GONÇALVES, R. S.; SERRANO, A. L. M.; RODRIGUES, J. M. Efeitos da reputação corporativa no custo de capital próprio em empresas brasileiras listadas. Revista Universo Contábil. v. 12, n, 1, p. 178-198, 2016. https://doi.og/10.4270/ruc.2016110.
CONSOLANDI, C.; PHADKE, H.; HAWLEY, J.; ECCLES, R. G. Material ESG Outcomes and SDG Externalities: Evaluating the Health Care Sector‟s Contribution to the SDGs. Organization & Environment, v. 33, n. 4, p. 511-533, 2020. https://doi.org/10.1177/1086026619899795
CHUN, R. Corporate reputation: meaning and measurement. International Journal of Management Reviews, v. 7, n. 2, p. 91-109, 2005.
CONWAY, E. Should we expect exemplary integrated reporting to increase organisational ESG ratings? In: Responsibility and Governance. Springer, Singapore, 2019. p. 135-162.
COSTA, D. V. F.; BOTELHO, D.; COSTA, M. P. C. Atitude socialmente responsável ou estratégia comercial: o caso do Pacto Global. Revista Organizações em Contexto, v. 9, n. 18, p. 143-165, 2013. http://dx.doi.org/10.15603/1982-8756/roc.v9n18p143-165.
DAROMES, F. E.; GUNAWAN, S. R. Joint impact of philanthropy and corporate reputation on firm value. Jurnal Dinamika Akuntansi, v. 12, n. 1, p. 1-13, 2020. http://dx.doi.org/10.15294/jda.v12i1.21747.
DAUGAARD, D.; DING, A. Global drivers for ESG performance: The body of knowledge. Sustainability, v. 14, n. 4, p. 2322, 2022. https://doi.org/10.3390/su14042322.
DE LA FUENTE, G.; ORTIZ, M.; VELASCO, P. The value of a firm‟s engagement in ESG practices: Are we looking at the right side?. Long Range Planning, v. 55, n. 4, p. 102143, 2022. https://doi.org/10.1016/j.lrp.2021.102143.
DI VAIO, A.; VARRIALE, L.; DI GREGORIO, A.; ADOMAKO, S. Corporate social performance and non‐financial reporting in the cruise industry: Paving the way towards UN Agenda 2030. Corporate Social Responsibility and Environmental Management, 2022. https://doi.org/10.1002/csr.2292.
DIJKMANS, C. KERKHOF, P.; BEUKEBOOM, C. J. A stage to engage: social media use and corporate reputation. Tourism Management, v. 47, p. 58-67, 2015.
FATEMI, A.; GLAUM, M.; KAISER, S. ESG performance and firm value: The moderating role of disclosure. Global Finance Journal, v. 38, p. 45-64, 2018. https://doi.org/10.1016/j.gfj.2017.03.001.
FELDMAN, P. M.; BAHAMONDE, R. A.; BELLIDO, I.V. A new approach for measuring corporate reputation. Revista de Administração de Empresas, v. 54, n. 1, p. 53-66, 2014. http://dx.doi.org/10.1590/S0034-759020140102.
FILBECK, A.; FILBECK, G.; ZHAO, X. Performance assessment of firms following sustainalytics ESG principles. The Journal of Investing, v. 28, n. 2, p. 7-20, 2019. https://doi.org/10.3905/joi.2019.28.2.007.
FLEMING, A.; WISE, R. M.; HANSEN, H.; SAMS, L. The sustainable development goals: A case study. Marine Policy, v. 86, p. 94-103, 2017. https://doi.org/10.1016/j.marpol.2017.09.019.
GARCÍA-MECA, E.; MARTINEZ-FERRERO, J. Is SDG reporting substantial or symbolic? An examination of controversial and environmentally sensitive industries. Journal of Cleaner Production, v. 298, p. 126781, 2021. https://doi.org/10.1016/j.jclepro.2021.126781.
GOUBRAN, S. On the role of construction in achieving the SDGs. Journal of Sustainability Research, v. 1, n. 2, p. 1-52, 2019. https://doi.org/10.20900/jsr20190020.
HAAS, B.; FLEMING, A.; HAWARD, M.; MCGEE, J. Big fishing: the role of the large-scale commercial fishing industry in achieving Sustainable Development Goal 14. Reviews in Fish Biology and Fisheries, v. 29, n. 1, p. 161-175, 2019. https://doi.org/10.1016/j.envsci.2016.09.008.
HARYMAWAN, I.; NASIH, M.; SALSABILLA, A.; PUTRA, F. K. G. External assurance on sustainability report disclosure and firm value: evidence from Indonesia and Malaysia. Questões de Empreendedorismo e Sustentabilidade, v. 7, n. 3, p. 1500-1512, 2020. http://doi.org/10.9770/jesi.2020.7.3
HARJOTO, A.; JO, H. Corporate governance and CSR nexus. Journal of Business Ethics, v. 100, n. 1, p. 45-67, 2011. https://doi.org/10.1007/s10551-011-0772-6.
IONESCU, G. H.; FIROIU, D.; PIRVU, R.; VILAG, R. D. The impact of ESG factors on market value of companies from travel and tourism industry. Technological and Economic Development of Economy, v. 25, n. 5, p. 820-849, 2019. https://doi.org/10.3846/tede.2019.10294.
IKE, M.; DONOVAN, J.; TOPPLE, C.; MASLI, E. The process of selecting and prioritizing corporate sustainability issues: insights for achieving the Sustainable Development Goals. Journal of Cleaner Production, 236, 117661, 2019. https://doi.org/10.1016/j.jclepro.2019.117661
KHALED, R.; ALI, H.; MOHAMED, E. K. A. The Sustainable Development Goals and corporate sustainability performance: mapping, extent and determinants. Journal of Cleaner Production, v. 311, p. 1-10, 2021. https://doi.org/10.1016/j.jclepro.2021.127599
KIM, Y.; PARK, M. S.; WIER, B. Is earnings quality associated with corporate social responsibility? The Accounting Review, v. 87, n. 3, p. 761-796, 2012. https://doi.org/10.2308/accr-10209
KOULOUKOUI, D.; GOMES, S. M. S.; MARINHO, M. M. O.; TORRES, E. A.; KIPERSTOK, A.; JONG, P. Disclosure of climate risk information by the world‟s largest companies. Mitigation and adaptation strategies for global change, v. 23, n. 8, p. 1251-1279, 2018. https://doi.org/10.1007/s11027-018-9783-2
LASSALA, C.; ORERO-BLAT, M.; RIBEIRO-NAVARRETE, S. (2021) The financial performance of listed companies in pursuit of the Sustainable Development Goals (SDG). Economic Research-Ekonomska Istraživanja, v. 34, n. 1, p. 427-449, 2021. https://doi.org/10.1080/1331677X.2021.1877167f
LA TORRE, M.; MANGO, F.; CAFARO, A.; LEO, S. Does the ESG index affect stock return? evidence from the eurostoxx50. Sustainability, v. 12, n. 16, p. 6387, 2020. https://doi.org/10.3390/su12166387
LOPES, A. C.; LUCA, M. M. M.; GÓIS A. D.; VASCONCELOS A. C. Divulgação socioambiental, reputação corporativa e criação de valor nas empresas listadas na BM&Bovespa. Revista Ambiente Contábil-Universidade Federal do Rio Grande do Norte, v. 9, n. 1, p. 364-382, 2017. https://doi.org/10.21680/2176-9036.2017v9n1id10029
LUNA, T. A. U. Auditoria dos Relatórios de Sustentabilidade: um estudo com empresas listadas na B3. Revista de Contabilidade da UFBA, v. 13, n. 3, p. 88-107, 2019. https://doi.org/10.9771/rc-ufba.v13i3.30783
MADARIAGA J. G.; RIVERA, F. R. Corporate social responsibility, customer satisfaction, corporate reputation, and firms‟ market value: Evidence from the automobile industry. Revista Espanhola de Marketing-ESIC, v. 21, p. 39-53, 2017. DOI: http://dx.doi.org/10.1016/j.sjme.2017.05.003.
MAALOUL, A.; ZÉGHAL, D.; AMAR, W. B.; MANZOUR, S. The effect of environmental, social, and governance (ESG) performance and disclosure on cost of debt: The mediating effect of corporate reputation. Corporate Reputation Review, p. 1-18, 2021. https://doi.org/10.1057/s41299-021-00130-8.
MERVELSKEMPER, L.; STREIT, D. Enhancing market valuation of ESG performance: is integrated reporting keeping its promise? Business Strategy and the Environment, v. 26, n. 4, p. 536-549, 2017. https://doi.org/10.1002/bse.1935.
O'DONOGHUE, I. M. La contribución de las grandes multinacionales a la agenda de desarrollo 2030. 2022.
ODRIOZOLA, M. D.; BARAIBAR‐DIEZ, E. Is corporate reputation associated with quality of CSR reporting? Evidence from Spain. Corporate Social Responsibility and Environmental Management, v. 24, n. 2, p. 121-132, 2017. https://doi.org/10.1002/csr.1399.
OGINNI, O.; OMOJOWO, A. Sustainable development and corporate social responsibility in sub-Saharan Africa: Evidence from industries in Cameroon. Economies, v. 4, n. 2, p. 10, 2016. https://doi.org/10.3390/economies4020010.
PATTBERG, P.; WIDERBERG, O. Transnational multistakeholder partnerships for sustainable development: conditions for success. Ambio, v. 45, n. 1, p. 42-51, 2016. https://doi.org/10.1007/s13280-015-0684-2.
PINEDA-ESCOBAR, M. Moving the 2030 agenda forward: SDG implementation in Colombia. Corporate Governance: The International Journal of Business in Society, v. 19, n. 1, p. 176-188, 2019.
PINTO, L. J. S.; FREIRE, F. S. Reflexões acerca das diversas proxies para a reputação corporativa nas pesquisas em finanças e/ou contabilidade. Revista Administração em Diálogo, v. 22, n. 2, p. 29-43, 2020.
PRUDÊNCIO, P.; FORTE, H.; CRISÓSTOMO, V.; VASCONCELOS. A. Efeito da diversidade do conselho de administração e da diretoria executiva na Responsabilidade Social Corporativa. BBR - Brazilian Business Review, v. 18, p. 118-139, 2021.
PUREZA, A. P.; LEE, K. Corporate social responsibility leadership for sustainable development: An institutional logics perspective in Brazil. Corporate Social Responsibility and Environmental Management, v. 27, n. 3, p. 1410-1424, 2020. https://doi.org/10.1002/csr.1894.
RAMOS, D. L.; CHEN, S.; RABEEU, A.; RAHIM, A. B. A. Does SDG Coverage Influence Firm Performance? Sustainability, v. 14, n. 9, p. 4870, 2022. https://doi.org/10.3390/su14094870
REDECKER, A. C.; TRINDADE, L. M. Práticas de ESG em sociedades anônimas de capital aberto: Um diálogo entre a função social instituída pela lei n. 6.404/76 e a geração de valor. Revista Jurídica Luso Brasileira, v. 7, n. 2, p. 59-125, 2021.
RIZZI, D. I.; MAZZIONI, S.; MOURA, G. D.; ORO, I. M. Fatores determinantes da conformidade dos relatórios integrados em relação às diretrizes divulgadas pelo International Integrated Reporting Council. RGSA (ANPAD), v. 13, n. 1, p. 21-39, 2019.
ROSATI, F.; FARIA, L. G. D. Addressing the SDGs in sustainability reports: The relationship with institutional factors. Journal of Cleaner Production, v. 215, n. 1, p. 1312-1326, 2019a. https://doi.org/10.1016/j.jclepro.2018.12.107.
ROSATI, F.; FARIA, L. G. D. Business contribution to the Sustainable Development Agenda: Organizational factors related to early adoption of SDG reporting. Corporate Social Responsibility and Environmental Management, v. 26, n. 3, p. 588-597, 2019b.10.1002/csr.1705
SCHÖNHERR, N.; FINDLER, F.; MARTINUZZI, A. Exploring the interface of CSR and the Sustainable Development Goals. Transnational Corporations, v. 24, n. 3, p. 33-47, 2017.
SHAYAN, N. F.; MOHABBATI-KALEJAHI, N.; ALAVI, S.; ZAHED, M. A. Sustainable development goals (SDGs) as a framework for corporate social responsibility (CSR). Sustainability, v. 14, n. 3, p. 1222, 2022. https://doi.org/10.3390/su14031222
TOPPLE, C.; DONOVAN, J.; MASLI, E.; BORGERT, T. Corporate sustainability assessments: MNE engagement with sustainable development and the SDGs. Transnational Corporations, v. 24, n. 3, p. 61-71, 2017.
VAN DER WAAL, J.; THIJSSENS, T. Corporate involvement in sustainable development goals: exploring the territory. Journal of Cleaner Production, v. 252, 119625, 2020.
VAN ZANTEN, J. A.; VAN TULDER, R. Multinational enterprises and the Sustainable Development Goals: an institutional approach to corporate engagement. Journal of International Business Policy, v. 1, n. 3-4, p. 208-233, 2018. https://doi.org/10.1057/s42214-018-0008-x.
VILDÅSEN, S. S. Corporate sustainability in practice: an exploratory study of the sustainable development goals (SDGs). Business Strategy and Development, v. 1, n. 4, p. 256-264, 2018.
XIA, B.; OLANIPEKUN, A.; CHEN, Q.; XIE, L.; LIU, Y. Conceptualising the state of the art of Corporate Social Responsibility (CSR) in the construction industry and its nexus to sustainable development. Journal of Cleaner Production, v. 195, p. 340-353, 2018.
WONG, J. B.; ZHANG, Q. Stock market reactions to adverse ESG disclosure via media channels. The British Accounting Review, v. 54, n. 1, p. 101045, 2022. 10.1002/bse.1935
ZANON, A. R. M.; ARAÚJO, C. G.; NUNES, A. Influência da política de dividendos no valor de mercado das empresas brasileiras. Revista de Gestão, Finanças e Contabilidade, v. 7, n. 3, p. 326-339, 2017.
ZHOU, G.; LIU, L.; LUO, S. Sustainable development, ESG performance and company market value: Mediating effect of financial performance. Business Strategy and the Environment, v. 1, n. 1, p. 1-17, 2022. https://doi.org/10.1002/bse.3089.
