What Drives the Sustainability Reporting Intentions of Firms?

Charles Ofori-Owusu (), Godfred Matthew Yaw Owusu, Cletus Agyenim-Boateng and Edem Emerald Sabah Welbeck
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Charles Ofori-Owusu: Department of Accounting, University of Ghana Business School, Legon, Accra P.O. Box LG 78, Ghana
Godfred Matthew Yaw Owusu: Department of Accounting, University of Ghana Business School, Legon, Accra P.O. Box LG 78, Ghana
Cletus Agyenim-Boateng: Department of Accounting, University of Ghana Business School, Legon, Accra P.O. Box LG 78, Ghana
Edem Emerald Sabah Welbeck: Department of Accounting, University of Ghana Business School, Legon, Accra P.O. Box LG 78, Ghana

Sustainability, 2024, vol. 16, issue 12, 1-17

Abstract: Global leaders have adopted sustainable development goals to address critical issues like climate change, biodiversity loss, and pollution from both human activities and firms. Over the years, there has been a demand for stricter regulations, accountability, and improved sustainable business practices by stakeholders. In the field of accounting, voluntary disclosure of firms’ sustainability efforts has become an important component of firm reporting architecture. Despite being a voluntary practice in many jurisdictions, sustainability reporting has become essential for firms to demonstrate their commitment to meeting sustainability goals, ensuring future growth, and achieving long-term success. This study examines firms’ sustainability reporting intentions and further investigates the dominant factors that drive such intentions, relying on the extended version of the Theory of Planned Behaviour. Data for the study were gathered from managers of member firms with the Association of Ghana Industries. Using a total of 518 valid responses, the study’s hypotheses were tested employing the partial least square structural equation modelling technique. The results indicate that subjective norm, perceived behavioural control, dynamic capabilities, cultural tightness–looseness, sustainability commitment, and perceived benefit are good predictors of firms’ sustainability reporting intentions. However, the results suggest an inverse relationship exists between attitude, perceived cost, and intention to engage in sustainability reporting. The findings highlight some of the critical factors driving sustainability reporting behaviour among firms.

Keywords: theory of planned behaviour; sustainability reporting; sustainable development goals; developing countries (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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