Corporate environmental social and governance (ESG) reporting is becoming subject to increased scrutiny by regulators, investors and public. This dissertation will contribute to several research streams in the extant literature. This dissertation is the first to show the impact of employee environmental values and attitudes on reporting and whistleblowing decisions, making contributions to accounting, management, whistleblowing and environmental psychology literatures. Next, it is among the first to examine the role of the identity of ESG assurance provider in ESG reporting context. Further, it is among the first to examine the impact of SEC assurance mandate and the value of assurance over ESG information, thus contributing to audit literature. Using experimental methodology, I examine how ESG report assurance, ESG report assurance provider, ESG issue type, and environmentalism as a personality factor influence employee decisions to accede to a supervisory request to misrepresent ESG information, to report management's actions to a corporate hotline, to post information about management wrongdoing on social media, to switch jobs, and to judge ESG misreporting actions as unethical. The results indicate that (1) employee personality factor environmentalism impacts their ESG reporting decisions; (2) pro-environmental employees are more likely to whistleblow when assurance is not mandated, and they judge management actions to be more unethical when assurance is required; (3) under pressure to misreport ESG information, employees are more likely to switch jobs and judge management actions significantly more unethical, when they are dealing with quantitative data (as opposed to qualitative data), and when ESG assurance is provided by a consultant (versus an auditor); (4) pro-environmental employees do not differentiate between the issues impacting financial statements or ESG report only, whereas, employees with low-level environmentalism judge management actions to be more unethical when facing ESG issue with immediate impact to financial statements as opposed to an issue impacting ESG report only; (5) older employees (over 35) with low-level environmentalism are more likely to post information on social media when dealing with an environmental issue as opposed to a social issue; and (6) majority of participants (57%) perceive ESG misreporting to be a widespread phenomenon.

In this research study, triangulation is employed utilizing quantitative and qualitative methods, including content analysis, a perception survey, and expert interviews to find key themes and patterns in management and digital strategies for ESG reporting. The primary focus centered on sequential research, applying the emerging themes from the content analysis to the survey and interview creation. The research questions address organizational challenges with ESG reporting (1), the influence of digital strategies on reporting reliability (2), and management practices that impact stakeholders’ perception of quality, credibility, and transparency in ESG reporting (3). The findings reveal that organizations need to prepare and restructure to meet intensifying ESG reporting requirements. Digital strategies and solutions emerged as fundamental variables that influence the success and quality of ESG reporting practices. To achieve this, data streamlining, normalization, assurance, and verification processes are crucial for enhancing data traceability and credibility across the value chain. Additionally, the empirical findings found that management and communication practices influence stakeholder perception significantly. Therefore, organizations must improve their disclosure practices in transparency and openness to ultimately impact stakeholder perception of organizational communication. The research findings suggest organizations adopt a holistic approach to integrating ESG practices into business models and operational activities. The findings emphasize the urgent need for any organization to comply with ESG reporting practices and continuously improve ESG performance. In conclusion, this study advocates for proactive management practices to maintain a competitive advantage through improving environmental and social business practices.

The use of sustainability within the investment community is becoming increasingly common. More specifically, investors are now more than ever leaning towards ESG scores as a way of incorporating a more holistic approach when making investment decisions. However, the evidence for a relationship between financial performance and ESG scores is inconsistent. Besides, a recent study has also shown a large divergence between ESG scores. Together this urges a need for a more in-depth understanding of which, if any, non-financial metrics have an impact on financial performance. Therefore, this study investigated if there is any relationship between ESG metrics and financial performance for Nordic public companies by performing a multiple linear regression analysis. Our results concluded that such a relationship exists, both for accounting-based ROA and market-based Tobin’s Q between 2017-2018. This study also shows that there is an overall concentration towards social metrics for both models. Secondly, it shows that some metrics such as “Percentage of Female Employees” are positively significant for ROA but not valued by the market model. The opposite outcome also exists where “Code of Conduct/Ethics Policy” is positively significant for Tobin’s Q but not for ROA. Lastly, it is also shown that some important metrics are negative significant for ROA and therefore urging for inclusion of non-financial measurements when making strategic decisions. / Användandet av hållbarhet inom investeringssfären blir allt vanligare. Investerare förlitar sig allt mer på ESG-betyg som ett sätt att integrera en helhetssyn när de fattar investeringsbeslut. Bevisen för ett samband mellan finansiell prestation och ESG-betyg är dock inkonsekventa. Dessutom har en ny studie också påvisat stora skillnader mellan ESG-betyg. Tillsammans skapar detta ett behov av mer fördjupad förståelse för vilka, om ens några, icke finansiella mått som har en inverkan på den finansiella prestationen. Därför undersökte denna studie om det finns något samband mellan ESG-mått och finansiell prestation för nordiska börsnoterade företag genom att utföra en multipel linjär regressionsanalys. Resultaten konkluderade att en sådan relation existerar, både för det bokföringsbaserade måttet ROA och marknadsbaserade måttet Tobin’s Q mellan 2017-2018. Studien visar också att det finns en övergripande koncentration mot sociala mått för båda modellerna. Efter det visas det även att mått som exempelvis “Percentage of Female Employees” är positivt signifikanta för ROA men inte signifikanta alls för Tobin’s Q. Ett liknande men motsatt resultat finns också då måttet “Code of Conduct/Ethics Policy” är positivt signifikant för Tobin’s Q men inte för ROA. Slutligen visar också denna studie på att det finns viktiga mått som visar en negativ signifikans med ROA och att det därför är viktigt att även inkludera icke-finansiella mått när strategiska beslut ska fattas.