Sustainability reports should provide a balanced picture of a company’s sustainability aspects, but because of its voluntary nature, overly positive aspects are often presented (Holder-Webb et al., 2009; Lougee & Wallace, 2008). Though, negative disclosure may also be released as it could improve transparency, enhance trust, and decrease the risk of green or whitewashing tendencies (Hahn & Lüfs, 2014, Hahn & Reimsbach, 2013). However, when disclosing negative information, it is important for companies to legitimize the negative aspects, as the negative information could otherwise harm the company. As a result of this, different legitimacy strategies are used by companies when disclosing negative information (Hahn et al., 2021). Based on this, this thesis explores and analyses strategies for disclosing negative sustainability information. In particular, the study examines companies within the fast fashion industry, a heavily debated sector in regard to sustainability, which indicates that the companies within the business should try to legitimize themselves.    To fulfil the purpose of this study the choice was made to conduct a content analysis and semi-structured interviews, where four fast fashion companies’ (H&M, SHEIN, Boohoo and American Eagle) sustainability reports were analysed to identify negative sustainability disclosure and assess how the companies’ tried to legitimize these negative aspects. Later, the disclosure strategies’ impacts on stakeholders were examined through 10 semi-structured interviews with concerned stakeholders. The results show that the companies subject to research did use the strategies corrective action, marginalization, abstraction, and preventive action to legitimize negative sustainability issues. The strategies were often not effective in enhancing legitimacy mainly because of too vague measures, but also because of the disbelief from stakeholders regarding the industry’s will and ability to change. However, the findings also indicated that the negative disclosure could enhance a bit of legitimacy as it signalled transparency and accountability, which is preferred compared to denial or compliance.    The study’s implications are important for scholars and practitioners. The theoretical contributions were added to the research field of negative disclosure and legitimacy strategies, and the implications are important for managers working within the fast fashion industry as well. This is because the results of this study will develop their knowledge of how certain negative disclosures strategies can play a both positive and negative role in enhancing the legitimacy towards stakeholders.

Syfte: Syftet med studien är att förklara hur mängden hållbarhetsinformation företag ger ut påverkas när hållbarhetsrapportering är obligatorisk. Metod: Denna studie har utgått från en kvantitativ metod med ett positivistiskt synsätt och en deduktiv ansats. Vi har samlat in data med hjälp av innehållsanalys och sekundäranalys som sedan har analyserats med hjälp av deskriptiv statistik, Pearsons korrelationskoefficient och multipel linjär regressionsanalys. Slutsats: I denna studie har vi kommit fram till att införande av obligatorisk hållbarhetsrapportering leder till att företag rapporterar större mängd hållbarhetsinformation, som vi förklarar med hjälp av tvingande isomorfism. Bidrag: I denna studie bekräftar vi tidigare studier som menar att hållbarhetsinformation påverkas av reformer. Vi bekräftar även att tvingande isomorfism kan vara en anledning till varför företag rapporterar större mängd efter en reform. Vårt praktiska bidrag är att reformer kan vara ett effektivt sätt att få företag att rapportera större mängd hållbarhetsinformation. Förslag till vidare forskning: Vårt förslag till vidare forskning är att observera specifikt hur sanktioner påverkar mängden hållbarhetsinformation. Vi anser även att det skulle vara av intresse att i framtiden undersöka om ökningen i mängd hållbarhetsinformation är permanent eller om det enbart är en tillfällighet. / Aim: The aim of this study is to explain how the quantity of sustainability information companies issue is affected when sustainability reporting is mandatory. Method: This study is based on a quantitative method with a positivistic view and applies a deductible research effort. The data in this study have been collected through a content analysis and secondary analysis. To analyze the data we have used descriptive statistics, Pearson's correlation and multiple linear regression analysis. Conclusion: In this study we have come to the conclusion that the introduction of mandatory sustainability reporting leads to companies reporting more sustainability information, which we explain by means of coercive isomorphism. Contribution: In this study we confirm previous studies which conclude that sustainability disclosure is affected by sustainability reforms. We also confirm that coercive isomorphism may be a reason why companies report more after a reform. Our practical contribution is that reforms can be an effective way of getting companies to report more sustainability information. Suggestion for further research: Suggestion for further research is to study more specific how the sanction affect the quantity of sustainability information firms report. We would also suggest to research if the increase in sustainability information is temporary or permanent.

Sustainable development is one of the most frequently used expressions in the economic context. Its importance is emphasized not only at the national level but also at the corporate level. The purpose of this study is to find the influence of company´s age, size and type of industry on the level of sustainable development among Swedish companies. In order to accurately evaluate the level of sustainable development a comprehensive measurement scale is needed. We have recognized the research gap of lack of sustainability measurement methods. Thus, the second goal we have decided to achieve is to develop an extensive measurement scale for sustainability performance evaluation. The main contribution of the study lies in filling the research gap by providing a new measurement method that can be adopted in order to evaluate the sustainability performance and to find the effects of company age, size and type of industry on the level of CSR. The relationships in the study are hypothesized and summarized in the conceptual model and consequently tested. This study distinguishes five underlying perspectives of sustainability and several categories of company ages, size and types of industry. These aspects are in the focal point of the questionnaire sent to our sample of Swedish companies. The data collected from the survey were analyzed in SPSS statistics program using a variety of analytical methods. At first, each set of questions was analyzed separately. Thereafter, the findings regarding each determinant of CSR were thoroughly discussed. Based on the results from analytical tests a revised conceptual model is proposed. The new features added to the model should enhance its quality and explanatory value. The collected data reveal that the responding Swedish companies engage in the sustainability perspectives in a considerable extent. According to the results of the study there is no or minor effect of company age and type of industry on the level of CSR. Company size, however, is found to be a significant determinant of CSR causing an U-shaped effect. This U-shaped effect of company size implies that the level of CSR activities decreases as a company grows from small to middle-sized but increases from middle-sized to large company.

Syfte: Hållbarhet blir mer och mer betydelsefullt i vår värld och investerare vill satsa på hållbara företag där pengarna arbetar för goda syften. Ett sätt att mäta hållbarhet är ESG-betyg, där företagen av värderingsföretag bedöms utifrån kriterier inom miljö, social hållbarhet och ägarstyrning. Utsläpp av växthusgaser och koldioxidutsläpp ses som relevanta mått att mäta hållbarhet med kopplat till miljö-delen av ESG-betyget. Ett problem som diskuteras är ESG-betygens tillförlitlighet. Forskning visar att större företag får högre ESG-betyg trots att de inte alltid har en bättre hållbarhetsprestation. Detta fenomen menar vi även kan appliceras på företagens verksamhetsålder. Syftet med denna studie är att förklara sambandet mellan företags verksamhetsålder och deras nivå av hållbarhet mätt genom ESG-betyg och koldioxidutsläpp. Metod: Denna kvantitativa tvärsnittsstudie kommer utifrån positivismen att bedrivas med ett deduktivt synsätt. Utifrån positivismen kommer studien även utgå ifrån objektivismen, de variabler och mått som är kopplade till i studien använda begrepp. Urvalet består av 4 277 globala företag med inrapporterade hållbarhetsrapporter år 2022 och sekundärdatat är inhämtat från databasen Thomson Reuters Eikon. Dataanalyserna gjordes i statistikprogrammet SPSS. Resultat & Slutsats: Studien visar på ett signifikant negativt samband mellan verksamhetsålder och ESG-betyg, äldre företag tenderar alltså ha ett sämre ESG-betyg. Studien visar även på ett signifikant positivt samband mellan verksamhetsålder och koldioxidutsläpp. Yngre företag tenderar alltså enligt denna studie att släppa ut mindre koldioxid i förhållande till sin storlek. Examensarbetets bidrag: Hållbara investeringar är viktigare än någonsin och ESG-betyg är ett sätt att mäta företags hållbarhet. Det är därför relevant att öka kunskapen kring vad som påverkar dessa betyg, och hur tillförlitliga de kan anses vara. Denna studie bidrar med kunskap kring huruvida verksamhetsåldern påverkar ESG-betyget och om detta stämmer överens med företagens faktiska hållbarhetsprestationer i form av koldioxidutsläpp. Förslag till fortsatt forskning: Förslag till vidare forskning skulle kunna vara att göra en mer omfattande studie som innefattar flera år där man kan studera företagens utveckling. Ett annat förslag är att studera varje del i ESG-betyget mer ingående för att undersöka om det finns skillnader mellan de olika delarna. / Aim: Sustainability is becoming more and more important in our world and investors want to invest in sustainable companies where the money works for good purposes. One way to measure sustainability is ESG ratings, where the companies are assessed by valuation companies based on criteria within the environment, social sustainability and governance. Emissions of greenhouse gases and carbon dioxide emissions are seen as relevant metrics to measure sustainability linked to the environmental part of the ESG rating. One problem that is discussed is the reliability of ESG ratings. Research shows that larger companies receive higher ESG ratings even though they do not always have a better sustainability performance. We believe this phenomenon can also be applied to the business age. The purpose of this study is to explain the relationship between companies' business age and their level of sustainability, measured by ESG ratings and level of carbon dioxide emissions.  Method: Based on the positivistic research philosophy, this quantitative cross-sectional study is conducted with a deductive approach. The study is also conducted with the objectivism philosophy and the variables and measures used in the study. The selection consists of 4 277 global companies with reported sustainability reports in 2022 and the secondary data is obtained from the Thomson Reuters Eikon database. The data analyzes were done in the statistical program SPSS.  Result & Conclusions: The study shows a significant negative correlation between the age of the business and ESG rating. Older companies tend to have a lower ESG rating. The study also shows a significant positive correlation between business age and carbon dioxide emissions. Younger companies tend, according to this study, to emit less carbon dioxide in relation to their size.  Contribution of the thesis: Sustainable investments are highly relevant today and ESG ratings are a way to measure companies’ sustainability. It is therefore relevant to learn more about what affects these grades. This study does this by increasing the knowledge about how the age of the business affects ESG ratings and whether it is consistent with the companies' actual sustainability performance.  Suggestion for future research: Suggestions for further research could be to do a more extensive study that includes several years where you can study the development of the companies. Another suggestion is to study each part of the ESG rating in more detail to investigate whether there are differences between the various parts.

Thesis (MBA.) -- University of Limpopo, 2016 / This research examined whether an improved participation of women in the board of Socially Responsible Investing (SRI) firms has any relationship with sustainability disclosure. Accordingly, the objective of this research was to examine the relationship between the number of women on the board and environmental, social and gender-employment disclosure in South African firms. The research applied a purposive sampling design to study the nine best socially responsible investing firms on the Johannesburg Stock Exchange and secondary data were collected from the sustainability reports of the firms. Using a quantitative approach, the panel-data regression analysis was used to analyse the relationship between women on the board of directors, environmental, social and gender employment disclosure. Energy consumption disclosure, social investment and the number of women employment in the firms were the proxy for environmental disclosure, social investment and gender employment disclosures respectively. Findings show a positive relationship between the number of women on the board of directors and firm disclosure on energy consumption, disclosure on women employment and social investment disclosure. However, the number of women employed in the corporate is still very low in comparison with the male counterparts. The research recommends that, given the unique social and environmental sensitivity of women, the corporate should recruit more women onto the boards to enhance accelerated corporate sustainability performance and disclosures. Key words: sustainability disclosure, women in the board, sustainability performance, energy disclosure, sustainable development

Sammanfattning Titel: Företagsstorlek och ESG-betyg Nivå: Examensarbete på Grundnivå (kandidatexamen) i ämnet företagsekonomi  Författare: Anton Samuelsson och Inga Kemi Handledare: Jan Svanberg Datum: 2021 – Januari Syfte: ESG-betygen spelar en nyckelroll som den vanligaste proxyn för hållbarhetsprestation inom hållbar finansiering. Tidigare studier visar dock att företag har incitament att vara kreativa med hållbarhetsupplysningar, som ligger till grund för ESG-betygen. Incitamenten kan överföras till företagsstorlek då större företag möter en högre press från samhället att vara hållbart ansvarstagande. Om företagens storlek är positivt relaterad till ESG-betyget behöver det också åtföljas av motsvarande förändring i hållbarhetsprestation. Återspeglar inte ESG-betygen hållbarhetprestationen riskerar kapitalet att fördelas mot icke-hållbara företag. Syftet med denna studie är därför att förklara sambandet mellan företagsstorlek och ESG-betyg. Metod: Studien utgår från en positivistisk forskningsfilosofi med en deduktiv ansats. Studien har en kvantitativ strategi och en longitudinell design som genomförts med data på ett urval bestående av 5 658 publika företag vilka erhållit ESG-betyg mellan åren 2015-2019. Studien baseras på sekundär data inhämtad från databasen Thomson Reuters Eikon. Data har analyserats i statistikprogrammet SPSS. Resultat & slutsats: Studiens resultat påvisar att företagens storlek har ett positivt samband med ESG-betyget. Studiens resultat visar vidare att det positiva sambandet inte åtföljs av en ökad grad av hållbarhet. Således drar studien slutsatsen att ESG-betyget inte fungerar optimalt och är i behov av en snabb modifiering. Examensarbetets bidrag: Studiens resultat ger information till investerare som vill investera i hållbara företag. Eftersom ESG-betyget inte återspeglar hållbarhetsprestationen bör inte investerare förlita sig på ESG-betyget i investeringsbesluten. Studiens resultat ger också information till mätinstituten som tillhandahåller ESG-betyg. Då studien visar att det förekommer företagsstorlek-bias kan åtgärder göras för att få ESG-betyget att fungera mer korrekt. Studiens resultat ger vidare information till forskningen inom ESG-betygen. Detta genom att påvisa hur sambandet ser ut i verkligheten. Förslag till fortsatt forskning: Ett förslag till fortsatt forskning är att göra en liknande undersökning, men som innefattar fler mätinstitut som tillhandahåller ESG-betyg. I denna studie används miljödimensionen som proxy för datatillgänglighet och hållbarhet. Ett förslag till fortsatt forskning är att undersöka om detta också är applicerbart inom dimensionerna samhälle och företagsstyrning. Nyckelord: ESG-betyg, företagsstorlek, hållbarhetsrapportering, hållbarhetsredovisning, SRI / Abstract Title: Company size and ESG ratings Level: Student thesis, final assignment for Bachelor Degree in Business Administration Author: Anton Samuelsson and Inga Kemi Supervisor: Jan Svanberg Date: 2021 – January Aim: Investors play an important role in the global sustainability goals by allocating capital to sustainable companies. Previous research, on the other hand, shows that companies have incentives to be creative with sustainability information, which ESG ratings are largely based on. These incentives can be applied to company size. Larger companies face a higher pressure from society to be sustainably responsible. If the size of the companies is positively related to the ESG rating, it also needs to be accompanied by corresponding change in sustainability performance. If the ESG rating does not reflect sustainability performance, capital risks being allocated to non-sustainable companies. The purpose of this study is therefore to explain the relationship between company size and ESG ratings. Method: The study assumes a positivistic research philosophy with a deductive approach. The study uses a quantitative strategy and a longitudinal design implemented with data of a sample consisting 5 658 unique companies that have received ESG ratings, in the years 2015-2019. The study uses secondary data collected from the database Thomson Reuters Eikon. The data have been analyzed in the statistical software package called SPSS.  Result & Conclusions: The results indicate that company size has a positive relationship with the ESG rating. The results indicate that the positive relationship does not attend on a higher level of sustainability. Thus, the study concludes that ESG rating does not function optimally and is in need of a quick modification Contribution of the thesis: The result provides information for investors interested in investing in sustainable companies. Since the ESG rating does not reflect the sustainability performance, investors should not rely on the ESG-rating in the investment decision. The result also provides information to the rating agencies which provide the ESG-ranking. As the study indicates that there exists a company size bias, actions can be taken to correct the ESG-ranking. The result of this study also provides information to the research field of ESG ratings. Suggestions for future research: A suggestion for further studies is to conduct a similar research but include other rating agencies of ESG ratings. A suggestion for further studies is to investigate if this also is applicable in the social and governance dimensions. Key words: ESG-rating, company size, sustainability reporting, sustainability disclosure, SRI

Introduction - Sustainability reporting is becoming more and more important for businesses all around the world. Extant empirical literature investigating the relationship between family status and sustainability reporting provides inconclusive results. No previous studies investigated this association in the Swedish setting. Purpose - The purpose of this study is to investigate how family control and influence affects sustainability reporting behavior of Swedish listed firms. Theoretical framework – Sustainability disclosures are considered as effective means for companies to communicate with their stakeholders. Family firms are more concerned about their internal and external stakeholders in order to protect family’s socioemotional endowments. Methodology design – We use panel data on Swedish listed firms over the period of 2008-2015. We analyze data with random-effects ordered probit regression for panel data. Empirical findings - When we treat all family firms as homogenous, there are no statistically significant differences in the levels of reports of family and non-family firms. However, when we take into account internal contexts of family firms, we find that a family member(s) in top management or a family CEO make family firms more transparent about their sustainability performance. Conclusion – We document that presence of a family top manager(s) or of a family CEO is associated with higher level of details of sustainability reports. Family top managers are more likely to be concerned about internal and external stakeholders to preserve the family’s SEW.

La théorie du signal soutient qu’une entreprise qui limite l'étendue de sa communication sociale et environnementale limite la capacité de ses parties prenantes à évaluer son degré réel de performance en termes de développement durable, lui permettant potentiellement d’atteindre une meilleure performance financière. Cependant la transparence est une norme institutionnalisée à laquelle ces parties prenantes sont attachées. Les entreprises peuvent donc ne pas être capables de limiter l’étendue de leur communication sans être pénalisées. Cette thèse soulève donc la question de savoir si les entreprises peuvent stratégiquement limiter leur communication sociale et environnementale afin d’atteindre des niveaux de profit plus élevés, ou si la pression de conformité à la norme de transparence affaiblit ces stratégies. Cette thèse démontre économétriquement que les agences de notation sociale et environnementale ne convergent pas dans leur évaluation des entreprises, soutenant l'hypothèse que les entreprises sont capables de limiter la capacité des parties prenantes à évaluer leur degré de performance sociale et environnementale. Cette thèse démontre également que les entreprises les moins durables, et les plus réputées, sont les plus susceptibles de limiter l’étendue de leur communication, que les entreprises les plus durables accèdent à de plus hauts retours financiers sur le court et long terme lorsqu'elles adoptent une communication exhaustive, et que les entreprises les moins durables au contraire sont plus rentables sur le court terme quand elles limitent l’étendue de leur communication. Cette thèse montre donc que, conformément à la théorie du signal, les entreprises peuvent à court terme stratégiquement ajuster l’étendue de leur communication sociale et environnementale afin d’atteindre de plus hauts retours financiers. Cependant, sur le long terme, la pression de conformité à la norme de transparence est trop élevée, et limite les bénéfices de telles stratégies. / The signaling perspective argues that when a firm limits the extent of its sustainability disclosure, it prevents stakeholders from evaluating its achieved degree of sustainability performance, and may thus reach higher financial returns. However, transparency is an institutionalized norm that stakeholders value, and firms may not be able to limit their disclosure without being penalized. This thesis therefore raises the question of whether firms can strategically limit their sustainability disclosure to reach higher profits, or if pressure for conformity to the norm of transparency exists and weakens such strategies. Using econometrical methods, this thesis empirically shows that sustainability raters do not converge in their assessment of firms’ sustainability performance, supporting the assumption that firmsmay prevent stakeholders from evaluating their actual degree of sustainability. It also shows that less sustainable and more reputed firms are more likely to limit their sustainability disclosure, that highly sustainable firms encounter higher short and long term financial returns when they adopt an extensive disclosure, and that less sustainable firms, on the contrary are more profitable in the short term when theylimit their disclosure. This thesis therefore shows that in line with the signaling perspective, firms may strategically adjust the extent on their disclosure to reach higher returns in the short term. However, in the long term, normative pressure for transparency is too high and weakens the benefits of such strategies.

How to integrate sustainability into business activities is discussed within corporations more than ever today. With increasing sustainability requirements set by governments and non-governmental organizations, corporations in all industries are facing challenges to readjust their businesses. The emission intense stainless steel industry is no exception. Through a case study of Corporation X, this thesis aims to investigate how Facility Y works with sustainability aspects and what could be done to enhance the level of environmental sustainability. It is done by first exploring what sustainability is. When a common understanding of sustainability hasbeen established, it is explored how a corporation can be identified in terms of their sustainability commitment and ongoing projects. Lastly, an investigation of how a corporation could enhance the level of substantiality is conducted through four pillars to fulfill the bottom line. We found that Corporation X is somewhat proactive and have a minimization approach towardenvironmental sustainability. In other words, they are considered to aim at ‘being less bad’ rather than being ‘more good’ in their sustainability work. Corporation X thus face challenges with increasing requirements and should enhance their level of sustainability to remain competitive. With an analysis of the four pillars, we concluded that Facility Y should prioritize improvements within the pillar of measurement and disclosure since they lack in terms of reliable carbon dioxide emission metrics on a product level. We further argue that the four pillars are intertwined but should be prioritized differently based on the prerequisites of thecorporation at hand. The recommended prioritization at Facility Y on measurement will thuschange when there are reliable carbon dioxide emission measurements. A reassessment of what is most important must be done.

Thesis (M. Com. (Accountancy)) -- University of Limpopo, 2017 / This research evaluated the role of external pressure on the sustainability of South African banks. Although much research on corporate sustainability disclosure has been done, this research is important since little of the previous research in South African has given a closer examination to sustainability external pressure implication of external pressure on banking sector sustainability disclosure. In addition, this research separated banks’ sustainability disclosure into social and environmental aspects to know which aspect in the banks are more influenced by external pressure. Therefore, the main objective of this research was to examine the relationship between external pressures on social disclosure and to examine the role of external pressure on environmental disclosure in select South African banks. Although the entire commercial banks in South African made up the population of study, the sample was reduced by the availability of external pressure variables (government pressure, political pressure, social pressure, regulatory pressure, customer pressure, and two control variables – reputation and profit objectives) in the sustainability reports within the six years of study (2010 – 2015). Research data were collected from secondary data which were available from the annual integrated reports of banks. Data were analysed by means of the panel data multiple regression analysis. The analysis of data on research question 1 showed that three independent variables (Government pressure, profit objective and customer pressure) showed a significant positive relationship with social disclosure. Government pressure showed a significant relationship at a value of P=0.006 which is less than the 0.05 alpha level set for this research. This therefore means that within the sample of banks where data were collected, government pressure have a significant positive relationship with social disclosure in these banks. Also, the analysis showed that profit objective and customer pressure are positively and significantly related to social disclosure at a value of P=0.05 which is equal to the alpha of this research. This also means that within the sample of banks where data vi were collected, profit objective and customer pressure have a significant positive relationship with social disclosure in these banks. On the contrary, four out of the seven independent variables (regulatory pressure, political pressure, social pressure and reputation) showed no significant relationship. The second research question in this study was to find whether a relationship exists between external pressure and environmental disclosure. However, all the independent variables showed a non-significant relationship with environmental disclosure. In conclusion, the research made some recommendations which include that future researchers should expand the number of banks by including other financial institutions, the comparison of sustainability disclosure in banks before and after the King III report, more improved teaching and research on banking sector sustainability disclosure in higher institutions, communication of research result such as on banking industry sustainability to practitioners and to government agencies. Other recommendations include the need to conduct a regional study to include other African countries on banking sector sustainability and to conduct a survey study on external pressure on banking sector environmental activity and disclosure