Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Corporate reputation and stakeholder engagement: Do assurance quality and assurer attributes matter?

Corporate reputation and stakeholder engagement: Do assurance quality and assurer attributes matter? The objective of this research is to determine the impact that sustainability assurance services have on corporate reputation and stakeholder engagement, delving into the differentiating effect of certain attributes of the assurer and the quality level of the assurance. After an initial exploratory analysis in which the added value that the assurance service has on the external business image and on the relationships with stakeholders is evidenced, the results obtained for a sample of 604 multinational corporations for the period 2011–2017 show the existence of a reputational advantage for those companies that have contracted for a higher quality assurance service. On the contrary, the attributes of the assurer have no direct and indirect effect on corporate reputation unless the assurer is an auditor, which favours a higher quality of assurance service and indirectly affects the probability that the company will be included in a reputation ranking. The intrinsic characteristics of this service do not translate into active stakeholder engagement. From a theoretical and practical point of view, this evidence contributes to the knowledge of the effect of assurance on stakeholder engagement and corporate reputation by improving the climate of trust around the company's disclosure. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Auditing Wiley

Corporate reputation and stakeholder engagement: Do assurance quality and assurer attributes matter?

Download PDF
16 pages

Loading next page...
 
/lp/wiley/corporate-reputation-and-stakeholder-engagement-do-assurance-quality-kf0aEe5FsS
Publisher
Wiley
Copyright
© 2022 John Wiley & Sons Ltd
ISSN
1090-6738
eISSN
1099-1123
DOI
10.1111/ijau.12287
Publisher site
See Article on Publisher Site

Abstract

The objective of this research is to determine the impact that sustainability assurance services have on corporate reputation and stakeholder engagement, delving into the differentiating effect of certain attributes of the assurer and the quality level of the assurance. After an initial exploratory analysis in which the added value that the assurance service has on the external business image and on the relationships with stakeholders is evidenced, the results obtained for a sample of 604 multinational corporations for the period 2011–2017 show the existence of a reputational advantage for those companies that have contracted for a higher quality assurance service. On the contrary, the attributes of the assurer have no direct and indirect effect on corporate reputation unless the assurer is an auditor, which favours a higher quality of assurance service and indirectly affects the probability that the company will be included in a reputation ranking. The intrinsic characteristics of this service do not translate into active stakeholder engagement. From a theoretical and practical point of view, this evidence contributes to the knowledge of the effect of assurance on stakeholder engagement and corporate reputation by improving the climate of trust around the company's disclosure.

Journal

International Journal of Auditing – Wiley

Published: Jul 1, 2022

Keywords: assurance; corporate reputation; disclosure; stakeholder engagement

References

  • Accountability, completeness, credibility and the audit expectations gap
    Adams, C. A.; Evans, R.
  • Useful information for stakeholder engagement: A multivariate proposal of an industrial corporate social responsibility practices index
    Amor‐Esteban, V.; Galindo‐Villardón, M. P.; García‐Sánchez, I. M.
  • Analysing the effect of legal system on corporate social responsibility (CSR) at the country level, from a multivariate perspective
    Amor‐Esteban, V.; García‐Sánchez, I. M.; Galindo‐Villardón, M. P.
  • Unfolding stakeholder thinking: Theory, responsibility and engagement
    Andriof, J.; Waddock, S.
  • Auditor industry specialization and earnings quality
    Balsam, S.; Krishnan, J.; Yang, J. S.
  • Corporate environmental reports: The need for standards and an environmental assurance service
    Beets, S. D.; Souther, C. C.
  • Determining best practice in corporate‐stakeholder relations using data envelopment analysis: An industry‐level study
    Bendheim, C. L.; Waddock, S. A.; Graves, S. B.
  • Does stakeholder orientation matter? The relationship between stakeholder management models and firm financial performance
    Berman, S. L.; Wicks, A. C.; Kotha, S.; Jones, T. M.
  • Does assurance on CSR reporting enhance environmental reputation? An examination in the US context
    Birkey, R. N.; Michelon, G.; Patten, D. M.; Sankara, J.
  • The stakeholder theory of the firm: Implications for business and society theory and research
    Brenner, S. N.; Cochran, P.
  • Sustainability reporting and perceptions of corporate reputation: An analysis using fortune most admired scores
    Brown, D. L.; Guidry, R. P.; Patten, D. M.
  • Measuring corporate reputation: A case example
    Caruana, A.; Chircop, S.
  • Understanding and contributing to the enigma of corporate social responsibility (CSR) assurance in the United States
    Casey, R. J.; Grenier, J. H.
  • CSR report assurance in the USA: An empirical investigation of determinants and effects
    Cho, C. H.; Michelon, G.; Patten, D. M.; Roberts, R. W.
  • Causes and consequences of voluntary assurance of CSR reports
    Clarkson, P. M.; Li, Y.; Richardson, G.; Tsang, A.
  • Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis
    Clarkson, P. M.; Li, Y.; Richardson, G. D.; Vasvari, F. P.
  • CSR and assurance services: A research agenda
    Cohen, J. R.; Simnett, R.
  • The value of assurance on voluntary nonfinancial disclosure: An experimental evaluation
    Coram, P. J.; Monroe, G. S.; Woodliff, D. R.
  • Implications of the joint provision of CSR assurance and financial audit for auditors' assessment of going‐concern risk
    Dal Maso, L.; Lobo, G. J.; Mazzi, F.; Paugam, L.
  • Transparency and assurance: Minding the credibility gap
    Dando, N.; Swift, T.
  • Stakeholder influence on corporate reporting: An exploration of the interaction between WWF‐Australia and the Australian minerals industry
    Deegan, C.; Blomquist, C.
  • An examination of differences between organizational legitimacy and organizational reputation
    Deephouse, D. L.; Carter, S. M.
  • Nonfinancial disclosure and analyst forecast accuracy: International evidence on corporate social responsibility disclosure
    Dhaliwal, D. S.; Radhakrishnan, S.; Tsang, A.; Yang, Y. G.
  • The stakeholder theory of the corporation: Concepts, evidence, and implications
    Donaldson, T.; Preston, L. E.
  • Ethical theory and business
    Evan, W. M.; Freeman, R. E.
  • What's in a name? Reputation building and corporate strategy
    Fombrun, C.; Shanley, M.
  • Reputation
    Fombrun, C. J.
  • Opportunity platforms and safety nets: Corporate citizenship and reputational risk
    Fombrun, C. J.; Gardberg, N. A.; Barnett, M. L.
  • The Oxford handbook of corporate reputation
    Foreman, P. O.; Whetten, D. A.; Mackey, A.
  • Strategic management: A stakeholder approach
    Freeman, R. E.
  • Drivers of the CSR report assurance quality: Credibility and consistency for stakeholder engagement
    García‐Sánchez, I. M.
  • Información social corporativa y aseguramiento: El estado de la cuestión: Corporate social reporting and assurance: The state of the art
    García‐Sánchez, I. M.
  • What sustainability assurance service do institutional investors demand and what value do they give it?
    García‐Sánchez, I. M.; Aibar‐Gúzman, B.; Aibar‐Gúzman, C.
  • Assurance on corporate social responsibility reports: Does it reduce decoupling practices?
    García‐Sánchez, I. M.; Hussain, N.; Aibar‐Gúzman, B.; Aibar‐Gúzman, C.
  • Board committees and non‐financial information assurance services
    García‐Sánchez, I. M.; Raimo, N.; Amor‐Esteban, V.; Vitolla, F.
  • CEO power and integrated reporting
    García‐Sánchez, I. M.; Raimo, N.; Vitolla, F.
  • The external assurance of sustainability reporting
  • Corporate reputation: Seeking a definition
    Gotsi, M.; Wilson, A. M.
  • Assurance of sustainability reports: Impact on report users' confidence and perceptions of information credibility
    Hodge, K.; Subramaniam, N.; Stewart, J.
  • Trust: The connecting link between organizational theory and philosophical ethics
    Hosmer, L. T.
  • The competitive market for assurance engagements on greenhouse gas statements: Is there a role for assurers from the accounting profession?
    Huggins, A.; Green, W. J.; Simnett, R.
  • Handbook of international quality control, auditing, review, other assurance, and related services pronouncements, part II
  • The balanced scorecard—Measures that drive performance
    Kaplan, R. S.; Norton, D. P.
  • The state of disclosures on stakeholder engagement in sustainability reporting in Australian local councils
    Kaur, A.; Lodhia, S. K.
  • Planning assurance services
    King, R. R.; Schwartz, R.
  • Closing the credibility gap: The challenges of corporate responsibility reporting
    MacLean, R.; Rebernak, K.
  • Assurance services for sustainability reports: Standards and empirical evidence
    Manetti, G.; Becatti, L.
  • Sustainability assurance and cost of capital: Does assurance impact on credibility of corporate social responsibility information?
    Martínez‐Ferrero, J.; García‐Sánchez, I. M.
  • The level of sustainability assurance: The effects of brand reputation and industry specialisation of assurance providers
    Martínez‐Ferrero, J.; García‐Sánchez, I. M.
  • Effect of financial reporting quality on sustainability information disclosure
    Martínez‐Ferrero, J.; García‐Sánchez, I. M.; Cuadrado‐Ballesteros, B.
  • The quality of sustainability assurance reports: The expertise and experience of assurance providers as determinants
    Martínez‐Ferrero, J.; García‐Sánchez, I. M.; Ruiz‐Barbadillo, E.
  • The causal link between sustainable disclosure and information asymmetry: The moderating role of the stakeholder protection context
    Martínez‐Ferrero, J.; Ruiz‐Cano, D.; García‐Sánchez, I. M.
  • Creating legitimacy for sustainability assurance practices: Evidence from sustainability restatements
    Michelon, G.; Patten, D. M.; Romi, A. M.
  • Toward a theory of stake‐ holder identification and salience: Defining the principle of who and what really counts
    Mitchell, R. K.; Agle, B. R.; Wood, D. J.
  • Visual disclosure through integrated reporting
    Nicolò, G.; Ricciardelli, A.; Raimo, N.; Vitolla, F.
  • Is corporate reputation associated with quality of CSR reporting? Evidence from Spain
    Odriozola, M. D.; Baraibar‐Diez, E.
  • Seeking legitimacy for new assurance forms: The case of assurance on sustainability reporting
    O'Dwyer, B.; Owen, D.; Unerman, J.
  • Assurance statement practice in environmental, social and sustainability reporting: A critical evaluation
    O'Dwyer, B.; Owen, D. L.
  • Corporate performance and stakeholder management: Balancing shareholder and customer interests in the UK privatized water industry
    Ogden, S.; Watson, R.
  • Corporate social disclosures in the context of national cultures and stakeholder theory
    Orij, R.
  • Experiences of and views on third‐party assurance of corporate environmental and sustainability reports
    Park, J.; Brorson, T.
  • Multinationals accountability on sustainability: The evolution of third‐party assurance of sustainability reports
    Perego, P.; Kolk, A.
  • Corporate reputation and CSR reporting to stakeholders: Gaps in the literature and future lines of research
    Pérez, A.
  • Impact of assurance and assurer's professional affiliation on financial analysts' assessment of credibility of corporate social responsibility information
    Pflugrath, G.; Roebuck, P.; Simnett, R.
  • Integrated reporting: State of play, theoretical underpinnings and empirical insights: The role of corporate governance mechanisms
    Raimo, N.
  • Extending the benefits of ESG disclosure: The effect on the cost of debt financing
    Raimo, N.; Caragnano, A.; Zito, M.; Vitolla, F.; Mariani, M.
  • The role of ownership structure in integrated reporting policies
    Raimo, N.; Vitolla, F.; Marrone, A.; Rubino, M.
  • Does the level of assurance statement on environmental disclosure affect investor assessment? An experimental study
    Rivière‐Giordano, G.; Giordano‐Spring, S.; Cho, C. H.
  • The financial consequences of human capital disclosure as part of integrated reporting
    Salvi, A.; Raimo, N.; Petruzzella, F.; Vitolla, F.
  • Intellectual capital disclosure in integrated reports: The effect on firm value
    Salvi, A.; Vitolla, F.; Giakoumelou, A.; Raimo, N.; Rubino, M.
  • Assurance on sustainability reports: An international comparison
    Simnett, R.; Vanstraelen, A.; Chua, W. F.
  • Corporate reputation: Multidisciplinary richness and search for a relevant definition
    Smaiziene, I.; Jucevicius, R.
  • THE* rules of stakeholder satisfaction (*timeliness, honesty, empathy)
    Strong, K. C.; Ringer, R. C.; Taylor, S. A.
  • Strategic reputation risk management and corporate social responsibility reporting
    Unerman, J.
  • Non‐financial disclosure and integrated reporting
    Vitolla, F.; Raimo, N.; Marrone, A.
  • Board characteristics and integrated reporting quality: An agency theory perspective
    Vitolla, F.; Raimo, N.; Rubino, M.
  • Do cultural differences impact ethical issues? Exploring the relationship between national culture and quality of code of ethics
    Vitolla, F.; Raimo, N.; Rubino, M.; Garegnani, G. M.
  • How pressure from stakeholders affects integrated reporting quality
    Vitolla, F.; Raimo, N.; Rubino, M.; Garzoni, A.
  • The impact of national culture on integrated reporting quality. A stakeholder theory approach
    Vitolla, F.; Raimo, N.; Rubino, M.; Garzoni, A.
  • Sustainability development and the quality of assurance report: Empirical evidence
    Zorio, A.; García‐Benau, M. A.; Sierra, L.