BE130: While Firms Disclosing More Information may be ‘Signaling’ Superior Environmental: Current Issues in Financial Reporting Assignment, UOE, Singapore

COURSEWORK QUESTION

“While firms disclosing more information may be ‘signaling’ superior environmental performance, the increased media and stakeholder scrutiny that accompanies these disclosures may reinforce the tendency to act in an environmentally responsible manner.

More information does not necessarily mean better environmental stewardship.” (Raiborn, Butler, and Massoud, 2011, p. 427). Raiborn, C. A., Butler, J. B., and Massoud, M. F. (2011). Environmental reporting: Toward enhanced information quality. Business Horizons, 54(5), 425-433.

Required:

• Environmental reporting has long been discussed in light of issues of quantity versus quality. Discuss the basis for this argument whilst covering the reasons for such variances in amount and quality and the motivations for some organizations to be providing more disclosure than others.
• There has been much controversy over the benefits of environmental and sustainability reporting. Critically evaluate the statements above made by Raiborn, Butler & Massoud (2011).