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3 J. Mgmt. & Sustainability 79 (2013)
Benefits of Triple Bottom Line Disclosures on Corporate Performance: An Exploratory Study of Corporate Stakeholders

handle is hein.journals/jms3 and id is 264 raw text is: Journal of Management and Sustainability; Vol. 3, No. 2; 2013 ISSN 1925-4725 E-ISSN 1925-4733 Published by Canadian Center of Science and Education Benefits of Triple Bottom Line Disclosures on Corporate Performance: An Exploratory Study of Corporate Stakeholders C. M. Ekwueme1, C. F. Egbunike1 & C. I. Onyali 'Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Nigeria Correspondence: C. M. Ekwueme, Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, P.M.B. 5025, Awka, Anambra State, Nigeria. E-mail: cm.ekwuemecmttunizik.edu.ng Received: November 14, 2012 Accepted: February 20, 2013 Online Published: March 13, 2013 doi: 10.5539/jms.v3n2p79 URL: http://dx.doi.org/10.5539/jms.v3n2p79 Abstract Advocates of CSR argue that transparency and accountability are essential components of a successful sustainability strategy. In this context, sustainability reporting is one such tool for communicating organisational performance with respect to organisational CSR practices. This empirical paper examines the connection between such reporting practices and corporate performance from a stakeholder perspective. Using a sample of 141 respondents, comprising 21 corporate managers; 55 corporate employees and 65 consumers and investors, this study examined the connection between sustainability reporting and corporate performance. Four hypotheses were formulated and tested in the study. In addition to descriptive statistics, Kolmogorov-Smirnov (K-S), One Sample t-test and Multiple Regression Technique (MIRT) were used in analyzing the primary data. The results of the data analysis showed a positive connection between sustainability reporting and corporate performance. Both consumers and investors were inclined to product purchase of green corporations. This would have the dual effect of increased market share and market capitalization of the companies. Employees were inclined to work in green corporations safeguarding their interests and healthy work environment. And corporate managers agreed that cost of recycling was generally cheaper than new purchase. Based on this, the study recommends the adoption of sustainability reports for organisations seeking sustainable corporate performance. The improved transparency and accountability levels of traditional financial reports through inclusion of TBL principles could serve as a labyrinth safeguarding corporations against legal hassle and surmounting stakeholder pressure. Thus, ultimately leading to improved market share, improved employee motivation and reduced labour turnover in such organisations. Keywords: Triple Bottom Line (TBL), Triple Bottom Line Reporting (TBLR) 1. Introduction Corporate social responsibility started to spread more dramatically towards the end of the 20th century when worries about the environment were beginning to grow (Stanislavskh, Margarisovh & Stastnh, 2010), especially in connection with climatic changes, pollution, habitat loss, overexploitation of species, and the spread of invasive species or genes (Reddy & Gordon, 2010), which led to the development of environmental reporting (Stanislavskh et al., 2010). Thus, Waddock et al. (2002, cited in Miller, Buys & Summerville, 2007) believe one of the greatest pressures on businesses today is to be socially accountable. Corporate responsibility is often regarded as a response to the imbalances resulting from the acceleration of the globalization process and the underdeveloped international governance systems on environmental and social issues when compared to those for economic governance (Zadek, 2004, cited in Da Piedade & Thomas, 2006). To cope up with the globalized challenges, corporate all around the globe wants to consider applying a corporate sustainability plan by addressing their Triple Bottom Line Reporting which includes paying close attention to their economic (financial factors), environmental (risk and requirement factors) and social (human factors) issue (Dutta et al., 2011). The idea behind the triple bottom line paradigm is that a corporation's ultimate success or health can and should be measured not just by the traditional financial bottom line, but also by its social/ethical and environmental performance (Norman and MacDonald, 2003). Requiring companies to report on a regular basis regarding the impact their activities have had on the environment will allow: (a) stakeholders to be informed of the nature of activities companies are engaged in; (b) stakeholders to monitor the effect such activities are having on their

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