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Chapter 13
DOI: 10.4018/978-1-4666-4999-6.ch013
Environmental Disclosures
and Impression Management
ABSTRACT
A signifcant stream of social and environmental accounting research investigates the relationship between
a corporation’s self-reported disclosures of its own social responsibility and environmental activities
and third-party evaluations of that corporation’s actual social responsibility and environmental perfor-
mance. Generally, researchers have utilized one of two theories to motivate and test this relationship.
One theory—signaling or voluntary disclosure theory—argues that corporations with superior corpo-
rate social responsibility or environmental performance use disclosure to signal to interested parties a
level of performance that poorer corporate performers cannot disclose. A second theory—legitimacy or
impression management theory—argues that corporations use disclosures to manage impressions, often
masking their actual social responsibility and environmental performance. In this chapter, the authors
seek to comment on how DICTION has been and can be utilized to advance this stream of social and
environmental accounting research.
INTRODUCTION
Corporations prepare and disseminate numerous
types of narrative disclosures. These disclosures
include, for example, press releases, earnings an-
nouncements, narratives within corporate annual
reports, and stand-alone corporate publications.
Although some narrative disclosures are mandated
by regulatory agencies such as the United States
Securities and Exchange Commission, many
corporate narrative disclosures are produced vol-
untarily by the corporation. Corporate voluntary
disclosures can, therefore, address a wide variety
of topics that management believes to be relevant
to one or more stakeholder groups.
Charles H. Cho
ESSEC Business School, France
Den M. Patten
Illinois State University, USA
Robin W. Roberts
University of Central Florida, USA