Firm identity and image: Strategic intent and antecedents to sustainability reporting

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Abstract

A firm’s strategic intent is often communicated through its vision, mission, and values statements. By linking sustainability with strategic intent (Galpin, Whittington, & Bell, 2015), firms seek to portray to their stakeholders (Ali, Frynas, & Mahmood, 2017; Papoutsi & Sodhi, 2020) that sustainability is a core part of their long-term goal. But there is limited research about whether publicly avowed sustainability messaging matches firms actual conduct reflected in their sustainability reports (Amran, Lee, & Devi, 2014). Content analysis of the vision, mission, and values statements of firms comprising the S&P/TSX composite index in 2020, and regression modelling tested whether firms’ that communicate their corporate social responsibility intentions, sustainable image, and sustainable identity in their vision, mission, and values statements are also more likely to engage in sustainability reporting. We find that firms were more likely to report, and at greater levels, on their sustainable activities when they message their strategic corporate social responsibility (CSR) intent. However, including external stakeholders when messaging about their CSR intent has a greater effect than the inclusion of internal stakeholders suggesting these firms are keener to portray a sustainable image than creating a sustainable identity. This result has implications for the successful implementation of sustainability strategies by these firms.

Keywords: Identity, Image, Strategic Intent, Sustainability Reporting, Vision, Mission

Authors’ individual contribution: Conceptualization — R.M.S.; Methodology — R.M.S. and P.R.W.; Investigation — R.M.S.; Resources — R.M.S. and P.R.W.; Writing — Original Draft — R.M.S. and P.R.W.; Writing — Review & Editing — R.M.S. and P.R.W.; Supervision — P.R.W.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

Acknowledgements: The Authors wish to acknowledge the excellent research assistance provided by Matthew Malinsky.

JEL Classification: C1, K2, L1, L2

Received: 30.07.2022
Accepted: 23.12.2022
Published online: 27.12.2022

How to cite this paper: Singh, R. M., & Walsh, P. R. (2022). Firm identity and image: Strategic intent and antecedents to sustainability reporting. Corporate Governance and Sustainability Review, 6(4), 8–22. https://doi.org/10.22495/cgsrv6i4p1