Do institutional investors drive corporate transparency regarding business contribution to the sustainable development goals?

Authors: Isabel‐María García‐Sánchez, Lázaro Rodríguez‐Ariza, Beatriz Aibar‐Guzmán, Cristina Aibar‐Guzmán

Published: 2020-02-13

Abstract

AbstractInstitutional investors show increasing interest in how companies align their corporate social responsibility strategies with the sustainable development goals (SDGs) proposed by the United Nations (UN). The information disclosed in this regard is essential to know and monitor business contribution to the 2030 Agenda. In this paper, we analyze the influence that institutional investors have on the adoption of the disclosure strategy established by UN and the Global Reporting Initiative (GRI)—GRI‐SDG Compass. The results obtained for a sample of 989 international companies, which prepare their sustainability reports following the GRI guidelines, show that ownership by foreign investors, pension funds, and “other” investors boosts the relevance of the information disclosed in relation to the 2030 Agenda. On the contrary, government, financial institutions, and cross holdings have no impact on the information systems developed.