The Lexical Footprint of Sustainability Reports: A Pilot Study of Readability

• In Event: Emerging Technologies

Abstract

Sustainability reporting has moved from its focus as a public relations report with little substance to a full scale, industrial reporting phase. The communication of sustainability performance has become an integral part of corporate communication to stakeholders. However, there is little to no guidance on the content or structure of sustainability reports. Capital is allocated to more efficient and effective organizations, the report can affect access to significant capital; therefore, it would seem imperative that the report could be read and understood by a broad range of users. This paper addresses the readability of sustainability reports. Several factors may affect the readability of the reports including reporting mandates, external assurance, and reference to external standards. The findings suggest that sustainability reports are difficult to very difficult to read which is consistent with the finding of research of other communications with stakeholders (i.e., MD&A, and annual report). Further, the presence of a reporting mandate, external assurance, and references to external standards does not influence the readability of the sustainability report. Although we find the sections of the reports have differential readability scores, the scores are not in the expected direction because highly complex areas such as in environmental reporting are not more difficult to read than social reporting areas.

Authors

• Stephanie Farewell, University of Arkansas-Little Rock

• Ingrid E Fisher, SUNY - Albany

• Cynthia M Daily, University of Arkansas-Little Rock