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The aim of this study is to critically examine the transparency and reporting practice of Environmental, Social, and Governance (ESG) controversies within the pharmaceutical and textile industry. Based on the four core dimensions of transparency, we explore which reporting medium is most frequently chosen for the disclosure of negative ESG contributions, the nature and information content of the disclosed incidents and how voluntary adherence to sustainability reporting standards and independent assurances affect the reporting.

We use conceptual content analysis and employ a counter-accounting approach to analyse the disclosure of 190 ESG controversies in 104 corporate reports from the pharmaceutical and textile industries, covering a three-year period from 2018–2020.

The very large majority of controversies are reported only once in the legal proceedings section of the annual report, but not again in the sustainability report, where it would be necessary to provide a balanced picture. Moreover, companies tend to disclose only those controversies that are either associated with high media attention or are expected to be related to litigation, resulting in 26 per cent of controversies not being disclosed at all. The overall quality of disclosure is unsatisfactory and in need of improvement, but comparably higher in the pharmaceutical industry than in the textile industry. Interestingly, neither the application of sustainability reporting standards nor independent assurance seems to positively impact the disclosure behaviour.

Our paper provides new insights into the shortcomings of current ESG controversy disclosures by revealing patterns of selective reporting practices and the strategic framing of issues. In addition, it contributes to the debates on corporate cherry-picking in the adoption of sustainability reporting guidelines and on the effectiveness of external assurance of sustainability reports. Based on the findings, it offers important implications for practitioners, in particular management, policy makers, rating agencies and assurance providers.

This study aims to investigate the effect of ESG controversies and their moderating role in ESG performance and the cost of equity and overall, short-term and long-term debt capital relationship in European listed companies.

The study employs two-way fixed effects panel linear regression models on the balanced longitudinal dataset of 231 European non-financial companies listed in the MSCI Europe Index in 2017–2022. To check the robustness, the study utilises the fixed effects logistic regression models with heteroskedasticity-consistent standard errors.

The study reveals the significant effect of ESG performance (negative) and ESG controversies (negative) on the cost of debt capital and the substantial moderating effect of ESG controversies (positive). Additionally, it provides empirical evidence of the crossover moderating effect of ESG controversies in ESG performance and cost of equity relationship.

The findings contribute to corporate practice and empirically support legitimacy and stakeholder theories.

Companies can utilise the results to proactively enhance their internal policies and behaviour to align with ESG practices and avoid ESG controversies, which will translate into reduced equity capital costs for shareholders and a lower cost of debt capital charged by creditors.

To the best of the authors’ knowledge, this is the first study to comprehensively investigate the influence of ESG controversies and their moderating effect in the context of the equity and debt capital cost for European listed companies.

This study investigates the relationships between environmental, social, and governance (ESG) controversies and insolvency risk in the insurance sector. Drawing from legitimacy and stakeholder theories, the authors explore the impact of ESG controversies on insurers’ insolvency risk and the moderating effect of ESG practices on this relationship.

This study utilises a dataset comprising 120 stock insurance firms spanning from 2011 to 2022. The authors employed system-GMM estimations to control for potential endogeneity and conducted several robustness checks.

ESG controversy positively influences insurers’ insolvency risk, with ESG practices mitigating these positive effects. The Governance (G) component of ESG practices plays a key role in counteracting the effects of ESG controversies on insurance companies’ insolvency risk.

This is the first study to investigate the direct relationship between ESG controversies and insolvency risk in the insurance industry. It underscores the critical influence of stakeholders’ perceptions of the company’s legitimacy, which is determined by the number of ESG controversies undertaken by the insurer company, on its insolvency risk. Additionally, by examining the three components of ESG practices individually, the authors offer insights into how managers can gain a competitive edge, particularly by utilising governance practices as safeguards against the adverse effects of ESG controversies on their financial risk.

Interest in environmental, social and governance (ESG) controversies is acquiring great relevance in the business and academic communities. Nonetheless, previous studies in the area have devoted little attention to how the market views ESG controversies. Against this backdrop, this paper aims to investigate whether ESG controversies are value-relevant to investors, as reflected in equity values. It also investigates whether top management team (TMT) gender diversity is likely to affect the association between ESG controversies and equity market values in the context of high-tech firms.

This paper uses a sample of high-tech firms listed on the STOXX 600 index during the period 2006–2022. The ESG data for the sample is retrieved from the Refinitiv Eikon database. This paper adopts a fixed-effect panel regression to test the hypotheses.

Based on the Ohlson’s (1995) valuation framework, the authors find evidence that ESG controversies are associated with a lower market valuation, suggesting that shareholders perceive ESG controversies as conveying negative information about future performance. The authors also find evidence that TMT gender diversity negatively moderates the relationship between ESG controversies and equity values, indicating that TMT gender diversity alleviates the detrimental effect of corporate controversies. These results remain consistent when using the return model of Easton and Harris (1991).

This paper throws more light on the economic consequences of ESG controversies in European high-tech firms. This is particularly important due to the increasing importance of ESG criteria in guiding investment choices. This paper also adds to the current literature by providing new evidence that the value-relevance of ESG controversies is affected by TMT gender diversity.

This study investigates how the initiatives and controversies related to environmental, social and governance (ESG) explain firm efficiency.

Firstly, this study applies data envelopment analysis with the epsilon-based measure to estimate the firm efficiency of 80 companies in the Chinese energy sector in 2022. This approach accounts for the diversity and relative importance of inputs and outputs from a multidimensional perspective. Secondly, this study regresses the variables of ESG initiatives and controversies on the estimated firm efficiency scores through a generalised additive model, which can capture nonlinear patterns.

This study finds that a) the samples have i) about 49% room for improvement in efficiently optimising their resources and business outcomes and ii) the highest scores in governance initiatives, followed by social initiative. b) 69% of them have controversy scores that are greater than the average value. c) A cluster analysis indicates that companies with higher social initiatives have higher firm efficiency than their counterparts. d) ESG initiatives and controversies are nonlinearly related to firm efficiency.

The findings have practical implications for policy makers and managers who prioritise ESG, particularly regarding (i) the need to examine firm performance from a multidimensional perspective, that is, to measure multiple inputs and outputs simultaneously, (ii) the nonlinearity of the nexus between ESG and efficiency in graphical forms, and (iii) the need to balance ESG initiatives and address ESG controversies.

This study integrates statistical approaches in examining and ensuring sustainable growth and efficiency within the Chinese energy sector and beyond.

Whether environmental, social and governance (ESG) factors are a curse or a blessing in the run for performance is still a burning issue. This is all the more true for banks, as their call for action in ESG dimensions clashes with evidence of scandals. As a more aligned to reality view, we propose to regard the mistreatment of ESG issues, both theoretically and empirically, as an undesirable output of banks' everyday activity. Empirically, we question whether 128 leading banks worldwide neglected the minimisation of ESG controversies (ESGC) in pursuing traditional productive efficiency, over the timespan 2011–2021.

To our end, we use oriented distance functions according to the nonparametric efficiency approach of data envelopment analysis (DEA). This framework accounts for undesirable outputs.

Being inefficient in the ESGC domain is not a necessary evil to achieve productive efficiency. Instead, incurring in higher ESGC negatively affects productive efficiency, by causing future decrease of reputation and performance.

We propose a new paradigm of banks’ activity and related efficiency evaluation. In so doing, we favour a real dimension of banks’ engagement in ESG concerns.

The purpose of this study is to present ANTi-microhistory of social innovation in education within Robert Owen’s communal experiment at New Harmony, Indiana. The authors zoom out in the historical context of social innovation before zooming into the New Harmony case.

The authors used ANTi-microhistory approach to unpack the controversy around social innovation using the five-step procedure recently proposed by Mills et al. (2022), a version of the five-step procedure originally proposed by Tureta et al. (2021).

The authors found that the educational leaders of the New Harmony community preceded proponents of innovation, such as Drucker (1957) and Fairweather (1967), who viewed education as a form of social innovation.

The authors contribute to the history of social innovation in education by exploring the New Harmony community’s education society to uncover the enactment of sustainable social innovation and the origin story of humanistic management education.

As financial firms incorporate impact strategies more extensively into their operations, they are asked to sustain their impact claims and thus face increased risks of regulatory scrutiny and lawsuits from private and public parties. The lack of reliable frameworks to measure impact gives rise to phenomena like impact washing, leading to litigations. This article aims to explore the main factors contributing to the impact litigation risk and the mechanisms employed by practitioners in the impact investing field to navigate and address this challenge.

We conducted semi-structured interviews involving three impact investors and three impact lawyers with specific knowledge of ESG and impact controversies, adopting the Gioia Methodology for the analysis. We triangulated such information with the analysis of secondary data.

The “great noise” around the impact investing world and the rise of impact washing, the lack of shared standards for measuring impacts and the misalignment of interests among actors involved in the initiatives constitute a potential “litigation bomb”. Such a scenario is detrimental to an investment strategy, which has the potential to tackle societal issues.

This study represents an initial effort to connect the academic debate on impact litigation with the expert’s active “on-field” standpoints. The identified and validated drivers of impact litigations provide valuable insight to enhance the governance and accountability of impact investing. Implementing Impact Measurement and Management (IMM) tools, participatory governance models, clear impact-focused contracts and a proactive approach could serve as prospective solutions to mitigate the risk of disputes.

The purpose of this research is to explore the impact of women in the C-suite on strategic marketing choices in general and CSR in particular is scant. To that end, this study explores whether and how firms led by female CEOs differ from those led by male CEOs with regard to the types of CSR they pursue. The study classifies CSR into two types: relational (i.e. related to employees, human rights, community and diversity) and rational (i.e. related to product, environment and corporate governance).

To create the sample, the authors combined four databases: Compustat, Execucomp, Center for Research in Security Prices (CRSP) and Kinder, Lydenberg, Domini and Co., Inc. (KLD). Data for the time period between 1992 and 2013 (both inclusive) were used for the investigation. The final sample comprised of 2,739 firms, for a total of 19,969 firm-year observations (an unbalanced panel).

Building on self-construal theory and theory of female ethics, the authors theorize and find evidence that while firms led by male and female CEOs are not significantly different with regard to rational CSR performance, firms led by female CEOs outperform those led by male CEOs with regard to their relational CSR performance. Furthermore, the authors also find that different types of CEO power (i.e. managerial power, legitimate power and formal power) moderate the link between CEO gender and types of CSR differently.

This research contributes to research on CSR by introducing two new types of CSR: relational CSR and rational CSR. Further, the research contributes to the broader discussion of how senior managers inject their gender roles into their CSR choices. The authors provide important insights in this area by highlighting that at least some types of myopic management are also driven by CEO gender: female CEOs – to the extent that they are more likely to invest in CSR strengths which pay off in the long run – engage in less myopic management than male CEOs with regard to CSR choices.

To prospective managers, this research suggests that the gender of the CEO is an effective signal that can help them predict firms’ likely CSR behavior. More specifically, firms led by female CEOs are likely to outperform those led by male CEOs with regard to certain dimensions of CSR (higher relational and rational strengths and fewer relational concerns) and this effect of CEO gender on firms’ CSR behavior is likely to be more pronounced when the CEO exhibits certain kinds of power. Female CEOs may benefit by understanding their innate tendencies to focus on relational versus rational CSR, thereby taking advantage of the positive aspects of their tendencies.

This paper classifies CSR into two types: relational and rational. The findings indicate the benefits of this nuanced classification: female CEOs have a stronger impact on relational CSR compared to male CEOs, while the two types of CEOs do not show a significant difference with regard to their impact on rational CSR. The paper also shows that dividing the variable of CEO power into its sub-types, i.e. managerial power (CEO duality), legitimate power (CEO tenure) and formal power (CEO-TMT pay gap) has value as each of these power dimensions is found to impact the CEO gender-CSR relationship differently.

Generative artificial intelligence (GAI) has seen exponential growth in recent years due to its capability to generate original content through natural language processing and comprehensive language models. This paper aims to investigate the transformative impact of GAI on higher education, focusing on the evolving roles of faculty in the classroom.

Using a phenomenological perspective and a process approach, the study involved 25 semi-structured interviews with academicians in higher education.

The findings reveal that GAI currently creates biased and commercially driven learning environments, challenging traditional pedagogical models. Despite its potential for enhancing education, the autonomous nature of GAI often prioritizes commercial interests over pedagogical goals.

The study is limited to faculty perspectives, suggesting future research should include student viewpoints and diverse educational contexts.

The study highlights the need for higher education institutions to develop comprehensive policies, provide training for faculty and students and design new courses that leverage GAI for personalized learning experiences and enhanced faculty research.

This paper contributes to the emerging literature on GAI’s impact on education, highlighting its dual nature as both a transformative tool and a potential threat to traditional educational roles and outcomes.