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The objective of this chapter is to analyse the impact of France’s ‘Grenelle 2’ law of 2010, which applies to environmental accounting disclosures (EADs). More specifically, it seeks to observe whether the ‘Anglo-Saxon’ ‘comply or explain’ model, transposed into the French regulatory framework, influences the disclosure strategies of firms that are listed on a regulated market.

Drawing on the theoretical framework of legitimacy and the concept of normativity, an empirical study is conducted on a sample of 96 French firms listed on the SBF index between 2009 and 2014. The effect of regulation is assessed by a content analysis of EAD in annual reports, examining changes in disclosure practices and the contents of disclosures.

The main results show that explanations for the absence of EAD showed a significant increase after the introduction of the law. We also observe that the new rules had no effect on the number of firms making EADs, although the quality of the disclosures declined. Finally, the results also concern practices of non-disclosure without any accompanying explanation.

The limitations of this study relate to the choices underlying the classifications and observations made during the content analysis.

This study has social relevance in that it supplies information for assessing the transposition of European directives into French law.

This study extends research concerning environmental disclosures by examining a recent accounting object. It also continues the debate on normativity, with its analysis of disclosures subject to a changing regulatory framework.

The purpose of this article is to study the impact of the related parties' transactions (RPTs) on firm value, and to identify the ownership and governance characteristics of companies that engage in this type of transactions.

The paper uses 3SLS simultaneous model carried out on a sample of 85 companies listed on the Paris Stock Exchange during the period 2002‐2005.

The results show that RPTs are mainly influenced by the voting rights held by the main shareholder, the size of the board of directors, the degree of independence enjoyed by the audit committee and the board of directors, the choice of external auditor, the debt ratio and the fact of being listed in the USA. Mainly the transactions carried out directly with the main shareholders, directors and/or managers that have a negative influence on firm value.

In future studies, it will be interesting to test the impact of the level of expertise as well as the level of qualification in the field of accounting and finance of the members of the French audit committees on the frequency of RPTs.

The current research complements prior studies on the RPT by showing that the frequency of RPTs can be damaging to companies and can destroy their market value.

The objective of sustainability assurance (SA) is to give credibility to nonfinancial information (Cheng et al., 2015). In France, certain companies are subject by regulation to the implementation of SA in particular with the transposition of European Directive 2014/95/EU into national law. SA mission is a process by which an independent third-party organization (ITO) assures companies' nonfinancial information. Although this assignment is mostly performed by professional accountants, other providers can perform this assignment (Cohen and Simnett, 2015). In this research, the authors are interested in strategies for legitimizing the SA missions of independent third-party bodies. Assurance providers use their website to promote their missions. How do independent third-party bodies legitimize their assurance mission in a regulatory context relating to European Directive 2014/95/EU?

The authors carried out a discursive analysis of the promotion of SA missions on independent third-party body websites. A content analysis was performed on the collected textual data.

The results highlight different strategies for promoting the implementation of assurance missions aimed at legitimizing their new skills. Nevertheless, it appears that the providers make very little reference to the quality of nonfinancial information as the objective of SA missions.

The research made it possible to study the promotion of SA through the websites of ITOs. Nevertheless, it would have been interesting to be able to question the ITOs to study their perceptions on their new SA missions.

The research enriches the literature on SA, particularly in a regulatory context relating to European Directive 2014/95/EU. It sheds light on the different strategies put in place by the providers appointed by regulations. From a managerial point of view, the study may allow ITOs to adapt their communication to promote extra-financial missions relating to the European Directive and thus to attract new clients. Finally at the institutional and regulatory level, this research highlights the need to put in place a precise framework relating to extra-financial assurance missions. This may also encourage countries not subject to the verification obligation to introduce such an obligation into their national law.

This is the first study to examine the promotion of SA practice by providers. In addition, very few studies have looked at this practice in a regulatory context and in particular within the framework of the European directive.

The paper seeks to adopt an institutional view of legitimacy to examine how a sample of French companies reacted to the introduction of the “New Economic Regulations” in French law in 2001 requiring that publicly listed companies disclose environmental information.

The approach used in the paper is both quantitative and qualitative. A content analysis of environmental disclosure provided in annual reports, environmental reports and web sites by 26 French companies listed in the CAC 40 is performed throughout the period 2001-2011.

The findings of this study show a significant and enduring improvement in the quality and quantity of environmental disclosure from 2001 to 2011. Even in the absence of penalties for non-compliance, the NRE law stimulated a stark and positive lasting change in the way that French companies account for their environmental information. These findings are consistent with the institutional view of legitimacy theory whereby legislation provides corporate managers with a representation of relevant audiences' perceptions about social and environmental reporting, prompting them to comply with the law to ensure organizational legitimacy.

Social and environmental reporting studies generally adopt a strategic view of legitimacy to examine how organizations use social and environmental reporting to respond strategically to legitimacy threats. This study provides early empirical evidence about the relevance of institutional legitimacy theory in explaining environmental reporting.

The aim of this paper is to investigate the corporate social responsibility (CSR) policy orientations in the Euopean Union (EU) by focusing on the specific case of the French legislation on compulsory sustainability reporting for publicly‐listed companies.

The approach is mostly exploratory and based on secondary literature review as well as empirical classroom work on reporting.

This exploratory paper provides findings about the relevance of the French law, thus highlighting some critical aspects of sustainability reporting practices. It also raises the broader issue of the consistency of the European CSR approach.

This research needs to be completed by field studies on sustainability reporting practices both in France and in all EU members.

This paper may help firms improve their sustainability reporting practices.

There have been hardly any papers on the impact of the French NRE law so far. Another original feature is the issue raised about the somewhat unclear links between environmental legislation and CSR policy in the EU. The paper provides a case for regulation in CSR, showing the possible positive impacts on corporate behavior.

The legal devices crafted within large organizations are a key component of legal endogeneity theory (LET). While symbolically complying with legislation, legal devices allow organizations to infuse managerial logics into the legal field, which eventually diverts law from its initial political goals. Although the LET has considered legal devices such as anti-discrimination guidelines and grievance procedures, this chapter argues that contracts also constitute a locus of symbolic compliance and contribute to the eventual endogenization of regulation. Supplementing LET with a focus on legal intermediation, this chapter explores how contracts are crafted and used by large organizations to respond to regulatory pressure. While other legal instruments are unambiguously managerialized from the outset, contracts are highly versatile legal objects that perform the seemingly opposite functions of symbolically complying with regulation and serving substantive commercial purposes. This discussion of the role of contracts as compliance mechanisms is based on an in-depth empirical study of the French retail industry and its response to a set of regulations that aimed at making their business practices fairer.

This paper aims to examine the practice of sustainability assurance and in particular the content of the assurance reports disseminated in the corporate social responsibility (CSR) reports. The objective of the research is to study the evolution of the content of the assurance reports of French companies. Have the reports evolved as a result of the standardization and regulation of the audit?

A longitudinal study has been carried out on French companies publishing CSR reports and their sustainability information has been checked for several years. The sample is composed of 19 listed French companies and 135 assurance reports over a period from 2001 to 2015.

The results highlight a change in the content of assurance reports according to standardization and regulatory of sustainability auditing. The content evolves from a generic discourse to a normative discourse notably because of the realization of a majority of assurance missions by accounting professionals and the increasing use of ISAE 3000 as well as by the introduction of the Grenelle II Law.

This paper shows how assurance reports have evolved over time in a particular regulatory context of the introduction of a law specific to assurance, Grenelle II Law, using a sample of French companies.

Although some studies have attempted to provide a historical analysis of this practice, no research has focused on longitudinal analysis in a particular context of introduction of a law specific to the assurance mission. The lack in previous literature resides in the lack of longitudinal analysis of assurance reports in the light of the evolution of the normative and regulatory frameworks.

The early literature on specific networks of non‐executive directors has shown that directors are both information sources and have specific competences. The focus of this paper is to study the specialization of directors with multiple mandates. Is the information held by directors specific in terms of geographical areas or industrial sectors?

The Dafsalien database is used for the year 2003 on the 500 largest French groups. For each member of a sub‐group referred to as the “inner circle”, it was determined whether their mandates were held in French or foreign entities, and in which business sector.

Geographical specialization could not be validated, but industrial specialization is proven. Boards are made up of industry specialists and those groups benefit from a clear experience curve.

This paper brings a new approach to the analysis of directors' networks.

The paper questions the relevance of the quest for independent directors and the limitation of mandates. On one hand directors with multiple mandates do bring an added value to boards; on the other hand their presence is limited by law and regulation. Should regulation on corporate governance lay down unrealistic rules or combine with business reality?

This paper aims to analyze the organizational capabilities involved in the adoption of environmental management tools in eight large French firms. The analysis also examines the antecedents that contributed to the emergence of those capabilities and the consequences of their involvement in terms of environmental management.

To analyze the organizational capabilities deployed when environmental management tools are adopted, this paper takes an exploratory approach based on a qualitative study of eight large French firms.

The findings show how organizational capabilities, dynamic and ordinary, are operationalized in the adoption of environmental management tools. This operationalization is made possible by internal and external antecedents and simple and complex routines. The findings also identify two possible configurations of organizational capabilities, each one leading to a specific form of environmental management. The first configuration leads to stand-alone environmental management systems, while the second succeeds in engendering integrated management systems. This study shows that this difference is explained by heterogeneous endowments in terms of antecedents across firms.

The study provides useful information for managers about the conditions that favor and facilitate adoption of environmental management tools and the ways these conditions operate.

The study illustrates the impact of society on large firms’ adoption of certain environmental management practices. It shows that external visibility – which has created strong societal pressure – is one of the external antecedents that led eight large French firms to develop specific organizational capabilities.

In analyzing the antecedents, routines and capabilities involved in the adoption of environmental management tools, the study adds some original, innovative contributions to current knowledge on the conditions for adoption of such tools.

The purpose of this paper is to present a history of social and environmental accounting (SEA) in France.

The choice is made to select and analyze three important breakthroughs in the development of SEA in France, at different periods. Three case studies are presented, based on secondary sources for two of them and on the author’s own research for the third one. The author choses the concept of organizational field, defined through its actors, how they interact, what they do, what tools and practices are being developed and what regulations are being enacted.

If each case is different in terms of context and outcome, all three present common characteristics which characterize the underlying forces which shaped SEA in France: mainly the role played by elites both in government and industry, an ability for industry to present its interests as the interests of France with an impact on the international standardization of some tools and regulatory issues such as product labeling. The French scene is dominated by engineers, characterized by quantitative tools which “measure” environmental performance, in line with the culture of the French elite for which mathematics are a tool for action and problem-solving. In a certain way this “depoliticized” environmental questions and made them a question of optimization more than a question of politics.

Because of the specific context in which some tools emerge, they may not be transferable to other countries without important changes.

The focus on problem solving through quantitative tools to make the most rational decision, and the claim by the engineering profession to be in the best position to do so, is not a focus on accountability. This may be part of the reason why the accounting profession is not as involved as in other countries.

This paper also shows how France has been both a local field of SEA production, when it comes to developing quantitative tools, with occasional global reach, and an importer of global standards and SEA concepts which originated from the Anglo-Saxon word, when it comes to reporting. More generally, it is also a good illustration of how the development of a “local” organizational field is congruent with the characteristic of its national environment.