Visual Representation in Sustainability Reports: Impact on Public Perception of Corporate Social and Environmental Reputation
Abstract
This study investigates the impact of visual representations in sustainability reports on public perceptions of corporate social and environmental reputations. The research focuses on 270 companies listed on the Indonesia Stock Exchange in 2022 and analyzes 563 sustainability reports published between 2020 and 2022 using content analysis methods. The content analysis aims to quantify the use of visual elements, such as images, photos, graphs, and tables, in these reports. Impression management theory is employed to interpret the findings. Logistic regression analysis is used to assess the data. The results indicate that visual representations significantly influence public perceptions of corporate social and environmental reputations. These visual elements enable companies to more effectively convey their sustainability efforts, achievements, and commitments to the public, thereby enhancing their reputation and trustworthiness.
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References
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Ali, I., Lodhia, S., & Narayan, A. K. (2021). Value creation attempts via photographs in sustainability reporting: a legitimacy theory perspective. Meditari Accountancy Research, 29(2), 247–263. https://doi.org/10.1108/MEDAR-02-2020-0722
Andrini, S. (2018). Peran CSR Awards terhadap Citra Perusahaan dalam Komunikasi Antar Budaya. InterKomunika, 3(1), 30. https://doi.org/10.33376/ik.v3i1.148
Arora, M. P., & Lodhia, S. (2017). The BP Gulf of Mexico oil spill: Exploring the link between social and environmental disclosures and reputation risk management. Journal of Cleaner Production, 140, 1287–1297. https://doi.org/10.1016/j.jclepro.2016.10.027
Astuti, B. W., & Ayuningtyas, R. D. (2019). Faktor-Faktor Yang Mempengaruhi Reputasi Lingkungan Perusahaan Indonesia. Jurnal Sosio Dialektika, 4(2), 143–160.
Barthes, R. (1977). IMAGE MUSIC TEXT . Fontana Press.
Benjamin, S. J., & Biswas, P. K. (2022). Does winning a CSR Award increase firm value? International Journal of Disclosure and Governance, 19(3), 313–329. https://doi.org/10.1057/s41310-022-00142-8
Boiral, O. (2013). Sustainability reports as simulacra? A counter-account of A and A+ GRI reports. Accounting, Auditing & Accountability Journal, 26(7), 1036–1071. https://doi.org/10.1108/AAAJ-04-2012-00998
Boyer, L., Brunner, B. R., Charles, T., & Coleman, P. (2006). Managing Impressions in a Virtual Environment: Is Ethnic Diversity a Self-Presentation Strategy for Colleges and Universities? Journal of Computer-Mediated Communication, 12(1), 136–154. https://doi.org/10.1111/j.1083-6101.2006.00318.x
Chauvey, J.-N., Giordano-Spring, S., Cho, C. H., & Patten, D. M. (2015). The Normativity and Legitimacy of CSR Disclosure: Evidence from France. Journal of Business Ethics, 130(4), 789–803. https://doi.org/10.1007/s10551-014-2114-y
Cho, C. H., Michelon, G., & Patten, D. M. (2012). Enhancement and obfuscation through the use of graphs in sustainability reports. Sustainability Accounting, Management and Policy Journal, 3(1), 74–88. https://doi.org/10.1108/20408021211223561
Chong, S., Momin, M., & Narayan, A. (2023). A research framework to analyse visual persuasion of photographs in sustainability reports. Meditari Accountancy Research, 31(5), 1453–1482. https://doi.org/10.1108/MEDAR-01-2022-1565
Chong, S., Narayan, A. K., & Ali, I. (2019). Photographs depicting CSR: captured reality or creative illusion? Pacific Accounting Review, 31(3), 313–335. https://doi.org/10.1108/PAR-10-2017-0086
Chung, S., & Lee, S. Y. (2019). Visual CSR Messages and the Effects of Emotional Valence and Arousal on Perceived CSR Motives, Attitude, and Behavioral Intentions. Communication Research, 46(7), 926–947. https://doi.org/10.1177/0093650216689161
Dhaliwal, D. S., Radhakrishnan, S., Tsang, A., & Yang, Y. G. (2012). Nonfinancial Disclosure and Analyst Forecast Accuracy: International Evidence on Corporate Social Responsibility Disclosure. The Accounting Review, 87(3), 723–759. https://doi.org/10.2308/accr-10218
Dhanani, A., & Kennedy, D. (2023). Envisioning legitimacy: visual dimensions of NGO annual reports. Accounting, Auditing & Accountability Journal, 36(1), 348–377. https://doi.org/10.1108/AAAJ-01-2020-4377
Ewenstein, B., & Whyte, J. (2009). Knowledge Practices in Design: The Role of Visual Representations as `Epistemic Objects’. Organization Studies, 30(1), 07–30. https://doi.org/10.1177/0170840608083014
Godfrey, J., Mather, P., & Ramsay, A. (2003). Earnings and Impression Management in Financial Reports: The Case of CEO Changes. Abacus, 39(1), 95–123. https://doi.org/10.1111/1467-6281.00122
Goffman, E. (1959). The Presentation of Self in Everyday Life. Knopf Doubleday Publishing Group.
Hawn, O., Chatterji, A. K., & Mitchell, W. (2018). Do investors actually value sustainability? New evidence from investor reactions to the Dow Jones Sustainability Index (DJSI). Strategic Management Journal, 39(4), 949–976. https://doi.org/10.1002/smj.2752
Hrasky, S. (2012). Visual disclosure strategies adopted by more and less sustainability-driven companies. Accounting Forum, 36(3), 154–165. https://doi.org/10.1016/j.accfor.2012.02.001
Ittelson, W. H. (1960). Visual Space Perception. SPRINGER PUBLISHING COMPANY, INC. .
Jack, L., Davison, J., & Craig, R. (2013). The Routledge Companion to Accounting Communication (L. Jack, J. Davison, & R. Craig, Eds.). Routledge.
Jeriji, M., & Louhichi, W. (2021). The relationship between poor CSR performance and hard, negative CSR information disclosures. Sustainability Accounting, Management and Policy Journal, 12(2), 410–436. https://doi.org/10.1108/SAMPJ-04-2020-0094
Kanbaty, M., Hellmann, A., & He, L. (2020). Infographics in corporate sustainability reports: Providing useful information or used for impression management? Journal of Behavioral and Experimental Finance, 26, 100309. https://doi.org/10.1016/j.jbef.2020.100309
Kim, H., & Lee, T. H. (2018). Strategic CSR Communication: A Moderating Role of Transparency in Trust Building. International Journal of Strategic Communication, 12(2), 107–124. https://doi.org/10.1080/1553118X.2018.1425692
Klassen, R. D., & McLaughlin, C. P. (1996). The Impact of Environmental Management on Firm Performance. Management Science, 42(8), 1199–1214. https://doi.org/10.1287/mnsc.42.8.1199
Konijn, E. A., van der Molen, J. H. W., & van Nes, S. (2009). Emotions Bias Perceptions of Realism in Audiovisual Media: Why We May Take Fiction for Real. Discourse Processes, 46(4), 309–340. https://doi.org/10.1080/01638530902728546
Lång, S., & Ivanova-Gongne, M. (2019). CSR communication in stakeholder networks: a semiotic perspective. Baltic Journal of Management, 14(3), 480–499. https://doi.org/10.1108/BJM-08-2017-0262
Lee, S. Y., & Chung, S. (2018). Effects of emotional visuals and company–cause fit on memory of CSR information. Public Relations Review, 44(3), 353–362. https://doi.org/10.1016/j.pubrev.2018.02.001
Lola, C. P. (2009). INDIVIDUAL ONLINE IMPRESSION MANAGEMENT: SELF-PRESENTATION ON YOUTUBE .
Momin, M. A., Ahmed, Z. U., & Liu, R. (2023). Use of visuals in sustainability reporting by New Zealand Stock Exchange (NZX) listed companies: an impression management perspective. Asian Review of Accounting, 31(2), 181–202. https://doi.org/10.1108/ARA-04-2022-0078
Mulyana, D. (2008). Ilmu Komunikasi Komunikasi Suatu Pengantar. PT. Remaja Rosdakarya.
Permatasari, N., & Suryani, A. W. (2023). Untangling the Meaning of Photos in Corporate Social Responsibility Reporting. Jurnal Akuntansi Dan Keuangan, 25(1), 54–68. https://doi.org/10.9744/jak.25.1.54-68
Preston, A. M., Wright, C., & Young, J. J. (1996). IMag[in]ing annual reports. Accounting, Organizations and Society, 21(1), 113–137. https://doi.org/10.1016/0361-3682(95)00032-5
Ruiz-Garrido, M. F., Palmer-Silveira, J. C., & Fortanet‐Gómez, I. (2005). Discursive strategies in annual reports: The role of visuals. Proceedings of the Association for Business Communication 7th European Conference (Ed. Bülow-Møller AM).
Santos, F. P. (2023). Showing Legitimacy: The Strategic Employment of Visuals in the Legitimation of New Organizations. Journal of Management Inquiry, 32(1), 50–75. https://doi.org/10.1177/10564926211050785
Seo, K. (2020). Meta-Analysis on Visual Persuasion– Does Adding Images to Texts Influence Persuasion? ATHENS JOURNAL OF MASS MEDIA AND COMMUNICATIONS, 6(3), 177–190. https://doi.org/10.30958/ajmmc.6-3-3
Slacik, J., & Greiling, D. (2019). Compliance with materiality in G4-sustainability reports by electric utilities. International Journal of Energy Sector Management, 14(3), 583–608. https://doi.org/10.1108/IJESM-03-2019-0010
Sunandes, A. (2020). Corporate Social Responsibility Terhadap Nilai Perusahaan Dengan Struktur Modal Sebagai Moderasi Pada Indeks Sri Kehati BEI. AKUNTABILITAS: Jurnal Ilmiah Ilmu-Ilmu Ekonomi, 12(1), 90–105.
van den Bosch, A. L. M., de Jong, M. D. T., & Elving, W. J. L. (2005). How corporate visual identity supports reputation. Corporate Communications: An International Journal, 10(2), 108–116. https://doi.org/10.1108/13563280510596925
Zeng, X., Momin, M., & Nurunnabi, M. (2022). Photo disclosure in human rights issues by fortune companies: an impression management perspective. Sustainability Accounting, Management and Policy Journal, 13(3), 568–599. https://doi.org/10.1108/SAMPJ-06-2019-0243
Ali, I., Lodhia, S., & Narayan, A. K. (2021). Value creation attempts via photographs in sustainability reporting: a legitimacy theory perspective. Meditari Accountancy Research, 29(2), 247–263. https://doi.org/10.1108/MEDAR-02-2020-0722
Andrini, S. (2018). Peran CSR Awards terhadap Citra Perusahaan dalam Komunikasi Antar Budaya. InterKomunika, 3(1), 30. https://doi.org/10.33376/ik.v3i1.148
Arora, M. P., & Lodhia, S. (2017). The BP Gulf of Mexico oil spill: Exploring the link between social and environmental disclosures and reputation risk management. Journal of Cleaner Production, 140, 1287–1297. https://doi.org/10.1016/j.jclepro.2016.10.027
Astuti, B. W., & Ayuningtyas, R. D. (2019). Faktor-Faktor Yang Mempengaruhi Reputasi Lingkungan Perusahaan Indonesia. Jurnal Sosio Dialektika, 4(2), 143–160.
Barthes, R. (1977). IMAGE MUSIC TEXT . Fontana Press.
Benjamin, S. J., & Biswas, P. K. (2022). Does winning a CSR Award increase firm value? International Journal of Disclosure and Governance, 19(3), 313–329. https://doi.org/10.1057/s41310-022-00142-8
Boiral, O. (2013). Sustainability reports as simulacra? A counter-account of A and A+ GRI reports. Accounting, Auditing & Accountability Journal, 26(7), 1036–1071. https://doi.org/10.1108/AAAJ-04-2012-00998
Boyer, L., Brunner, B. R., Charles, T., & Coleman, P. (2006). Managing Impressions in a Virtual Environment: Is Ethnic Diversity a Self-Presentation Strategy for Colleges and Universities? Journal of Computer-Mediated Communication, 12(1), 136–154. https://doi.org/10.1111/j.1083-6101.2006.00318.x
Chauvey, J.-N., Giordano-Spring, S., Cho, C. H., & Patten, D. M. (2015). The Normativity and Legitimacy of CSR Disclosure: Evidence from France. Journal of Business Ethics, 130(4), 789–803. https://doi.org/10.1007/s10551-014-2114-y
Cho, C. H., Michelon, G., & Patten, D. M. (2012). Enhancement and obfuscation through the use of graphs in sustainability reports. Sustainability Accounting, Management and Policy Journal, 3(1), 74–88. https://doi.org/10.1108/20408021211223561
Chong, S., Momin, M., & Narayan, A. (2023). A research framework to analyse visual persuasion of photographs in sustainability reports. Meditari Accountancy Research, 31(5), 1453–1482. https://doi.org/10.1108/MEDAR-01-2022-1565
Chong, S., Narayan, A. K., & Ali, I. (2019). Photographs depicting CSR: captured reality or creative illusion? Pacific Accounting Review, 31(3), 313–335. https://doi.org/10.1108/PAR-10-2017-0086
Chung, S., & Lee, S. Y. (2019). Visual CSR Messages and the Effects of Emotional Valence and Arousal on Perceived CSR Motives, Attitude, and Behavioral Intentions. Communication Research, 46(7), 926–947. https://doi.org/10.1177/0093650216689161
Dhaliwal, D. S., Radhakrishnan, S., Tsang, A., & Yang, Y. G. (2012). Nonfinancial Disclosure and Analyst Forecast Accuracy: International Evidence on Corporate Social Responsibility Disclosure. The Accounting Review, 87(3), 723–759. https://doi.org/10.2308/accr-10218
Dhanani, A., & Kennedy, D. (2023). Envisioning legitimacy: visual dimensions of NGO annual reports. Accounting, Auditing & Accountability Journal, 36(1), 348–377. https://doi.org/10.1108/AAAJ-01-2020-4377
Ewenstein, B., & Whyte, J. (2009). Knowledge Practices in Design: The Role of Visual Representations as `Epistemic Objects’. Organization Studies, 30(1), 07–30. https://doi.org/10.1177/0170840608083014
Godfrey, J., Mather, P., & Ramsay, A. (2003). Earnings and Impression Management in Financial Reports: The Case of CEO Changes. Abacus, 39(1), 95–123. https://doi.org/10.1111/1467-6281.00122
Goffman, E. (1959). The Presentation of Self in Everyday Life. Knopf Doubleday Publishing Group.
Hawn, O., Chatterji, A. K., & Mitchell, W. (2018). Do investors actually value sustainability? New evidence from investor reactions to the Dow Jones Sustainability Index (DJSI). Strategic Management Journal, 39(4), 949–976. https://doi.org/10.1002/smj.2752
Hrasky, S. (2012). Visual disclosure strategies adopted by more and less sustainability-driven companies. Accounting Forum, 36(3), 154–165. https://doi.org/10.1016/j.accfor.2012.02.001
Ittelson, W. H. (1960). Visual Space Perception. SPRINGER PUBLISHING COMPANY, INC. .
Jack, L., Davison, J., & Craig, R. (2013). The Routledge Companion to Accounting Communication (L. Jack, J. Davison, & R. Craig, Eds.). Routledge.
Jeriji, M., & Louhichi, W. (2021). The relationship between poor CSR performance and hard, negative CSR information disclosures. Sustainability Accounting, Management and Policy Journal, 12(2), 410–436. https://doi.org/10.1108/SAMPJ-04-2020-0094
Kanbaty, M., Hellmann, A., & He, L. (2020). Infographics in corporate sustainability reports: Providing useful information or used for impression management? Journal of Behavioral and Experimental Finance, 26, 100309. https://doi.org/10.1016/j.jbef.2020.100309
Kim, H., & Lee, T. H. (2018). Strategic CSR Communication: A Moderating Role of Transparency in Trust Building. International Journal of Strategic Communication, 12(2), 107–124. https://doi.org/10.1080/1553118X.2018.1425692
Klassen, R. D., & McLaughlin, C. P. (1996). The Impact of Environmental Management on Firm Performance. Management Science, 42(8), 1199–1214. https://doi.org/10.1287/mnsc.42.8.1199
Konijn, E. A., van der Molen, J. H. W., & van Nes, S. (2009). Emotions Bias Perceptions of Realism in Audiovisual Media: Why We May Take Fiction for Real. Discourse Processes, 46(4), 309–340. https://doi.org/10.1080/01638530902728546
Lång, S., & Ivanova-Gongne, M. (2019). CSR communication in stakeholder networks: a semiotic perspective. Baltic Journal of Management, 14(3), 480–499. https://doi.org/10.1108/BJM-08-2017-0262
Lee, S. Y., & Chung, S. (2018). Effects of emotional visuals and company–cause fit on memory of CSR information. Public Relations Review, 44(3), 353–362. https://doi.org/10.1016/j.pubrev.2018.02.001
Lola, C. P. (2009). INDIVIDUAL ONLINE IMPRESSION MANAGEMENT: SELF-PRESENTATION ON YOUTUBE .
Momin, M. A., Ahmed, Z. U., & Liu, R. (2023). Use of visuals in sustainability reporting by New Zealand Stock Exchange (NZX) listed companies: an impression management perspective. Asian Review of Accounting, 31(2), 181–202. https://doi.org/10.1108/ARA-04-2022-0078
Mulyana, D. (2008). Ilmu Komunikasi Komunikasi Suatu Pengantar. PT. Remaja Rosdakarya.
Permatasari, N., & Suryani, A. W. (2023). Untangling the Meaning of Photos in Corporate Social Responsibility Reporting. Jurnal Akuntansi Dan Keuangan, 25(1), 54–68. https://doi.org/10.9744/jak.25.1.54-68
Preston, A. M., Wright, C., & Young, J. J. (1996). IMag[in]ing annual reports. Accounting, Organizations and Society, 21(1), 113–137. https://doi.org/10.1016/0361-3682(95)00032-5
Ruiz-Garrido, M. F., Palmer-Silveira, J. C., & Fortanet‐Gómez, I. (2005). Discursive strategies in annual reports: The role of visuals. Proceedings of the Association for Business Communication 7th European Conference (Ed. Bülow-Møller AM).
Santos, F. P. (2023). Showing Legitimacy: The Strategic Employment of Visuals in the Legitimation of New Organizations. Journal of Management Inquiry, 32(1), 50–75. https://doi.org/10.1177/10564926211050785
Seo, K. (2020). Meta-Analysis on Visual Persuasion– Does Adding Images to Texts Influence Persuasion? ATHENS JOURNAL OF MASS MEDIA AND COMMUNICATIONS, 6(3), 177–190. https://doi.org/10.30958/ajmmc.6-3-3
Slacik, J., & Greiling, D. (2019). Compliance with materiality in G4-sustainability reports by electric utilities. International Journal of Energy Sector Management, 14(3), 583–608. https://doi.org/10.1108/IJESM-03-2019-0010
Sunandes, A. (2020). Corporate Social Responsibility Terhadap Nilai Perusahaan Dengan Struktur Modal Sebagai Moderasi Pada Indeks Sri Kehati BEI. AKUNTABILITAS: Jurnal Ilmiah Ilmu-Ilmu Ekonomi, 12(1), 90–105.
van den Bosch, A. L. M., de Jong, M. D. T., & Elving, W. J. L. (2005). How corporate visual identity supports reputation. Corporate Communications: An International Journal, 10(2), 108–116. https://doi.org/10.1108/13563280510596925
Zeng, X., Momin, M., & Nurunnabi, M. (2022). Photo disclosure in human rights issues by fortune companies: an impression management perspective. Sustainability Accounting, Management and Policy Journal, 13(3), 568–599. https://doi.org/10.1108/SAMPJ-06-2019-0243
Published
2024-10-09
How to Cite
ADI PRATAMA, I Wayan Bayu; ARDIANA, Putu Agus.
Visual Representation in Sustainability Reports: Impact on Public Perception of Corporate Social and Environmental Reputation.
E-Jurnal Akuntansi, [S.l.], v. 34, n. 10, oct. 2024.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/114874>. Date accessed: 28 nov. 2024.
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