SUSTAINABILITY REPORTING AND BRAND VALUE: AN ANALYSIS OF THE TOP 100 SINGAPORE COMPANIES

Abstract

The paradigm of sustainability was developed with a unified goal for political, social, and economic growth. The World Commission on Environment and Development describes sustainable development as growth that meets the demands of today’s population without depriving the future generations (WCED, 1987). In spite of the resurgent interest, globally we are in confronted by climatic disasters (IPPC, 2008) quickened loss of biodiversity, overfishing, (IUCN, 2008; WWF, 2010), and increasing health and income disparity (Marmot 2005; UNDP, 2010). These issues are the resultant of commercial and industrial activities (Heede, 2014). Businesses are therefore challenged to drive sustainability alongside with its economic goals.

The recent sustainability reporting mandate by the Singapore Exchange has heightened stakeholder awareness and propelled sustainability disclosures. Businesses therefore seek to embed sustainability within its operations, in the context of driving economic competitiveness (van Marrewijk, 2003). The common recurring question are around the benefits of sustainability for businesses. Academics have found consistencies in the positive influence of corporate social responsibility (CSR) efforts on brand value. Albeit encouraging, the knowledge of the impact of sustainability reporting is scarce and little is known if increased disclosures would influence a company’s brand value. This paper aims to address this gap by investigating the sustainability performance of the top 100 brands in Singapore and its correlation with brand value.

There are seven chapters in this paper. The first two chapters introduces and examines the literature on sustainability reporting and the impact of EESG - economic, environmental, social and governance parameters on businesses. From a legitimacy-seeking view, the paper then examines how sustainability can be integrated into a brand to enhance a company’s brand value. The third chapter outlies the objectives of the paper followed with the research methodology in chapter four. Subsequently in the next chapter, we examine the company scores in terms of their sustainability performance and brand value. Chapter six discusses the results by comparing with past literature and the final section propose conclusions applicable for corporates, governments and researchers.