Involuntary Versus Voluntary Disclosure: Evidence From Digital Tools

Abstract

This paper examines the relationship between the information articulated in sustainability and/or integrated reports and the external information propagated through digital tools. We aim to assess whether organizations incorporate all the information involuntarily disclosed through their institutional websites, social media, encyclopedic sources, and other relevant tools in their non-financial reports. We employed a quantitative methodology, specifically conducting a Pearson correlation analysis. Our sample consisted of Italian public companies selected from the ESG Perception Index ranking. Results indicate a moderate alignment between voluntarily disclosed ESG issues and those disclosed involuntarily. This contribution has implications for both research and practice directed at academics, practitioners, and policymakers. Theoretically, it contributes to the current body of literature on public corporate non-financial disclosure, specifically by highlighting a comparison between stakeholders' ESG perceptions and the information effectively disclosed by companies. Practically, this analysis provides valuable insights for practitioners preparing sustainability reports and/or integrated reports and policymakers, emphasizing the importance of focusing on social and governance issues.