Journal of Business Ethics

, Volume 152, Issue 3, pp 613–626 | Cite as

Environmental and Social Disclosures and Firm Risk

  • Mohammed Benlemlih
  • Amama ShaukatEmail author
  • Yan Qiu
  • Grzegorz Trojanowski


We examine the link between a firm’s environmental (E) and social (S) disclosures and measures of its risk including total, systematic, and idiosyncratic risk. While we do not find any link between a firm’s E and S disclosures and its systematic risk, we find a negative and significant association between these disclosures and a firm’s total and idiosyncratic risk. These are novel findings and are consistent with the predictions of the stakeholder theory and the resource-based view of the firm suggesting that firms which make extensive and objective E and S disclosures promote corporate transparency that can help them build a positive reputation and trust with their stakeholders. This in turn can help mitigate the firms' idiosyncratic/operational risk. These findings are important for all corporate stakeholders including managers, employees, and suppliers who have a significant economic interest in the survival and success of the firm.


Environmental and social disclosures Firm risk Voluntary disclosure Corporate social responsibility Stakeholder theory Resource-based view Risk management 



Capital asset pricing model


Corporate financial performance


Corporate social disclosure


Corporate social performance


Corporate social responsibility




Financial Times Stock Exchange Group


Green house gas


Global reporting initiative


International Organization for Standardization


Market to book ratio


Resource-based view (of the firm)


Return on assets




Standard industrial classification


United Kingdom


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Copyright information

© Springer Science+Business Media Dordrecht 2016

Authors and Affiliations

  • Mohammed Benlemlih
    • 1
  • Amama Shaukat
    • 2
    Email author
  • Yan Qiu
    • 3
  • Grzegorz Trojanowski
    • 4
  1. 1.University of Grenoble Alpes, CERAG, CNRSGrenoble Cedex 9France
  2. 2.Essex Accounting Centre, Essex Business SchoolUniversity of EssexColchesterUK
  3. 3.Manchester Business SchoolUniversity of ManchesterManchesterUK
  4. 4.University of Exeter Business SchoolExeterUK

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