DefinePK

Abstract

Purpose: Corporate scandals are still making headlines in the news. Stakeholders are demanding transparency through more information disclosure in order to curtail this problem and to regain trust. On the other hand, businesses are finding better ways to communicate not only financial but also non-financial information to their stakeholders. With the rise in internet applications, online sustainability reporting could be a solution to this problem. However, information disclosures via the internet particularly on websites are still limited. Prior studies look into antecedents such as firm specific characteristics and corporate governance mechanisms but this study will take a different leap, investigating the role of ethical leadership in online sustainability reporting.
Design/Methodology/Approach: Cross-sectional approach will be applied through content analysis and survey. A disclosure index will be used. The explanatory variables will be extracted from questionnaires which will focus on respondents' opinion of their supervisors.
Findings: Since this paper is conceptual in nature, the expected result will indicate that ethical leadership components could play a role in online sustainability reporting practices.
Implications/Originality/Value: This study will provide a new insight for corporate leaders, academics and policymakers on how ethical leadership could play a role in online sustainability reporting as well as enhance accountability through online disclosures. The empirical evidence will provide support for ethical leadership as potential antecedents of online disclosures, which has been understudied.