Balancing Green and Gold: The Link Between Sustainability Reporting and Corporate Reputation in Malaysia

Abstract

Corporate reputation has gained significant attention within academic circles and emerged as a critical concern in practical business contexts. However, prior studies on this topic have been somewhat fragmented, creating fertile ground for exploring new research avenues, particularly in assessing reputation. Sustainability reporting, corporate governance, and company attributes have been associated with enhancing corporate reputation. Nevertheless, there remains a dearth of research exploring these variables' impact on the novel reputation measurement proxy, especially in emerging economies like Malaysia. Therefore, this study investigates the intricate relationship between sustainability reporting and corporate reputation using the new proxy of reputation in the context of Malaysia, a dynamic and rapidly growing economy. Balancing the 'Green' aspects of sustainability with the 'Gold' aspects of company performance and reputation is a pivotal concern for organizations in the region. The results showed sustainability reporting significantly impacts corporate reputation to sustain a harmonious equilibrium characterized by "Green" and "Gold" elements. The findings encourage Malaysian PLCs to navigate this duality successfully and can reap long-term benefits regarding reputation, stakeholder trust, and sustainable profitability.

Keywords: sustainability reporting, reputation, transparency, greenwashing, Malaysian public listed companies