Corporate Environmental Reporting in Kenya and its Link to Corporate Financial Performance

Increased awareness of environmental issues coupled with concerns over the impact of commercial activities on the environment have encouraged the concept of extending company reporting to include non-financial aspects. This book provides sound arguments as to the existence of a link between Corporate Environmental Reporting and Corporate Financial Performance in a developing country Kenya. The study finds that a company can ‘do well by doing good’: that is it can perform better financially by attending not only to its core business operations but also to its responsibilities towards creating an environmentally sustainable and better society. Firms that record good environmental performance and disclosure will enjoy “green goodwill” and improved reputation (Brammer & Pavelin 2004; Hart 1995; Surroca et al. 2010) cost advantages due to process innovation (Sharma & Vredenburg 1998; Surroca et al. 2010) and strengthen employee skills and involvement (Hart 1995; Russo & Fouts 1997; Waldman Siegel & Javidan 2006; Weber 2008) while poor environmental performers do not enjoy these benefits.