Received: 29 August 2020 Revised: 11 June 2021 Accepted: 26 June 2021

DOI: 10.1002/csr.2174

RESEARCH ARTICLE

Impact of social responsibility disclosure between

implementation of green accounting and sustainable
development: A study on heavily polluting companies
in Bangladesh

Bablu Kumar Dhar1,2 | Sabrina Maria Sarkar3 | Foster K. Ayittey4

1
Department of Business, Daffodil
International University, Dhaka, Bangladesh Abstract
2
Department of International Trade and Based on the empirical data of heavily polluting companies in Bangladesh from 2010
Economics, Yantai University, Shandong, China
to 2019, this paper conducts an empirical analysis of the application effect of green
3
YWCA, Chittagong, Bangladesh
4
accounting in the sustainable development of heavily polluting companies. Among
Curtin Malaysia Research Institute, Curtin
University, Miri, Malaysia 212 listed companies under Dhaka Stock Exchange, the study discovered that the
effective implementation of green accounting has significantly improved the sustain-
Correspondence
Bablu Kumar Dhar, Department of Business, able development capabilities of heavily polluting companies; there is a significant
Daffodil International University, Dhaka,
positive correlation between the quality of social responsibility information disclo-
Bangladesh.
Email: [email protected] sure and the sustainable development capabilities of heavily polluting companies; the
quality of social responsibility information disclosure can be positively adjusted the
relationship between the implementation of green accounting and the sustainable
development capabilities of heavily polluting companies.

KEYWORDS
heavily polluting companies, implementation of green accounting, social responsibility
disclosure, sustainable development

1 | I N T RO DU CT I O N their investment in corporate social responsibility (CSR) strategies

(García-Sánchez et al., 2020).
Environmental protection goals such as climate change, reusing The punishment of unreasonable development methods of time
waste materials, and protecting the planet should be the major con- and the exchange of environment for the economy is the most direct
cerns of organizations seeking sustainable development. Sustain- but fiercest counterattack made by the great persecution of the natu-
ability and sustainable development are currently viewed as issues ral environment. Among the textile industry of Bangladesh, the knit-
of concern by society due to high levels of pollution and the mea- wear and ready-made garments make the industry top of the country.
sures taken, which often fail to prove their effectiveness. Sustain- Rather than textile industry, pharmaceuticals and chemicals, paper
able and responsible development must be ingrained into the and printing, leather and footwear, steel industry, foods allied, energy,
company's culture, and its policies, actions, and beliefs must all be and cement industries have immense contribution in the economic
in line with the company's values (Artene et al., 2020). Hence, development as well as environment pollution of Bangladesh (Masum
companies have begun informing investors of their financial and et al., 2019; Paik et al., 2017).
nonfinancial impacts on social and environmental issues alongside The environmental pollution incident has sounded the alarm for
the sustainable development of Bangladeshi companies. As the coun-
try continues to promulgate laws and regulations on environmental
© 2020 by the authors; licensee Growing Science, Canada. This is an open access article
protection, and the public pays more and more attention to environ-
distributed under the terms and conditions of the Creative Commons Attribution (CC-BY)
license (http://creativecommons.org/licenses/by/4.0/). mental protection, the standards for their quality of life have also

Corp Soc Responsib Environ Manag. 2021;1–8. wileyonlinelibrary.com/journal/csr © 2021 ERP Environment and John Wiley & Sons Ltd. 1
2 DHAR ET AL.

been continuously improved, and higher development standards have Alternatively, sustainable development requires companies to
been put forward for heavy-polluting companies at this stage (Hoque consider their performance objectives within three perspectives:
et al., 2018). Green accounting integrates environmental costs into financial, environmental, and social (Abdulrahman, 2021). Globally,
the business financial results of a company. It not only shows the sustainable development is a concern on the national level. In an era
development of the company in terms of economic benefits but also of economic growth, depletion of non-renewable resources is leading
reflects the environmental costs that the company needs to pay for to a shortage of fuels and energy, which contributes to a breakdown
economic benefits. At the same time, it is disclosed in corporate social of the natural environment, increasing natural disasters (Ye
responsibility information (Dyduch & Krasodomska, 2017). It is neces- et al., 2020). Therefore, integrating sustainable development into eco-
sary to disclose this aspect of information fully and truthfully. Effec- nomic growth, environmental protection, and social security has
tively alleviate the asymmetry information between the company and become a pressing necessity for the world.
external stakeholders, and relevant stakeholders, it is possible to The fundamental phenomenon has caused many heavy-polluting
obtain more accurate information based on the content of green companies in Bangladesh to obtain better economic benefits, mainly
accounting statements of the companies. More valuable investment through space-for-time and environment-for-economy, which has
and financing decisions have a significant impact on the sustainable contributed to GDP growth. Being a fast-developing nation,
development of heavily polluting companies (Arrive & Feng, 2018). Bangladesh has been focusing on environmental protection since the
The paper explores the connection between implementation of 1995 through Bangladesh Environment Protection Act (Saha, 2019).
green accounting and sustainable development in heavily polluting According to the Act, organizations must consider the nature, technol-
firms by analyzing their social responsibility disclosure. Based on the ogy, and scale of their business, services, and products. Also, organiza-
empirical data of heavily polluting companies in Bangladesh from tions must include forecast environmental impacts, treat wastes to
2010 to 2019, this paper tries to develop an empirical analysis of the minimize these impacts, and implementation of environmental protec-
application effect of green accounting in the sustainable development tion measures in their annual report (Masum et al., 2019). Hence, the
of heavily polluting companies. Hence, the study needs to find out, study proposes the following hypothesis:
what impact does the implementation of green accounting have on
the sustainable development of polluting companies? Does the higher Hypothesis H1. There is a significant positive correla-
the level of fulfillment of social responsibility, the better the sustain- tion between the implementation of green accounting
ability of the company? Under the influence of social responsibility, and the sustainable development of heavily polluting
what will happen to the relationship between the implementation of companies in Bangladesh.
green accounting and the sustainable development of heavily pollut-
ing companies? With these questions, the empirical data of the heavy-
polluting companies of Bangladesh is the research object to carry out 2.2 | Disclosure of corporate social responsibility
the current research. disclosure and sustainable development

Since the introduction of corporate social responsibility in the 1950s,

2 | THEORETICAL ANALYSIS AND  ska-Kopcewicz
it has been the focus of many scholars (Liczman
R E S E A RC H H Y P O T H E S I S et al., 2019; Tibiletti et al., 2021). As a result, whether companies
should perform social responsibilities has also been divided into two
2.1 | Green accounting and sustainable groups, support, and opposition. However, with the continuous pro-
development gress of society, some companies do not assume social responsibility.
The undesirable consequences brought about gradually unified the
After addressing green accounting in 1971 by Parker, there is a lot of opinions of the two factions. That is, as an economic entity, compa-
progress made regarding the study of green accounting with the nies need to draw many critical resources from society to obtain
scope of evaluating the social performance of finances, financial activ- development (Estrada-Vidal et al., 2020). Since the development of
ities, and disclosure of social responsibility (Gonzalez & Mendoza, companies cannot be separated from the support of social resources,
2020). The concept of green accounting involves the assessment of they need to bear specific social responsibility is inevitable.
environmental costs and resource losses within a country. To assist The excellent performance of social responsibilities can enable
enterprises in understanding and managing the tradeoffs between companies to obtain strategic essential development resources,
environmental goals and traditional economic goals, green accounting enhance the trust of consumers in the company, and at the same time
was developed (Maama & Appiah, 2019). It has become necessary for attract more attention to investors. The fulfillment of corporate social
enterprises to develop methods for promoting green incentives for responsibility is inevitable in the form of charitable donations but also
both the present and the future through green accounting environmental protection, job-solving and other aspects (Liang &
(Bebbington et al., 2017; Gupta & Vegelin, 2016). By studying and Renneboog, 2017). Among the heavily polluting companies, it has
growing green into a big picture, Green Accounting promotes a sus- been an extensive economic development model for a long time,
tainable future for enterprises. which has caused severe damage to the environment (Vuong
DHAR ET AL. 3

et al., 2021), resulting in the increasing frequency of extreme weather Bangladesh, like other developing countries, over the last few years
such as haze which has severely impacted the quality of life of the (Belal, 2016). Consequently, the study addresses the following
people. Therefore, companies that only focus on economic develop- hypothesis:
ment ignores the concentrated expression of the fulfillment of social
responsibilities. Hypothesis H3. The quality of social responsibility
Despite the fact that CSR is widely practiced internationally in information disclosure significantly enhances the corre-
order to support sustainable development, Bangladesh is lagging lation between the implementation of green accounting
behind. Bangladesh is far behind the world standard in terms of its and the sustainable development of heavily polluting
practice, which shows the potential for improvement (Paik et al., companies.
2017). In recent years, companies have started integrating CSR as a
strategic investment into their core business strategy as well as man-
agement instruments and operations aimed at developing Bangladesh 3 | RESEARCH METHODOLOGY
sustainably (Hoque et al., 2018). Therefore, the study proposes the
following hypothesis: 3.1 | Sample selection

Hypothesis H2. There is a significant positive correla- Heavy pollution companies in Bangladesh are the initial research
tion between the quality of social responsibility informa- objects of the current research. According to the “Guidelines for Envi-
tion disclosure and the sustainable development of ronmental Information Disclosure of Listed Companies” published by
heavily polluting companies in Bangladesh. the Ministry of Environmental & Forests of Bangladesh, the heavy
pollution industries involved in this article include thermal power,
steel, cement, dockyard, electrolytic aluminum, coal, chemical, petro-
2.3 | Impact of social responsibility disclosure chemical, building materials, papermaking, pharmacy, fermentation,
between the implementation of green accounting and textile, tanning, and mining industries.
sustainable development The data for this study were gathered solely from the annual
reports. The study has taken a sample of the total number of 604 listed
With the continuous development of the concept of corporate social companies (total 22 sectors) of the Dhaka Stock Exchange (DSE) and
responsibility, the traditional view of charitable donations of the com- have selected 12 sectors (7 Cement, 5 Ceramics, 42 Engineering,
panies have quietly changed. Of course, social responsibility does not 20 Food and Allied, 22 Fuel and Power, 3 Jute, 4 Paper and Printing,
only include charitable donations but also includes more content 31 Pharmaceuticals and Chemicals, 6 Tannery Industries, 56 Textile,
(Taylor et al., 2018). As an accounting treatment method actively pro- 4 Real Estate, and 12 Miscellaneous) from the total number of listed
motes by the country, green accounting can effectively improve the sectors. In order to ensure the reliability and authenticity of the
sustainable development ability of the enterprise after effective research data, the initial research samples were screened as follows:
implementation. The enterprise should strengthen the implementation first, the companies whose property rights were not clearly defined
of green accounting, which is also a corporate social responsibility during the research period were deleted; second, the companies with
that embedded with performance (Broman & Robèrt, 2017; Nekhili, abnormal values of the asset–liability ratio, companies that have not
Nagati, Chtioui, & Rebolledo, 2017). fully disclosed vital indicators such as finance, and finally companies
The disclosure of corporate social responsibility information is a that have not disclosed social responsibility information have been
concrete manifestation of the performance of social. The higher the deleted. Finally, 212 valid research samples were obtained, involving a
quality of disclosure, the better the performance of corporate social total of 509 data from 2010 to 2019. In terms of data acquisition, the
responsibility (Platonova et al., 2018). The more essential benefits can number of all variables, the data, are obtained from the annual reports
be received the attention of people to imply green accounting and of listed companies. At the same time, to avoid the influence of out-
promote corporate sustainability. The quality of social responsibility liers in the data on the robustness of the research, all continuous vari-
information disclosure can positively regulate the implementation of ables have been narrowed down at 1% and 99% quantiles.
green accounting and the sustainability of polluting companies.
Corporate social responsibility reporting, sustainable develop-
ment and use of green accounting have traditionally been considered 3.2 | Variables
largely within the scope of western economics (Marco-Fondevila
et al., 2018). Despite this, many large corporations claim to have taken 3.2.1 | Dependent variable
steps to improve their environmental and social performance within
developing countries following highly publicized incidents and heavy For heavy-polluting companies, sustainable development needs to be
environmental pollution. Taking stakeholder theory as a lens, CSR measured in many aspects. Drawing on the research results of Bellucci
reporting, sustainable development and developing green economy et al. (2020), it is possible to develop business sustainability from the
through green accounting have been started to introduce in three aspects of business sustainability, environmental sustainability,
4 DHAR ET AL.

and element sustainability. The sustainable development ability is the corporate social responsibility information disclosure quality score
measured, so the sustainable development ability is used as the issued by Runling Global Responsibility Rating Company. At the same
dependent variable. It is represented by the symbol ESD. It is mea- time, the score is processed for the aspect data. Take the logarithm,
sured employing multi-level fuzzy comprehensive evaluation and the larger the logarithm, the higher the quality of corporate social
principal component analysis. The specific evaluation index system responsibility information disclosure.
and weights are shown in Table 1. Table 1 can calculate the final
score of sustainable development for the company. The higher the
score, the stronger the sustainable development ability of the 3.2.4 | Control variables
company.
Comprehensively consider the influencing factors of the sustainable
development capabilities of the company, draw on previous related
3.2.2 | Independent variables research results, and select the company size, asset–liability ratio,
internal control effectiveness, audit quality, return on total assets,
Green accounting, also known as environmental accounting, is an property rights, and education level of senior management as control
interdisciplinary subject of environmental science and accounting. variables. Moreover, introduce two dummy variables of annual and
Compared with traditional accounting, the same measurement scale is industry to control its influence. The definition and description of all
currency, but green accounting is to confirm, record and measure cur- variables are shown in Table 2.
rency following environmental laws and regulations. Provide
environment-related information for companies to make reasonable
development decisions. To achieve effective cost control and ade- 3.3 | Model construction
quate protection of the environment, and to promote sustainable
development of companies. However, because the implementation of In order to analyze the relationship between the implementation of
green accounting is still in the initial stage of development in green accounting and the company's sustainable development capa-
Bangladesh, the implementation of green accounting is taken as an bility to verify Hypothesis H1. With the company's sustainable devel-
independent variable, represented by the symbol GC, when the com- opment capability as the dependent variable and green accounting
pany implements green accounting, assign GC to 1; otherwise, GC implementation as the independent variable, the following multiple
Assign a value of 0. linear regression model is constructed:
Model 1:

3.2.3 | Adjusted variables ESD ¼ β0 þ β1 GC þ β2 Lev þ β3 ICQ þ β4 ROA þ β5 AQ þ β6 Edu þ β7 State

þ β8 Size þ ΣYear þ ΣInd þ ε

The development of an enterprise is inseparable from the support of

society. In turn, the excellent performance of corporate social respon- In order to analyze the relationship between the quality of
sibility can also promote the continuous progress of society. For com- social responsibility information disclosure and the company's sus-
panies, although the excellent performance of social responsibility tainable development capability to verify Hypothesis H2. With the
requires a specific cost, it can bring more critical development company's sustainable development capability as the dependent
resources. Therefore, the quality of social responsibility information variable and the social responsibility information disclosure quality
disclosure is regarded as corporate social responsibility. The substitu- as the independent variable, the following multiple linearity regres-
tion variable is represented by the symbol CSR, and it is measured by sion model is constructed:

TABLE 1 Evaluation index of enterprise sustainable development (ESD) system

Variables Indicators Value Indicators Value

Sustainability Business sustainability 0.077 Development ability 0.469
Corporate culture 0.083
Operating ability 0.485
Environmental sustainability 0.554 Environmental protection cost input 0.061
Pollutant emissions 0.628
Product's environmental impact 0.275
Element sustainability 0.387 Human capital 0.486
Continuous innovation ability 0.080
Resource utilization efficiency 0.455
DHAR ET AL. 5

TABLE 2 Variables at a glance

Type Name Symbol Description

Dependent Sustainability ESD Constructing a comprehensive index evaluation system
as shown in Table 1 and making strategies, the larger
the teaching value, the better the sustainable
development ability of the company
Independent Implementation of green accounting GC When the company implements green accounting,
assign GC to 1, otherwise assign GC to 0
Moderator Social responsibility disclosure CSR Use the corporate social responsibility performance
disclosure quality score issued by Runling Bad Ball
Responsibility Rating Company to measure. The
higher the teaching value, the higher the corporate
social responsibility information disclosure quality.
Control variable Asset-liability ratio Lev Total assets at the end of tern / Total liabilities
Effectiveness of internal control ICQ The internal control guidance of listed companies and
divide it by 100. The larger the teaching value, the
better the effectiveness of the internal control
system.
Audit quality AQ The value is 1 when standard audit opinion is obtained,
otherwise 0
Return on total assets ROA Net profit/Average total assets
Education level of executives Edu Senior management degree is assigned a value of 3 for
bachelor degree and above, 2 for junior college, and
1 for junior college or lower
Property right State State-owned enterprise is 1, otherwise 0
Enterprise size Size Total assets at the end of the period
Year Year Time frame
Industry Ind Type of the Industry

variable. The quality of responsible information disclosure is the moderat-

TABLE 3 Descriptive statistics
ing variable, and the following multiple linear regression model is
Variables N Min Mean Mid Max SD constructed:
ESD 212 0.07 0.43 0.40 0.80 1.78 Model 3:
GC 212 0.01 0.55 1.01 1.54 0.19
CSR 212 1.39 5.99 5.00 11.29 1.24 ESD ¼ β0 þ β1 GC þ β2 CSR þ β3 ðGC  CSRÞ þ β4 Lev þ β5 ICQ þ β6 ROA
þ β7 AQ þ β8 Edu þ β9 State þ β10 Size þ ΣYear þ ΣInd þ ε
Size 212 18.83 23.80 24.53 25.64 0.18
Lev 212 0.01 0.43 0.35 0.78 1.19
ICQ 212 1.10 5.30 5.10 7.94 1.28
AQ 212 0.01 0.89 1.12 1.50 0.27
4 | R E S U L T S OF TH E R E S E A R C H
ROA 212 0.54 0.09 0.06 0.57 1.79
State 212 0.02 0.56 1.02 1.09 0.43
4.1 | Descriptive statistics
Edu 212 1.03 2.30 2.35 2.91 0.64

The descriptive statistics results are shown in Table 3.

Model 2: The endogenous law between variable data, through the degree of
dispersion, can analyze the differences between individual companies.
ESD ¼ β0 þ β1 CSR þ β2 Lev þ β3 ICQ þ β4 ROA þ β5 AQ þ β6 Edu The average value of ESD of sustainable development capacity is 0.43,
þ β7 State þ β8 Size þ ΣYear þ ΣInd þ ε
indicating that heavy polluting companies of Bangladesh have relatively
weak sustainable development capacity. The extreme values are 0.07
In order to analyze the relationship between the quality of social and 0.80, respectively, indicating that individual companies have inferior
responsibility information disclosure, the implementation of green sustainable development capacity and some companies that remarkably
accounting, and the sustainability of the company to verify perform capacity. On an average, 55% companies implement green
Hypothesis H3, the sustainability of the company is the dependent vari- accounting as the mean value is 0.55 and the extreme values are 0.01
able, and the implementation of green accounting is the independent and 1.54, respectively. The proportion of heavily polluting companies of
6 DHAR ET AL.

Bangladesh implement green accounting is more than half; the average for the subsequent multiple linear regression analysis. In terms of vari-
value of CSR on the quality of social responsibility information disclosure able relationships, the green accounting implementation of GC and
is 5.99, and the extreme values are 1.39 and 11.29, respectively. The social responsibility information disclosure CSR have passed the sig-
standard deviation reached 1.24, indicating that heavy polluting compa- nificance test at the 1% level between the corporate sustainability
nies have yet to disclose social responsibility information. capability ESD and shows a positive correlation, which is consistent
Furthermore, the degree of dispersion between individuals is rela- with the Hypothesis H1 and Hypothesis H2 of this article. Are consis-
tively high; the average value of the size of the enterprise is very close to tent. In terms of control variables, the higher the debt-to-asset ratio,
the median, indicating that the sample companies are similar in the number the worse sustainable development capabilities of the companies; the
of assets; the average value of the asset-liability ratio Lev is 0.43, indicating size of the company, the effectiveness of internal control, audit qual-
that environmental awareness is increasing at this stage. In an environ- ity, return on total assets and the level of education senior manage-
ment where environmental protection technology requires a large amount ment are all significantly different from sustainable development
of investment, heavily polluting companies are subject to more severe capabilities the companies have a positive correlation. At the same
financing constraints, resulting in the irrational capital structure of these time, state-owned companies have better sustainable development
companies; the average ICQ of internal control effectiveness is 5.30. The capabilities. The main reason is that state-owned companies not only
result indicates that the sample companies have achieved initial results in bear the responsibility for economic growth, but also shoulder more
the construction of internal control systems, but the vast dispersion social responsibilities, and have more reliable motivations and require-
between the extreme values also shows that different companies have a ments for environmental protection.
massive gap in the effectiveness of internal control. The average value of
audit quality AQ is 0.898, indicating that 89.8% of companies have
obtained standard audit opinions at this stage. However, a high proportion 4.3 | Regression analysis
of standard audit opinions, is inconsistent with frequently exposed finan-
cial fraud incidents, which means that at this stage, external audit institu- The regression analysis results are shown in Table 5.
tions still need to strengthen the protection of audit independence. The In the regression analysis of model 1, the regression coefficient
average ROA of total assets is 0.09, indicating that the sample companies between green accounting implementation GC and corporate sustain-
have relatively good profitability, but the extreme degree of dispersion is ability (ESD) is 0.50, and it has passed the significance test at the 1%
high, indicating that the sample companies have a massive gap in profit- level, indicating that green accounting implementation and corporate
ability. The average value of the state of property rights is 0.568, which sustainability. There is a significant positive correlation between them,
indicates that the proportion of the sample companies in Bangladesh has which provides further support and verification for Hypothesis H1.
reached 56.8%; the education level of senior management is Edu Mean After the implementation of green accounting, although the unit of
2.30, indicating that most of the executives of the sample companies have measurement is still currency, the purpose of the environmental laws
a bachelor degree or above. and regulations based on it is to realize better the harmonious
development of the environment and the economy. Therefore, the
implementation of green accounting promotes enhancing the environ-
4.2 | Correlation analysis mental performance of companies can effectively enhance their sus-
tainable development capabilities.
From the correlation analysis results in Table 4, there is no In the regression analysis of Model 2, the regression coefficient
multicollinearity problem between the variables. It provides support between CSR and corporate sustainability ESD is 0.53, and it has

TABLE 4 Correlation analysis

ESD GC CSR Size Lev ICQ AQ ROA State Edu

ESD 1
GC 0.425*** 1
CSR 0.419*** 0.437*** 1
*** *
Size 0.138 0.119 0.137** 1
Lev 0.167*** 0.338*** 0.315*** 0.103** 1
ICQ 0.297 ***
0.347 ***
0.374 ***
0.134 **
0.366*** 1
AQ 0.288*** 0.355*** 0.378*** 0.132** 0.447*** 0.490*** 1
ROA 0.163 ***
0.316 **
0.277 ***
0.302 **
0.398 ***
0.344 ***
0.411*** 1
State 0.322** 0.388*** 0.198*** 0.098** 0.347*** 0.226** 0.322*** 0.412* 1
** *** *** ** *** *** ***
Edu 0.278 0.317 0.106 0.144 0.106 0.138 0.223 0.164 0.136* 1

***, **, and * indicate the significance level of the variable relationship is 1%, 5%, and 10% respectively.
DHAR ET AL. 7

TABLE 5 Regression analysis coefficient is higher than the regression coefficient between the green

Variable Model 1 Model 2 Model 3 accounting implementation and the company's sustainable develop-
ment capability in Model 1. The result indicates that the quality of
ESD 0.615*** 0.623*** 0.682***
(3.12) (3.21) (3.28) social responsibility information disclosure has significantly enhanced

GC 0.491 ***
0.494 *** the green accounting implementation and the company's sustainable
(2.24) (2.34) development for the correlation between sustainable development
CSR 0.524 ***
0.505 *** capabilities. Hence, Hypothesis H3 is better verified and supported.
(2.68) (2.62)
CSR*GC 0.544***
(2.84) 5 | CONC LU SIONS
Size 0.345* 0.359* 0.362*
(1.33) (1.45) (1.51) This article takes the heavily polluting companies in Bangladesh from
Lev 0.579*** 0.621*** 0.601*** 2010 to 2019 as the research object and studies the impact of green
(3.01) (3.22) (3.11)
accounting implementation and social responsibility information on the
ICQ 0.534*** 0.542*** 0.586***
sustainable development of companies. Through empirical and theoretical
(2.67) (2.71) (2.87)
research, the following main conclusions are drawn: the implementation
AQ 0.535*** 0.540*** 0.548***
of green accounting can significantly improve the sustainable develop-
(2.59) (2.67) (2.73)
ment capabilities of heavily polluting companies; there is a significant posi-
ROA 0.493*** 0.497*** 0.520***
(2.39) (2.47) (2.59) tive correlation between the quality of social responsibility information
* * * disclosure and the sustainable development capabilities of heavily pollut-
State 0.352 0.341 0.356
(1.54) (1.34) (1.56) ing companies; the quality of social responsibility information disclosure

Edu 0.444 ***

0.455 ***
0.476 *** significantly enhances the implementation of green accounting and the
(2.01) (2.14) (2.32) sustainable development of heavily polluting companies.
Adj_R2 0.299 0.289 0.309 The critical task of the collective development of the environment
F 78.39 ***
78.22 78.92 *** and the economy, the higher the quality of its social responsibility

N 212 212 212 information disclosure, the more conducive to the implementation of
green accounting. This will further ensure and improve the company's
Year control control control
sustainable development capabilities. In the regression analysis of the
Industry control control control
control variables, the larger the scale of the enterprise, the higher
***, **, and * indicate the significance level of the variable relationship is the ability to bear and resist risks. At the same time, the more capable
1%, 5%, and 10%, respectively. The value in the number estimates the t
it is to make continuous investment in profitable projects with a posi-
value.
tive net present value, and it will also be more able to obtain external
investors. The ability of sustainable development is relatively high;
passed the significance test at the 1% level, indicating that the corpo- high-quality internal control and external auditing, as important com-
rate social responsibility information There is a significant positive ponents of corporate governance, can promote the continuous
correlation between sustainable development capabilities, which pro- improvement of the ability of sustainable development. The higher
vides further support and verification for Hypothesis H2. Companies the education level of executives, the more they pay attention to the
need to absorb essential development resources from society, and economy and the environment. The greater the sustainable develop-
they need to sell the products they produce to society to obtain eco- ment capabilities of the companies; the higher the debt-to-asset ratio,
nomic benefits. Therefore, companies not only shoulder the responsi- the greater the profits of the companies will be used to repay debts
bility of economic development but also need to perform better social under pressure from relevant creditors. Without sufficient funds for
responsibilities. The better the performance of corporate social investment and environmental protection, sustainable development
responsibility, it will effectively improve the quality of the disclosure cannot be achieved without the development of social responsibility.
of social responsibility information, thereby attracting more attention
from the society and obtaining a more extensive range of develop- AC KNOW LEDG EME NT S
ment resources, which is conducive to the realization of sustainable This research received no external funding.
development. The improvement of its sustainable development capa-
bility is a matter, of course. OR CID
In the regression analysis of Model 3, green accounting imple- Bablu Kumar Dhar https://orcid.org/0000-0001-8768-8634
mentation of GC and social responsibility information disclosure qual-
ity CSR still shows a significant positive correlation at the 1% level RE FE RE NCE S
between corporate sustainability ESD. After introducing the cross- Abdulrahman, D. M. (2021). The role of environmental accounting in sus-
multiplying item CSR*GC of the two, it is found that the regression tainable development to conserve natural resources. Psychology and
8 DHAR ET AL.

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Arrive, J. T., & Feng, M. (2018). Corporate social responsibility disclosure: able development. Corporate Social Responsibility and Environmental
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ronmental Management, 25(5), 920–927. https://doi.org/10.1002/csr. Masum, M. H., Uddin, M. M., Ahmed, H., & Uddin, M. H. (2019). Corporate
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