How do Independent Directors Behave with Respect to Sustainability Disclosure?

Abstract This paper examines how independent directors behave with respect to sustainability disclosure, attending to its comparability, utility, and reliability, and the moderating effect of the level of socially responsible performance. A large sample of international companies from the period 2006–2014 was used to develop our models of analysis. This research evidences that independent directors show an initial opposition to this voluntary disclosure policy unless there is a higher sustainable development and performance. Several disclosure aspects are examined where, first, utility and comparability of sustainability disclosure are fomented by independent directors only under a greater social and environmental performance. Second, this performance reinforces the positive orientation of independents towards the external assurance of social and environmental disclosure. Thus, the initial opposition of independent directors towards a sustainability disclosure is avoided if there is a greater responsible performance that reduces their reputation risks associated with potentially misleading information. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment