Distilling the core tactics of impression management in an extra-financial reporting context

Abstract

This paper investigates the core impression management tactics organisations employ in extra-financial reporting. As scrutiny of extra-financial disclosure intensifies, stakeholders are increasingly demanding enhanced transparency and accountability. Organisations, in response may strategically present non-financial information to shape stakeholder perceptions, resulting in a gap between stakeholders' expectations and the content presented in extra-financial reports. The study uses content and bibliometric analyses to identify the primary impression management tactics per prior academic literature. These tactics are then applied to the extra-financial reports of a listed organisation which was implicated in an ESG concern to illustrate the application of the tactics. The tactics include (1) perception management, (2) self-promotion, (3) reputation enhancement, (4) building stakeholder rapport, (5) intimidation, (6) exaggerating qualitative disclosures, (7) distorting graphical disclosures, (8) selective disclosures, (9) obfuscation techniques, (10) social media strategies, (11) deflecting criticism, (12) re-using information, (13) tick-box compliance, (14) superficial board compositions, and (15) image-driven philanthropy. This paper extends the existing literature on impression management by offering detailed examples of how these tactics are employed in organisational contexts. The research provides a framework for practitioners and academics to identify and evaluate impression management tactics within extra-financial reporting disclosures. The study contributes to developing robust regulatory frameworks and reporting standards, guiding assurance providers toward more rigorous assurance procedures. It offers policymakers valuable insights for formulating policies which deter deceptive reporting practices. These contributions are crucial for promoting greater transparency, accountability, and ethical conduct in organisational reporting.