The Impact of Organizational Ethical Culture on the Quality of Sustainability Reporting with the Mediating Role of Environmental Governance

This study was conducted with the aim of examining the impact of organizational ethical culture on the quality of sustainability reporting with the mediating role of environmental governance in companies listed on the Tehran Stock Exchange. Given the increasing demand for transparent and credible disclosure of sustainability information, understanding the organizational determinants affecting reporting quality is of considerable importance. The research design was quantitative and descriptive–analytical, and data were collected through standardized questionnaires and content analysis of sustainability reports from 112 active companies in 2024. Data analysis was performed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4 and SPSS version 27. The findings indicated that organizational ethical culture has a positive and statistically significant relationship with the quality of sustainability reporting (β = 0.34). Furthermore, environmental governance not only has a direct positive effect on reporting quality (β = 0.41), but also plays a statistically significant mediating role in the relationship between ethical culture and sustainability reporting quality (indirect effect: β = 0.19). These results emphasize that enhancing the quality of sustainability reporting requires the integration of ethical orientations with formal governance structures. The findings contribute to the theoretical development of sustainability accounting and provide practical guidance for boards of directors, regulators, and organizations in emerging economies.