Corporate Social Responsibility Disclosure Practices in Papua New Guinea

Panditha M N Bandara

doi:10.13189/aeb.2016.040201

Abstract

This study examines the Corporate Social Responsibility Disclosures (CSRD) among the companies listed on Port Moresby Stock Exchange (POMSoX), in Papua New Guinea (PNG) analysing annual reports published during the three year period of 2011 - 2013. The study revealed that 60% of the total CRS items expected to disclose by PNG companies have not been disclosed. Further analysis shows that out of the disclosures only 30% are detailed and comprehensive with verifiable and quantifiable evidences whereas other disclosures are loose statements. It was also found that most of the companies place higher emphasis on corporate governance disclosures than other components of Corporate Social Responsibility (CSR). Further, it was found that disclosures in respect of consumer responsibility are poor in all the companies irrespective of the industry type. The findings of the study suggest that company size, profitability, industry type and listing nature influence the level of CSRD in PNG companies. The findings also suggest room for improvement of CRS practices and CRSD in PNG companies if they are encouraged with proper guidance.

Highlights

There has been a tremendous growth in the awareness of social responsibility of corporations in recent years
(1) Identify and evaluate the nature and characteristics of corporate social responsibility (CSR) disclosures made by Papua New Guinea (PNG) companies (2) Evaluate the Corporate Social Responsibility Disclosure (CSRD) levels among the different industry sectors (3) Investigate whether there are significant differences of level of CSRD, disclosure themes and items among the different industry sectors (4) Investigate whether there are significant differences of level of CSRD, disclosure themes and items among the different industry sectors in the recent past (5) Investigate whether there is a significant relationship between CSRD and the company characteristics such as company size, profitability, industry type and listing nature
This study focuses on CSRD practices in PNG listed companies

Summary

Introduction

There has been a tremendous growth in the awareness of social responsibility of corporations in recent years. Corporations have been urged to accept responsibility for effects that businesses might have on society Echave & Bhati [21]. Corporate social responsibility (CSR) has received a significant amount of attention from both academic researchers and business practitioners Soliman, Din, & Skr [48]. This is because stakeholders are concerned with the manner in which businesses are responding to social responsibility concerns as suggested by Nobel Laureate Wangari Maathi Ponnu & Okoth [44]. Corporate Social Responsibility Disclosure (CSRD) has attracted considerable interest in the business sector. There is an increasing trend of voluntary CSRD in many countries

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Conclusion