Anti-corruption Disclosure Research Articles

The fight against corruption in Portugal: evidence from sustainability reports

Purpose – The purpose of this paper is to analyse the disclosure of information on the fight against corruption in the sustainability reports of Portuguese companies. Design/methodology/approach – Anti-corruption disclosure in the sustainability reports for 2009 of Portuguese firms, published on the website of the Portugal’s Business Council for Sustainability Development, is analysed. Three hypotheses are tested about associations between such disclosure and firm-specific variables. Findings – Companies with a high visibility in terms of risk of corruption (companies in sectors with higher risk and government-owned companies) and companies that engage in association with the United Nations Global Compact seem to exhibit greater concern to improve the corporate image through disclosure. Research limitations/implications – There may be content analysis issues associated with subjectivity in the coding process and the use of a limited content analysis method. Originality/value – This paper adds to the scarce research on the fight against corruption in corporate social responsibility and the reporting thereof by providing new empirical data.

Corporate reporting on corruption: An international comparison

Building on an institutionalist framework of the various organizational field-level pressures on firms to engage with the challenge of corruption, we analyse anti-corruption disclosures across a sample of 933 sustainability reports. Such reporting complements anti-corruption initiatives, as it allows the company to demonstrate its commitment. Our results show clear country- and sector-level differences in the extent to which companies communicate their anti-corruption engagement. However, the more a company is exposed to corruption, the less likely it appears to openly communicate its anti-corruption engagement. Hence, our results cast doubt on the effectiveness of anti-corruption disclosures as part of wider sustainability reporting.

A comparative study of anti-corruption practice disclosure among Malaysian and Indonesian Corporate Social Responsibility (CSR) best practice companies

Corruption is a serious concern all over the world. Due to the limited amount of Corporate Social Responsibility (CSR) research on specific issues such as bribery, this paper aims to determine the extent of anti-corruption information disclosure in annual reports that demonstrate organizational commitment towards combatting corruption. The index consists of 40 items developed from an analysis of past literature and several organizations' published reports. The input data was based on observation of several organizations' annual reports, CSR and sustainability reports, past literature and Global Reporting Initiative (GRI) reporting indicators. The sample consists of 24 companies that participated in the ACCA Malaysia Sustainability Reporting Awards (MaSRA) and 34 Indonesian companies that participated in the Indonesia Sustainability Reporting Award (ISRA). The disclosure of anti-corruption practices (ACP) is still in its infancy in both countries. This study shows that the disclosure of anti-corruption codes of conduct and whistle-blowing practices was the most reported item. Interestingly, Indonesian companies disclosed higher amounts of ACP information compared to Malaysian companies. This is possibly because there is a higher level of coercive pressure to disclose ACP information in Indonesia compared to Malaysia. Further, there are several challenges to curbing corruption in Malaysia which potentially contribute to the low disclosure level of ACP information. This research contributes to CSR studies with a focus on anti-corruption practice, particularly in emerging economies. Some implications to improve the level of anti-corruption disclosure are also presented in the paper.