Corporate Social And Environmental Reporting Research Articles

Social and environmental reporting in China: an examination of local political and economic influences

PurposeThis paper aims to examine the role of local/provincial government in influencing corporate social and environmental reporting (CSER) in China, and more specifically, how the underlying economic and political factors associated with local government have influenced the quality of CSER.Design/methodology/approachThe authors used 234 environmentally sensitive companies listed on the Shanghai and Shenzhen Stock Exchanges during 2013 and 2015 as the research sample to test the relationship between CSER and local government’s political connection and economic prioritisation and the potential mediating effect of local economic prioritisation.FindingsThe analysis provides evidence that local/provincial government’s political geographical connectedness with the central government has directly and positively influenced the level of CSER, while local prioritisation of economic development has a direct but negative effect on CSER in China. In addition, local/provincial prioritisation of economic development has mediated the relationship between local–central political geographical connectedness and CSER.Practical implicationsWhile local/provincial governments are heavily influenced by the coercive pressure from the central government, they also act in their own political and economic interests in overseeing CSER at the local level. This study raises the question about the effectiveness of the top-down approach to improving CSER in China and suggests that the central government may need to focus more on coordinating and harmonising different local/provincial governments’ interests to enable achieving a common sustainability goal.Originality/valueThe authors provide evidence revealing how the economic and political contexts of local government have played a significant role in shaping CSER in China. More specifically, this paper addresses a gap in the literature by highlighting the importance of local government oversight power for CSER development and how such oversight is determined by local prioritisation of economic development and political geographical connectedness of local and central governments.

A BENCHMARKING ANALYSIS OF CORPORATE SOCIAL AND ENVIRONMENTAL REPORTING OF MALAYSIAN TELECOMMUNICATION SERVICE PROVIDERS

The main purpose of this paper is to explore corporate social and environmental reporting (CSER) practices among Malaysian telecommunication companies. Using benchmarking analysis, the paper attempts to identify the current status of the CSER practices in comparison with an identified benchmark company. The empirical examination encompasses a sample that includes the annual reports of four telecommunication companies from 2013 to 2017. A content analysis approach has been applied to these annual reports. The findings show that categories of “corporate governance” and “community” received the highest amount of disclosure over the period of five years, while the least amount of disclosure was found in the “employee relation” category. It is recommended that low-level disclosures on employee relation be given more prominence by policymakers, management, and other relevant stakeholders. Such information is seen as being of critical importance to value enhancement, as uncertainty about environmental impacts of organizations is thought to have an increasing effect on financial performance. If best practice information

Corporate Social and Environmental Strategy and Reporting in Indonesian Plantation Industry

This study aims to investigate how corporate social and environmental strategy can contribute to corporate social and environmental reporting (CSER) in the plantation industry in Indonesia. This study employed a case study approach by using semi–structured interviews to collect data from Indonesian plantation companies listed in the Indonesia Stock Exchange (IDX) and state–owned plantation companies that included CSER in their annual report. The motivation of CSER implementation in Indonesian plantation companies was influenced by proactive and reactive strategies. The corporate social and environmental strategy of proactive principles would publish CSER due to the social discretion beyond the regulatory requirements or pressure of certain stakeholders, and prior to any negative information being received by the public. Moreover, the corporate social and environmental strategy of reactive principles would also publish CSER to meet stakeholders’ needs and demands, obtain good corporate image and reputation, and avoid negative impacts (e.g., harm, hazards, mishap, complaints, etc.). Therefore, corporate social and environmental strategy can contribute to CSER depending on whether the company has proactive or reactive principles. This research contributes to the knowledge of social accounting literature in which CSER practices can be influenced by corporate social and environmental strategy.

Corporate Social and Environmental Reporting (CSER) and Financial Performance: The Mediating Role of Competitive Advantage

The paper examined the mediating effect of competitive advantage on the relationship between CSER and financial performance in Nigeria. The study adopted the ex-post causal research design because it seeks to examine the causality between CSER and financial performance within a mediation context. A sample size of 100 companies from all sectors listed on the Nigerian Stock exchange (NSE) between 2007 and 2016 was used. Panel regression analysis was used in the estimation of the data. The mediation Model was tested based on Baron and Kenny’s (1986) conditions for mediation. Results from the study revealed that competitive advantage mediates in the relationship between CSER and financial performance. This result confirms the Resource Based Theory (RBT) that engaging in social and environmental reporting activities can enhance a company’s competitive advantage which will ultimately improve the financial performance in Nigeria. The study recommends that corporations in developing and emerging markets should begin to think differently about CSER as a proactive and strategic tool towards enhancing competitive advantage and consequently financial performance rather than just in response to the demand for CSER globally.

Emerging phenomenon of corporate social and environmental reporting in China

PurposeThe purpose of this paper is to explore the motivations underpinning recent evolving corporate social and environmental reporting (CSER) among enterprises in China through the lenses of senior managers.Design/methodology/approachUsing the interpretive tenets of engagement research, semi-structured in-depth interviews were adopted to explore the perceptions of senior managers from 21 large companies in various industries. The aim is to make sense of the emerging CSER phenomenon occurring in the field through engagement, observation and penetrating interviews.FindingsThe findings identify the main enablers driving CSER in China as: regulations and government influence; management awareness; benefits to company image; peer pressure/reporting by peers and public pressure on controversial companies. Guided by a system-based theoretical framework in terms of motivations for CSER, this study offers insights into the effectiveness of using widely adopted Western-based theoretical approaches in a Chinese context where companies operate against a different socio-economic, political, regulatory and cultural backdrop.Research limitations/implicationsThe deep-rooted face (Mianzi) culture has the potential to influence managers to portray a positive image about their companies and themselves.Originality/valueThis engagement-based study is one of the few initiatives exploring managerial perceptions of CSER in China that adds to the scant literature pertaining to rich “emic” data in accounting, encompassing cultural influence by applying systems-oriented theoretical framework. The stimulus for CSER identified are useful for regulators and organizations to better comprehend how to set effective policies that promote CSER and fit the distinctive institutional characteristics of China.

Corporate social and environmental reporting practices

PurposeThe purpose of this paper is to explore corporate social and environmental reporting (CSER) practices and motivations in Bangladesh.Design/methodology/approachUsing a mixed-methods approach, the paper attempts to understand what corporate social and environmental issues Bangladeshi firms are reporting and why. The paper first explores the motivations for CSER in line with O’Dwyer’s (2003) proposed classifications of proactive and reactive motivations through interviews and frames its findings using stakeholder theory. To provide a more holistic view, content analysis adapted from CSR Asia (2008) categorization (broadly guided by GRI) was conducted to enhance findings from engagement-based interviews with managers.FindingsThe paper finds that “community investment and development” and “governance codes and policies” received the highest amount of disclosure, while the least amount of disclosure was found in the “workplace/human rights” category. Although a philanthropic tone was found behind “community investment”, such as poverty alleviation activities, disclosure in this area is mostly motivated by proactive rationales with enlightened self-interest and image-building activities. In terms of reactive motivations underpinning CSER, the paper finds that companies also report reactively to reduce pressure from powerful stakeholders such as international buyers and government agencies. Contrary to other studies regarding reactive motivations, the authors argue that a director’s proactive motivation is the prime determinant of CSER in a developing country. They also argue that low-level disclosures on workplace environment/human rights need to be given more importance by policymakers, management and other relevant stakeholders.Originality/valueTo the best of the authors’ knowledge, the study is one of the few engagement-based field studies that uses a mixed-methods approach to seek managerial perspectives in an attempt to understand CSER practices in an emerging country context.

Factors determining social and environmental reporting by Indian textile and apparel firms: a test of legitimacy theory

Purpose– The purpose of this research is to investigate the factors determining the social and environmental reporting (SER) of Indian textile and apparel (TA) firms.Design/methodology/approach– The 2010 annual reports of a sample of top 100 Indian TA firms listed on the Bombay Stock Exchange were examined to assess the extent of SER. SER was assessed based on the Global Reporting Initiative index applicable to the TA industry. Multiple regression analysis was conducted to investigate the determinants of SER.Findings– This study reports a low extent of SER in the annual reports of Indian listed TA firms, with a mean disclosure of 14 per cent. On average, firms reported more extensive environmental information, with a mean disclosure of 18.4 per cent, compared to social information, with a mean disclosure of 10.7 per cent. Most firms reported social information relating to “labour practices and decent work”, while the reporting of information relating to “human rights” was sparse. Overall, the SER patterns provide support for legitimacy theory. Consistent with legitimacy theory expectations, corporate size, brand development and audit committee size are significant factors determining the variation in SER. No significant relationship was found between board independence, level of ownership and SER.Originality/value– There is no existing study specifically on SER by TA firms in India. In fact, there is surprisingly little research on SER in the Indian context in general. Given the dearth in research on corporate social reporting in the Indian context, the study extends prior literature on corporate SER by concentrating on SER of TA firms in an emerging economy. The theoretical contribution of this study is the testing of legitimacy theory in the context of an emerging economy. This study contributes towards practice by delineating the relationship between governance structure and SER, particularly with regard to issues such as child labour. These findings have implications for the future development of reporting standards and regulations in regard to corporate governance in India. The dearth of social reporting by Indian TA firms has implications for foreign purchasers of branded products, as international companies have been implicated in sub-optimal social or environmental practices or incidents.

Theoretical Perspectives on Corporate Social and Environmental Disclosure: Evidence From China

Using a data set of top 56 corporate social and environmental reporting (CSER) disclosing firms with 112 observations on the H-share and Red-chip lists of the Hong Kong Stock Exchange, results suggest that charitable donations, firm size, and the Songhua River incident response are positively related to the CSER disclosure, whereas debt–equity ratio, profit margin, and firm age revealed counterdirectional relationships. Other variables including media attention and market risk were found to have no impact. Findings imply that the Chinese government and its agencies need to prescribe CSER guidelines and make them mandatory for listed firms.

Corporate Social And Environmental Reporting In The Large Retail Distribution Sector

This paper investigates the corporate social and environmental reporting (CSER) practices of companies in the large retail distribution sector. This industry appears to have been relatively reticent in developing its CSER practices. Hence, the focus of our paper is on an investigation of the reasons for the apparently slow development of CSER practices in the retail industry. Because CSER reports remain voluntary in many countries, we believe that it would be useful to investigate the extent and nature of these reporting practices in a specific industry and to inquire into the institutional forces either internal or external to the industry that may have prompted a greater response to CSER.

An Overview of Corporate Social and Environmental Reporting (CSER) in Developing Countries

This article is intended to complement the literature reviews on corporate social and environmental reporting (CSER) with special focus on the <br />developing countries. It focuses on the factors influencing CSER and their theoretical interpretations. It is found that a wide variety of factors related with the socio-economic and political context in which the corporation exist influence the corporate decision to engage in CSER. While a number of overlapping theories can be used, it is recommended to use the political economy theory for its international implications. This article provides a foundation for future research and development in the area of CSER.<br /><br />

Corporate social and environmental reporting: a survey of disclosure practices in Egypt

PurposeThe purpose of this study is to survey the corporate social and environmental reporting (CSR) practices of Egyptian corporate entities. It aims at contributing to the body of knowledge on the CSR disclosure phenomenon in developing/transitional economies.Design/methodology/approachA 34‐item disclosure index covering environmental, energy, human resources, customer and community involvement issues was used to rank corporations.FindingsA review of a random sample of 60 annual reports for the 2002 financial year revealed significant differences in reporting practices among the members of the nine industry segments surveyed. Findings of this research also lend support to the significance of ownership structure on the reporting decision.Research limitations/implicationsThe study is based on the annual report disclosures of corporations in the industrial sector. Hence, the conclusions arrived at should not be generalised to the non‐industrial sector. A longitudinal study based on a reasonably large sample, which includes the non‐industrial sector, is needed to highlight trends in CSR reporting practices in Egypt. In‐depth case study‐type research would also facilitate understanding of not only what, but also why and how companies are making social and environmental disclosures in Egypt.Originality/valueReviews of disclosure practices in different parts of the world are always welcome and are arguably somewhat limited in developing countries.

Issues in Corporate Social and Environmental Reporting Research: An Overview

This paper provides an analysis of some relevant issues in corporate social and environmental reporting (CSER) research by way of review of relevant literature. Issues in the following two main areas of CSER research are identified: the methodologies used to capture empirical data on CSER; and how to theoretically interpret the trends of CSER. An overview of these issues is provided and some clues to understand what is at stake are offered. We argue that the choice of methods used to collect empirical data on CSER depends upon the context in which the organisations operate and the purpose of the study to be made. Because of the large array of factors affecting companies‟ decisions to engage in social responsibility activities and disclosure, the use of multi-theoretical frameworks is proposed.

Socially Responsible Investment and Corporate Social and Environmental Reporting in the UK: An Exploratory Study

This exploratory study examines the relations between corporate social and environmental reporting (CSR) and the socially responsible investment (SRI) sector. The evidence presented, based upon the informed opinions of 14 experts within the SRI field, suggests that the field of CSR is on the verge of a major change towards a substantial and sustained improvement in quality and quantity. The SRI sector is undergoing radical changes. A wider social movement has already led to exponential growth, as more people become concerned with how their money is invested. Moreover, the Pensions Review has widened this concern to institutional investment. Representing 35% of the stock market, the potential impact of this regulation is anticipated to be significant. One possible outcome could be a marked increase in the size and power of the SRI sector, improving their ability to successfully influence corporate behaviour. Success is likely to increase further as corporations begin to see a business case, as well as, or as opposed to a moral case, for acting in a more responsible manner. The Turnbull report on the combined codes of corporate governance is a significant factor influencing this. For the first time, reputational risk, and hence how companies manage environmental, ethical and social reputations, is on the core corporate governance agenda. A more powerful outcome would be an increased interest from mainstream fund managers in SRI modes of corporate assessment. Preliminary evidence suggests that this will create a greater demand for CSR, and greater legitimacy of CSR within the accounting orthodoxy.