Environmental Disclosure Practices Research Articles

Environmental Disclosure Practices of Manufacturing Industry – Evidence from Listed Companies in the Colombo Stock Exchange (CSE) in Sri Lanka

This study examines the level of Environmental Disclosures by the companies listed in Colombo Stock Exchange (CSE) in Sri Lanka. The study further examines the association between some specific attributes of the companies and the level of Environmental Disclosures. For this purposes, a sample of 36 companies listed in Colombo Stock Exchange under Manufacturing Sector were selected. The level of Environmental Disclosure by each company is measured using Environmental Disclosure Index (EDI). EDI consists of 19 items of disclosure under four categories. Further, content analysis is used to analyze the level of Environmental Disclosure. The greatest score of 3 is awarded if the item related to Environmental Disclosure Index is disclosed quantitatively and specifically. A score of 2 is assigned to non-quantitative but specific information and score of 1 is given to general qualitative information. The association between companies-specific attributes and level of Environmental Disclosure is examined using Ordinary Least Squire Regression Model. The calculated EDI reveals that the level of Environmental Disclosure by Sri Lankan manufacturing companies is at a very low level. Further, the regression results show that the level of Environmental Disclosure is significantly associated with Environment Concern (EC) and ISO14001 certification (ISO). It is also found that the Shareholder Power (SP), Government Power (GP), Return on Assets (ROA), Size and age are not significantly associated with the level of Environmental Disclosure.

Corporate Environmental Disclosures in the Nigerian Manufacturing Industry: A Study of Selected Firms

The state of the world‟s environment and the impact of mankind on the ecology of the world have led to increased public concern and scrutiny of the operations and performances of organisations. Despite some variations among countries in different regions, corporate environmental disclosures have increased globally in both size and complexity over the past two decades. Some developed countries have initiated mandatory disclosures in the reporting requirements. However, in most developing countries, environmental disclosures still heavily rely on voluntary initiatives of the reporting entities. In addition, despite the increase in research, studies in this area in the developing countries are still very scarce. This study therefore adopting the stakeholder‟s theory examined the level of corporate environmental reporting practices in the selected manufacturing companies, listed on the Nigerian Stock Exchange. The study as part of its findings observed that the level of environmental disclosure practices in the industry is still very low and is still at its embryonic stage in Nigeria. The paper therefore calls for concerted efforts on the part of the Nigerian Accounting Standards Board and the government to take another look at making CED mandatory. Keywords : Environmental reporting, Listed companies, Manufacturing, Corporate, Organisation

The Differences in Corporate Environmental Disclosures on Websites and in Annual Reports: A Case Study of Companies Listed in Thailand

This study investigates the corporate environmental disclosure practices of companies on the Stock Exchange ofThailand in annual reports and websites. Content analysis by word count is used to determine the amount ofdisclosures on 50 sampled websites and annual reports. Statistical analysis (descriptive, paired samples T-tests,and independent samples T-tests), is employed to analyse the differences between environmental disclosuresmeasured by word count in annual reports and on websites. Initial findings indicated that 96 percent of thesampled Thai listed companies provided environmental disclosures in their annual reports and 88 percent onwebsites. Companies providing the most words of environmental information were in the resources businessgroup in both media; the smallest word counts were in the services business group on websites, but in thetechnology business group in annual reports. Commonly environmental disclosures were found in the corporatesocial responsibility section of the websites but in the corporate governance section of the annual reports. Thethree most common themes were environmental spending and activity, waste management, and environmentalpolicy in both annual reports and websites. Statistically significant differences were found between high and lowprofile companies as well as government and private companies. However, this study could not find differentamount of environmental disclosures made in annual report and on websites. The study has implications inenhancing the understanding the differences between disclosures in annual reports and on websites particularlyin developing countries. The usual limitations associated with sampling, and content analysis apply. Disclosurequality was not considered.

Climate change accounting and the Australian mining industry: exploring the links between corporate disclosure and the generation of legitimacy

Abstract This paper explores how disclosure is used by key bodies in the Australian mining industry as a means to respond to climate change and ensure their social licence to operate. The study utilises a legitimacy theory framework and a multi-case analysis to examine the environmental disclosure practices via a variety of media of two companies and two industry bodies within Australia's mining industry. It is revealed that a combination of legitimising strategies is undertaken by key bodies in the Australian mining industry, however to differing degrees depending on the organisation. There is also support for the notion that different media plays a critical role in facilitating the legitimacy seeking behaviours of the companies and industry bodies. This study extends existing literature on legitimacy theory by highlighting the value of utilising this perspective to explore contemporary phenomena such as corporate responses to climate change. The findings of this study have practical significance as they are expected to have important policy ramifications. One of the differentiating features of this paper, compared to prior studies utilising a legitimacy theory framework, is the examination of legitimising disclosure strategies at an industry level, which complements a company level analysis. Moreover, variations in legitimising disclosure strategies and communication media employed may be due to their focus on differing conferring publics and stakeholder groups.

Hotel companies' environmental policies and practices: a content analysis of their web pages

PurposeThe purpose of this paper is to analyze the environmental management policies and practices of the top 50 hotel companies as disclosed on their corporate web sites.Design/methodology/approachThis study employed content analysis to review the web sites of the top 50 hotel companies as defined herein.FindingsOnly 46 per cent of the selected hotel companies used web pages to post information related to environmental issues on their public web sites. The web pages of Wyndham, IHG, Accor, Whitbread, Hyatt, Rezidor, Sol Melia, TUI, and Scandic featured more revealing environmental information than that posted by other companies, which indicated their environmental commitment and engagement. The results of content analysis identified 12 major environmental focus areas in which the sample hotel companies engaged.Research limitations/implicationsThe findings on environmental policies and practices are limited to the environmental information featured on the web sites of the top 50 hotel companies. Some of these companies may have established environmental policies or initiated environmental programs not disseminated on their web sites. In addition, web page information can be changed at any time, and the findings of this study are based upon a snapshot of the web sites as of March 2010.Practical implicationsThis study establishes a benchmark of the dissemination of environmental information on the internet by leading hotels, and provides a preliminary picture of environmental initiatives and engagement among these top hotel companies. The information generated from this study can serve as a guide for hotels that would like to engage in an environmental management program. This study also provides a source of information for hotels that would like to develop environmental web sites to demonstrate their environmental commitment to their stakeholders.Originality/valueInformation concerning the content of environmental information disseminated on the web sites of large hotel companies is sparse. Consequently, this study aims to provide a snapshot of where the hotel industry is with regard to on‐line environmental disclosure and related environmental policies and practices.

Secrecy versus Transparency—A Comparative Study of Social and Environmental Disclosure Practice in Croatian and Swedish Corporations

Both agency, institutional, and cultural factors seem to explain transparency and disclosure practice. The aim of this study is to make a comparative study of disclosure practice among listed corporations in Croatia and Sweden. The study shows that Swedish corporations disclose significantly more social disclosures than Croatian corporations. Size and industry have a strong explanatory power in Sweden. In Croatia, industry has some explanatory power but surprisingly not firm size. However, unlike Sweden, the variable audit firm has an explanatory power in Croatia.

Company Characteristics and Environmental Policy

ABSTRACTThis paper investigates the relationship between various firm characteristics and environmental disclosures. Our findings evidence that firms with higher environmental ratings present a statistically significant larger size, belong to more environmentally sensitive industries as compared with firms with lower environmental ratings and disclose environmental information according to GRI guidelines. However, neither profitability nor listing status seems to explain differences in environmental disclosure practices between Greek companies. The most influential variable for explaining firms' variation in environmental ratings is size, followed by GRI reporting and industry membership. This study adds to the international research on environmental disclosure by providing empirical data from a country, Greece, where empirical evidence is still relatively unknown, extending the scope of the current understanding of the environmental reporting practices. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.

Corporate environmental disclosure practices in India

PurposeThe purpose of this paper is to identify the existing status of environmental disclosure practices in Indian core sector companies.Design/methodology/approachWaste disposal costs and other environmental liability costs are crucial information to be disclosed by core sector companies as they have direct impact on the environment. A content analysis of the annual reports of select core sector companies across four industries, viz. Oil and petrochemicals, Mining and minerals, Steel and Cement, has been undertaken to study the extent and nature of their environmental disclosures in their annual reports for 2007‐2008.FindingsThe study shows that the level of disclosure of environmental information varies across industries as well as companies and the information revealed in the annual reports is found to be more qualitative than quantitative.Practical implicationsThe disclosure made by the core sector companies does not adequately cover the informational needs of stakeholders. However, the increasing disclosure trends can be considered as a first step toward improved environmental disclosure. The study therefore supports the need for a suitable framework for environmental disclosure, such that all the stakeholders can use it as credible information.Originality/valueThis study contributes to the literature by evaluating voluntary environmental disclosures made by Indian core sector companies in their annual report. Further work based on this preliminary finding may be done to assess the status of environmental disclosure for a larger sample of Indian core sector companies.

Regulamentar faz diferença? O caso da evidenciação ambiental

Baseado na discussão entre tornar o disclosure ambiental obrigatório ou não, o objetivo desta pesquisa foi verificar se as práticas de evidenciação ambiental das companhias analisadas reagem aos distintos estímulos regulatórios de seus países de origem. A resposta desta pergunta é útil no sentido de determinar a eficácia da introdução de mecanismos regulatórios nas práticas de evidenciação ambiental. Uma vez que o disclosure ambiental é, predominantemente, voluntário as companhias podem simplesmente suplantar a regulação, tornando-a sem sentido. Para o desenho metodológico, optou-se por uma abordagem descritiva de cunho predominantemente quantitativo. A amostra foi selecionada de empresas do setor de petróleo e gás natural de quatro países com similaridades culturais: os Estados Unidos, o Canadá, a Inglaterra e a Austrália. Os dados analisados foram coletados nos relatórios anuais no ano de 2007. Para classificar os dados ambientais utilizou-se uma escala adaptada de dois trabalhos consagrados no meio da evidenciação ambiental, o estudo de Clarkson et al. (2008) e o de Wiseman (1982). O teste estatístico (teste H) comprovou que existem diferenças significativas entre os níveis de evidenciação ambiental das companhias da amostra pertencentes aos países mais regulados em comparação com os menos regulados e essas diferenças só foram significativas nos itens de divulgação obrigatória, o que comprova que o disclosure ambiental das companhias reage aos estímulos regulatórios de seus países.

The emergence of triple bottom line reporting in Spain

ABSTRACTThe emergence of triple bottom line reporting by organizations in Spain is the context in which the present work have tried to understand the influence of both external and internal contexts on social and environmental disclosures. The material for this study is drawn from semi-structured interviews with 30 managers of 20 Spanish organizations with responsibility for the preparation of TBL reports. The narratives provided by the interviewees suggest that internal (organizational and individual) and external contexts are both important in the explanation of social and environmental disclosure practices. One of the study's main findings is that certain assemblages of external and internal influences exist that can either enhance or inhibit the development of TBL reports.

Recent developments in social and environmental accounting research

PurposeThe last years have witnessed a growth in interest in social and environmental questions. Many companies have developed environmental management and auditing systems and altered their social and environmental disclosure practices. These developments resulted in the growth of research focusing on the analysis of information disclosed by companies. The purpose of this study is to contribute a reflection on the papers that have been published on social and environmental accounting from 2000 to 2006.Design/methodology/approachA literature review of the papers examining social and environmental matters published in selected accounting journals allows the identification of the key content issues, methodologies and research questions which have been predominant in the social environmental accounting research (SEAR) area. It also enables one to pin‐point areas for future research.FindingsThe content was examined and classified in four groups: social and environmental accounting systems; social and environmental disclosures; regulation impact; and relations among environmental disclosure and environmental performance. For each group, the research method; data origins and type of data; industry and country were identified. Almost all the studies are based on content analysis and interviews. Data are collected not only from the financial statements but also from other types of information disclosed by companies. In many cases, industry activities are selected carefully and most of the studies used data from the UK, Australia, and the USA.Originality/valueThe paper provides a contribution to the development of the SEAR area, exploring different views. It also helps schools to identify areas for future research.

Media pressures and corporate disclosure of social responsibility performance information: A study of two global clothing and sports retail companies

This paper investigates the social and environmental disclosure practices of two large multinational companies, specifically Nike and Hennes&Mauritz. Utilising a joint consideration of legitimacy theory and media agenda setting theory, we investigate the linkage between negative media attention, and positive corporate social and environmental disclosures. Our results generally support a view that for those industry‐related social and environmental issues attracting the greatest amount of negative media attention, these corporations react by providing positive social and environmental disclosures. The results were particularly significant in relation to labour practices in developing countries – the issue attracting the greatest amount of negative media attention for the companies in question.

An examination of environmental reporting by Australian state government departments

This study provides an examination of environmental disclosure practices within the annual reports produced by a sample of Australian state government departments. This entailed the examination of environmental disclosures using an environmental disclosure index developed for the purposes of the study. The study's sample was 18 Australian state government departments, 12 of which were responsible for environmentally sensitive areas. The period of analysis was from 2000-1 to 2007-8. The results of the analysis presented in the study found that, over the research period, environmental disclosures, using the developed disclosure index, increased from 336 in 2000-1 to 449 in 2007-8. Disclosure practices varied between the departments in terms of the coverage of disclosures. Reporting is not consistent over time making comparison between departments difficult.

Relationship between environmental disclosures and corporate characteristics: a study of large manufacturing companies in India

PurposeThe purpose of this paper is to test the influence of selected company‐ and industry‐related variables on environmental disclosure practices (EDPs) of the large manufacturing Indian companies.Design/methodology/approachThe work was done in three phases. In the first phase, an index of environmental disclosure was constructed consisting of 23 items of environmental information. Opinions of chartered accountants were obtained on the importance of each of these items in making sound investment and other decisions. Using this index, in the second phase, EDPs in the annual reports of 91 large manufacturing companies were examined for a period of three consecutive years. Environmental disclosure score (EDS) percentages were calculated for each of the companies for all the three years. The relationship between EDS percentages and ten selected variables was analyzed with the help of the multiple regression technique in the last phase.FindingsThe results provide strong evidence in support of the influence of variables size, profitability, sector, industry and environmental performance on EDPs.Research limitations/implicationsThe work involves analysis of EDPs of large manufacturing companies in India only. Non‐manufacturing and small companies were excluded from the scope of the work. Disclosure of environmental information by other media like stand‐alone corporate environmental report (CER) and internet was not considered. It was felt that further research was necessary to find the impact of other factors like country origin, organizational culture, experience with pressure groups and media profile on disclosure practices.Practical implicationsIt was felt that environmental reporting should be made mandatory in India at least in the major polluting industries. Companies should also voluntarily try to provide audited environmental information in the annual reports to build credibility and trust among corporate stakeholders.Originality/valueThe paper presents empirical evidence of EDPs of large manufacturing companies in India. It provides an insight into the factors that cause a difference in these practices.

Legitimation Strategies Used in Response to Environmental Disaster: A French Case Study of Total SA's Erika and AZF Incidents

This paper presents a case study examining the environmental disclosure decisions and practices of Total SA (hereafter, Total), one of the largest integrated oil and gas companies in the world. Because the company has a substantial international presence and operates in environmentally sensitive industries, management is constantly exposed to ethical and social issues. The company faced two major environment-related disasters: (1) the sinking of the Erika tanker, leading to a major oil spill along the Atlantic coast of Bretagne in 1999; and (2) the 2001 deadly explosion of the AZF chemical plant in the suburb of Toulouse, France. In this case study I aim at investigating the strategies employed by Total to defend and downplay its environmental performance and activities related to these incidents. The case is framed within legitimacy theory, originating from the notion of a ‘social contract’ between organizations and society. Findings generally indicate that Total used communication strategies to legitimate their actions and support the argument that social and environmental disclosures remain a powerful legitimacy device rather than an effort towards greater accountability.

An Evaluation of Financial and Non-Financial Environmental Disclosures of Ten Publicly-Listed Mining Companies in the Philippines

This study determined the environmental disclosure practices of 10 mining companies in the Philippines by examining the nature and extent of disclosures in the financial and non-financial sections of their 2006 corporate annual reports. It was found out that there was no uniformity in the environmental disclosures of the 10 mining companies. It was also discovered that there was no existing environmental reporting standards as far as environmental disclosure is concerned. The study provided recommendations to the standard-setting council to improve the firms' environmental disclosure compliance with a discussion regarding the benefits these recommendations might offer.

Transparency for Whom? Information Disclosure and Power in Global Environmental Governance

Information disclosure is the most obvious manifestation of the transparency turn in global governance, as evident from a growing uptake of environmental disclosure practices by countries, corporations and international organizations. Any analytic examination of environmental disclosure measures needs to grasp their relation to wider configurations of political and economic authority. Highlighting these relations of power reveals that transparency measures do not necessarily overcome asymmetries in information access, and may even exacerbate them.

THE INFLUENCE OF AUSTRALIAN ENVIRONMENTAL PROTECTION AUTHORITY PROSECUTIONS ON CORPORATE ENVIRONMENTAL DISCLOSURES

This paper examines the environmental disclosure practices of companies that have been prosecuted by the EPA to determine whether the situation has changed since the landmark study conducted by Deegan and Rankin in 1996. The study was conducted by undertaking content analysis of a group of companies that had been prosecuted by the EPA, matched with non-prosecuted companies. Three types of environmental disclosures were considered — positive, negative, and neutral. It was found that companies increased only negative and neutral disclosures if prosecuted, and that disclosures had significantly increased since the Deegan and Rankin (1996) study, the latter finding most likely due to new legislation governing environmental disclosure. However, there was no correlation between the penalty amount and the disclosures that companies made, indicating that penalty amount does not impact on company disclosure practices.

Environmental engagements through the lens of disclosure practices

PurposeThe objective of this paper is to examine environmental disclosure practices among Malaysian public‐listed companies in an attempt to interpret corporate motivations for their environmental engagements and commitments.Design/methodology/approachThis paper investigates corporate motivations using content analysis by examining the corporate annual reports. Discourse analysis was used to analyse and then interpret the environmental information. In particular, the reasons that have inspired companies in Malaysia to engage in environmental matters are the focus of the research.FindingsThe results revealed high levels of information in environmental disclosures concerning current environmental engagements and future environmental plans/strategies. The environmental information was found to contain messages that revealed the corporate motives of certain environmental engagements. Three key motivating factors were found to be: “stakeholders' concern”, “self‐environmental concern” and “operational improvements”.Research limitations/implicationsThe paper advocates interpretation of the discourse of environmental information to determine the comprehensive scope on corporate environmental reporting.Originality/valueDisclosure practices (through the use of language) are utilised by business corporations to articulate messages concerning their environmental engagements and the motives behind such engagements. Furthermore, the paper offers some insights into current environmental reporting practices in a developing country.

Environmental disclosure in annual reports: A legitimacy theory perspective

In recent years, corporations have increasingly used their annual reports to voluntarily disclose information relating to their social actions, particularly those concerning the natural environment. The conventional accounting framework, with its emphasis on decision-usefulness, has largely proved unsatisfactory in explaining this practice, as have various economic theories. This paper uses a legitimacy theory framework to explain why companies engage in this type of voluntary reporting. This research contributes to the accounting literature by advancing legitimacy theory as a framework for examining environmental reporting and applying this in an effort to understand the environmental disclosure practices of two Canadian pulp and paper companies.