GRI Standards Research Articles

Sustainable HRM Practices in Corporate Reporting

Shaped by the current turbulent era of macroeconomic forces, inclusive of the technological challenges of Industry 4.0, and ubiquitous uncertainties, the business environment and its stakeholders hold high expectations for sustainable organizational practices, including harmonized and comprehensible sustainability reporting. Increasingly, responsible behavior towards internal stakeholders comes from within organizations, valuing employees as a key asset and introducing sustainable human resource management (S-HRM) practices to motivate their workforce. Reporting on these S-HRM practices and sustainability is in the highest interests of managers and investors alike. Focusing on the involved parties, employees most particularly, the paper contributes to the stakeholder theory. The literature review, previous S-HRM studies’ interpretation and their critical assessment, the GRI standards’ comparative analysis, and Lawshe’s content validity approach have been applied as the methodological framework. With the purpose to extend the scientific literature on S-HRM and its reporting, the authors aim to close the gap between purely theoretical S-HRM treaties and more practically oriented studies on reporting. The findings on the key areas of S-HRM practices give rise to the S-HRM Practices Model, the main goal of this study. This comprehensible model may serve as a harmonized instrument for sustainable HRM reporting analysis and auditing for academia and practitioners alike.

MENELISIK PELAPORAN KEBERLANJUTAN PERUSAHAAN PENERIMA AWARD DI INDONESIA TAHUN 2019 - 2020

Purpose – This study aims to investigate the disclosure of GRI Standards in the sustainability reports of national companies receiving awards from the Asia Sustainability Report Rating (ASRRAT) in 2019 and 2020.
 Design/methodology/approach – Study literature
 Findings – The results of this study indicate that there are still some standards that are still underreported / disclosed in the sustainability reports of award recipient companies in 2019 and 2020.
 Originality – This study is a literature study that focuses on reporting the sustainability of companies in Indonesia.
 Keywords: Standard GRI, Sustainability Report, and Asia Sustainability Report Rating 
 Paper Type Article Text

An analysis of the content and quality of corporate sustainability reports according to GRI standards in peruvian mining companies supervised by the SMV in 2018: deficiencies and opportunities

Corporate sustainability has become a distinctive factor of global leaders, who communicate sustainable development actions using corporate sustainability reports (CSR) in accordance with international reporting standards such as GRI. In Latin America there is a high variability in their adoption and the Peruvian mining sector has been facing credibility problems due to the incidence of socio-environmental conflicts in its projects, despite its recent consistency in the presentation of CSR. A statistical analysis of a sample of mining companies that submitted their CSR to the SMV in 2018 showed that half of them complied with presenting CSR; nonetheless, GRI principles are not strictly followed. Reports stress the social pillar over the environmental and economic ones; with an imbalance between positive, neutral and negative actions; and do not present their sources to make data auditable. An opportunity is presented for the creation of a specialized area in the SMV to review CSR.

Stakeholder engagement in sustainability reporting: the case study of Ukrainian public agricultural companies

Purpose. The paper aims at finding out how significantly stakeholders are consulted and involved by preparers, Ukrainian publicly-listed agricultural companies, while compiling sustainability reporting (SR) and by assurance providers, during assurance processes of SR. The paper’s main research question may be formulated as follows ‘How deeply stakeholders are involved at Ukrainian agricultural companies in the preparation of their sustainability reporting and assurance?’ 
 Methodology / approach. The study utilizes widely used techniques in this field content analysis of sustainability reports based on suggested coding rules which in turn grounded in the leading literature. Authors use a multidimensional coding system (with a maximum score of 12 points) which consists of three elements and offers an aggregate assessment of the information disclosure of the involvement of stakeholders in sustainability reporting. Also authors base on frameworks for classification of the stakeholders’ engagement level into three levels (information, response and involvement strategies). The paper’s sample although tiny, only five years/company observations, is comprehensive since it includes all Ukrainian agricultural companies presented in GRI SDD database one of the largest databases of its kind. To analyze only the latest relevant experience, authors have limited the report type to the latest GRI modification – GRI Standards. As a result of five steps in the sample formation process, it is equal to 3 companies that produced 5 reports in the period between 2017 and 2019 years. 
 Results. While the used coding structure allowed for a maximum of 12 points, the analysed reports were able to reach only half of this as one report earned 7, one – 6 and the rest was marked with 5 points. From the three companies from our sample frontrunner is Astarta Holding. Astarta Holding excels in materiality relevance (4 points) and is the only company assured its sustainability report. Authors find that the engagement strategy of the companies being analyzed mostly consists of action intended to inform (level 1) as well as consult and support stakeholders (level 2), whilst deep involvement strategy (level 3) is being almost neglected. In regards to focus, we find that the most cited stakeholders in engagement actions are on level 1 employees, consumers and suppliers. Consumers also alongside authorities and local communities are the most cited stakeholders on the level of response strategy, whereas the authorities are the single stakeholders' group being honoured to be treated on the highest third level. The authors’ general impression is that for the most part legitimacy theory is the best theory to explain the behaviour of compilers of reports from the sample because mostly management uses rhetorical tools to cover its activities, while the reporting itself lacks specifics about negative externalities. For authors, it looks like an exercise in self-legitimization. It appears that the companies studied has not yet fully performed the transfer from ‘stakeholder management’ to ‘stakeholder engagement’. It is the authors’ understanding that all this has roots in the very perverted perception of sustainability reporting as a continuation of financial reporting although it is not. In financial reporting, materiality is defined internally as a percentage of some indicators in the balance sheet and/or statement of financial performance, in sustainable reporting, materiality is not only important in the assurance, but it is a cornerstone in the preparation of SR itself.
 Originality / scientific novelty. To the best of our knowledge, this study is the first that extends the analysis the stakeholders’ engagement in the sustainability reporting to the Ukrainian agricultural companies, thus shedding some light on that unexplored (underexplored) practice. 
 Practical value / implications. First, sustainability reporting practices in Ukraine is in its infancy, and therefore any shortcomings identified will be a guide to action to adjust these approaches in the future. Secondly, our analysis can also be seen as the dissemination of best practices. The companies we have chosen are pioneers in this matter, so they can at the same time be considered as role models for others, but taking into account the experience gained by them. Besides, in addition to companies, our findings can be useful for regulators and public authorities alike in terms of adjusting the approach to regulating this area.

CSR Reporting of Stakeholders’ Health: Proposal for a New Perspective

Purpose: The aim of the paper is to identify and categorize disclosures from the Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) that have direct or indirect influence on health of external or internal stakeholders. Methodology: GRI core and comprehensive disclosures (as part of universal standards and topic-specific standards related to economic, environmental and social topics) that can be used by businesses for CSR reporting were grouped as to have direct or indirect influence on external and internal stakeholders’ health. Findings: The study proposes a systematic way of conceiving GRI standards in terms of direct or indirect influence on the health and well-being of internal and external stakeholders. Originality/Value: This is the first study that provides a classification of core and comprehensive GRI disclosures that have direct or indirect influence on the health of external or internal stakeholders. This classification will allow businesses to easily report those CSR activities that might be of importance to stakeholders’ health promotion.

Corporate Uptake of the Sustainable Development Goals: Mere Greenwashing or an Advent of Institutional Change?

The United Nations’ Sustainable Development Goals (SDGs) are increasingly used by corporations for benchmarking and communicating their sustainability performance. The SDGs have several features that make them attractive for this purpose, including their universality, specificity and, in many cases, direct linkage with corporate outcomes. Corporations typically disclose their engagement strategies and outcomes voluntarily without the aid of standardized and externally verified reports. This creates a risk of corporations misusing the SDGs for “greenwashing” and “impact washing” their activities, for example through selective reporting of favorable information. Inaccurate and non-transparent disclosure can also introduce information asymmetries that distort decision-making by investors and other stakeholders. Increasing institutional change towards new measurement frameworks (such as GRI and SASB standards) and regulatory oversight to monitor disclosure (e.g., the EU’s Non-Financial Reporting Directive) is likely to improve transparency and reliability in sustainability reporting. This study critically examines the prospects of institutional changes that facilitate the integration, measurement, and reporting of corporate sustainability in general and the SDGs in particular. It also explores emerging innovations in corporate governance and regulation that seek to improve the integration of sustainability issues in corporations and financial markets.

Analiza znaczeniowa praktyk raportowania zrównoważonego rozwoju: perspektywa światowa

This study examines the sustainability reports (SRs)of 200 firms in both developed and emerging economies in order to identify the words most frequently used in disclosing sustainability practices within the Triple Bottom Line (TBL) approach to reporting (which emphasizes economic, environmental, and social dimensions). Its aim is to evaluate these sustainability reports under the umbrella of the GRI framework. It adopts a semi-automated Text-Mining (TM) technique to evaluate the corporate SRs of select firms from the top ten economies by GDP at current prices. Based on the GRI Standards guidelines, a total of 208 keywords were identified for analysis. The disclosures were then awarded points based on the appearance of these keywords so that the appearance of one resulted in the awarding of a score of one; if a keyword did not appear then the report was scored a zero for that word. Furthermore, a wordcloud was also generated in order to better understand the inclination of reporting language towards various TBL reporting categories. This analysis of the SRs of 200 firms from the top ten economies of the world sheds light on the differences in reporting practices and priorities as they relate to various aspects of the GRI Standards guidelines. The results indicate that SR practices have grown rapidly in the last half decade of the period selected for study (2013-2017) as compared to the first half (2008-2012). Canada ranked highest for its disclosure practices in this analysis followed by the UK, Germany, US, Japan, France, Italy, Brazil, India, and China. This study found that all included countries improved their sustainability performance over the period 2008-2017.

On assessing the sustainable development of industrial regions results

At present in Russia there is no unified generally accepted concept for assessing the results of sustainable development of industrial regions. In the paper, based on a review of Russian and foreign research, the authors have made an attempt to generalize modern concepts, and also present their vision of assessing the results of industrial regions sustainable development. The urgency of the research is due to the need for the practical implementation of the sustainable development concept. The authors see the essence of sustainable development of industrial regions in an organization of current activities and meeting the needs of modern residents of the region, which would not harm natural environment. It has been noted that large industrial plants, evaluating the results of sustainable development, are beginning to use foreign methods. As the influence of large enterprises forming an industrial cluster in the region on the economy, society and natural environment is great, the authors consider it expedient to use their developments in the field of assessing the results of sustainable development. To assess the results of sustainable development of industrial regions, it has been proposed to use 33 indicators of GRI Standards which include economic, environmental and social “thematic standards”.

Whether or Not Indonesia-Based Companies Consider Anti-Corruption Acts Important as Its Countrymen do

In Indonesia, the act of corruption is a prevalence. Anti-corruption acts have been waged for years, yet the problem of corruption remains unresolved. The rising awareness on sustainability accounting urges many companies to support anti-corruption acts. Whether or not these companies support is a different issue. Although GRI Standards view anti-corruption acts as an economic aspect, the corruption is an act of defiling the society’s trust and constitutes as a highly sensitive issue in a democratic country such as Indonesia. This study applies sensemaking theory to determine that Indonesia-based companies should have supported the anti-corruption acts and disclose them in their sustainability reports. A thorough content analysis on the sustainability reports of 80 Indonesia-based companies has been conducted with a view to finding disclosures of anti-corruption acts. The result shows that most of these companies do not disclose their anti-corruption acts. In a sensible sense, the commitments to supporting anti-corruption acts by companies result in the disclosure of such anti-corruption acts. The finding evidences how Indonesian company are still lacking in acts against corruption.

CORPORATE SOCIAL RESPONSIBILITY DAN EARNINGS MANAGEMENTS: SUDUT PANDANG STAKEHOLDER THEORY

This study aims to examine the effect of corporate social responsibility on earnings management. Earnings management, as the dependent variable, is proxied by discretionary accruals (DACC). While corporate social responsibility, as an independent variable, is measured by adjusted GRI standards. This study uses sample manufacturing companies listed on the Indonesia Stock Exchange during the period 2012-2016. The number of samples used in this study amounted to 423. The findings, based on the linear regression method, indicate that corporate social responsibility has a significant negative effect on earnings management. To conform to the result, a robustness test was performed and found a significant negative relationship between dummy corporate social responsibility and earnings management. Dummy 1 for the company which disclose CSR above average, 0 for the company disclose CSR below average. So it can be concluded that the company that focuses on corporate social responsibility has lower earnings management. For leverage, size, and ROA, as control variables, showed no significant effect on earnings management.

Greenhouse Gases and Circular Economy Issues in Sustainability Reports from the Energy Sector in the European Union

The achievement of climate neutrality and eco-economic decoupling requires explicit measures to reduce greenhouse gases (GHG) emissions and to implement circular economy (CE) principles in practice. The energy sector is of particular importance in meeting these challenges because it exerts a substantial environmental impact. Therefore, it is extremely important to determine how essential GHG and CE issues are for companies operating in the energy sector. This can be reflected in corporate strategies, but it can also be disclosed to the public in sustainability reports. For this reason, this article presents a comprehensive analysis of sustainability reports based on the latest GRI Standards published by companies representing the energy sector in the European Union to determine the existence, quality, and specificity of reporting GHG and CE issues. The research results demonstrate that sustainability reports from the energy sector companies tend to focus more on GHG issues. They rarely point to actions related to CE, including actions enabling a reduction in GHG emissions, as those with high priority. In addition, declarations from the analyzed companies regarding intentions related to GHG and CE issues at the strategic level find a rather poor reflection in the description of specific actions in this area or in demonstrating appropriate indicators at the operational level. Considering the indicators included in the reports, the analyzed companies insufficiently describe the methods they use to gather, compile, and analyze information on the effectiveness of actions taken to address GHG and CE issues. As for the identification of potential determinants of the quality of reporting GHG and CE issues, the research results indicate that it is mostly influenced by external assurance and the report option. Sustainability reports submitted for external assurance and reports with the comprehensive option are significantly more developed than other types of reports. However, the clarity of reports with the core option is higher compared to the comprehensive group. In addition, it was indicated that the clarity of stand-alone reports is higher compared to other types of reports.

Communication from the board of directors: An empirical study on readability in Spanish language on Sustainability Reporting

This article analyses the readability of the communication in Spanish language from the board of directors based on the study of narrative texts at Sustainability Reports of IBEX35 companies, which includes the 35 largest listed companies in Spain given their market capitalization. It undertakes an empirical study with two purposes: first, to describe the readability scale of these texts, and second, to ascertain whether or not compliance on sustainability influences the readability of disclosure. The study was carried out on the narrative texts of six GRI data standards related to compliance with laws and regulations, included in 116 Sustainability Reports of IBEX35 Spanish-listed companies in the period 2015-2018. Readability was measured using two indices for Spanish language readability: the Fernandez-Huerta and the Inflesz indices. These indices are based on the Flesch Reading Ease Formula for English narrative texts. Findings suggest that communication from the board concerning Sustainability Reports needs improvement since, in general, these reports are difficult to read. Finding also suggest that compliance with GRI standards could be related to low readability difficulty of reports and non-compliance to high readability difficulty.

Assessment of the Scope of Environmental Information Disclosure in External Reporting of Polish Stock Exchange Listed Companies in the Energy Sector

Purpose: The objective of this paper is to compare the scope of disclosures of environmental information in the annual reports of the largest listed companies of the energy sector in Poland. Design/Methodology/Approach: The initial part of the article presents regulatory requirements for the scope of disclosure of environmental information in the annual reports of listed companies. Next, the qualitative, quantitative and valuable information contained in the annual reports of the largest energy listed companies in the area of their impact on the natural environment was subject to comparative analysis. Findings: The results of the empirical research carried out indicate that in the years 2016-2018 all analyzed companies, despite the fact that in their business model refer to the use of GRI standards, the form and place of presenting environmental information in the reports of individual companies is varied. In addition, the scope of content, shape and position of this information in the annual reports of the same companies over the years assessed also indicate significant differences. Practical Implications: A considerable variety of reporting on the environmental impacts of the energy companies prevents full comparability of data on the impact of the their activities on the natural environment and ways to counteract its degradation. Originality/value: In order to solve the identified problem, Polish energy companies should be obliged to report on the environment according to a unified template, so that the information they prepare is comparable and form the basis for making rational management decisions in the area of environmental impacts.

The Effects of Financial and Environmental Performances on Firm Value with Environmental Disclosure as an Intervening Variable

This study aims to analyze the effects of financial performance and environmental performance to firm value with environmental disclosure as an intervening variable. Financial performance which measured by Ratio On Sales (ROS) and environmental performance which measured by PROPER ranking act as independent variables and firm value which measured by stock price acts as dependent variable also environmental disclosure which measured by GRI Standards as an intervening variable. This study uses secondary data and selects the sample used purposive sampling method. The samples consist of non financial companies listed in the Indonesia Stock Exchange (IDX), participated in the PROPER (Program Penilaian Peringkat Kinerja Perusahaan / Performance Rating Assestment Program on Environment Management) and published both annual report and sustainability report for 2017-2018. Partial Least Squares technique is chosen for the study statistic analysis. Results from this research show that financial performance has a negative impact on environmental disclosure, environmental performance has a significant positive impact on environmental disclosure and environmental disclosure does not affect the firm value. Next, the environmental disclosure is not able to intervene the effects of financial performance and environmental performance on firm value. The implications of this research are prove that the environmental aspects of information disclosed by the company have not been an important assessment for investors in viewing the performance of a company and also suggest investors to consider the company's environmental disclosure in making investment decisions because it contain an important aspect of corporate sustainability.

The application of the GRI 2016 standards in Polish enterprises

Aspects of sustainable development are increasingly included in the reports of Polish enterprises. The scope of information presented by organizations results from applicable guidelines, regulations as well as accepted good practices. The most common and comprehensive guidelines in the field of sustainable development reporting are the Global Reporting Initiative standards, which used by numerous organisa- tions around the world. The aim of the article is to present the GRI standards 2016 and their application in the first Polish enterprises to implement them in their reports. The research method used is the content analysis of reports of selected Polish enterprises. According to the research, detailed information related to sustainable development is not widely disclosed. Approximately 30% of the required information on eco-nomic and social aspects, and only 10% of information on environmental aspects, was included in the reports, which means a moderate level compared to other countries. The study contributes to the under-standing of current sustainable development reporting practices according to the GRI standards 2016 in Poland. It can help other organisations consider implementing GRI in their reporting, and it might be rele-vant for people dealing with this type of reporting.

Factors Affecting Environmental Disclosure in Companies Listed on the Tokyo Stock Exchange

This study aims to examine the factors influence environmental disclosure such as company financial performance, company characteristics, corporate governance mechanism, and environmental management system. Environmental disclosure in this study used the content analysis method by calculating the number of sentences for each disclosure item based on GRI Standards 2016. The population of this study are 1st section companies listed in Tokyo Stock Exchange (TSE) during the period of 2016 to 2017 which consist of 2.062 companies. Sampling in this study used a purposive sampling technique. There are 47 companies as the research sample and 94 firms-year observations. This study used multiple linear regression analysis to determine the effect of independent variables on environmental disclosure. The result of the statistic analysis is firm size and firm age have a positive significant effect on environmental disclosure. ROE, corporate governance mechanism, and EMS have no significant effect on environmental disclosure, while NPM has a negative significant effect. The conclusion of this study is the environmental disclosure quantity positively influenced by firm age and firm size. The bigger and older companies proved disclose better environmental information by writing more narration or explanation of each environmental disc

PRINCIPLES OF PREPARATION OF SUSTAINABLE DEVELOPMENT REPORTING

The purpose of the article is to determine the principles of sustainable development reporting, which provide in its preparation quality informative content and informational value for effective management decisions by internal and external stakeholders. The structure and content of modular GRI Standards are analyzed. The internal and external advantages of sustainable development reporting are indicated. The definition of sustainable development reporting is given. The tasks of preparation of the reporting on sustainable development are specified. The essence of the principles provided by the GRI recommendations is analyzed. Emphasis is placed on the fundamental principle of materiality. The steps for deciding on the materiality of the information are indicated. The indicators that characterize the essential aspects of the enterprise activities are given. The basic information identifies data on legal entities, the reporting of which has been included in the consolidated financial statements; coverage of the methodology for determining the content of reporting and its boundaries; boundaries of significant aspects within the company and in the external environment; notifications of significant changes compared to previous reporting periods. The process of determining the materiality of facts for reflection in sustainable development reporting is indicated. The list of basic principles of sustainable development reporting, which includes the principles of the context of sustainable development, materiality, completeness, strategic direction, systematization, is offered. A list of additional principles, the observance of which will provide comprehensive coverage of the degree to which the company achieves the goals of sustainable development: the principles of neutrality, economy, reasonableness, logic and synergy, is proposed. Qualitative characteristics (comparability, accuracy, timeliness, clarity, reliability, relevance), which should be met by sustainable development reporting, have been determined.

Faktor-Faktor Yang Mempengaruhi Corporate Social Disclosure Pada Perusahaan Manufaktur Di London Stock Exchange

The purpose of this study was to analyze the influence of firm age, leverage, profitability, liquidity, and gender on corporate social disclosure. Corporate social disclosure is measured using content analysis methods based on GRI Standards 2016. This research is based on a quantitative method using multiple linier regression analysis. The population of this study is manufacturing companies listed on London Stock Exchange in 2015-2017. The data analysis tool used is the IBM SPSS 21 program. The conclusion of this study is that leverage variable has a significant negative effect on corporate social disclosure, while firm age, profitability, liquidity, and gender variables have no significant effect on corporate social disclosure. The results showed that leverage has a negative and significant effect on corporate social disclosure. Firm age, profitability, liquidity, and gender have not a significant effect on corporate social disclosure.

The Effect of Profitability, Sales Growth, and Firm Size on Corporate Social Responsibility Disclosure

Corporate Social Responsibility disclosure is an information that contains social responsibility activities carried out by the company towards social environment. The preparation of Corporate Social Responsibility disclosure using the GRI Standards and the result is a Sustainability report. This research aims to analyze the effect of profitability, sales growth, and firm size on Corporate Social Responsibility disclosure in Index Kompas100 companies listed in IDX 2017-2018. The sample in this research amounted to 17 companies in tne Kompas100 index 2017-2018. The research method is quantitative and is processed using Eviews 10 software. The results of profitability, sales growth, and firm size simultaneously have a significant effect on Corporate Social Responsibility. Partially, only firm size has a positive significant effect on Corporate Social Responsibility disclosure

Relating carbon and energy intensity of best-performing retailers with policy, strategy and building practice

Retail stores are amongst the building typologies with the highest carbon (CI) and energy intensities (EI). However, previous studies have only explored best practice EI of food and non-food retailers, without identifying best practice CI threshold values. This paper presents a five-step analysis of CI and EI amongst the highest revenue retailers, benchmarking best and worst performing CI and EI retailers, analysing their nationality, performing a content analysis on their CSR reports and comparing results in terms of differentiation policies, strategies and building practices that can lead to increased environmental performance. Combined CI and EI best practice threshold values were found simultaneously under 346 kWh/m2/y and 115 kg CO2eq/m2/y for food retailers and under 146 kWh/m2/y and 70 kg CO2eq/m2/y for non-food retailers. In terms of policy, best-performing retailers shared a strong top-down management commitment towards sustainability across all business areas (p = 0.04) and an increased use of referential reporting standards, particularly of GRI standards (p = 0.05) and of the GHG protocol (p = 0.01). In terms of strategy, they established ambitious energy goals, such becoming 100% supplied by renewable energy (p = 0.05) or carbon neutral by 2020. As for building practice, LED and photovoltaic technology were the most popular high-performance solutions, but only the use of natural refrigerants (p = 0.001) and gas transfer to CO2 (p = 0.0007) were related to best-performing practice. The variability of CI and EI found in this study shows that it is already possible to reduce the retail sector’s contribution to global GHG emissions considerably. The proposed best practice CI and EI reference levels, linked to corporate policy, strategy and building practice, are useful new tools for retail energy-management, which can further promote sustainability in retail buildings, thus allowing a deeper understanding of how to decarbonize the retail building sector.