How do public companies respond to national challenges through sustainability reporting? – The case of Sri Lanka

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dinithi Dissanayake ◽  
Carol A. Tilt ◽  
Wei Qian
Keyword(s):  
Sri Lanka ◽  
Developing Country ◽  
National Level ◽  
National Development ◽  
Sustainability Reporting ◽  
Annual Reports ◽  
Structured Interviews ◽  
Content Type ◽  
Integrative Social Contracts Theory ◽  
Reporting Practices

Purpose The purpose of this paper is to explore how sustainability reporting is shaped by the global influences and particular national context where businesses operate. Design/methodology/approach The paper uses both content analysis of published sustainability information and semi-structured interviews with corporate managers to explore how sustainability reporting is used to address unique social and environmental challenges in a developing country – Sri Lanka. The use of integrative social contracts theory in investigating sustainability reporting offers novel insights into understanding the drivers for sustainability reporting practices in this particular country. Findings The findings reveal that managers’ perceptions about usefulness of sustainability reporting, local contextual challenges and global norms influence the extent to which companies engage in sustainability reporting and the nature of sustainability information reported. In particular, Sri Lankan company managers strive to undertake sustainability projects that are beneficial not only to their companies but also to the development of the country. However, while company managers in Sri Lanka are keen to undertake sustainability reporting, they face different tensions/expectations between global expectations and local contextual factors when undertaking sustainability projects and reporting. This is also showcased in what is ultimately reported in company annual reports, where some aspects of sustainability, e.g. social, tend to focus more on addressing local concerns whereas other disclosures are on issues that may be relevant across many contexts. Research limitations/implications Important insights for government and other regulatory authorities can be drawn from the findings of this study. By capitalising on the strong sense of moral duty felt by company managers, policymakers can involve the business sector more to mitigate the social and environmental issues prevalent in Sri Lanka. The findings can also be used by other developing countries to enable pathways to engage with the corporate sector to contribute to national development agendas through their sustainability initiatives and projects. Originality/value While the usual understanding of developing country’s company managers is that they try to follow global trends, in Sri Lanka, this research shows how managers are trying to align their responsibilities at a national level with global principles regarding sustainability reporting. Therefore, this paper highlights how both hypernorms and microsocial rules can interact to define how company managers undertake sustainability reporting in a developing country.

scholarly journals Do stakeholders or social obligations drive corporate social and environmental responsibility reporting? Managerial views from a developing country

2015 ◽  
Vol 12 (3) ◽  
pp. 287-314 ◽  
Author(s):  
Md Moazzem Hossain ◽  
Manzurul Alam ◽  
Muhammad Azizul Islam ◽  
Angela Hecimovic
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Stock Exchange ◽  
Annual Reports ◽  
Environmental Responsibility ◽  
Structured Interviews ◽  
Senior Managers ◽  
Content Type ◽  
Reporting Practices ◽  
Corporate Social

Purpose – The purpose of this study is to explore senior managers’ perception and motivations of corporate social and environmental responsibility (CSER) reporting in the context of a developing country, Bangladesh. Design/methodology/approach – In-depth semi-structured interviews were conducted with 25 senior managers of companies listed on the Dhaka Stock Exchange. Publicly available annual reports of these companies were also analysed. Findings – The results indicate that senior managers perceive CSER reporting as a social obligation. The study finds that the managers focus mostly on child labour, human resources/rights, responsible products/services, health education, sports and community engagement activities as part of the social obligations. Interviewees identify a lack of a regulatory framework along with socio-cultural and religious factors as contributing to the low level of disclosures. These findings suggest that CSER reporting is not merely stakeholder-driven, but rather country-specific social and environmental issues play an important role in relation to CSER reporting practices. Research limitations/implications – This paper contributes to engagement-based studies by focussing on CSER reporting practices in developing countries and are useful for academics, practitioners and policymakers in understanding the reasons behind CSER reporting in developing countries. Originality/value – This paper addresses a literature “gap” in the empirical study of CSER reporting in a developing country, such as Bangladesh. This study fills a gap in the existing literature to understand managers’ motivations for CSER reporting in a developing country context. Managerial perceptions on CSER issues are largely unexplored in developing countries.

Barriers for sustainability reporting: evidence from Indo-Pacific region

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dinithi Dissanayake ◽  
Sanjaya Kuruppu ◽  
Wei Qian ◽  
Carol Tilt
Keyword(s):  
Group Dynamics ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
Pacific Region ◽  
Structured Interviews ◽  
Content Type ◽  
Reporting Practices ◽  
Country Level ◽  
To Come ◽  
Set Up

Purpose The purpose of this paper is to provide insights into the barriers for sustainability reporting practices in five different countries in the Indo-Pacific region. Design/methodology/approach This paper uses surveys and semi-structured interviews to explore the main barriers faced by the managers of listed companies in undertaking sustainability reporting. Findings The findings of the study reveal that the main barriers for sustainability reporting are attributable to lack of knowledge and understanding, additional cost involved, time constraints, lack of awareness and education in sustainability reporting and a lack of initiatives from government. These vary between three groups of countries: those with more developed reporting, those with less developed reporting and those with strong cultural constraints to reporting. Research limitations/implications This study adapts Lewin’s field theory and three-step model of change to be applied to group dynamics at a broader country level rather than at an organisational level. Practical implications The barriers identified in this paper are important for reporting companies to come up with strategies to mitigate existing barriers and for regulatory authorities to provide subsidies and other incentives to supplement the efforts of these listed companies. Also, non-reporting companies could use the findings as a measure of cautiousness to set up the necessary processes to have a smooth sustainability reporting process in their companies. Originality/value This is one of the few studies that explore the barriers for sustainability reporting in five countries in the Indo-Pacific region.

CSR and sustainability reporting practices in India: an in-depth content analysis of top-listed companies

2019 ◽  
Vol 15 (8) ◽  
pp. 1033-1053 ◽  
Author(s):  
Priyanka Aggarwal ◽  
Ajay Kumar Singh
Keyword(s):  
Content Analysis ◽  
Firm Size ◽  
Ownership Structure ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Content Type ◽  
Reporting Practices ◽  
Industry Type

Purpose The purpose of this paper is to comprehensively analyze the corporate social responsibility (CSR) and sustainability reporting (SR) practices of Indian companies in terms of disclosure quantity and quality, and to investigate the differences in SR practices by SR dimension, industry, ownership structure, firm size and profitability. Design/methodology/approach Data are collected from annual reports/business responsibility reports (BRR)/CSR/sustainability reports of 60 top-listed companies in India. A comprehensive sustainability reporting index is developed. Content analysis technique is used. Inter-coder reliability is established. Findings Altogether, 18 items of the index are not disclosed by the majority of companies in India. SR quality is found significantly lower than the SR quantity. Moreover, SR practices significantly differ by dimension/category, industry-type and firm-size but are not influenced by ownership structure. However, the study fails to establish any conclusive relationship between SR and profitability. Practical implications The present study has several implications for corporates, practitioners, policymakers and stakeholders. The findings underscore the need for amendments in the Global Reporting Initiative guidelines and BRR framework of the Securities and Exchange Board of India to avoid patchy disclosures and ensure complete reporting by companies. Originality/value This study is among the foremost studies in India evaluating SR practices of top-listed companies in the wake of the mandatory BRR requirement from a quantitative as well as qualitative perspective using a multidimensional index.

scholarly journals Institutional logics and practice variations in sustainability reporting: evidence from an emerging field

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zeeshan Mahmood ◽  
Shahzad Uddin
Keyword(s):  
Sustainability Reporting ◽  
Institutional Logics ◽  
Practice Variation ◽  
Theoretical Explanation ◽  
Organizational Level ◽  
Structured Interviews ◽  
Content Type ◽  
Social Actors ◽  
Reporting Practices ◽  
Practice Variations

PurposeThis paper aims to deepen the understanding of logics and practice variation in sustainability reporting in an emerging field.Design/methodology/approachThis paper adopts the institutional logics perspective and its conceptualization of society as an inter-institutional system as a theoretical lens to understand reasons for the presence of and variation in sustainability reporting. The empirical findings are based on analysis of 28 semi-structured interviews with significant social actors, and extensive documentary evidence focusing on eight companies pioneering sustainability reporting in Pakistan.FindingsThis paper confirms the presence of multiple co-existing logics in sustainability practices and lack of a dominant logic. Sustainability reporting practices are underpinned by a combination of market and corporate (business logics), state (regulatory logics), professional (transparency logics) and community (responsibility logics) institutional orders. It is argued that institutional heterogeneity (variations in logics) drives the diversity of motivations for and variations in sustainability reporting practices.Research limitations/implicationsThe paper offers a deeper theoretical explanation of how various logics dominate sustainability reporting in a field where the institutionalization of practice is in its infancy.Practical implicationsUnderstanding the conditions that influence the logics of corporate decision-makers will provide new insights into what motivates firms to engage in sustainability reporting. A broader understanding of sustainability reporting in emerging fields will foster its intended use to increase transparency, accountability and sustainability performance.Originality/valueThis paper contributes to relatively scarce but growing empirical research on emerging fields. Its major contribution lies in its focus on how multiple and conflicting institutional logics are instantiated at the organizational level, leading to wide practice variations, especially in an emerging field. In doing so, it advances the institutional logics debate on practice variations within the accounting literature.

scholarly journals Sustainability key performance indicators and the global reporting initiative: usage and challenges in a developing country context

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dinithi Dissanayake
Keyword(s):  
Developing Countries ◽  
Sri Lanka ◽  
Developing Country ◽  
Performance Indicator ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Sri Lankan ◽  
Theory Approach ◽  
Key Factors ◽  
Content Type

Purpose First, this paper aims to explore the extent of the global reporting initiative (GRI) sustainability key performance indicator (KPI) usage in sustainability reporting by businesses operating in Sri Lanka. Second, using a contingency theory approach, this research examines the factors which promote or inhibit the use of the GRI framework to adopt sustainability KPIs in a developing country context, Sri Lanka. Design/methodology/approach Content analysis and semi-structured interviews are used in this study to explore the key factors which affect the usage of the GRI framework by Sri Lankan companies in adopting sustainability KPIs and reporting on sustainability. Findings The findings indicate that the GRI framework is increasingly used for sustainability reporting by Sri Lankan companies because of its flexibility, consistency, legitimacy and its focus on continuous improvement. However, company managers also shed light on the extensive number of KPIs in the GRI framework making selections challenging and the consequent difficulties associated with adapting these KPIs for companies operating in a developing country context. Research limitations/implications This study contributes to extending the broader literature on sustainability reporting in developing countries and specifically on sustainability KPIs. Second, this paper adds to the current empirical research on sustainability reporting in Sri Lanka where the literature is still sparse. Third, this study highlights the key factors that support or hinder the usage of the GRI framework in a developing country context. Practical implications Important insights for GRI, other standard-setting agencies and businesses can be drawn from the findings of this study. By capitalising further on the training and the educational courses provided by GRI, GRI can be involved in mitigating some of the pressing issues faced by the reporting companies. Originality/value This study adds to the limited research on sustainability reporting and sustainability KPIs in developing country contexts. It shows how companies in Sri Lanka are engaging with sustainability KPIs and sustainability reporting, but are also constrained by the GRI framework as its standards are not tailored to issues in developing countries.

The local government accountants’ perspective on sustainability

2015 ◽  
Vol 6 (2) ◽  
pp. 267-287 ◽  
Author(s):  
Belinda Williams
Keyword(s):  
Local Government ◽  
Mail Survey ◽  
Sustainability Reporting ◽  
Structured Interviews ◽  
Content Type ◽  
Level Of Involvement ◽  
Reporting Practices ◽  
Government Sector ◽  
Reporting Process ◽  
Potential Factors

Purpose – This paper aims to focus on the local government accountants’ perspective towards their current and potential role in the sustainability reporting process and to explore potential factors influencing the further development of their role. Design/methodology/approach – A mail survey approach was adopted across local government organisations with a deeper analysis provided through semi-structured interviews. Findings – Findings indicate that accountants are supportive of involvement in sustainability reporting, but their actual level differs significantly from the level of involvement they believe they should have, pointing to the existence of an execution gap. Potential factors are investigated, highlighting the limited integration of sustainability beyond the organisational level, the lack of understanding of sustainability by accountants and the current need for further up-skilling by accountants. Research limitations/implications – The study enhances understanding of the accountant’s perception towards sustainability reporting practices within the public sector, with particular focus on local government. Originality/value – This is an exploratory study examining an area of accounting in local government in which there are few others. It seeks to contribute to the literature by exploring and examining the accountant’s perception towards sustainable development and their current and future prospects in the reporting process in the local government sector in Australia.

The influence of board characteristics on sustainability reporting

2014 ◽  
Vol 22 (2) ◽  
pp. 78-97 ◽  
Author(s):  
Mohamed M. Shamil ◽  
Junaid M. Shaikh ◽  
Poh-Ling Ho ◽  
Anbalagan Krishnan
Keyword(s):  
Sri Lanka ◽  
Firm Growth ◽  
Sampling Method ◽  
Stock Exchange ◽  
Binary Logistic Regression ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
Annual Reports ◽  
Content Type ◽  
Board Characteristics

Purpose – Drawing on agency theory and legitimacy theory perspectives, the purpose of this paper is to investigate the influence of board characteristics on sustainability reporting of listed companies in the Colombo Stock Exchange (CSE), Sri Lanka. Design/methodology/approach – A sample of 148 listed companies was drawn from the CSE using stratified random sampling method and data were collected from the 2012 annual reports. The proposed hypotheses were tested using a hierarchical binary logistic regression. Findings – This study documents that board size and dual leadership are positively associated with sustainability reporting and boards with female directors are negatively associated with sustainability reporting. This study also found that sustainability reporting is likely to be influenced by firm size and firm growth. Additionally, the study also reveals that younger firms are likely to adopt sustainability reporting. Originality/value – This is the first study to examine the influence of board characteristics on sustainability reporting in Sri Lanka, considered as a developing economy with an emerging equity market.

Sustainability reporting and integrated reporting perspectives of Thai-listed companies

2019 ◽  
Vol 17 (4) ◽  
pp. 671-694
Author(s):  
Neungruthai Petcharat ◽  
Mahbub Zaman
Keyword(s):  
Best Practice ◽  
Emerging Market ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
International Standards ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Integrated Reporting ◽  
Content Type ◽  
Reporting Practices

Purpose This paper aims to examine the reporting on sustainability and the level of compliance with international best practice, the Global Reporting Initiative (GRI), aimed at improving communicative value to users. Design/methodology/approach Using a qualitative approach, comprising interviews with senior managers and analysis of disclosures in annual reports of Thai-listed companies, this paper contributes to the literature by providing evidence from an emerging market setting. Findings This study finds that sustainability reporting and integrated reporting perspectives of sampling companies are aiming to satisfy information needs to stakeholders and value creation to external users. Sustainability disclosures are related to some aspect of integrated reporting (IR) principles but not all. Research limitations/implications The findings of this study are based on the results from interviews and annual reports of five business sectors, and may therefore, not reflect the sustainability reporting practices and/or annual reports of other Thai-listed companies. Also, there is limited reporting on future outlook. Practical implications The findings suggest that while sustainability and IR is being adopted very widely, in many countries, there is much variation in reporting practice especially in our emerging country context adopting a “comply or explain” approach. Social implications For the Thai-listed companies, IR systems could be in their early stages and still have long way to go. The results can greatly encourage Thai-listed firms to incorporate integrated information in annual reports based on international standards thus building trust in capital markets and wider society. Originality/value The findings contribute to the literature on sustainability reporting and on the level of compliance with international best practice such as GRI by providing empirical analysis of non-financial disclosures within publicly available reporting in Thailand.

Assessing current company reports according to the IIRC integrated reporting framework

2018 ◽  
Vol 26 (2) ◽  
pp. 305-333 ◽  
Author(s):  
Merve Kılıç ◽  
Cemil Kuzey
Keyword(s):  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Integrated Reporting ◽  
Adherence Level ◽  
Content Type ◽  
Reporting Practices ◽  
Reporting Framework ◽  
The Impact

Purpose This paper aims to investigate the adherence level of current company reports to the International Integrated Reporting Council (IIRC) integrated reporting framework through analysis of whether and to what extent those reports include the content elements of this framework. This study also aims to examine the impact of corporate sustainability characteristics on the adherence level of current company reports to the integrated reporting framework. Design/methodology/approach The sample for this research comprises the non-financial companies which were listed on Borsa Istanbul, the Turkish stock exchange, as of 31 December 2015. The authors constructed a disclosure index based on the content elements of the IIRC reporting framework. They then measured the integrated reporting disclosure score (IRS) of each company through a manual content analysis of its annual reports and stand-alone sustainability reports. To test the hypotheses, the authors performed a number of statistical analyses. Findings The authors determined that current company reports mainly present generic risks rather than company-specific; provide positive information while dismissing negative information; present financial and non-financial initiatives separately; lack a strategic focus; and include backward-looking information rather than forward-looking information. Consistent with the predictions, the authors found that the IRS is significantly and positively associated with sustainability reporting, Global Reporting Initiative (GRI) adoption, sustainability index listing and the presence of a sustainability committee. Originality/value This study contributes to the literature by enhancing the understanding of integrated reporting practices through the application of a checklist based upon the IIRC integrated reporting framework. Further, this study contributes to the literature by evaluating the impact of corporate sustainability characteristics on IRS.

Formal and informal sustainability reporting: an insight from a mining company’s subsidiary in Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kwame Oduro Amoako ◽  
Isaac Oduro Amoako ◽  
James Tuffour ◽  
Emmanuel Opoku Marfo
Keyword(s):  
Local Community ◽  
Developing Economies ◽  
Sustainability Reporting ◽  
Host Community ◽  
Annual Reports ◽  
Structured Interviews ◽  
Mining Company ◽  
Content Type ◽  
Corporate Websites ◽  
Sustainability Reports

PurposeUsing a subsidiary of a multinational mining company in Ghana as a case, the purpose of this study is to examine the formal and informal forms and channels of sustainability reporting in the emerging economy’s context. Design/methodology/approachSemi-structured interviews were conducted amongst managers and employees of the mining company and members of their host community. Based on the interview themes, archival data were extracted from the 2020 Integrated Annual Report of the case company to corroborate the results from the interviews. FindingsThe authors found that most of the stakeholders from the host community interviewed were not aware and, to an extent, not interested in formal sustainability reports. In place of that, the management of the mining subsidiary uses informal channels of communication, including meetings and durbars, to verbally engage the local community and their representatives on sustainability matters. Whilst the formal sustainability reports met the internal requirements set by the parent company, the informal engagements were critical for gaining external legitimacy from the host community and other interest groups. Hence, the authors argue that mining companies and their subsidiaries, particularly in developing economies, need to consider informal forms of sustainability reporting alongside the formal channels to engage local communities to address sustainability issues and avert disruptions to their operations. Originality/valueSustainability reporting studies have focussed mainly on annual reports published in print or corporate websites, ignoring informal forms of sustainability reporting. This study sheds light on the informal forms of sustainability reporting. This is important as formal forms of sustainability reporting may be less useful for engaging local mining communities in developing economy contexts.

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