Corporate sustainability reporting of major commercial banks in line with GRI : Bangladesh evidence

Purpose – This paper aims to examine the tendencies of sustainability reporting by major commercial banks in Bangladesh in comparison with global sustainability reporting indicators outlined in the GRI framework together with banks' predilection toward reporting 16 GRI financial service sector (FSS) specific performance indicators.

Design/methodology/approach – Based on the GRI G3 guidelines, the paper investigated banks' reporting in five broad areas of sustainability, such as environment, labour practices and decent works, product responsibility, human rights and society. The 2008/2009 annual reports of 12 major commercial banks listed on Dhaka stock exchange were analysed and coded using a content-based technique.

Findings – The results show that information on society is addressed most extensively with regard to extent of reporting. This is followed by the disclosures prepared on decent works and labour practices and environmental issues. Furthermore, the disclosures of product responsibility information and the information for human rights are rather scarce in banks' reporting; on the subject of FSS-specific disclosures, only seven items out of 16 are disclosed by all sample banks.

Research limitations/implications – The findings of the study indicate that Bangladeshi commercial banks' social disclosures could develop in this style to become more holistic and over time (in association with the country's central bank involvement) to resemble a type of structured reporting to the point where they are properly labelled per se.

Originality/value – The study contributes to the social disclosure literature, in particular in a developing countries banking sector context, seeing as it disseminates evidence of the standing on social disclosures practices at the level of GRI with developing countries' banks data.

Sustainability reporting and non-reporters : understanding why companies do not produce sustainability reports

 This report explores the social and organisational factors that help to explain why some ASX200 listed companies, in selected industries, do not provide detailed and comprehensive stand-alone sustainabilty reports. 

Is sustainability reporting becoming institutionalised? The role of an issues-based field

We study companies that do not produce a sustainability report in contexts where institutionalisation is assumed. Based on a careful analysis of interaction patterns between non-reporting companies, sustainability interest groups, and peer organisations, we find patterns of discursive and material isomorphism that suggest sustainability reporting is confined to an issues-based field, rather than spreading as an institutionalised practice across the business community. We argue that the issues-based field exerts only weak pressure for sustainability reporting, and that encouraging more firms to report rests on understanding what influences companies to interact more widely to become part of this field.

Sustainability and integrated reporting : a study of the inhibitors and enablers of integrated reporting

 Integrated Reporting is an emerging phenomenon that promises to bring together the material information about an organisation's strategy, governance, performance and prospects in a way that reflects the commercial, social and environmental context within which it operates. This report captures the variety of organisational factors that are relevant to decisions about Integrated Reporting in Australia. 

Assurance of sustainability reports : impact on report users' perceptions of reliability

This study examined whether (1) assurance, (2) the level of assurance (reasonable vs. limited), and (3) the type of assurance provider (accountant vs. specialist consultant) affect users’ perceptions of reliability of sustainability reports. Based on an experimental questionnaire, we find that the provision of assurance improves report users’ perceived reliability of the environmental and social information. There were no significant main effects between the two experimental factors; level of assurance and type of assurance provider, and report users’ perceptions of the reliability of sustainability reports. However, a significant interaction was found between the two experimental factors and report users’ perceptions of reliability of such reports. More specifically, report users placed more confidence in the sustainability reports where the level of assurance provided is reasonable (high), and when such assurance is provided by a top tier accountancy firm, rather than when the assurance is provided by a specialist consultant. No such difference was found when the level of assurance provided was limited (low) for either type of assurance provider group. The results of this study thus highlight the relevance of assurance for sustainability reporting.

Assurance of sustainability reports : impact on report users' confidence and perceptions of information credibility

This study examines whether (1) assurance, (2) the level of assurance (reasonable vs limited) and (3) the type of assurance practitioner (accountant vs specialist consultant) affect users' perceptions of reliability of sustainability reports. Based on an experimental questionnaire, we find that the provision of assurance improves perceived reliability of the environmental and social information. There are no significant main effects for both the level of assurance and type of assurance practitioner. However, a significant interaction is found between these two experimental factors and report users' perceptions of reliability of such reports. More specifically, report users place more confidence in sustainability reports when the level of assurance provided is reasonable (that is, high but not absolute), and when such assurance is provided by a top tier accountancy firm, compared to when the assurance is provided by a specialist consultant. No such difference is found when the level of assurance provided is limited for either type of assurance practitioner group. The results of this study thus highlight the relevance of assurance for sustainability reporting.

Why do companies not produce sustainability reports?

Sustainability reporting emerged on the corporate scene nearly 30 years ago as a key mechanism through which business organisations would manage a transition to a new business landscape dominated by greater concern and consciousness about sustainability. While it has become something of a feature on the corporate agenda in some parts of the world, the majority of business organisations do not undertake this type of reporting. This paper explores why 23 of Australia's top 200 companies do not undertake sustainability reporting. The study is situated in the context of a considerable literature that promised numerous benefits to be derived from this type of reporting. The paper uncovers various social and organisational factors that raise some new questions about legitimacy theory, corporate accountability and the spread and uptake of this organisational practice.

Stakeholders’ perspectives on the role of regulatory reform in integrated reporting

This paper reports on an exploratory study of the preferences of users of non-financial reporting for regulatory or voluntary approaches to integrated reporting (IR). While it is well known that companies prefer voluntary approaches to non-financial reporting, considerably less is known about the preferences of the users of non-financial information. IR is the latest development in attempts over 30 or more years to broaden organisational non-financial reporting and accountability to include the wider social and environmental impacts of business. It promises to provide a more cohesive and efficient approach to corporate reporting by bringing together financial information, operational data and sustainability information to focus only on material issues that impact an organisation’s ability to create value in the short, medium and long term. The study found more support for voluntary approaches to IR as the majority of participants thought that it was too early for regulatory reform. They suggested that IR will become the reporting norm over time if left to market forces as more and more companies adopt the IR practice. Over time IR will be perceived as a legitimate practice, where the actions of integrated reporters are seen as desirable, proper, or appropriate. While there is little appetite for regulatory reform, half of the investors support mandatory IR because, in their experience, voluntary sustainability reporting has not led to more substantive disclosures or increased the quality of reporting. There is also evidence that IR privileges financial value creation over stewardship, inhibiting IR from moving beyond a weak sustainability paradigm.

Improving how sustainability reports drive change: a critical discourse analysis

In this paper we use a form of discourse analysis to explore the 'activity' that three quite different sustainability reports set up as companies communicate their social and environmental performance. Our aim is to show what sustainability reports 'do' - in order to offer insights about what they 'could do'. We show that the companies are using sustainability reporting strategically, and that sustainability is embedded in to the company's strategic priorities. Where they mostly narrate and argue a point of view, sustainability reporting can offer additional benefits by transiting towards dialogue. Dialogue provides stakeholders with the means to engage substantially with companies, and also introduce new discourses that may open up new directions in how companies contribute to sustainability.

Assurance of corporate social responsibility reports : impact on report users' perceptions of reliability

This study examined whether (1) assurance, (2) the level of assurance (reasonable vs. limited), and (3) the type of assurance provider (accountant vs. specialist consultant) affect users’ perceptions of reliability of sustainability reports. Based on an experimental questionnaire, we find that the provision of assurance improves report users’ perceived reliability of the environmental and social information. There were no significant main effects between the two experimental factors; level of assurance and type of assurance provider, and report users’ perceptions of the reliability of sustainability reports. However, a significant interaction was found between the two experimental factors and report users’ perceptions of reliability of such reports. More specifically, report users placed more confidence in the sustainability reports where the level of assurance provided is reasonable (high), and when such assurance is provided by a top tier accountancy firm, rather than when the assurance is provided by a specialist consultant. No such difference was found when the level of assurance provided was limited (low) for either type of assurance provider group. The results of this study thus highlight the relevance of assurance for sustainability reporting.

Regulatory challenges in the move to a low-carbon environment

An outcome of the international climate conference in Copenhagen (COP 15, 2009) was that a number of governments have undertaken to reduce their nations' greenhouse gas (GHG) emissions and some have provided targets and deadlines for the achievement of their stated goals. While the transition to a low-carbon environment has the potential to stimulate growth, create jobs and opportunities, and to bring benefits to the economy, there are many challenges in the process. This is an exploratory paper aimed at identifying the major regulatory and governance issues associated with the move to a low-carbon environment. In terms of business governance, CEOs and other executives responsible for corporate oversight will need to monitor, assess, and manage compliance with climate change and carbon-related regulation. In the transition period government regulation encouraging appropriate carbon costs classification and measurement, financial sustainability reporting and disclosure, and responsible carbon citizenship are expected to be predominant.