The views of selected NGOs on corporate social disclosures in Bangladesh

Although prior studies looked at corporate social disclosures (CSD hereafter) mainly from the managerial perspective there are very few studies which examined CSD from a non-managerial stakeholder perspective. This paper contributes to that limited CSD literature. It does so from a developing country perspective. The main aim of this paper is to examine the views of selected NGOs on current CSD practices in Bangladesh using Gramscian hegemonic analysis. For this purpose, semi-structured interviews were carried out in the selected social and environmental NGOs of both overseas and Bangladesh origin. The results suggest that NGOs viewed the current CSD practice as far from satisfactory. They also argued that it is mainly aimed at maintaining corporate interests of image building. The study suggests that it is not corporations to be blamed alone for production of CSD in the interests of business, it is the capitalist society that consents to such reproduction of CSD.

A study of corporate social disclosures in Bangladesh

Most of the corporate social reporting (CSR) studies conducted so far have been in the context of developed countries. Very few studies are available on the CSR practices in developing countries. Given the different socio-economic context of developing countries it is argued that it is important to learn about the CSR practices in those countries. This study reports the results of a survey of CSR practices in Bangladesh. The main contribution of this paper is that in addition to measuring the extent and volume of disclosures by using content analysis, it explores the socio-political and economic context in which these disclosures take place.

Russia:Corporate social disclosures

This chapter aims to expand the existing CSD literature by providing insights from current Russian CSD practice, which is believed to be an under researched area. The main objective here is to examine the extent of CSD in Russia. For this purpose content analysis of 2004 annual reports of 20 large companies which are listed on the Russian stock exchange was undertaken. The key findings show that 18 (90%) out of the 20 companies included in the study made some social and environmental disclosures. Employee related disclosures are the dominant category with 90% of companies making some form of disclosures in this category. In addition, 85% of companies made some form of environmental disclosures while only 55% of companies made ethical disclosures. According to this study, the quality of disclosure is generally poor due to lack of external verification and lack of completeness. Although it is more likely that in the future, pressures will be brought to bear on Russian companies to engage in more transparent and accountable CSD practice, still very little optimism for improvement can be expressed here. This is mainly due to lack of mandatory requirements for CSD in Russia and also to some extent due to the absence of strong NGOs and other pressure groups who can exert effective pressures on Russian companies to improve their CSD practice. © 2009 Springer Berlin Heidelberg.

The nature of corporate social responsibility disclosures by the Bangladeshi commercial banks

The Bangladesh Bank is now encouraging corporate social responsibility (CSR) disclosure by banks however the adoption of CSR remains voluntary and not mandatory. The aim in this paper is to determine the nature and extent of corporate social responsibility disclosure in the banking sector in Bangladesh, and to assess the need to improve corporate social responsibility by such organisations. We observe, from our content analysis of the annual reports of three cases studies within the banking industry of Bangladesh, that corporate social responsibility disclosures focus on initiatives undertaken to support two critical two sectors within Bangladesh's economy. agriculture and the SME sector. Further disclosures address contributions and donations made by the banks to support underprivileged sections of Bangladesh society including destitute youth and women. Of the three cases examined in this study, two are relatively new entrants to the banking sector. We observed that the newest firm, incorporated in 1999, made no disclosures in regards to its corporate social responsibility and, as a consequence, conclude that the corporate governance mechanisms in this firm are likely to be unsophisticated.

Corporate governance and corporate social responsibility disclosures : evidence from an emerging economy

We examine the relationship between corporate governance and the extent of corporate social responsibility (CSR) disclosures in the annual reports of Bangladeshi companies. A legitimacy theory framework is adopted to understand the extent to which corporate governance characteristics, such as managerial ownership, public ownership, foreign ownership, board independence, CEO duality and presence of audit committee influence organisational response to various stakeholder groups. Our results suggest that although CSR disclosures generally have a negative association with managerial ownership, such relationship becomes significant and positive for export-oriented industries. We also find public ownership, foreign ownership, board independence and presence of audit committee to have positive significant impacts on CSR disclosures. However, we fail to find any significant impact of CEO duality. Thus, our results suggest that pressures exerted by external stakeholder groups and corporate governance mechanisms involving independent outsiders may allay some concerns relating to family influence on CSR disclosure practices. Overall, our study implies that corporate governance attributes play a vital role in ensuring organisational legitimacy through CSR disclosures. The findings of our study should be of interest to regulators and policy makers in countries which share similar corporate ownership and regulatory structures.

Corporate social responsibility disclosures and earnings quality: Are they a reflection of managers’ opportunistic behavior?

Purpose – This paper aims to explore the relationship between corporate social responsibility (CSR) disclosures and earnings quality proxied by earnings accruals. Specifically, we examine whether CSR disclosures are context-specific, that is, whether companies dominated by powerful stakeholders are obliged to behave in a responsible manner to constrain earnings management, thereby reporting higher-quality earnings to investors. Design/methodology/approach – This paper explores the relationship between CSR disclosures and earnings quality proxied by earnings accruals. Specifically, we examine whether CSR disclosures are context-specific, that is, whether companies dominated by powerful stakeholders are obliged to behave in a responsible manner to constrain earnings management, thereby reporting higher-quality earnings to investors. Findings – Results show that managers in an emerging economy manage earnings when they provide more CSR disclosures. Such earnings management is achieved through income increasing discretionary accruals. Furthermore, companies from export-oriented industries dominated by powerful stakeholders (international buyers) disclosing more CSR activities, provide transparent financial reports through constraining earnings management. Originality/value – The findings of this study are significant for both investors and policymakers. Investors should not take for granted that firms engage in CSR activities, behave ethically and provide transparent financial reports. As we document that firms might manipulate earnings through discretionary accruals and provide less transparent financial reports to shareholders, the credibility of firms’ CSR policies should be assessed with caution. Policies directing at promoting socially responsible practices instead of motivating the desired behaviour, may provide managers with additional incentives to utilise CSR for opportunistic behaviour. Thus, policymakers need to be cautious about this opportunistic behaviour and enhance monitoring to enforce social compliance. Possibly, some guidelines can be introduced to confirm that CSR disclosures are based on actual practice and not just a “green wash” statement to deceive stakeholders.

The effect of board capital and CEO power on corporate social responsibility disclosures

This study examines the effect of directors’ human and social capital (i.e. board capital) on the level of corporate social responsibility (CSR) disclosures by drawing on insights from a resource-based view. It also investigates the effect of chief executive officer (CEO) power on this relationship. Data were obtained from annual reports of companies listed on the Dhaka Stock Exchange in Bangladesh from 2005 to 2013. We employ outside directors’ experiences and expertise as a proxy for board capital and measure CEO power using a ‘power index’ that comprises CEO duality, ownership, tenure and family CEO status. Results show that board capital is positively associated with CSR disclosure levels; however, CEO power is negatively associated with CSR disclosures and reduces the effect of board capital on CSR disclosures. Thus, we conclude that although board capital can improve CSR practices, CEO power can also inhibit these practices.

Environmental incidents in a developing country and corporate environmental disclosures : a study of a multinational gas company

Purpose – The purpose of this paper is to examine the environmental disclosure initiatives of Niko Resources Ltd – a Canada-based multinational oil and gas company – following the two major environmental blowouts at a gas field in Bangladesh in 2005. As part of the examination, the authors particularly focus on whether Niko's disclosure strategy was associated with public concern pertaining to the blowouts. Design/methodology/approach – The authors reviewed news articles about Niko's environmental incidents in Bangladesh and Niko's communication media, including annual reports, press releases and stand-alone social responsibility report over the period 2004-2007, to understand whether news media attention as proxy for public concern has an impact on Niko's disclosure practices in relation to the affected local community in Bangladesh. Findings – The findings show that Niko did not provide any non-financial environmental information within its annual reports and press releases as a part of its responsibility to the local community which was affected by the blowouts, but it did produce a stand-alone report to address the issue. However, financial environmental disclosures, such as the environmental contingent liability disclosure, were adequately provided through annual reports to meet the regulatory requirements concerning environmental persecutions. The findings also suggest that Niko's non-financial disclosure within a stand-alone report was associated with the public pressures as measured by negative media coverage towards the Niko blowouts. Research limitations/implications – This paper concludes that the motive for Niko's non-financial environmental disclosure, via a stand-alone report, reflected survival considerations: the company's reaction did not suggest any real attempt to hold broader accountability for its activities in a developing country.

Corporate social responsibility in Japanese firms in transport sector

Corporate Social Responsibility (CSR) reporting has become common practice for large organisations globally, yet there is variance in the CSR related activities claimed in disclosures. CSR researchers argue that cultural and historical backgrounds are the influential drivers of CSR behaviour. However, the links between actual activities claimed in CSR reports and the cultural systems that underpin these reported activities is an under-explored area. This thesis discusses the uniqueness of Japanese socio-cultural aspects. While Japan is well-known for having the most advanced energy efficient technologies in the world, it is also known for being below international standards for gender equality in the workplace. Therefore, this thesis aims to explore and examine organisational behaviours through the lens of relativism in order to understand what organisations are reporting and how and why managers prioritise these activities. This thesis is based on longitudinal qualitative research focusing on the Japanese transport companies that published CSR reports between 2005 and 2009. The findings from manually coded content analysis revealed: (1) that activities related to providing public safety, waste management and the 3Rs (reduce, reuse and recycle), and environmental innovation were the top three most frequently reported CSR activities; and (2) complying with laws, career planning, flexible work practices, and providing public safety were the three categories that showed the most significant increase in reporting frequency from 2005-2009. This thesis extends the previous literature. Takagaki (2010b) identified that the transport industry, particularly the air and water sub-sectors, is the industry where the environmental problems are serious and require urgent attention. Takagaki (2010b) chose to explore the electronics industry as this industry is considered to be middle ground for its level of seriousness and urgency. This research: (1) examines the transport industry; (2) investigates the links between the actual activities reported, and the activities reported to be influential drivers of these activities.

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

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.

Environmental incidents in a developing country and corporate environmental disclosures : a study of a multinational gas company

Purpose – The purpose of this paper is to examine the environmental disclosure initiatives of Niko Resources Ltd – a Canada-based multinational oil and gas company – following the two major environmental blowouts at a gas field in Bangladesh in 2005. As part of the examination, the authors particularly focus on whether Niko’s disclosure strategy was associated with public concern pertaining to the blowouts.
Design/methodology/approach – The authors reviewed news articles about Niko’s environmental incidents in Bangladesh and Niko’s communication media, including annual reports, press releases and stand-alone social responsibility report over the period 2004-2007, to understand whether news media attention as proxy for public concern has an impact on Niko’s disclosure practices in relation to the affected local community in Bangladesh.
Findings – The findings show that Niko did not provide any non-financial environmental information within its annual reports and press releases as a part of its responsibility to the local community which was affected by the blowouts, but it did produce a stand-alone report to address the issue. However, financial environmental disclosures, such as the environmental contingent liability disclosure, were adequately provided through annual reports to meet the regulatory requirements concerning environmental persecutions. The findings also suggest that Niko’s non-financial disclosure within a stand-alone report was associated with the public pressures as measured by negative media coverage towards the Niko blowouts.
Research limitations/implications – This paper concludes that the motive for Niko’s non-financial environmental disclosure, via a stand-alone report, reflected survival considerations:
the company’s reaction did not suggest any real attempt to hold broader accountability for its activities in a developing country.
Originality/value – This is the first known paper that investigates a multinational company’s disclosure behavior in relation to environmental incidents which occurred in a local community.

Perceptions of investors and stockbrokers on corporate social responsibility : a stakeholder perspective from India

This paper aims to understand the perceptions of shareholders and brokers regarding corporate social responsibility (CSR) initiatives by Indian companies. The research, presented in this paper, employs stakeholder theory to examine the perceptions of investors and sharebrokers on CSR in the context of a fast growing country, India. The data has been collected by using semistructured survey instrument. The findings of the study highlight that the respondents in both categories of stakeholder groups agree that CSR-oriented companies enjoy higher levels of investor confidence, which is reflected in higher stock prices, and leads to enhanced reputation and corporate goodwill. The research demonstrates that Indian companies are in fact implementing CSR initiatives and that stakeholders have a considerable interest in such initiatives. Both the groups expect higher CSR disclosures from large corporations and multinational companies operating in India. Educational initiatives have received maximum attention from the both the groups of stakeholders followed by the environmental issues. Investors are least aware of healthcare and rural development initiatives possibly because of the relatively low penetration of Indian financial markets into the rural areas. This study demonstrates that the stakeholder theory is a useful tool for collecting and evaluating CSR data and explains that the stakeholder perception of CSR performance determines corporate initiatives to a certain level. The findings would help in building consensus on strengthening the implementation and establishing the future CSR framework in emerging economies and other parts of the world. © 2014 John Wiley & Sons, Ltd.

Firm characteristics, board diversity and corporate social responsibility: evidence from Bangladesh

Purpose – This study aims to purport to investigate the relationship between firm size, profitability, board diversity (namely, director gender and nationality) and the extent of corporate social responsibility (CSR) disclosures within a developing nation context.
Design/methodology/approach – The dataset comprises 116 listed Bangladeshi non-financial companies for the period of 2005-2009. A CSR disclosure checklist was used to measure the extent of CSR disclosures in the annual reports and a multiple regression analysis to examine its association with firm characteristics and two board diversity features – female and foreign directorship.

Findings – Results indicate that large and more profitable firms provide more CSR disclosures. It was also found that female directorship has a negative association with CSR disclosures, while foreign directorship has a positive impact on such disclosures. This paper documents that CSR disclosures decrease further when family ownership is higher and there are more female directors on the board.

Originality/value – This study extends empirical evidence on the association between firm characteristics, board diversity and CSR disclosure practices from a developing nation context. Furthermore, this study also reveals that female directors’ impact on firm disclosures may differ between developing and developed nations, and somewhat impeded in the latter. This paper also provides empirical evidence on the importance of appointment of foreign nationals on the boards of developing countries to influence CSR practices.