Muhammad Azizul Islam

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

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

Grameen Bank's social performance disclosure: Responding to a negative assessment by Wall Street Journal in late 2001

The aim of this paper is to establish a linkage between negative global media news towards Grameen Bank (GB), the largest microfinance organisation in the developing world, and the extent and type of annual report social performance disclosures by GB, over the nine-year period 1997-2005. Content analysis instruments are utilised to analyse GB annual report social disclosure. The study finds that GB’s community poverty alleviation disclosures account for the highest proportion of total social disclosures in the period 1997-2005. The results of this study are particularly significant in relation to poverty alleviation - the issue attracting severe criticism from the Wall Street Journal (WSJ ) late in 2001. The community poverty alleviation disclosures by GB are significantly greater over the four years following the negative news in the WSJ than in the four years before. The results suggest that GB responds to a negative media story or legitimacy threatening news via annual report social disclosures in an attempt to re-establish its legitimacy. This paper contributes to the literature because in the past there has been no research published linking global media attention to the social disclosure practices of major organisations in developing countries.

Environmental incidents in a developing country and corporate environmental disclosures

This paper examines environmental disclosure initiatives of Niko Resources-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, we specially focus on whether the Niko’s disclosure strategy was associated with public concern pertaining to the blowouts. 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 who were affected by the blowouts but it did produce a standalone report to address the issue. However, financial environmental disclosure such as environmental contingent liability disclosure was provided adequately through annual reports to meet the regulatory requirements concerning environmental persecutions. The findings also suggests that the Niko’s non-financial environmental disclosure within a standalone report was associated with the public pressures as measured by negative media coverage towards the Niko’s blowouts. This paper concludes that Niko’s non-financial environmental disclosure via introducing a standalone report was because of the survival considerations; Niko’s disclosure reaction did not suggest any real attempt to hold broader accountability for its activities in a developing country.

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.

Social compliance audits and multinational corporation supply chain: evidence from a study of the rituals of social audits

This study investigates the use of social compliance audits in the supply chain of multinational corporations (MNCs). Particularly, we explore the use of such audits in assessing and managing the working conditions of factory workers in the garment industry in a developing nation. Through a range of interviews with MNCs’ internal auditors, with commissioned external auditors and with representatives of the suppliers in Bangladesh, this study finds that social compliance audits become ritual strategies and are not a primary means of advancing workers’ rights. Drawing on the concept of surrogate accountability, the study suggests that to create real change in workers’ conditions and in order to hold MNCs and their suppliers accountable, some form of surrogate (government, non-governmental organisations or media) intervention is necessary. This is, we argue, preferable to leaving it in the hands of ‘markets’ and simply waiting for another major incident such as Rana Plaza to stir public concern. This study contributes to the literature by investigating how social compliance audits are undertaken by MNCs sourcing products from a developing nation, what motivations drive the adoption of such audits, and what, if anything, are the likely outcomes from the process.

Does the global reporting initiative influence sustainability disclosures in Asia-Pacific banks?

ABSTRACT This article examines sustainability disclosures by the major banks in the Asia-Pacific region (the six largest banks from each of four countries: Australia, Japan, China and India) during the period 2005–2012. The findings show sustainability disclosures by banks that participate in the global reporting initiative (GRI) are significantly higher than disclosures by those banks that have not participated in the GRI. Amongst those banks that have participated in the GRI there is a higher rate of disclosure by externally assured banks than by non-externally assured banks. Among the GRI participating banks, there was significant variation of disclosures between countries. Disclosures by Australian banks appeared to be significantly higher than disclosures by banks in any other countries under observation. The findings are discussed from a moral legitimacy perspective. Consistent with this view, the banks under study were responsive to the GRI, which is seen as an influential actor that shapes and reflects the expectations of the broader community. However, the role of the GRI in minimising country differences in disclosure by banks is not significant.

Bribery and corruption in Australian local councils

This paper explores public concerns about corruption and bribery in Australian local government and provides guidance for policy-makers on how to control bribery and corruption. Lack of regulation is a major reason why local councils are not taking appropriate anti-corruption or bribery measures. The author urges regulators to impose radical and mandatory requirements, especially reporting requirements, on local councils. Australia should also look to other countries for successful measures to curb bribery and corruption.

Interviews as an instrument to explore management motivation for corporate social and environmental reporting

This chapter discusses interviews as an instrument to explore motivations for corporate social reporting from global perspectives. While interviewing is one of the widely used data collection methods in conducting qualitative research, the method is crucial to understand the deep into motivation behind the corporate social reporting. Using interviews as the procedure of securing knowledge is relatively new (Holstein & Gubrium, 2001; Kvale, 2007) but securing knowledge of the reasons for social and environmental reporting via interview method is newer. Therefore, within social and environmental accounting (SEA) literature, the use of interview method is also relatively new

CSR Reporting and Legitimacy Theory: Some Thoughts on Future Research Agenda

Although there is growing research that examines CSR reporting within the context of developing nations, few attempts have been made to theorize this phenomenon. The aim of this study is to explore the possibility of using the legitimacy theory as a plausible explanation for CSR reporting practices by organizations within the context of developing nations. In terms of the future direction of the applicability of the legitimacy theory, there appears to be a number of subject areas or legitimacy threatening incidents to be researched within the context of developing nations.

A Preliminary Analysis of Australian Government’s Indigenous Reform Agenda ‘Closing the Gap’ and Corporate Accountability

This chapter provides a preliminary analysis of Australian Government’s reform agenda popularly known as ‘Closing the Gap’.” Closing the Gap” sets a commitment by all Australian governments to improve the lives of Indigenous Australians, and in particular provide a better future for indigenous children. This article discusses how the coalition of Australian Governments prepared this agenda and how this program involves Australian corporations in this task. Our observations suggest that another reform is required for the government to mandate corporate involvement and contribution to this reform agenda.