Preliminary insights on sustainability reporting and assurance practices in Malaysia

Yussri Sawani (Senior Lecturer, Accounting Research Institute (ARI), Faculty of Accountancy, Universiti Teknologi MARA, Selangor, Malaysia)
Mustaffa Mohamed Zain (Professor, Accounting Research Institute (ARI), Faculty of Accountancy, Universiti Teknologi MARA, Selangor, Malaysia)
Faizah Darus (Associate Professor, Accounting Research Institute (ARI), Faculty of Accountancy, Universiti Teknologi MARA, Selangor, Malaysia)

Social Responsibility Journal

ISSN: 1747-1117

Publication date: 5 October 2010

Abstract

Purpose

This paper aims to examine the development and evolution of sustainability reporting and assurance practices in Malaysia to identify the current practice and trend of reporting and the level of awareness on assurance on sustainability reporting in Malaysia.

Design/methodology/approach

Interviews and questionnaire surveys were used to obtain respondents' perceptions on issues related to sustainability reporting and assurance practices among the ACCA‐MeSRA (Malaysian Environmental and Social Reporting Award) participants in 2007 coupled with content analysis of corporate annual reports and other standalone reports.

Findings

Results from the study provide evidence that most of the information relating to sustainability disclosure reported is integrated in the annual report and with no assurance statement due to low level of awareness and the absence of legislative pressure to commission the practice. The study indicates that companies applied selective reporting on issues relating to monetary contribution predominantly due to minority shareholders' insistence on better return for their investment.

Research limitations/implications

The nature of this study is exploratory and focuses on the evolution of sustainability reporting from the current state of corporate responsibility reporting and the availability of assurance practices in Malaysia. Findings in the study revealed several issues that require further analysis to identify significant factors that would influence sustainability reporting and assurance practices.

Practical implications

This study creates interest in the sustainability reporting and assurance practices in the Asian developing countries as its adaptation is far from developed.

Originality/value

This paper presents preliminary insights of the current trend and future direction of sustainability reporting and assurance in Malaysia.

Keywords

Citation

Sawani, Y., Mohamed Zain, M. and Darus, F. (2010), "Preliminary insights on sustainability reporting and assurance practices in Malaysia", Social Responsibility Journal, Vol. 6 No. 4, pp. 627-645. https://doi.org/10.1108/17471111011083482

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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