Sustainability performance disclosures: the impact of gender diversity and intellectual capital on GRI standards compliance in Uganda
Journal of Accounting in Emerging Economies
ISSN: 2042-1168
Article publication date: 21 January 2022
Issue publication date: 22 September 2022
Abstract
Purpose
The purpose of this study is to examine the extent of and impact of gender diversity and intellectual capital on compliance with Global Reporting Initiative (GRI) sustainability reporting standards by Uganda manufacturing companies.
Design/methodology/approach
Data were collected from manufacturing firms in Uganda using a questionnaire survey to find out their perception of compliance with the GRI standards. Data were analyzed using statistical package for social sciences, Microsoft Excel and smart partial least squares structural equation modeling (PLS–SEM).
Findings
The results indicate that on average, manufacturing firms in Uganda comply with GRI sustainability reporting standards to the extent of 59%. The results further indicate that manufacturing companies comply more with the GRI 200 (economic performance disclosures) to the extent of 63% as compared with 55% for GRI 300 (environmental performance disclosures) and 58% for GRI 400 (social performance disclosures). The results also indicate that intellectual capital has a significant impact on the GRI-based sustainability performance disclosures in Uganda. However, board gender diversity has no significant effect. In terms of the control variables, only firm size is significant, while firm age, capital structure and auditor type are not.
Originality/value
This study provides first time evidence of the extent of compliance with the GRI sustainability reporting standards using evidence from Uganda – an African developing country. This study widens the understanding of the usage of GRI standards in the preparation of sustainability reports by manufacturing firms in an emerging economy. This study also provides first-time evidence on the role of gender diversity and intellectual capital in GRI-based sustainability performance disclosures using evidence from Uganda's manufacturing sector.
Keywords
Acknowledgements
The authors acknowledge funding received from Government of Uganda through Makerere University Business School’s Staff Development Program. The authors thank the Editor and the two anonymous reviewers for the constructive comments and timely feedback. The authors are thankful to Dr. Isaac Nabeta Nkote for the constructive comments and guidance on the earlier version of this work.
Citation
Bananuka, J., Nkundabanyanga, S.K., Kaawaase, T.K., Mindra, R.K. and Kayongo, I.N. (2022), "Sustainability performance disclosures: the impact of gender diversity and intellectual capital on GRI standards compliance in Uganda", Journal of Accounting in Emerging Economies, Vol. 12 No. 5, pp. 840-881. https://doi.org/10.1108/JAEE-09-2021-0301
Publisher
:Emerald Publishing Limited
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