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1 – 10 of over 11000Corina Joseph, Fitra Roman Cahaya, Sharifah Norzehan Syed Yusuf, Agung Nur Probohudono and Estetika Mutiaranisa Kurniawati
This paper aims to examine the extent of ethical values information disclosure on the top 100 Malaysian and Indonesian companies’ annual reports using coercive isomorphism under…
Abstract
Purpose
This paper aims to examine the extent of ethical values information disclosure on the top 100 Malaysian and Indonesian companies’ annual reports using coercive isomorphism under the institutional theory.
Design/methodology/approach
Using the content analysis, the presence or exclusion of ethical values information disclosed on 100 Malaysian and Indonesian companies’ annual reports using a newly developed Ethical Values Disclosure Index is carried out.
Findings
The results of the analysis found that Indonesian companies on average disclosed 31 items under study compared to 27 items disclosed by the companies in Malaysia. The results suggest that Indonesian companies are more vigilant in the code of ethics, companies policy on ethical issues, monitoring program and accountability, ethical performance, ethical infrastructure and organizational responsibility aspects, whereas their Malaysian counterparts are better in reporting governance and integrity committee or board of directors.
Research limitations/implications
The findings may not be applicable to other countries in the same region, nevertheless, revealed the importance of adequate ethical values disclosure in determining the level of ethical behavior.
Practical implications
Companies in Indonesia are coercively pressed by various influential stakeholder groups to address ethical issues. The less disclosure regarding corporate ethical behavior may indicate that unethical practices continue to be a problem in the Malaysian corporate sector.
Originality/value
This paper adds to the literature by examining the elements of ethical values adapted mainly from the professional bodies that regulate the accounting profession and other organizations using the institutional theory, particularly in two countries.
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Tuan Azma Fatiema Tuan Ibrahim, Hafiza Aishah Hashim and Akmalia Mohamad Ariff
The purpose of this study is to investigate the relationship between ethical values and performance in the context of the banking sector in Malaysia.
Abstract
Purpose
The purpose of this study is to investigate the relationship between ethical values and performance in the context of the banking sector in Malaysia.
Design/methodology/approach
Based on the philanthropic model, this study posits that firms undertaking zakat and charity are ethical firms. Zakat disclosure index (ZDI) and charity disclosure index (CDI) were constructed to measure ethical values. This study hypothesises that ethical values are positively associated with bank performance. Ethical values (i.e. CDI and ZDI) and financial performance data (i.e. return on assets) were collected from the disclosures made in the annual reports of 50 banks for a period of five years (2010-2014).
Findings
A positive association was found between zakat disclosure and bank performance. The results indicate that higher zakat disclosure is associated with greater bank performance. However, no relationship was found between charity disclosure and bank performance.
Research limitations/implications
Considering the limitation of the index used in this study, other dimensions such as corporate governance, sustainability, products and environment can be considered in the development of index to measure ethical values in future studies.
Originality/value
This study offers additional explanation on the relationship between ethical values and performance by examining the role of zakat disclosures that characterize the unique aspects of Malaysian companies.
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Mohamed Anouar Gadhoum, Zulkarnain Bin Muhamad Sori, Shamsher Ramadilli and Ziyaad Mahomed
This paper aims to assess the ethical disclosure of Islamic banks (IBs) under different accounting regimes and to ascertain whether the adoption of an Islamic accounting standards…
Abstract
Purpose
This paper aims to assess the ethical disclosure of Islamic banks (IBs) under different accounting regimes and to ascertain whether the adoption of an Islamic accounting standards (Auditing Organization for Islamic Financial Institutions [AAOIFI]) promotes the practice of ethical disclosure.
Design/methodology/approach
An ethical identity disclosure index was developed to serve as a benchmark to assess the level of the communicated ethical identity disclosure (CEID) of 47 IBs over 18 countries using annual reports.
Findings
The findings suggest that, overall, there is poor ethical disclosure practices and even banks that had some initiatives towards disclosures had no proper reference to benchmark for effective implementation of ethical reporting standards and had no plans for ethical and socially responsible schemes. There was no evidence to suggest that IBs that adapted the religious-based accounting regime (AAOIFI) had better levels of ethical disclosure.
Research limitations/implications
Though poor practices of CEID are expected to increase reputational risks and the likelihood of loss of religious conscious customers and investors’ confidence and therefore market share and performance in the long-term, the current practice does not concur with this expectation. Furthermore, since there is no evidence to support the notion that the adoption of AAOIFI standards would support greater initiatives towards level of ethical identity disclosures, a mandatory requirement for effective disclosure through enforcement of AAOIFI’s financial reporting standards, specifically with regard to ethics and social and environmental commitment is needed.
Practical implications
In addition to introducing commonly accepted regulatory and supervisory guidelines and best practices that cater for the specificities of Islamic banking could significantly improve the level of CEID of IBs. In addition, the standardization of ethical (non-financial) reporting practices of IBs through guidelines and key performance indicators will facilitate CEID practices of IBs.
Originality/value
This paper contends that for Islamic bankers, ethics is an entrenched part of the business practice and should mitigate unethical behaviour, more so with the additional filter of Sharīʿah supervisory boards. Even if there are such practices due to ineffectiveness of Sharīʿah committees, management pressure to meet performance expectations and competitive pressures from peers in the conventional banking sector, it will not be in the interest of the banks to report them.
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Corina Joseph, Mariam Rahmat, Sharifah Norzehan Syed Yusuf, Jennifer Tunga Janang and Nero Madi
This paper aims to describe the development of the ethical values disclosure index (EVDi) for Malaysian companies using the Sustainable Development Goal (SDG) 16 and isomorphism…
Abstract
Purpose
This paper aims to describe the development of the ethical values disclosure index (EVDi) for Malaysian companies using the Sustainable Development Goal (SDG) 16 and isomorphism perspectives.
Design/methodology/approach
This paper reports an inclusive examination of international and national guidelines in relation to the code of ethics and ethical values in making the disclosure.
Findings
The final 10 categories and 40 items under review have been developed in an instrument, the proposed EVDi, for measuring the commitment undertaken by companies in communicating ethical values information to stakeholders.
Research limitations/implications
The EVDi may fulfil the function of good governance to inculcate ethical work culture throughout companies.
Social implications
Effective ethical values in communication may reduce the likelihood of illegal activities and cost of acting unethically in organisations.
Originality/value
The value of this paper is its approach of using the isomorphism concept from the institutional theory to address the SDG 16 by developing the EVDi. The new index incorporates core elements of moral values adapted mainly from the professional bodies that regulate the accounting profession and other related organisations. The index is an initiative used to measure companies' commitment to promoting ethical values through disclosure. The efforts to measure the level of commitment supporting the SDG 16 promote effective, accountable and transparent institutions at all levels.
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Denis Cormier, Irene M. Gordon and Michel Magnan
The purpose of this paper is to assess if a firm’s ethical lapses, which result from unethical behavior or actions, influence its social disclosure (SD) practices as well as how…
Abstract
Purpose
The purpose of this paper is to assess if a firm’s ethical lapses, which result from unethical behavior or actions, influence its social disclosure (SD) practices as well as how ethical lapses affect both the firm’s legitimacy within society and its standing in financial markets. This study addresses two-related questions: do a firm’s ethical lapses undermine the credibility of its SD in financial markets, either directly or through a firm’s legitimacy? Do ethical lapses affect a firm’s market value and is this effect mediated by SD and legitimacy?
Design/methodology/approach
Three hypotheses are derived based on two theoretical approaches, information economics and institutional theory. The hypotheses lead ultimately to an examination of a firm’s legitimacy. Ethical lapses are inspired by the Global Reporting Initiative grid and by ISO 26000.
Findings
The results suggest that a firm’s ethical lapses underlie its SD practices and affect its legitimacy and standing in financial markets, the latter being proxied by financial analysts’ forecasts.
Research limitations/implications
The limitations of this study include that alternative ways exist to measure the constructs employed, the measurement of SD is subject to discretionary choices, and the North American sample results may not be generalizable to other countries.
Originality/value
The originality and contributions of this study are based on the use of information economics and institutional theory in a complementary way that recognizes information as serving various purposes and constituencies. Additionally, the paper extends prior research on the SD aspects of CSR by showing it matters to both financial markets and non-financial stakeholders.
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Patricia Everaert, Lies Bouten and Annelien Baele
Using upper echelons theory (UET), the purpose of this paper is to unravel the influence of a CEO’s ethical ideology on the presence of corporate social responsibility (CSR…
Abstract
Purpose
Using upper echelons theory (UET), the purpose of this paper is to unravel the influence of a CEO’s ethical ideology on the presence of corporate social responsibility (CSR) disclosure on corporate websites. It also considers the CEO’s perception of the importance of CSR (i.e. the extent of the CEO’s detachment from the stockholder-oriented logic and attachment to the stakeholder-oriented logic).
Design/methodology/approach
First, a survey was sent to CEOs of large unlisted Belgian companies. Its intention was to assess CEOs’ ethical ideology along the idealism and relativism dimensions and their perceptions on the importance of CSR (PRESOR-detachment-from-stockholder view; PRESOR-attachment-to-stakeholder view), and to gather some demographics. Second, a content analysis of corporate websites was conducted so as to classify companies as being either CSR disclosing or non-disclosing. Third, the annual accounts of these corporations were investigated and follow-up phone calls were conducted to obtain data on managerial discretion (MD).
Findings
CEOs’ ethical ideology influences the degree to which they detach from the stockholder-oriented logic and attach to the stakeholder-oriented logic. Moreover, when MD is high, the degree of these CEOs’ attachment to the stakeholder-oriented logic is the factor that influences the presence of CSR disclosure on their corporate websites. Finally, CEO’s idealism indirectly influences the presence of CSR disclosure through the effect of idealism on the degree to which CEOs attach to the stakeholder-oriented logic.
Originality/value
This paper shows that, when MD is high, CEOs’ values and perceptions influence CSR disclosure decisions. This study thereby enhances our knowledge regarding the internal drivers of CSR disclosure practices and offers UET as a lens through which the importance of CEOs’ personal characteristics in the decision-making process might be further explored.
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Jill Frances Solomon and Aris Solomon
The purpose of this paper is to determine the extent to which social, ethical and environmental (SEE) disclosure is being integrated into institutional investment. The aim is also…
Abstract
Purpose
The purpose of this paper is to determine the extent to which social, ethical and environmental (SEE) disclosure is being integrated into institutional investment. The aim is also to investigate the interplay between private and public SEE disclosure.
Design/methodology/approach
The paper uses a grounded theory methodology involving interviews with 21 members of the UK institutional adjustment community.
Findings
The paper found that institutional investors did not consider that public SEE disclosure was adequate for their portfolio investment decisions, suggesting that SEE disclosure was decision‐useful. Consequently, this perceived market failure in public SEE disclosure has been supplemented by the development of sophisticated private SEE disclosure channels. Further, the interviews indicated that this private SEE disclosure process was becoming dialogic in nature, since not only were institutional investors initiating the engagement process with companies but also companies were starting to request information on the SEE disclosure required by institutional investors. This finding contrasts with previous work which found that the private disclosure process in financial reporting was essentially user‐oriented and uni‐directional.
Originality/value
This paper highlights the importance of SEE disclosure to a crucial user group, institutional investors. The research contributes to the SEE disclosure literature by revealing details of the evolving private SEE disclosure process for the first time.
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The purpose of this paper is to investigate the effects of human resource disclosure on corporate image.
Abstract
Purpose
The purpose of this paper is to investigate the effects of human resource disclosure on corporate image.
Design/methodology/approach
The information about human resources presented in their annual reports by 105 Spanish listed companies was grouped in three categories, previously defined in literature. We distinguish information about human capital (items usually included as human capital in Intellectual Capital reports), social information about employees and information about ethics questions relative to employees. A content analysis of these 105 annual reports was conducted to measure human resource disclosure and a regression analysis was carried out to study the impact of this information on company image.
Findings
The findings reflect the significant effect of the three categories of human resource disclosure on corporate image.
Practical implications
This study might encourage firms to improve their disclosure policy on issues related to human capital, such as training, and on social and ethical aspects of employees, such as health and safety at work and working rights.
Originality/value
This paper contributes to research on human resources by confirming the impact not only of information about human capital, which is mainly oriented to shareholders, but of social and ethical information about employees, oriented as well as to stakeholders, on corporate reputation.
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Justyna Bell, Agnieszka Trąbka and Paula Pustulka
This article engages with the framework of performativity to unpack ethical challenges of interviewing migrants in the setting of shared ethnic background of researchers and…
Abstract
Purpose
This article engages with the framework of performativity to unpack ethical challenges of interviewing migrants in the setting of shared ethnic background of researchers and participants. From a temporal perspective of shifting contexts from a shared space of the research process, to the post-research reciprocity management, it focusses on the particular aspect of disclosure.
Design/methodology/approach
Drawing on several qualitative studies performed by the authors as Polish migrant researchers with Polish migrant communities in Norway, Germany and the United Kingdom, the article documents the ethical challenges that come from a shifting “audience” of the research performance.
Findings
Specifically, it discusses how the researchers perform their roles in the field with the focus on rapport building (relational disclosure), to then addressing how this performance changes when the dissemination of findings (representational disclosure) begins and continues over time.
Practical implications
This article contributes to the long-standing anthropological debate on self-reflection in the field. Also, demythologizing the relations between a researcher and participants, as well as cautioning research by reporting difficulties at different stages of the research process, will likely make it easier for future researchers who may now be better prepared and anticipate the complexities of doing fieldwork. From a temporal perspective, it can also help a broader scientific community avoid pitfalls from presenting unfavourable results prematurely. Thus, the authors hope that this paper may sensitize migration scholars to the possible predicaments in the process of interviewing their co-ethnics.
Originality/value
A methodological innovation lies in a clear focus on the cluster of ethical disclosure dilemmas and the article contributes to a lively debate on ethics of “insider research” in migration studies.
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Hanen Khaireddine, Bassem Salhi, Jabr Aljabr and Anis Jarboui
The purpose of this study is to investigate how board characteristics impact the governance, environmental and ethics disclosure. Board characteristics such as board size, gender…
Abstract
Purpose
The purpose of this study is to investigate how board characteristics impact the governance, environmental and ethics disclosure. Board characteristics such as board size, gender diversity, board independence, CEO/chair duality and board meeting are included.
Design/methodology/approach
This study is based on a sample of 82 companies listed in the SBF120 between 2012 and 2017. A number of econometric techniques are used such as generalized least squares to test the panel regressions.
Findings
Board independence, board gender diversity and board meetings have a positive and significant influence on governance, environmental and ethics disclosure. Board size is positively and significantly associated only with corporate environmental disclosure. The adoption of Global Reporting Initiatives (GRI, G4) has not affected or biased the corporate governance (CG), environmental and ethics disclosure.
Originality/value
This study adds to the literature on management reporting behavior and ethics and contributes to the extant CG literature by offering new evidence on the disclosure of good CG practices as well as environmental and ethics behavior. This study offers new insights about the potential influence of board characteristics on such specific disclosure practices focusing “during the optional period of GRI4 and after their mandatory adoption”.
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