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Article
Publication date: 9 March 2010

Juniatí Gunawan

The purpose of this paper is to investigate the most important corporate social disclosure (CSD) as perceived by the Indonesian stakeholders and the disclosures in…

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Abstract

Purpose

The purpose of this paper is to investigate the most important corporate social disclosure (CSD) as perceived by the Indonesian stakeholders and the disclosures in Indonesian listed companies' annual reports.

Design/methodology/approach

Questionnaire and content analysis methods were applied for the purpose of the study. A total of 306 people from six primary stakeholder groups (shareholders, investors, customers, employees, suppliers, and communities) provided their opinions by ranking the importance of every theme of disclosure. Further, the information disclosed by 119 Indonesian listed companies in their 2003, 2004, and 2005 annual reports was examined.

Findings

The results show that there are gaps between the most important information perceived by the stakeholders and the information disclosed by the companies. This result may indicate that the information disclosed by the companies has not fulfilled the stakeholders' needs. Therefore, the stakeholder theory should be investigated further in this context.

Research limitations/implications

The study is expected to assist Indonesian businesses to focus on the information they disclose in their CSD particularly as a consequence of their corporate social responsibility (CSR).

Originality/value

The paper is based on an original study that addresses the current gap between the CSD needed by the stakeholders and the fact that CSD has been disclosed in the companies' annual reports. The study is particularly valuable for both stakeholders and companies.

Details

Social Responsibility Journal, vol. 6 no. 1
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 30 September 2022

Christopher Agyapong Siaw, David Sugianto Lie and Rahul Govind

The purpose of this study is to examine how corporate communication of their social programs on their websites affects the ratings of those programs by independent rating…

Abstract

Purpose

The purpose of this study is to examine how corporate communication of their social programs on their websites affects the ratings of those programs by independent rating agencies. Firms expend resources on corporate social programs (CSPs) to promote their corporate social responsibility and sustainability credentials. Stakeholders, however, often respond to such “self-promotion” with skepticism because they believe that there are inconsistencies between corporate claims and actions. This research draws on attribution theory as a framework to examine how the perceived CSP performance of firms by uncontrollable sources are affected when firms disseminate CSP information on firm websites, i.e. a controllable source, where their claims may not be verifiable.

Design/methodology/approach

This study uses a two-step, mixed method study for the analysis using data from Fortune 500 companies. A qualitative content analysis process identifies the interfaces of CSP and their communications on firms’ website. The process allows the authors to collect CSP data systematically from firm websites and to identify relevant variables through the patterns that emerge from the analysis. The findings are used in a quantitative analysis to study how the patterns underlying CSP communication on their websites affect the ratings of firms’ CSP by independent rating agencies.

Findings

Results show that the location, the manner, the content and the scope of CSP information dissemination on firm websites, as well as perceived commitment to CSP identified on the website are important drivers of perceived CSP performance. A robustness check using an alternative independent rating of CSP also provides results that are supportive of the findings. In addition, the effects are found to differ by sector of operation, firm age and profitability.

Research limitations/implications

This research suggests that communication of CSPs at controllable sources of firm information dissemination can have a significant effect on the evaluation of CSP at uncontrollable sources when such communication facilitates the assessment of other information from a firm to determine the motive underlying a firm’s CSP.

Practical implications

The findings show that firms and managers can influence the perceived ratings, rankings or scores of their CSP by stakeholders when they put the right information at the right place on their corporate websites. One of the findings shows that even moderate levels of CSP commitment demonstrated on firm websites result in positive perceptions of CSP, which has marked practical implications.

Social implications

The findings show that integrating even a medium level of commitment to CSP increases the positive perceptions of a firm’s CSP. Thus, society benefits from the firm’s action without a substantial impact on the firm’s profits.

Originality/value

This research shows that firm-controlled sources of CSP information dissemination to stakeholders can affect uncontrollable sources of CSP information evaluation.

Book part
Publication date: 10 April 2013

Millicent Danker

The lexicon of corporate governance has ‘transparency’ as a key imperative. Yet transparency as a management principle begs explanation. It also raises several questions…

Abstract

The lexicon of corporate governance has ‘transparency’ as a key imperative. Yet transparency as a management principle begs explanation. It also raises several questions: transparent to whom, how and why? Who decides? Is full transparency desirable? What are its merits and benefits? What are the risks of increased transparency? The answers may lie somewhere between the shareholder and stakeholder views of the modern corporation, with the former defending shareholder-owner primacy and firm profit-maximisation, and the latter offering a values-based approach towards balancing the needs and expectations of all stakeholders. While corporate governance broadly addresses the needs of shareholders and investors, driven by the position that companies need to be better governed for stockholder value, the ‘stakeholder’ view of the corporation has gained ground over the past 20 or so years whereby the modern corporation is accountable not only to its owners, but also society.The transparency debate has emerged in parallel, and with it, issues of privacy and/or secrecy on one hand and the notion of ‘sunlight’ on the other. Transparency’s role has been variously described as the promotion of corporate disclosure and protection of the rights of minority shareholders in the information environment (Bushman & Smith, 2003); the promotion of corporate accountability and advancement of the rights of stakeholders (Clarke, 2004; Donaldson & Preston, 1995; Hess, 2007; Mallin, 2002); a tool to limit information asymmetries (Boatright, 2008; Florini, 2007a, 2007b; Hood, 2006; Lev, 1992); a means to create a level playing field through ethics and fairness (Boatright, 2008; Oliver, 2004); the promotion of market efficiency (Bessire, 2005; Heflin, Subramanyam, & Zhang, 2003); and the prevention of abuse through stakeholder activism (Bandsuch, Pate, & Thies, 2008; Roche, 2005). Aspirations aside, there is lack of consensus as to transparency's dimensions, drivers and dilemmas in corporate behaviour. Indeed, its perceived value to stakeholders and corporations alike remains questionable. In this chapter, the author discusses the governance of corporate transparency and argues that clarity and Board policy are needed to manage transparency activism and its resultant risks.

Article
Publication date: 26 August 2021

Dominika Hadro, Justyna Fijałkowska, Karolina Daszyńska-Żygadło, Ilze Zumente and Svetlana Mjakuškina

This study aims to verify whether non-financial disclosure in the construction industry (CI) responds to stakeholdersinformation needs and explores the most frequent…

Abstract

Purpose

This study aims to verify whether non-financial disclosure in the construction industry (CI) responds to stakeholdersinformation needs and explores the most frequent topics disclosed in terms of the environmental, social and governance (ESG) pillars.

Design/methodology/approach

This study uses a bag-of-words method and latent Dirichlet allocation to match stakeholders’ expectations with information disclosed by companies. This paper assesses the publicly available non-financial disclosure of the 46 European CI companies covered by the Refinitiv database with ESG scores.

Findings

This study provides two main findings. First, it shows the mismatch between stakeholdersinformation needs and what they get in non-financial reporting. Despite non-financial information in CI disclosure, the information disclosed by many CI companies does not meet their users’ information needs. CI companies commonly focus on their sustainable products and health policy while omitting other topics of interest – the circular economy, unethical business behaviour, migrant policy and human trafficking. Second, this study indicates the defects of simple disclosure analysis based on keywords and highlights the importance of context in information analysis.

Practical implications

The proposed novel approach to text analysis offers several practical applications. It is a more effective tool for evaluating companies’ sustainability performance. It may be especially important to ESG rating providers. Additionally, the results may be of interest to companies wishing to improve their communication, and, in particular, to regulators and standard setters in two matters. The first is the need for more pressure to increase awareness among issuers to shift from disclosing large amounts of non-financial information to disclosing good quality non-financial information, which would be appropriate for meeting stakeholders’ expectations. The second is the necessity for deepening issuers’ understanding of the diverse stakeholdersinformation needs, considering the substantial differences among industries and improving communication to meet them.

Originality/value

This study introduces text analysis that, apart from keywords, considers the context of these keywords’ appearances in a report’s narration. It allows a significantly improved understanding of the information disclosed and a more stable grounding for reasoning, leading to better and informed decisions. Moreover, this study verifies how the information disclosed matches stakeholders’ needs. Finally, it enriches the literature on sectoral analysis concerning non-financial disclosure.

Details

Meditari Accountancy Research, vol. 30 no. 3
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 28 September 2021

M.K.C.S. Wijewickrama, Nicholas Chileshe, Raufdeen Rameezdeen and J. Jorge Ochoa

The purpose of this paper is twofold: firstly, to identify the information-centric strategies of external stakeholders that influence the quality assurance (QA) in the…

Abstract

Purpose

The purpose of this paper is twofold: firstly, to identify the information-centric strategies of external stakeholders that influence the quality assurance (QA) in the reverse logistics supply chains (RLSC) of demolition waste (DW) and, secondly, to recognize the determinants for using each strategy.

Design/methodology/approach

Semi-structured interviews were conducted with 21 professionals representing five external stakeholder groups: state and local government agencies, non-government organizations (NGOs), forward supply chain upstream and downstream actors. The data was analyzed based on Creswell's five-step process, and the conventional content analysis was used for coding and generating themes.

Findings

The study found seven information-centric influence strategies: regulating, monitoring, leading, incentivizing, demolition approval, forming contracts and specifications. The state government organizations were the most dominant in influencing the QA in RLSC. All external stakeholders use both aggressive and cooperative strategies. The urgent, legitimate and economic core of the issue decides the type of strategy to exert an information-centric influence over the QA in RLSC of DW.

Originality/value

To the author's best knowledge, this study is one of the first investigations performed based on a theoretical basis within the context of RLSC in the construction industry (CI). This study used empirical data to elaborate the stakeholder theory while providing new knowledge on stakeholder influence, particularly those relevant to information sharing. Thus, this study developed a theoretical base that future researchers in the study domain could use.

Details

Benchmarking: An International Journal, vol. 29 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 25 October 2021

Benson Igboke and Razaq Raj

Accounting literature is definite about the content and presentation of traditional financial statements, but the basic information to be provided in the narrative reports…

Abstract

Purpose

Accounting literature is definite about the content and presentation of traditional financial statements, but the basic information to be provided in the narrative reports of public sector entities remains unsettled. This paper aims to investigate the needs and expectations of stakeholders (primary users and preparers) regarding the content and presentation of narrative reports in the public sector of Nigeria.

Design/methodology/approach

The research used a qualitative approach that draws on stakeholder and contingency theories to collect primary data through in-depth individual interviews using semi-structured questionnaires. Data were analysed by a thematic method using the NVivo 11 Pro software package.

Findings

The study reveals that financial statements constitute the statutory financial reports of public sector entities in Nigeria as narrative reporting is undeveloped, both as a concept and in practice. Stakeholders believe that narrative reporting is required to enhance the accountability usefulness of the annual financial reports published by the government and public agencies. Data analysis further reveals that public perception about the management of government financial resources influences the information needs of stakeholders regarding financial reporting. In addition, stakeholders consider the approved budget as the cornerstone of public financial reporting. Accordingly, users and other stakeholders expect public sector narrative reports to provide budget-based performance information that relates the accounting data presented in the financial statements to the key budgetary provisions, in both financial outlays and service delivery achievements. Stakeholders also expect narrative reports to be presented in plain language and provide information about the impact of financial decisions and actions on the basic socioeconomic variables that signpost citizens’ well-being, such as education, health care, employment and security.

Practical implications

The study suggests that the inclusion of narrative information in the statutory financial reports of public entities in Nigeria is imperative and should engage the attention of policymakers and relevant regulatory authorities. In addition, a more elaborate systematic investigation of the information needs of stakeholders in Nigeria should be undertaken by relevant units of government.

Originality/value

To the best of the authors’ knowledge, this is the first documented research on narrative reporting and the information needs of a broad range of stakeholders in the public sector of Nigeria. The paper identifies the approved budget as the focal point of governmental financial reporting, and a clear linkage between budget provisions, accounting results and service delivery achievements as the basic content of a narrative report in developing countries.

Details

Accounting Research Journal, vol. 35 no. 4
Type: Research Article
ISSN: 1030-9616

Keywords

Article
Publication date: 5 July 2021

Yousuf Kamal

This study aims to explore corporate managers’ perspectives regarding the disclosure (non-disclosure) of social- and environment-related governance information.

Abstract

Purpose

This study aims to explore corporate managers’ perspectives regarding the disclosure (non-disclosure) of social- and environment-related governance information.

Design/methodology/approach

Insights into corporate managers’ perspectives are explored by conducting in-depth personal interviews with senior corporate executives of textile and garment companies in Bangladesh.

Findings

This study establishes that the use of traditional media, such as corporate annual reports, for corporate social responsibility (CSR)-related governance information disclosure can be limited in particular situations, including the case of garment companies, wherein the provision of extensive governance information is necessary, and the information users find special purpose reports, e.g. social audit reports, more comprehensive, credible, and beneficial than annual reports. The results reveal that corporate managers of Bangladeshi supply companies are motivated by financial returns, and they aspire to ensure that buyers (powerful stakeholders) obtain the required CSR-related governance information; this is neither driven by corporate accountability nor transparency. Upon using the managerial branch of the stakeholder theory, the result of this study shows that corporate managers are influenced by powerful stakeholders when they make decisions vis-à-vis the provision of CSR-related governance information.

Originality/value

This study provides an implication for academics and practitioners toward understanding that corporate managers often provide substantive disclosures of CSR-related governance information through alternative media that have not been previously documented in the literature. Herein, a metaphor – veil – is used to illustrate the visibility gap between societal expectations and managers’ perspectives.

Details

Pacific Accounting Review, vol. 33 no. 4
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 3 April 2017

Qiang Li, Wenjuan Ruan, Wenjie Shao and Guoliang Huang

The purpose of this paper is to analyze the demands of the core stakeholders and how these stakeholders drive the information disclosure behaviors of the enterprise and…

Abstract

Purpose

The purpose of this paper is to analyze the demands of the core stakeholders and how these stakeholders drive the information disclosure behaviors of the enterprise and local government.

Design/methodology/approach

Content analysis was conducted. The authors collected and analyzed information disclosure laws and regulations regarding environmental emergencies in China, as well as related media reports and official accident investigation report about the oil pipeline leakage and explosion accident in City Q. The authors divided the whole process of the accident into four stages, i.e., the prodromal stage, acute stage, chronic stage, and resolution stage, and then analyzed the different demands of stakeholders and the different information disclosure behaviors of the enterprise and local government during these four stages.

Findings

During the environmental emergency, the enterprise and local government exhibited information disclosure behaviors for their own benefits. There was severe information asymmetry between the enterprise and local government. Local government acted more positively in terms of information disclosure than the enterprise due to the demands of stakeholders. There were significant differences between the driving effects of different stakeholders. The effects of central government and local communities were the strongest, followed by news media and environmental organizations, whereas general public had the weakest impact. In addition, the effects of stakeholders on the information disclosure varied throughout different stages.

Originality/value

This paper considered a Chinese typical case study, thereby providing details of information disclosure behaviors of the enterprise and local government during an environmental emergency, and making comparative analysis on the driving effects on information disclosure by different stakeholders.

Details

Disaster Prevention and Management: An International Journal, vol. 26 no. 2
Type: Research Article
ISSN: 0965-3562

Keywords

Article
Publication date: 2 January 2014

Michelle Rodrigue

– This paper aims to study the informational dynamics that take place between a firm and its stakeholders with respect to corporate environmental management.

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Abstract

Purpose

This paper aims to study the informational dynamics that take place between a firm and its stakeholders with respect to corporate environmental management.

Design/methodology/approach

The analysis is based on a case study contrasting environmental information reported by the case firm with environmental information about the firm disclosed by four stakeholder groups or their representatives (governments, the community, environmental non-governmental organizations and investors) over three years. The information flow of disclosure is also considered.

Findings

The results suggest that the informational dynamics are composed of multiple related patterns. The patterns range from correspondence between disclosures to stakeholders complementing or contradicting corporate disclosures. Different patterns are associated with different levels of interactions from stakeholders, who are most involved when they combine disclosure patterns around key environmental issues for the forest industry. Limited interactions are observed from the firm, suggesting a symbolic engagement within the dynamics and a strategic accountability approach.

Research limitations/implications

Limitations are found in the focus on disclosure outlets without examination of their production and reception, and in the inherent nature of the documents collected to represent each perspective. Some stakeholder groups were excluded from the study due to data unavailability.

Originality/value

This paper offers an in-depth analysis of firm-stakeholders interactions with respect to environmental reporting and maps the information flow of their disclosure.

Details

Accounting, Auditing & Accountability Journal, vol. 27 no. 1
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 29 January 2021

Yousuf Kamal

The purpose of this paper is to explore stakeholders' expectations in relation to corporate social responsibility (CSR)–related corporate governance practices. The paper…

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Abstract

Purpose

The purpose of this paper is to explore stakeholders' expectations in relation to corporate social responsibility (CSR)–related corporate governance practices. The paper aims to understand how stakeholders' expectations potentially translate into the disclosure of information about CSR-related corporate governance practices.

Design/methodology/approach

The evidence for this study was collected using semi-structured in-depth personal interviews with 18 stakeholders. These include representative of multinational buying companies who source garments from Bangladesh, international as well as local NGOs, news media personnel, senior government officials, trade union leaders and social audit firm.

Findings

This paper finds evidence of stakeholders' dissatisfaction with the disclosures of governance information which tended to be viewed as limited and symbolic in nature. It also finds an apparent disconnection between stakeholder expectations and corporate disclosures.

Originality/value

This paper finds an alternative media of disclosures, for communicating social responsibility related governance information to the stakeholders, which has so far, been neglected by the social accounting researchers.

Details

Asian Review of Accounting, vol. 29 no. 2
Type: Research Article
ISSN: 1321-7348

Keywords

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