The reality of social responsibility accounting in commercial banks listed on the Amman Stock Exchange
-
Author(s)Nahed Habis AlrawashedhLink to ORCID Index: https://orcid.org/0000-0001-8810-3706
-
DOIhttp://dx.doi.org/10.21511/bbs.18(2).2023.06
-
Article InfoVolume 18 2023, Issue #2, pp. 63-74
- Cited by
- 444 Views
-
221 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The modern concept of social responsibility states that in the due course of business, enterprises should pay due attention to social interests of stakeholders as a whole as most of the decisions taken by a company affect all the stakeholders. Through these means, companies are now focusing on informing their stakeholders about their contribution to social responsibility through disclosures made in annual reports. In this direction, this study is being conducted with the aim of examining the social responsibility accounting disclosures (SRA) of the banks listed on the Amman stock market. The study analyzed data from 14 Amman Stock Exchange banks for ten years from 2012 to 2021. Data for the study were gathered from Amman Stock’s official website. The results of the study confirm that the extent of disclosures on SRA has been decreasing over the study period, and such a trend has been seen in all the four sub-dimensions (community, environment, employees, and stakeholders) of SRA. The results of the study confirm that social responsibility accounting disclosures differ significantly across the set of business characteristics like firm size, firm age, and equity ratio. The results also confirm a significant negative relationship between bank size and equity ratio with SRA and a significant positive relationship between age and profitability with SRA. The study results suggest that SRA disclosures should be increased both in terms of volume and pattern.
- Keywords
-
JEL Classification (Paper profile tab)M14, M40, M41
-
References51
-
Tables6
-
Figures1
-
- Figure 1. Heteroscedasticity plot
-
- Table 1. Banks included in the sample
- Table 2. Year-wise distribution of variables
- Table 3. SRA disclosure by banks across years
- Table 4. Difference in SRA across business characteristics
- Table 5. Factors affecting SRA
- Table A1. Questionnaire
-
- AL-Hawatmah, Z., & Shaban, O. S. (2018). Social Accounting & Social Responsibility Reporting in The Jordanian Industrial Companies Listed in Amman Stock Exchange Market. Ekonomski Pregled, 69(4), 459-471.
- Alrashedh, N. H. (2022). Role of Information Technology in improving the work of External Auditor, A Study of Jordan. Central European Management Journal, 30(4), 1535-1547.
- Alrawashedh, N. H. (2020). Management of Earnings and Shareholding Structure: Evidence from Jordan.Test Engineering and Management, 83(5), 8724-8740.
- Alrawashedh, N. H. (2021). Evaluation of continuity impact under the Covid 19 pandemic, during the preparation of 2020 financial reports, and external auditors report of public limited shares companies in Jordan. Indian Journal of Economics and Business, 20(3), 291-310.
- Altaf, N. (2022). Mandatory corporate social responsibility and provision of trade credit: Evidence from India. Journal of Public Affairs, 23(1), e2830.
- Alvarado-Herrera, A., Bigne, E., Aldas-Manzano, J., & Curras-Perez, R. (2017). A scale for measuring consumer perceptions of corporate social responsibility following the sustainable development paradigm. Journal of Business Ethics, 140(2), 243-262.
- Anderson, J. C., & Frankle, A. W. (1980). Voluntary social reporting: An iso-beta portfolio analysis. Accounting Review, 55(3), 467-479.
- Bayoud, N. S., Kavanagh, M., & Slaughter, G. (2012). Factors influencing levels of corporate social responsibility disclosure Libyan firms: A mixed study. International Journal of Economics and Finance, 4(4), 13-29.
- Beesley, M., & Evans, T. (1978). Corporate Social Responsibility: A Reassessment. London: Croom Helm.
- Bidari, G., & Djajadikerta, H. G. (2020). Factors influencing corporate social responsibility disclosures in Nepalese banks. Asian Journal of Accounting Research, 5(2), 209-224.
- Bowen, H. R. (1978). Social responsibility of the businessman – Twenty years later. In E. M. Epstein & D. Votaw (Eds.), Rationality, legitimacy, responsibility: The search for new directions in business and society (pp. 116-130). Santa Monica, CA: Goodyear.
- Brammer, S., Millington, A., & Rayton, B. (2007). The contribution of corporate social responsibility to organizational commitment. The International Journal of Human Resource Management, 18(10), 1701-1719.
- Branco, M. C., & Rodrigues, L. L. (2006). Communication of corporate social responsibility by Portuguese banks: A legitimacy theory perspective. Corporate Communications: An International Journal, 11(3), 232-248.
- Branco, M. C., & Rodrigues, L. L. (2008). Factors influencing social responsibility disclosure by Portuguese companies. Journal of Business Ethics, 83(4), 685-701.
- Carnevale, C., Mazzuca, M., & Venturini, S. (2012). Corporate social reporting in European banks: The effects on a firm’s market value. Corporate Social Responsibility and Environmental Management, 19(3), 159-177.
- Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International Journal of Management Reviews, 12(1), 85-105.
- Cho, C. H., & Patten, D. M. (2007). The role of environmental disclosures as tools of legitimacy: A research note. Accounting, Organizations and Society, 32(7-8), 639-647.
- Colquitt, J. A., Conlon, D. E., Wesson, M. J., Porter, C. O., & Ng, K. Y. (2001). Justice at the millennium: a meta-analytic review of 25 years of organizational justice research. Journal of Applied Psychology, 86(3), 425-445.
- Cortez, M. A. A., & Cudia, C. P. (2011). The virtuous cycles between environmental innovations and financial performance: Case study of Japanese automotive and electronics companies. Academy of Accounting and Financial Studies Journal, 15(2), 31-44.
- Gambling, T. E. (1974). A system dynamics approach to human resource accounting. The Accounting Review, 49(3), 538-546.
- Gholami, S., Parvizi, M., TamriNeia, A., Nemati, S., Abgineh, M., & Emami, M. (2012). Social Responsibility Accounting: From Theory to Practice. Journal of Basic and Applied Scientific Research, 2(10), 10111-10117.
- Gilberthorpe, E., & Banks, G. (2012). Development on whose terms? CSR discourse and social realities in Papua New Guinea’s extractive industries sector. Resources Policy, 37(2), 185-193.
- Gordon, I. M., & Gelardi, A. M. (2005). Factors That Affect Understanding of Social Responsibility Accounting. Canadian Accounting Perspectives, 4(1), 31-59.
- Hamidu, A. A., Haron, M. H., & Amran, A. (2018). Profit motive, stakeholder needs and economic dimension of corporate social responsibility: Analysis on the moderating role of religiosity. Indonesian Journal of Sustainability Accounting and Management, 2(1), 1-14.
- Hung, D., Tuan, T., & Anh, N. (2020). Factors affecting the application of social responsibility accounting. Accounting, 6(4), 597-604.
- Ingram, R. W. (1978). An investigation of the information content of (certain) social responsibility disclosures. Journal of Accounting Research, 16(2), 270-285.
- Ismail, M. (2009). Corporate social responsibility and its role in community development: An international perspective. Journal of International Social Research, 2(9), 199-209.
- Jamali, D., & Sidani, Y. (2012). Introduction: CSR in the Middle East: Fresh perspectives. In CSR in the Middle East (pp. 1-10). London: Palgrave Macmillan.
- Jansson, J., Marell, A., & Nordlund, A. (2010). Green consumer behavior: determinants of curtailment and eco-innovation adoption. Journal of Consumer Marketing, 27(4), 358-370.
- Lantos, G. P. (2002). The ethicality of altruistic corporate social responsibility. Journal of Consumer Marketing, 19(3), 205-232.
- Linowes, D. F. (1968). Socio-economic accounting. Journal of Accountancy, 126(000005), 37.
- Liu, X., & Anbumozhi, V. (2009). Determinant factors of corporate environmental information disclosure: an empirical study of Chinese listed companies. Journal of Cleaner Production, 17(6), 593-600.
- Menassa, E. (2010). Corporate social responsibility: An exploratory study of the quality and extent of social disclosures by Lebanese commercial banks. Journal of Applied Accounting Research, 11(1), 4-23.
- Nejati, M., Quazi, A., Amran, A., & Ahmad, N. H. (2017). Social responsibility and performance: does strategic orientation matter for small businesses? Journal of Small Business Management, 55(1), 43-59.
- Nguyen, T. H., Vu, Q. T., Nguyen, D. M., & Le, H. L. (2021). Factors influencing corporate social responsibility disclosure and its impact on financial performance: The case of Vietnam. Sustainability, 13(15), 8197.
- Nik Ramli, N. A. R. (2007). Employee involvement in EMS/ISO and its spillover effect in consumer environmentally responsible behavior (Doctoral Thesis). Universiti Sains Malaysia, Malaysia.
- Obara, L. J., & Peattie, K. (2018). Bridging the great divide? Making sense of the human rights-CSR relationship in UK multinational companies. Journal of World Business, 53(6), 781-793.
- Pedersen, E. R. (2010). Modelling CSR: How managers understand the responsibilities of business towards society. Journal of Business Ethics, 91(2), 155-166.
- Pickett-Baker, J., & Ozaki, R. (2008). Pro-environmental products: marketing influence on consumer purchase decision. Journal of Consumer Marketing, 25(5), 281-293.
- Porter, M. E., & Kramer, M. R. (2002). The competitive advantage of corporate philanthropy. Harvard Business Review, 80(12), 56-68.
- Ross, G. F. (1997). Career stress responses among hospitality employees. Annals of Tourism Research, 24(1), 41-51.
- Sarkar, R. (2008). Public policy and corporate environmental behaviour: A broader view. Corporate Social Responsibility and Environmental Management, 15(5), 281-297.
- Shahwan, Y., Hamza, M., Al-Fasfus, F., Al-Ramahi, N., & Almubaydeen, T. H. (2022). Social responsibility accounting, disclosure and real practice: Evidence from Jordan. Asian Economic and Financial Review, 12(3), 164-182.
- Shen, J., & Jiuhua Zhu, C. (2011). Effects of socially responsible human resource management on employee organizational commitment. The International Journal of Human Resource Management, 22(15), 3020-3035.
- Shrivastava, P. (1995). The role of corporations in achieving ecological sustainability. Academy of Management Review, 20(4), 936-960.
- Tilt, C. A. (2010). Corporate responsibility, accounting and accountants (pp. 11-32). Springer Berlin Heidelberg.
- Turker, D. (2009). Measuring corporate social responsibility: A scale development study. Journal of Business Ethics, 85(4), 411-427.
- Walker, S. P. (2016). Revisiting the roles of accounting in society. Accounting, Organizations and Society, 49, 41-50.
- Walters, G. (2009). Corporate social responsibility through sport: The community sports trust model as a CSR delivery agency. Journal of Corporate Citizenship, 35, 81-94.
- Wildowicz-Giegiel, A. (2014). The evolution and the new frontiers of social responsibility accounting. Problems of Management in the 21st Century, 9(1), 95-102.
- Yam, L. H. S., & Ismail, M. (2009). Corporate social responsibility in Malaysia housing developments house-buyers. In Perspectives presented at The 15th annual conference of the Pacific Rim Real Estate Society. Sydney, Australia.
-
The role of accounting in sustainable development
Inna Makarenko 
,
Alex Plastun
doi: http://dx.doi.org/10.21511/afc.01(2).2017.01
Accounting and Financial Control Volume 1, 2017 Issue #2 pp. 4-12 Views: 7823 Downloads: 4774 TO CITEIdeology of Sustainable Development and Sustainable Development Goals influence the transformation of business processes in the companies. Professional accountants are important part of this transformation. In this paper the role of accounting in Sustainable Development Goals achievement is discussed. Different approaches to structuring the role of professional accountants in Sustainable Development are investigated. Among them are types of roles that perform accountants, their professional functions, skills and competencies in the corporate environment. As the result a holistic vision of the role of accounting in sustainable development in the new economic conditions is provided.
-
Evaluating the nationalization & privatization effect: a case of Indian banking industry
Manju Rajan Babu ,
Ashok Kumar M.
doi: http://dx.doi.org/10.21511/bbs.13(1).2018.02
Banks and Bank Systems Volume 13, 2018 Issue #1 pp. 11-21 Views: 2902 Downloads: 409 TO CITE АНОТАЦІЯThe facilitation of economic transactions and friendly investor environment is undertaken through effective performance of financial systems. Mobilization of savings and funding the profitable business opportunities are essential in improving the efficiency of intermediation. The study aims to evaluate the effects of nationalization and privatization on Indian banks. Various factors have been considered to examine the effects of privatization and nationalization, including sources of public sector inefficiency, measures of firm performance, econometric issues, and the mode of privatization. The data was collected for the period of 1998 to 2016 from Indian banks. Data Envelopment Analysis (DEA) was used to evaluate the financial reports of the banks selected to evaluate the efficiency of input and output variables. Positive results were observed, concerning the efficiency and profitability of banking industry after banks’ privatization. Performance of private banks has been observed effective and efficient as compared to the public sector banks. Privatization of banks must be increased and maintained to sustain the efficiency of the banks and implement strategies to maintain the assets. Future studies may recruit more appropriate sample size to evaluate the privatization and nationalization effects of Indian banking industry. Greater number of banks will provide more precise results, using data envelopment analysis.
-
ERP implementation in banks: success factors & impact on financial performance
Banks and Bank Systems Volume 12, 2017 Issue #4 pp. 17-30 Views: 2750 Downloads: 1155 TO CITE АНОТАЦІЯThe study aims to measure the extent of implementing ERP systems in the banking sector in Jordan, and identify the main factors that influence the implementation decision, in addition to measure the impact of the post-implementation of the ERP system on the financial performance. The study utilized a content analysis as a research instrument. The study of population consisted of all the banks in Jordan, where the study applied ‘Purposive Sample’ type. Therefore, the study included 11 banks from 2011 to 2016.
The study indicated that the implementation year of the ERP system started in most of the Jordanian banks in 2013, and the rates vary from bank to bank according to their importance and the level of awareness. Training courses are considered the main variable that these banks face in the process of implementation. In addition, awareness of the advantages, the cost, and supporting the infrastructure are the core factors needed to influence the implementation decision.
There is no impact when implementing an ERP system on the financial performance of the Jordanian banks in regard to the ROI and the DPS; on the other hand, there is an impact of the ERP system on the overall performance of the banks.
The study recommends to disseminate knowledge on the advantages of implementing of ERP system in Jordanian banks and to develop the IT department efficiency. Moreover, it will be worthwhile to examine the effect of ERP systems by utilizing financial and non-financial measurements.
