Examining the quantity and quality of online sustainability disclosure within the Jordanian industrial sector: a test of GRI guidelines
-
DOIhttp://dx.doi.org/10.21511/ppm.17(4).2019.12
-
Article InfoVolume 17 2019, Issue #4, pp. 141-152
- Cited by
- 862 Views
-
173 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Reporting on corporate sustainability practices as being in congruence with social expectations is the core idea of legitimacy theory. Therefore, nowadays many organizations are making efforts to inform their stakeholders about the social, environmental and economic changes in their performance. Consistent with the argument above, this paper aims to examine the quantity and quality of corporate online sustainability information of the industrial sector in Jordan based on the Global Reporting Initiative guidelines. In line with content analysis method, this paper analyzes the quantitative sustainability indicators disclosed during last 7 years (2012–2018) by all the industrial sub-sectors listed on the website of Amman Stock Exchange. The results revealed that although all Jordanian industrial sub-sectors practice of the quantitative sustainability disclosure is in a modest degree in the period of 2012–2018, the emphasis on environmental and economic indicators was less than on social indicators in the corporate online reports. Results on qualitative analysis indicated that, considering all sustainability indicators, only the disclosure on indirect economic impacts, procurement practices, product responsibility, and economic performance have been reported at satisfactory levels of quality but with no compliance of GRI guidelines. According to the obtained results, policy makers in the Jordanian industrial sector should be very important players in order to open the channels of dialogue with corporate managers on the importance of their role in taking more responsibility for their non-financial operations. Consequently, this should ensure more transparent accountability through more quantitative and qualitative sustainability disclosure in the corporate reports.
- Keywords
-
JEL Classification (Paper profile tab)M41, M48
-
References36
-
Tables4
-
Figures2
-
- Figure 1. Total words of CSD from 2012 to 2018
- Figure 2. Total words of sustainability disclosure by sub-sectors
-
- Table 1. Rating and scoring criteria of qualitative and quantitative information
- Table 2. The study population
- Table 3. Quality of CSD indicators from 2012 to 2018
- Table 4. Quality of CSD indicators by sub-sectors
-
- Abd-Mutalib, H., Jamil, C., & Hussin, W. (2014). The Availability, Extent & Quality of Sustainability Reporting by Malaysian Listed Firms: Subsequent to Mandatory Disclosure. Asian Journal of Finance & Accounting, 6(2), 239-257.
- Abu-Baker, N., & Naser, K. (2000). Empirical Evidence on Corporate Social Disclosure (CSD) Practices in Jordan. International Journal of Commerce and Management, 10(3/4), 18-34.
- Adams, C., & Frost, G. (2006). Accessibility & Functionality of the Corporate Web Site: Implications for Sustainability Reporting. Business Strategy & the Environment, 15(4), 275-87.
- Alcaraz-Quiles, F., Navarro-Galera, A., & Ortiz-Rodrıguez, D. (2015). Factors determining online sustainability reporting by local governments. International Review of Administrative Sciences, 81(1), 79-109.
- Anderson, D. (2010). Statistics for Business & Economics (2nd ed.). Cengage Learning EMEA.
- ASE (2018). The ASE Issued the Guidance on Sustainability Reporting.
- BCCCCEY (2013). Boston College Center for Corporate Citizenship, Value of Sustainability Reporting.
- Branco, M., & Rodrigues, L. (2006). Communication of Corporate Social Responsibility by Portuguese Banks. Corporate Communications, 11(3), 232-248.
- Campbell, D., Craven, B., & Shrives, P. (2003). Voluntary Social Reporting in Three FTSE Sectors: A Comment on Perception and Legitimacy. Accounting, Auditing & Accountability Journal, 16(4), 558-581.
- Campopiano, G., De-Massis, A., & Cassia, L. (2012). The Relationship Between Motivations and Actions in Corporate Social responsibility an Exploratory Study. International Journal of Business and Society, 13(3), 391-425.
- Ching, H., Gerab, F., & Toste, T. (2013). Analysis of Sustainability Reports & Quality of Information Disclosed of Top Brazilian Companies. International Business Research, 6(10), 62-77.
- Chiu, T. K., & Wang, Y. H. (2015). Determinants of Social Disclosure Quality in Taiwan: An Application of Stakeholder Theory. Journal of Business Ethics, 129(2), 379-398.
- Cormier, D., & Gordon, I. (2001). An Examination of Social and Environmental Reporting Strategies. Accounting, Auditing & Accountability Journal, 14(5), 587-617.
- Deegan, C., & Rankin, M. (1996). Do Australian Companies Report Environmental News Objectively? Accounting, Auditing & Accountability Journal, 9(2), 50-67.
- Deegan, C. (2007). Financial accounting theory (2nd ed.). Australia: McGraw-Hill.
- Dissanayake, D., Tilt, C., & Xydias-Lobo, M. (2016). Sustainability Reporting by Publicly Listed Companies in Sri Lanka. Journal of Cleaner Production, 129, 169-182.
- Dowling, J., & Pfeffer, J. (1975). Organizational Legitimacy: Social Values & Organizational Behavior. Pacific Sociological Review, 18(1), 122-136.
- Frost, G., Jones, S., Loftus, J., & Laan, S. (2005). A Survey of CSR Reporting Practices of Australian Reporting Entities. Australian Accounting Review, 15(35), 89-96.
- Gray, R., Kouhy, R., & Lavers, S. (1995). Corporate Social and Environmental Reporting. Accounting, Auditing & Accountability Journal, 8(2), 47-77.
- GRI (2013). Sustainability Reporting can Serve as Bridge Between Business and Sustainable Development.
- Guthrie, J., Cuganesan, S., & Ward, L. (2008). Industry Specific Social and Environmental Reporting: The Australian Food and Beverage Industry. Accounting Forum, 32(1), 1-15.
- Guthrie, J., & Parker, L. (1989). Corporate Social Reporting: A Rebuttal of Legitimacy Theory. Accounting & Business Research, 19(76), 343-353.
- Hahn, R., & Kühnen, M. (2013). Determinants of sustainability reporting: a review of results, trends, theory, and opportunities in an expanding field of research. Journal of Cleaner Production, 59, 5-21.
- Herzig, C., & Godemann, J. (2010). Internet‐Supported Sustainability Reporting: Developments in Germany. Management Research Review, 33(11), 1064-1082.
- Huang, T., & Wang, A. (2010). Sustainability Reports in China: Content Analysis (pp. 154-158). International Conference on Future Information Technology & Management Engineering. Cape Town, Curran Associates.
- Kolk, A. (2010). Trajectories of Sustainability Reporting by MNCs. Journal of World Business, 45(4), 367-374.
- Maubane, P., Prinsloo, A., & Van Rooyen, N. (2014). Sustainability Reporting Patterns of Companies Listed on the Johannesburg Securities Exchange. Public Relations Review, 40(2), 153-160.
- Morhardt, E. (2010). Corporate Social Responsibility & Sustainability Reporting on the Internet. Business Strategy & the Environment, 19(7), 436-452.
- O’Dwyer, B., Unerman, J., & Bradley, J. (2005). Perceptions on the Emergence & Future Development of Corporate Social Disclosure in Ireland. Accounting, Auditing & Accountability Journal, 18(1), 14-43.
- Rezaee, Z. (2017). Corporate Sustainability: Theoretical and Integrated Strategic Imperative and Pragmatic Approach. Journal of Business Inquiry, 16(1), 60-87.
- Roberts, D., & Koeplin, J. (2007). Sustainability Reporting Practices in Portugal: Greenwashing or Triple Bottom line? International Business & Economics Research Journal, 6(9), 29-40.
- Samy, M., Odemilin, G., & Bampton, R. (2010). Corporate Social Responsibility: a Strategy for Sustainable Business Success. An Analysis of 20 Selected British Companies. Corporate Governance: The International Journal of Business In Society, 10(2), 203-217.
- Sobhani, F., Amran, A., & Zauniddin, Y. (2012). Sustainability Disclosure in Annual Reports & Websites: A Study of the Banking Industry in Bangladesh. Journal of Cleaner Production, 23(1), 75-85.
- Suchman, M. (1995). Managing Legitimacy: Strategic & Institutional Approaches. Academy of Management Review, 20(3), 571-610.
- Tyler, T. (2006). Psychological Perspectives on Legitimacy and Legitimation. Annual Review of Psychology, 57, 375-400.
- Yaftian, A. (2011). An Analysis of CSR Contents in Annual Reports of Listed Companies in Iran (Ph.D thesis). Deakin University, Melbourne, Australia.