Issues in Social and Environmental AccountingVol. 4, No. 1 June 2010Pp 3-17            An Overview of Corporate Social and...
4               M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17begins ‘with employee reporting ...
M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17       5performance measurement, poor per-      ...
6                M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17of origin as a determinant of C...
M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17    7(e) Politics and government: Perhaps       ...
8               M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17Common Law and Code Law for diff...
M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17     9comparative study on seven Asia Pacific   ...
10                M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17Although most of the studies u...
M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17     11are identified under the general contex- ...
12               M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17Ahmad, N.N.N. & Sulaiman, M.   ...
M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17    13      prospects for, social reporting in  ...
14               M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17      Business Finance & Accoun...
M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17     15Kamla, R. (2007) “Critically appreciat-  ...
16               M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17       veloping countries: a se...
M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17   17      World Accounting, Vol. 1, pp. 3–     ...
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  1. 1. Issues in Social and Environmental AccountingVol. 4, No. 1 June 2010Pp 3-17 An Overview of Corporate Social and Environmental Reporting (CSER) in Developing Countries Mohammad Badrul Haider Department of Accounting & Information Systems University of Dhaka, Bangladesh Graduate School of Business Administration Kobe University, JapanAbstractThis article is intended to complement the literature reviews on corporate social and environ-mental reporting (CSER) with special focus on the developing countries. It focuses on the fac-tors influencing CSER and their theoretical interpretations. It is found that a wide variety offactors related with the socio-economic and political context in which the corporation existinfluence the corporate decision to engage in CSER. While a number of overlapping theoriescan be used, it is recommended to use the political economy theory for its international implica-tions. This article provides a foundation for future research and development in the area ofCSER.Keywords: Corporate social and environmental reporting (CSER), developing countries, le-gitimacy theory, political economy theory (PET)1. Introduction and the like” (Gray, et al. 2001: 329). The origin of the CSER is largely linkedCSER can broadly be defined as with the dawn of the modern corporation“comprising information relating to a (Bhur, 2007: 59). However, more sys-corporations activities, aspirations and tematic and standardized systems ofpublic image with regard to environ- CSER only really emerged in the late-mental, community, employee and con- 1980s and early-1990s (World Bank,sumer issues. Within these headings will 2004: 11). Bhur (2007: 59) observes thebe subsumed other, more detailed, mat- historical development of CSER andters such as energy usage, equal oppor- concludes that the development oftunities, fair trade, corporate governance CSER is following a slow process whichMohammad Badrul Haider is an Assistant Professor at Department of Accounting & Information Systems Universityof Dhaka, Bangladesh. He is at present- Doctoral Student at Graduate School of Business Administration Kobe Univer-sity, Japan, email:, Acknowledgement: The author is very muchgrateful to Professor Katsuhiko Kokubu of Kobe University for his directions and suggestions on the draft of this paper.Comments from the participants in the 2nd International Conference on Governance Fraud Ethics and Social Responsi-bility, June 9-14, 2010 in Istanbul, Turkey are also gratefully acknowledged.
  2. 2. 4 M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17begins ‘with employee reporting and nants and theoretical interpretation ofthen moves on to social reporting, envi- CSER in the developing economics.ronmental reporting, triple bottom line Similar to their developed counterparts,reporting and eventually, and ideally, corporations in developing countries aresustainability reporting’. also making CSER, although low in vol- ume. It is important here to understandThough the issue of CSER got immense why corporations are making these dis-popularity from the academicians and closures voluntarily. Understandingresearchers over the last few decades, a these factors is important to assess thevery few studies are done from the con- extensiveness, completeness, quantitytext of developing countries (Tsang, and quality of such disclosures. Based1998; Belal, 2001; Islam and Deegan, on the factors identified in objective one2008). Most of the empirical studies are the second objective focuses on the theo-done in the industrialized countries of retical explanations in order to provide aWestern Europe, the USA, Australia, coherent and systematic framework forand Japan. (see Mathews, 1997; Gray et investigating, understanding and devel-al., 1995; Deegan, 2002, for an overview oping CSER. These two aspects mayof the studies). Since the stage of eco- provide a foundation for future researchnomic development along with cultural and development in this area.and other national differences havestrong influence on CSER, so it wouldbe dangerous to generalize the results of 2. CSER in the developing countriesstudies on developed nations to newlydevelop and developing countries CSER is very low, general and descrip-(Tsang, 1998: 624). However, research tive in nature in the developing countriesin the developing country also improves (Imam, 2000; Belal, 2001; Ahmad andspecially during the last decade. Some Sulaiman, 2002; Gunawan, 2007; Mir-notable studies were carried out in the fazli, 2008). However, increasing trendcontext of Malaysia, Thailand, China, is observed in many countries (Tsang,Singapore, Bangladesh, Middle eastern 1998; Ratanajongkol et al., 2006; UNC-countries, South Africa, Nigeria, Ghana, TAD, 2008). Disclosures are voluntary(See Belal and Momin, 2009 for re- and mainly done through corporate an-view). nual reports, primarily in the chairman’s report or director’s report (Haron et al.The objective of this paper is to review 2004; Imam, 2000). To improve corpo-the literature of CSER in the developing rate reputation and image, manage pow-countries. International reviews by Gray erful stakeholders, sustain competitiveet al. (1995), Gray (2002), Deegan advantages and legitimate the corporate(2002), and Parker (2005) give historical activities to the society are some of thedevelopment and comprehensive expla- reasons for CSER (Tee et al., 2007;nation of CSER. However, these studies Tsang, 1998; Belal and Owen, 2007).focus mainly on the developed econom- Reasons for non disclosure are absenceics. This article is intended to comple- of legal requirements, lack of stake-ment these reviews with special focus on holders’ demand, high costs than bene-the developing economics. It emphasizes fits, attitude for secrecy, competitorson two aspects: identifying the determi- poor performance, non consideration in
  3. 3. M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17 5performance measurement, poor per- Interestingly Foo and Tan (1988) andformance and fear of bad publicity (for Andrew et al. (1989) demonstrate bank-details see Belal, 2007; Rowe and Guth- ing and finance sector have the highestrie, 2007). CSER in Singapore. Again Gunawan (2007) in Indonesia finds no relation2.1. Factors influencing CSER between industry type, age, creditors and auditors with extent of CSER but findSeveral studies identify the factors deter- some relations with return on asset andmining the CSER in different countries. owners. Liu and Anbumozhi (2009) inAdams (2002) categories these factors in China show return on asset and financialthree groups: corporate characteristics, leverage are weak in explaining the dis-general contextual factors and internal closure.contextual factors. Rashid & Lodh (2008) from Bangladesh2.1.1. Corporate characteristics and find an insignificant influence of owner-CSER: Researchers in different coun- ship structure but a significant influencetries examine the relationship between of board composition on the CSER inthe CSER and different corporate char- Bangladesh. Haniffa & Cook (2005) inacteristics such as company size, owner- Malaysian perspective examine the asso-ship pattern, company type, financial ciation between CSER and corporateperformances, board composition, influ- governance as measured by proportionence of creditors, multiple exchange list- of non-executive directors in the board,ing, corporate age etc. However, the re- chairman with multiple directorships andsults are inconclusive. proportion of foreign shareholders. Their results indicate a significant relationshipHossain and Reaz (2007) from Indian between CSER and boards dominated byperspective find that size and assets in- executive directors, chair with multipleplace are significant and other variables directorships and foreign share owner-such as age, diversification, board com- ship (p.391).position, multiple exchange listing andcomplexity of business are insignificant, 2.1.2. General contextual factors: Gen-can’t explain the level of disclosure. eral contextual factors include countryCompany size and disclosures are also of origin, culture, political and civil sys-positively related in Foo and Tan (1988); tem, legal system, level of economicAndrew et al. (1989); Gao et al. (2005); development, equity market, time spe-Naser, et al. (2006); Liu and Anbumozhi cific events, media pressure, stake-(2009) studies in Malaysia, Singapore, holders etc. (Adams, 2002: 224). Al-Hong Kong, Qatar and China respec- though a good number of studies relatetively. With regard to the industry af- general contextual factors and disclo-filiation Singh and Ahuja (1983) in In- sures but as noted by Adams (2002: 226)dia, Liu and Anbumozhi (2009) in these factors are complex because ofChina, Gao et al. (2005) in Hong Kong, their interrelationships. Some of the gen-Ahmad and Sulaiman (2002) in Malay- eral contextual factors are discussed be-sia, Mirfazli (2008b) in Indonesia, all low:show positive relationship between envi- (a) Country of origin: The existing lit-ronmental sensitivity and disclosures. erature notes the importance of country
  4. 4. 6 M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17of origin as a determinant of CSER and as Guanxi, trust and secrecy) of Chinasignificant variations in practices across for environmental disclosures is ex-national boundaries (Williams, 1999; plained by Rowe and Guthrie (2007).and for reference of all studies see Ad-ams, 2002; Newson and Deegan, 2002). Religion as a cultural input also has in-Newson and Deegan (2002: 183) for fluence on accounting disclosuresexample in their international compara- (Hamid, et al., 1993). Al-Akra, et al.tive study on Australia, Singapore and (2009) discuss how Islam (religion),Korea conclude that “consistent with which encourages transparency and pro-previous research, country of origin and hibits the hiding of information fromindustry of operation appear to signifi- shareholders or regulators influence thecantly influence disclosure practices”. accounting and disclosure pattern in Jor-Williams (1999) in his study on seven dan. Similarly Kamla (2007) talks aboutAsia Pacific countries finds the same the significance of religion in the nineconclusion. Arab countries and shows how Islam embraces the CSER. All the disclosure(b) Culture and religion: Although a dimensions and even the writing stylesrelatively recent area of study, culture in these countries are significantly influ-provides a possible explanation for many enced by Islamic Sharia or Holy Quran.of the differences in reporting practices(Mathews, 1993: 120). Violet (1983: 8; (d) Economic development: The levelcited in Deegan and Unerman, 2006) of economic development of a countryargues that accounting can’t be isolated also has influence on the disclosure pat-from culture and like other human be- tern. But the results of the empiricalings and social institutions it is culturally studies are mixed with Adhikari anddetermined, so cultural customs, beliefs, Tondkar (1992) and Ahmed (1995) findand institutions influence it. no relation where as Cooke and Wallace (1990), Doupnik and Salter (1995) andHofstede (1980) and Gray’s (1988) mod- Salter (1998) indicate economic contextels on culture are used by different stud- as important explanation for accountingies (such as Zarzeski, 1996; Perera, variation. Companies in the developed1989; Baydoun and Willett, 1995) to countries have greater social pressure forexplain the disclosure pattern in different higher level of CSER as greater eco-countries. However, from the developing nomic development will be accompaniedcountry perspective Williams (1999) by a growth in the number and strengthshows two cultural dimensions uncer- of pressure and monitoring groups.tainty avoidance and masculinity related Coulter (2001) shows that 42% of con-with the CSER in the seven Asia Pacific sumers in North America would punishcountries. Haniffa and Cook (2005) ex- socially irresponsible companiesamine the association between CSER (through product boycotts or bad-and culture as measured by directors’ mouthing) where as only 8% of consum-and shareholders’ ethnicity. Their results ers in Asia. But Williams (1999) in hisindicate a significant relationship be- study on seven Asia Pacific countriestween CSER and boards dominated by find no relation between these two vari-Malay directors. The significance of in- ables.formal institutional cultural norms (such
  5. 5. M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17 7(e) Politics and government: Perhaps (f) Colonization and MNCs: Studies inthe relationship between politics and developing countries also show the in-government with the CSER is best ex- fluence of colonization on the account-plained by de Villiers and Staden (2006) ing and reporting practices (see Wallace,in their study on South Africa. During 1993; Briston, 1990; Chand, 2005;early 1990s the government (African Kamla, 2007; Al-Akra et al. 2009; Ash-National Congress) had the nationaliza- raf and Ghani, 2005). Ball et al. (2003:tion policy and emphasized on environ- 238-240) describe that not only the ac-mental issues as reflected in their elec- counting and reporting system but alsotion manifesto for 1994. By 1999 unem- the accounting education in Hong Kong,ployment, high incidence of HIV/AIDS Singapore, Malaysia are highly influ-and related social problems such as ence by the UK system having being acrime became the most important social colony for a long period of time. Inissues. Consequently ANC addressed Bangladesh and Pakistan, British Com-these issues rather than natural environ- panies Act were in force long after theirment as shown in their manifesto in independence (Ashraf and Ghani, 2005;1999. Consistent with this political and Akhtaruddin, 2005). Evidence alsogovernment agenda environmental dis- shows that most of the former coloniesclosure in South Africa decreased after of France such as Lebanon, Algeria, Tu-an initial period of increase (de Villiers nisia, Morocco, have adopted Frenchand van Staden, 2006: 763). Williams accounting system (Wallace, 1990; Bay-(1999) also finds political and civil sys- doun and Gray, 1990; Hagigi and Wil-tem as an explanatory variable for CSER liams, 1993). Kamla (2007: 151) alsoin seven Asia Pacific countries. Corpora- observes the dominant role of Westerntions from Arabian countries are seen to accounting models in the nine Arabdisclose information supporting govern- countries despite increased interest inment policies and objectives (Kamla, Islamic accounting.2007: 150). Amran and Devi (2008:386) from Malaysia conclude that Multinational corporations, international“institutionalization of the government’s lending institutions such as World Bankaspirations and commitment to CSR is or IMF and organizations like ILO, UNI-perhaps the most appropriate description CEF play a vital role in shaping thefor Malaysian CSR practice”. CSER practices in the developing coun- tries. Islam and Deegan (2008) and BelalRecently government and stock ex- and Owen (2007) examine the role ofchanges in some countries particularly international buyers and parent compa-Malaysia, South Africa and Brazil take nies on the CSER of Bangladesh. Raha-some initiatives to improve the perform- man et al. (2004) from Ghana arguesance of CSER. Lydenberg and Grace that compliance with the institutional(2008) observe that CSER improve sig- requirements of funding agencies suchnificantly after the government and as World Bank is the major influence onstock exchanges initiatives. However, environmental reporting of Volta RiverBelal (2007) emphasizes on the enforce- Authority.ment of laws to bring the requiredchanges in CSER in Bangladesh. (g) Legal systems: Accounting literature also recognizes the legal systems such as
  6. 6. 8 M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17Common Law and Code Law for differ- 3. Theoretical interpretations ofences in accounting practices in different CSER in developing countriescountries (Ashraf and Ghani, 2005). Inmost of the Anglo-American accounting Most of the studies in the developingsystem (which is based on common law countries are descriptive and quantitativesuch as in US, Canada, UK, Australia, explaining the nature, extent and volumeNew Zealand and their former colonies) of CSER without theoretical explana-CSER is voluntary. In contrast, conti- tion. Recently some studies have startednental European countries (France, Ger- to explain the disclosure from socio-many, Belgium, Holland, Sweden and economic and political context usingtheir former colonies based on code law) different theoretical perspectives. Therehave legislations governing the CSER is no significant difference between the(Mathews, 1993: 128). However, Wil- developed and developing countries withliams (1999) in his empirical test on respect to theoretical explanation ofseven Asia Pacific countries finds no CSER. Similar to developed countriesrelationship between CSER and legal political economy, stakeholder and le-system of these countries. gitimacy theories are mostly used by the researchers in the developing countries.2.2.3. Internal contextual factors: Islam and Deegan (2008) observe thatInternal context includes the process of the pressure from the international buy-reporting and attitudes of internal people ers on the garments industry in Bangla-which may influence the CSER (Adams, desh shaped the CSER pattern in2002). Some of the internal contextual BGMEA. They explain the findings us-factors are leadership attitudes, corpo- ing legitimacy, stakeholder and institu-rate governance system, social reporting tional theory by arguing that “a jointcommittee, stakeholders’ engagement, consideration of the three theories pro-cost and benefits of reporting, corporate vides a richer basis for understandingculture etc. Teoh and Thong (1984) from and explaining the reporting behaviorMalaysia and Rahaman (2000) from rather than a particular theory alone” (p.Ghana recognize the top management 856). From the Malaysian perspectivephilosophy as one of the most important Amran and Devi (2008) explain the rolefactors for corporate social awareness. of government on the CSER throughSome studies (such as Lodhia, 2003; institutional theory.Kuasirikun 2005; Jaggi and Zhao, 1996)examine the perceptions of the account- Kamla (2007) uses post colonial theo-ants on CSER. Lack of competence of retical perspective to show the influenceaccountants in CSER in Fiji is identified of history and culture on the CSER pat-by Lodhia (2003). Kuasirikun (2005) tern of the nine Arab Middle Easternobserves an overall positive attitude of countries. Similarly CSER in response toaccounting professionals towards CSER the pressure from social, political andin Thailand which she believes due to economic systems are explained throughtransformation in the nature of the Thai the bourgeois political economy theoryaccounting profession. by Williams (1999) in his international
  7. 7. M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17 9comparative study on seven Asia Pacific most appropriate theory to explain whycountries. corporations respond to social demand for disclosure on their social and envi-de Villiers & van Staden (2006) from ronmental performances as it empha-South Africa argue that legitimacy the- sizes the political, economic, cultural,ory can be used to explain the decreas- social and institutional framework, ining trend in environmental disclosure which the organizations operate. PETwhereas most of the studies on legiti- considers accounting reports as a proac-macy theory show legitimacy can be tive document (Amran and Devi, 2007)achieved either by maintaining or in- for constructing, maintaining and legiti-creasing disclosure. Agency theory and mizing economic and political arrange-legitimacy theory are used by Haron et ments, institutions, and ideologies whichal. (2004) to explain the increasing dis- contribute to the business’s self interestclosure in the recession period compare (Guthrie and Parker, 1990).to pre and post recession periods. Theyopine that reducing the agency cost and CSER in most of the developing coun-increasing the public confidence are the tries is poor, providing only favorablemain reasons for more disclosure (p. 18). information making the reporting asTsang (1998) also embraces legitimacy marketing or public relation manage-theory to analyze the CSER in Singa- ment vehicle. PET can also be used topore. explain this poor or non disclosure (Guthrie & Parker, 1989; Adams et al.,3. 1. Selection of the theory for devel- 1995). It argues that the company delib-oping countries erately will not disclose the information where they believe that disclosure is notThe most important as well as difficult consistent with business self interesttask in CSER research is the choice of (Guthrie & Parker, 1989; Adams et al.,the theory to explain the disclosure as it 1995). As Guthrie and Parker (1990:is complex and can’t fully explained by 170) state that “nondisclosure then, isa particular theory or single level of just as potent a means of mediation andresolution (Gray et al. 1995). As dis- mystification as selected disclosure”.cussed above most of the existing litera- Similarly when disclosures are madeture uses legitimacy, stakeholder or po- these are mainly related to their positivelitical economy theory, considering the contribution to the society thereby im-broader socio-political perspective of proving the image, legitimize the activi-CSER. The choice of alternative theory ties and managing the society in order toshould be based on the factors that deter- protect corporation’s self interest. Formine the corporate decision to engage in example, Teoh and Thong (1984) fromCSER. Section two discusses a wide Malaysian explain that due to direct rela-variety of these internal and external tionship with profitability disclosure infactors. There are variations among the human resources and product/service todeveloping countries in terms of socio- customers categories are higher thaneconomic, political and cultural structure community involvement and physical(Williams and Pei, 1999) and all these environment which are only remotelyfactors affect the decision for CSER. related to profitability.Political economy theory (PET) is the
  8. 8. 10 M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17Although most of the studies utilize the tions in the economy due to the manifestcontent analysis instruments used in the inability of the local government to sat-developed countries (Ernst and Ernst isfy the economic needs of the modern1978, Gray et al., 1995) but the issues world (Gilpin, 1976). It also argues thatrecorded under each category are quite economics should determine politicsdifferent in the developing countries. For (Gilpin, 1976: 186-87). Consistent withexample, Islam and Deegan (2008) in- this argument and rather than preferringclude additional sub categories such as a critical perspective (such as Kamla,child labor elimination, women employ- 2007) it is believed that corporations inment and empowerment and other hu- the developing countries use CSER as aman right issues to the human resource tool to legitimize their performance andcategory. The issue community poverty manage these powerful stakeholdersalleviation is added to the community which are important for their existenceinvolvement category. Similarly Kamla and survival, a view supported by the(2007) also added cultural and religion bourgeois political economy theory.dimensions in her research instrumentfor seven Arab Middle Eastern countries.These show how the broader socio po- 4. Conclusionlitical environment affects the disclosurecategories used by the corporations. CSER as well as research on CSER in the developing countries are still in itsPET also recognizes the role of the gov- nascent stage compare to developernment in the economy. Government though improvements have made inintervention is particularly advantageous many countries especially in the lastin the face of market failures such as decade. This literature survey is basedimperfect competition, externalities, in- on the developing countries where em-stability, inequality and socially undesir- phasis is given on the factors and theable outcomes (Clark, 1991; cited in philosophical explanation for CSER. AWilliams and Pei, 1999: 395). A number wide variety of factors influence the cor-of studies (Tsang, 1998; Amran and porate decision to engage in CSER.Devi, 2008) demonstrate the influence of These factors are elaborately discussedgovernment or other regulatory bodies in section two in three categories givenon CSER in the developing countries. by Adams (2002).PET can also be used to explain the cul- From the limited number of studies intural dimension of CSER in the develop- different countries at different timesing countries as Best and Paterson generalization with respect to the rela-(2009) opine that “global political econ- tionship between corporate characteris-omy is inescapably cultural”. Culture tics and CSER is difficult. However,constitutes political economy by shaping company size is positively related in allthe individual behavior, economic insti- the studies in the developing countriestutions, legal system, actors, and the except Singh and Ahuja (1983), a find-processes. ing similar to developed country (Adams, 2002).Political economy recognizes the domi-nant role of the multinational corpora- As expected a large number of factors
  9. 9. M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17 11are identified under the general contex- tives especially from the variations oftual category as it relates the CSER with the PET such as legitimacy, stakeholderthe socio-economic and political per- or institutional theory as they providespectives. Some of these factors are complementary perspectives and overlapunique to the developing countries such each other (Deegan, 2002). Similarly inas past colonial experience, role of mul- order to explain multiplicity of thetinational corporations and lending insti- CSER it is also possible to use the multi-tutions, culture and religion. These fac- ple theoretical lenses which are alsotors are deeply rooted in the social, po- used by some studies in the developinglitical, economic, legal, education sys- countries (Islam and Deegan, 2008). Fi-tem in most of the developing countries nally whatever the theory the researcherthat special emphasis must be given adopts, it should be based on the broaderwhen examining the CSER practices in socio-economic and political aspect inthese countries. which the company exists and the dis- closures are made.Studies have just started to explore theinternal contextual factors of CSER.However, some studies explain the im- Referencesportance of management philosophy andaccountants role to advance the CSER in Adams, C.A. (2002) “Internal organiza-the developing countries. tional factors influencing corpo- rate social and ethical reporting”,Section three discusses the theoretical Accounting, Auditing & Account-explanation of CSER. Legitimacy, stake- ability Journal, Vol. 15, No. 2, pp.holder and political economy theories 223-50.are mostly used by researchers. Consid- _________, Hills, W.Y. and Roberts,ering the multiplicity of the factors that C.B. (1995) “Environmental, em-determine the corporate decision to en- ployee and ethical reporting ingage in CSER, the author argues in favor Europe”, ACCA Research Reportof political economy theory since most No. 41, Chartered Association ofof the factors are country specific and Certified Accountants, London.related to the socio-economic and politi- Adhikari, A. & Tondkar, R.H. (1992)cal perspective in which the corporation “Environmental factors influenc-exist and disclose information. ing accounting disclosure require- ments of global stock exchange”,It is important here to recognize that Journal of International Financialchoice of any theory, to some extent is Management and Accounting, Vol.the subjective judgment of the re- 4, No. 2, pp. 75-105.searcher (Deegan and Unerman, 2006) Ahmad, N.N.N. & Sulaiman, M. (2002a)especially in social accounting where no “Environmental disclosures inparticular theory is enough to explain the Malaysian annual reports: a study‘richness of insights we need in this of the construction and industrialcomplex and changing field of research products sectors”, European Ac-and action’ (Parker, 2005). While prefer- counting Association 25th Annualring PET, the explanations can also be Congress, Copenhagen Businessmade from the other theoretical perspec- School, Denmark, April 25 – 27.
  10. 10. 12 M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17Ahmad, N.N.N. & Sulaiman, M. corporate social disclosure prac- (2002b), “The state-of-the-art of tices in developing countries: the environmental reporting in Malay- case of Malaysia and Singapore”, sia: an inter-industry compari- British Accounting Review, Vol. son”, Third annual conference of 21, No.4, pp.371-6. the Asian Academic Accounting Ashraf, J., & Ghani, W.I. (2005) Association, Nagoya, October 27- “Accounting development in Paki- 29. stan”, The International JournalAhmed, K. (1995) “The impact of envi- of Accounting, Vol. 40, pp. 175– ronment on disclosure practices: 201. an empirical study”, Asian Review Ball, R., Robin, A., & Wu, J.S. (2003) of Accounting, Vol. 3, No. 2, pp. “Incentives versus standards: 90-104. properties of accounting incomeAkhtaruddin, M. (2005) “Corporate in four East Asian countries”, mandatory disclosure practices in Journal of Accounting and Eco- Bangladesh”, The International nomics, Vol. 36, pp. 235–270. Journal of Accounting, Vol. 40, Baydoun, N. & Willett, R. (1995) No. 4, pp. 399– 422. “Cultural relevance of westernAl-Akra, M., Ali, M., & Marashdeh, O. accounting systems to developing (2009) “Development of account- countries”, ABACUS, Vol. 31, No. ing regulation in Jordan”, The In- 1, pp. 67-92. ternational Journal of Accounting, _________ & Gray, R. (1990) Vol. 44, No. 2, pp. 163–186. “Financial accounting and report-Al-khater, K., & Naser, K. (2003) ing in the Lebanon: an exploratory “Users perceptions of corporate study of accounting in hyperinfla- social responsibility and account- tionary conditions", Research in ability: evidence from an emerg- Third World Accounting, Vol.1, ing economy”, Managerial Audit- pp227–262. ing Journal, Vol. 18, No. 6/7, pp. Belal A.R. (2007) “Absence of corporate 538-548. social reporting (CSR) in Bangla-Amran, A.S. & Devi, S. (2007) desh: A research note”, Presented “Corporate social reporting in in the in the ‘Research Workshop’ Malaysia: an institutional perspec- at the Aston Business School. tive”, World review of entrepre- __________ & Momin, M. (2009) neurship, management, and sus- “Corporate social reporting (CSR) tainable development, Vol. 3, No. in emerging economies: A review 1, pp. 20-36. and future direction” Research in___________ & Devi, S. (2008) “The Accounting in Emerging Econo- impact of government and foreign mies, Vol. 9, pp. 119-143. affiliate influence on corporate __________ (2001) “A study of corpo- social reporting The case of Ma- rate social disclosures in Bangla- laysia”, Managerial Auditing desh”, Managerial Auditing Jour- Journal, Vol. 23, No. 4, pp. 386 – nal, Vol. 16, No. 5, pp. 274-289. 404. __________ & Owen, D.L. (2007) “TheAndrews, B.H., Gul, F.A., Guthrie, J.E., views of corporate managers on and Teoh, H.Y. (1989) “A note on the current state of, and future
  11. 11. M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17 13 prospects for, social reporting in disclosures- a theoretical founda- Bangladesh: An engagement- tion” Accounting, Auditing & Ac- based study”, Accounting, Audit- countability Journal, Vol. 15, No. ing & Accountability Journal, 3, pp. 282–312. Vol. 20, No. 3, pp. 472 – 494. Doupnik, T.S. & Salter, S.B. (1995)Best, J. & Paterson, M. (2009) Cultural “External environment and ac- Political Economy, Routledge: counting practice: a preliminary London and New York. test of a general model of interna-Briston, R.J. (1990) “Accounting in de- tional accounting development." veloping countries: Indonesia and The International Journal of Ac- Solomon islands as case studies counting, Education and Re- for regional cooperation”, Re- search, Vol. 30, No. 2, pp. 189- search in Third World Accounting, 207. Vol. 1, pp. 195-216. Ernst & Ernst (1978), “Social responsi-Buhr, N. (2007) “Histories and ration- bility disclosure surveys”, Ernst ales for sustainability reporting”, and Ernst, Cleveland, OH. in Unerman, J., Bebbington, J., Foo, S. L., & Tan, M. S. (1988) “A com- and O’Dwyer, B. (eds.) Sustain- parative study of social responsi- ability Accounting and Account- bility in Malaysia and Singapore”, ability, pp. 57-69, Routledge: Singapore Accountant, Vol. 13, London & New York. pp. 12-15.Chand, P. (2005) “Convergence of ac- Gao, S. S., Heravi, S., & Xiao, J. Z. counting standards in the South (2005) “Determinants of corporate Pacific island nations-the case of social and environmental report- Fiji”, The Journal of Pacific Stud- ing in Hong Kong: a research ies, Vol. 28, No.2, pp. 269–290. note”, Accounting Forum, Vol.Cooke, T.E. & R.S.O. Wallace. (1990) 29, No. 2, pp. 233-242. “Financial disclosure regulation Gilpin, R. (1976) “The political econ- and its environment” Journal of omy of the multinational corpora- Accounting and Public Policy, tion: three contrasting perspec- Vol. 9, No. 2, pp. 79 -110. tives” The American Political Sci-Coulter, C. (2001) “Global public opin- ence Review, Vol. 70, No. 1, pp. ion on the changing role of com- 184-191. panies”. Corporate Social Re- Gray, R. (2002) “The social accounting sponsibility Monitor. project and accounting, organiza-de Villiers, C., & van Staden, C. (2006) tions and society: privileging en- “Can less environmental disclo- gagement, imaginings, new ac- sure have a legitimising effect? countings and pragmatism over Evidence from Africa”, Account- critique?” Accounting Organiza- ing, Organizations and Society, tions and Society, Vol. 22, No. 7, Vol. 31, pp.763–781. pp. 687-708.Deegan & Unerman, J. (2006) Financial _______, Javad, M., Power, D.M., and Accounting Theory, The McGraw Sinclair, C.D. (2001) “Social and Hill Co. London. environmental disclosure and cor-_________ (2002) “The legitimizing porate characteristics: a research effect of social and environmental note and extension” Journal of
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  13. 13. M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17 15Kamla, R. (2007) “Critically appreciat- nal, Vol. 10, No. 4, pp. 481-531. ing social accounting and report- Mirfazli, E., (2008a) “Corporate social ing in the Arab Middle East: a responsibility (CSR) information postcolonial perspective”, Ad- disclosure by annual reports of vances in International Account- public companies listed at Indone- ing, Vol. 20, pp. 105–177. sia stock exchange (IDX)”, Inter-Kuasirikun, N. (2005) “Attitudes to the national Journal of Islamic and development and implementation Middle Eastern Finance and of social and environmental ac- Management, Vol.1, No. 4, counting in Thailand”, Critical pp.275-284. Perspectives on Accounting, Vol. ________ (2008b) “Evaluate corporate 16, No. 8, pp. 1035–1057. social responsibility disclosure at__________ & Sherer, M., (2004) annual report companies in multi- “Corporate social accounting dis- farious group of industry mem- closure in Thailand”, Accounting, bers of Jakarta stock exchange Auditing & Accountabil- (JSX) Indonesia”, Social Respon- ity Journal, Vol. 17, No. 4, pp. sibility Journal, Vol. 4, No. 3, pp. 629 – 660. 388-406.Liu, Xianbing; Anbumozhi, V. (2009) Naser, K., Al-Hussaini, A., Al-Kwari, “Determinant factors of corporate D., & Nuseibeh, R. (2006) environmental information disclo- “Determinants of Corporate So- sure: an empirical study of Chi- cial Disclosure in Developing nese listed companies”, Journal of Countries: The Case of Qatar”, Cleaner Production, Vol. 17, No. Advances in International Ac- 6, pp. 593-600. counting, Vol. 19, pp. 1-23.Lodhia, S. K. 2003. Accountants re- _________ & Abu-Baker, N. (1999) sponse to the environmental “Empirical evidence on corporate agenda in a developing nation: an social responsibility reporting and initial and exploratory study on accountability in developing Fiji. Critical Perspectives on Ac- countries: The case of Jordan”, counting, Vol. 14, No. 7, pp. 715- Advances in International Ac- 737. counting, Vol. 12, pp. 193–226.Lydenberg, S. & Grace, K. (2008) Newson, M. & Deegan, C. (2002) “Innovations in social and envi- “Global expectations and their ronmental disclosure outside the association with corporate social United States” Report Prepared disclosure practices in Australia, for Domini Social Investments, Singapore, and South Korea”, The New York, pp. 3-44. International Journal of Account-Mathews, M.R. (1993) Socially Respon- ing, Vol. 37, pp. 183–213. sible Accounting, Chapman and Parker, L. D. (2005) “Social and envi- Hall, London. ronmental accountability research:__________ (1997) “Twenty-five years a view from the commentary of social and environmental ac- box”, Accounting, Auditing and counting research: is there a silver Accountability Journal, Vol. 18, jubilee to celebrate?, Accounting, No. 6, pp. 842- 860. Auditing & Accountability Jour- Peasnell, K. (1993) "Accounting in de-
  14. 14. 16 M. B. Haider / Issues in Social and Environmental Accounting 1 (2010) 3-17 veloping countries: a search for Accounting, Vol. 33, No. 2, pp. appropriate technologies", Re- 211-34. search in Third World Account- Salter, S.B., & Doupnik, T.S. (1992) ing, Vol. 2 pp.1-16. “The relationship between legalPerera, H. (1989) “Towards a frame- systems and accounting practices: work to analyze the impact of cul- a classification exercise”, Ad- ture on accounting”, The Interna- vances in International Account- tional Journal of Accounting, Vol. ing, Vol. 5, No. 1, pp. 3-22. 24, No. 1, pp. 42-56. Singh, D.R. & Ahuja, J.M. (1983),Rahaman, A. S. (2000) “Senior manage- “Corporate social reporting in In- ment perceptions of social and dia”, The International Journal of environmental reporting in Accounting, Vol. 18, No 2, pp. Ghana”, Social and Environ- 151-169.ublic sector co mental Accounting, Vol. 20, No. Tee, K.K., Roper, J., & Kearins, K. 1, pp. 7-10. (2007) “Corporate social reporting__________, Lawrence, S., & Roper, J. in Malaysia: a qualitative ap- (2004) “Social and environmental proach”, International Journal of reporting at the VRA: institution- Economics and Management, Vol. alized legitimacy or legitimation 1, No. 3, pp. 453 – 475. crisis?” Critical Perspectives on Teoh, H. Y., & Thong, G. (1984) Accounting, Vol. 15, No. 1, pp. 35 “Another look at corporate social -56. responsibility and reporting: anRashid, A., & Lodh, S. C. (2008) “The empirical study in a developing influence of ownership structures country”, Accounting, Organiza- and board practices on corporate tions and Society, Vol. 9, No. 2, social disclosures in Bangladesh”, pp. 189-206. Research in Accounting in Emerg- Tsang, E.W.K. (1998) “A longitudinal ing Economies, Vol. 8, pp. 211- study of corporate social reporting 237.mitments and socialistic in Singapore: the case of theRatanajongkol, S., Davey H., & Low, M. banking, food and beverages and (2006) “Corporate social reporting hotel industries” Accounting, Au- in Thailand: The news is all good diting and Accountability Journal, and increasing”, Qualitative Re- Vol. 11, No. 5, pp. 624-635. search in Accounting & Manage- UNCTAD (2008) “Review of the report- ment, Vol. 3 No. 1, pp. 67-83. ing status of corporate responsi-Rowe, A.L., & Guthrie, J. (2007) bility indicators”, Report by the “Corporate environmental report- UNCTAD secretariat, Geneva. ing: informal institutional Chinese Violet, W.J. (1983) “The development cultural norms”, 5th Asian Pacific of international accounting stan- Interdisciplinary Research in Ac- dards: an anthropological perspec- counting (APIRA) Conference, tive”, The International Journal of July 8, 2007. Accounting Education and Re-Salter, S.B. (1998) “Corporate financial search, Vol. 18, No. 2, pp. 1-12. disclosure in emerging markets: Wallace, R.S.O. (1990) “Accounting in does economic development mat- developing countries: A review of ter?” The International Journal of the literature”, Research in Third
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