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The effect of award on CSR disclosures in annual reports of Malaysian PLCs

Author

Listed:
  • Abdirahman Anas
  • Hafiz Majdi Abdul Rashid
  • Hairul Azlan Annuar

Abstract

Purpose - – The paper aims to examine the determinants of corporate social responsibility (CSR) disclosures in the annual reports of Malaysian public listed companies (PLCs). In 2006, Bursa Malaysia Berhad (BMB) launched its CSR Framework (effective in 2007) which is supposed to guide the Malaysian PLCs’ CSR disclosures. It is believed that this CSR framework may influence CSR disclosures to be more systematic, yet there is no evidence whether this framework influences the extent and quality of CSR disclosures. Thus, this study examines this area of research. The study also tests the influence of award on CSR disclosures. Design/methodology/approach - – CSR disclosure checklist was developed to analyse the extent and quality of CSR information disclosures in the year 2008 annual reports of the Malaysian PLCs. Findings - – Malaysian PLCs disclose more CSR information related to community and environment than workplace and marketplace CSR themes. On the other hand, the quality of disclosure practices was minimal when it is compared to the extent of disclosure practices. Finally, the study also found that the award’s variable has a significant positive relationship with both the extent and quality of CSR disclosure practices of the Malaysian PLCs. Research limitations/implications - – The recently developed BMB’s CSR framework seems to have impact on the level and systematic CSR reporting practices of Malaysian PLCs. However, the quality of CSR disclosures is considered minimal. Practical implications - – The results of the study bring some practical implications to the regulators, particularly Bursa Malaysia. First, it is good to observe that most companies have practiced specific disclosure in a separate statement with regard to CSR. However, the format of presentation and the extent of disclosure vary among the firms. Second, further guidelines need to be developed to provide a clearer framework of disclosure for CSR information. At the moment, Bursa Malaysia only listed down general principles of CSR themes. In addition, the regulators should also look into the evolving issues in CSR, such as the issue of climate change reporting. For example, the Climate Disclosure Standards Board has issued a voluntary Climate Change Reporting Framework. Originality/value - – This study examined both the traditional (i.e. firm size and profitability) and non-traditional (i.e. award) factors influencing management’s decision to disclose CSR information in the annual reports of the Malaysian PLCs. Furthermore, the study reported how Malaysian PLCs comply with the recently implemented CSR framework issued by BMB.

Suggested Citation

  • Abdirahman Anas & Hafiz Majdi Abdul Rashid & Hairul Azlan Annuar, 2015. "The effect of award on CSR disclosures in annual reports of Malaysian PLCs," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 11(4), pages 831-852, October.
  • Handle: RePEc:eme:srjpps:v:11:y:2015:i:4:p:831-852
    DOI: 10.1108/SRJ-02-2013-0014
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    Citations

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    Cited by:

    1. Samy Garas & Osama El-Temtamy, 2020. "The “simultaneous cycle” between corporate social responsibility and firms’ financial performance," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 17(2), pages 39-50, September.
    2. Ayman Hassan Bazhair & Saleh F. A. Khatib & Hamzeh Al Amosh, 2022. "Taking Stock of Carbon Disclosure Research While Looking to the Future: A Systematic Literature Review," Sustainability, MDPI, vol. 14(20), pages 1-24, October.
    3. Aray, Yulia & Dikova, Desislava & Garanina, Tatiana & Veselova, Anna, 2021. "The hunt for international legitimacy: Examining the relationship between internationalization, state ownership, location and CSR reporting of Russian firms," International Business Review, Elsevier, vol. 30(5).
    4. Niknamian, Sorush, 2019. "Corporate social responsibility and value creation," OSF Preprints bj7xr, Center for Open Science.
    5. Priyanka Verma & Anupam Singh, 2016. "Fostering Stakeholders Trust through CSR Reporting: An Analytical Focus," IIM Kozhikode Society & Management Review, , vol. 5(2), pages 186-199, July.
    6. Krivogorsky, Victoria & Mintchik, Natalia & Alon, Anna, 2023. "Accounting research in former Soviet bloc countries: Past trends and current and future developments," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 50(C).
    7. Tyson B. Mackey & Alison Mackey & Lisa Jones Christensen & Jason J. Lepore, 2022. "Inducing Corporate Social Responsibility: Should Investors Reward the Responsible or Punish the Irresponsible?," Journal of Business Ethics, Springer, vol. 175(1), pages 59-73, January.
    8. Muhammad Zahid & José Moleiro Martins & Haseeb Ur Rahman & Mário Nuno Mata & Syed Asim Shah & Pedro Neves Mata, 2021. "The Interconnection between Decent Workplace and Firm Financial Performance through the Mediation of Environmental Sustainability: Lessons from an Emerging Economy," Sustainability, MDPI, vol. 13(8), pages 1-14, April.
    9. Abeer Mohamed Hassan & Lee Roberts & Jill Atkins, 2020. "Exploring factors relating to extinction disclosures: What motivates companies to report on biodiversity and species protection?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1419-1436, March.
    10. Uyar, Ali & Kuzey, Cemil & Karaman, Abdullah S., 2022. "ESG performance and CSR awards: Does consistency matter?," Finance Research Letters, Elsevier, vol. 50(C).
    11. Garanina, Tatiana & Kim, Oksana, 2023. "The relationship between CSR disclosure and accounting conservatism: The role of state ownership," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 50(C).
    12. Garanina, Tatiana & Aray, Yulia, 2021. "Enhancing CSR disclosure through foreign ownership, foreign board members, and cross-listing: Does it work in Russian context?," Emerging Markets Review, Elsevier, vol. 46(C).
    13. Kar Shun Wong & Azlan Amran & Ei Yet Chu, 2023. "Institutional antecedents of integrated reporting quality: The moderating role of board independence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 621-640, March.
    14. Mohamad Iruwan Ghuslan & Romlah Jaffar & Norman Mohd Saleh & Mohd Hasimi Yaacob, 2021. "Corporate Governance and Corporate Reputation: The Role of Environmental and Social Reporting Quality," Sustainability, MDPI, vol. 13(18), pages 1-24, September.

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