IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/116098.html
   My bibliography  Save this paper

Developing a Sustainability Reporting Index using the Sustainable Development Goals (SDGs) for Sri Lankan Business Firms

Author

Listed:
  • Soysa, R.N.K.
  • Pallegedara, Asankha
  • Ajantha, Sisira Kumara
  • Jayasena, D.M.
  • Samaranayake, M.K.S.M.

Abstract

While many listed firms in Sri Lanka adapt sustainability reporting into their annual reports, a few firms use a combination of both Global Reporting Initiative (GRI) guidelines and SDGs when preparing sustainability reports. The current study attempts to develop an index to monitor firms' sustainability reporting practices based on both GRI guidelines and SDGs. A sample of 100 firms listed in the Colombo Stock Exchange (CSE) was chosen to evaluate the extent of firms' sustainability reporting. The principal component analysis was employed in the study to examine the reliability of the formulated scoring methodology by evaluating the 17 Sustainable Development Goals. Results indicate that the developed scoring index is efficient for evaluating the sustainability reported content in Sri Lankan firms. The study findings may be useful for organisations and statutory bodies to find a replicable method to measure the sustainable performance of business firms.

Suggested Citation

  • Soysa, R.N.K. & Pallegedara, Asankha & Ajantha, Sisira Kumara & Jayasena, D.M. & Samaranayake, M.K.S.M., 2023. "Developing a Sustainability Reporting Index using the Sustainable Development Goals (SDGs) for Sri Lankan Business Firms," MPRA Paper 116098, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:116098
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/116098/1/MPRA_paper_116098.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luis Fonseca & Filipe Carvalho, 2019. "The Reporting of SDGs by Quality, Environmental, and Occupational Health and Safety-Certified Organizations," Sustainability, MDPI, vol. 11(20), pages 1-20, October.
    2. Waris Ali & Muhammad Rizwan, 2013. "Factors Influencing Corporate Social and Environmental Disclosure (CSED) Practices in the Developing Countries: An Institutional Theoretical Perspective," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 3(3), pages 590-609, March.
    3. Priyanka Garg, 2017. "Development of sustainability reporting index (SRI) with special reference to companies in India," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 44(4), pages 259-273, December.
    4. Priyanka Aggarwal & Ajay Kumar Singh, 2018. "CSR and sustainability reporting practices in India: an in-depth content analysis of top-listed companies," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 15(8), pages 1033-1053, December.
    5. Francesco Rosati & Lourenço Galvão Diniz Faria, 2019. "Business contribution to the Sustainable Development Agenda: Organizational factors related to early adoption of SDG reporting," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(3), pages 588-597, May.
    6. repec:eme:jaar00:jaar-06-2020-0116 is not listed on IDEAS
    7. Patten, Dennis M., 1991. "Exposure, legitimacy, and social disclosure," Journal of Accounting and Public Policy, Elsevier, vol. 10(4), pages 297-308.
    8. Sita deliyana Firmialy & Yunieta Anny Nainggolan, 2018. "Constructing the ideal SRI (sustainability reporting index) framework for Indonesian market: combined perspectives from rating agencies, academics, and practitioners," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 15(5), pages 573-596, December.
    9. Waris Ali & Muhammad Rizwan, 2013. "Factors Influencing Corporate Social and Environmental Disclosure (CSED) Practices in the Developing Countries: An Institutional Theoretical Perspective," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 3(3), pages 590-609.
    10. Bonilla-Priego, Mª Jesús & Font, Xavier & Pacheco-Olivares, Mª del Rosario, 2014. "Corporate sustainability reporting index and baseline data for the cruise industry," Tourism Management, Elsevier, vol. 44(C), pages 149-160.
    11. Andreas Christofi & Petros Christofi & Seleshi Sisaye, 2012. "Corporate sustainability: historical development and reporting practices," Management Research Review, Emerald Group Publishing Limited, vol. 35(2), pages 157-172, January.
    12. Mohamed M. Shamil & Junaid M. Shaikh & Poh-Ling Ho & Anbalagan Krishnan, 2014. "The influence of board characteristics on sustainability reporting," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 22(2), pages 78-97, July.
    13. Hong Yuh Ching & Fábio Gerab, 2017. "Sustainability reports in Brazil through the lens of signaling, legitimacy and stakeholder theories," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 13(1), pages 95-110, March.
    14. Momin, Mahmood Ahmed & Parker, Lee D., 2013. "Motivations for corporate social responsibility reporting by MNC subsidiaries in an emerging country: The case of Bangladesh," The British Accounting Review, Elsevier, vol. 45(3), pages 215-228.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zeeshan Mahmood & Rehana Kouser & Waris Ali & Zubair Ahmad & Tahira Salman, 2018. "Does Corporate Governance Affect Sustainability Disclosure? A Mixed Methods Study," Sustainability, MDPI, vol. 10(1), pages 1-20, January.
    2. Moazzem Hossain & Angela Hecimovic & Aklema Choudhury Lema, 2015. "Corporate Social and Environmental Responsibility Reporting Practices from an Emerging Mobile Telecommunications Market," Australian Accounting Review, CPA Australia, vol. 25(4), pages 389-404, December.
    3. Mihai Carp & Leontina Păvăloaia & Mihai-Bogdan Afrăsinei & Iuliana Eugenia Georgescu, 2019. "Is Sustainability Reporting a Business Strategy for Firm’s Growth? Empirical Study on the Romanian Capital Market," Sustainability, MDPI, vol. 11(3), pages 1-21, January.
    4. Assunta Di Vaio & Luisa Varriale & Angelo Di Gregorio & Samuel Adomako, 2022. "Corporate social performance and non‐financial reporting in the cruise industry: Paving the way towards UN Agenda 2030," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 1931-1953, November.
    5. Emerald Edem Welbeck & Godfred Matthew Yaw Owusu & Rita Amoah Bekoe & John Amoah Kusi, 2017. "Determinants of environmental disclosures of listed firms in Ghana," International Journal of Corporate Social Responsibility, Springer, vol. 2(1), pages 1-12, December.
    6. Kurniawan, Putu Sukma, 2018. "Factors Affecting Company’S Capability In Performing Integrated Reporting: An Empirical Evidence From Indonesian Companies," INA-Rxiv xrcbe, Center for Open Science.
    7. Cecília Carmo & Mercedes Miguéis, 2022. "Voluntary Sustainability Disclosures in Non-Listed Companies: An Exploratory Study on Motives and Practices," Sustainability, MDPI, vol. 14(12), pages 1-22, June.
    8. Jane Andrew & Max Baker, 2020. "Corporate Social Responsibility Reporting: The Last 40 Years and a Path to Sharing Future Insights," Abacus, Accounting Foundation, University of Sydney, vol. 56(1), pages 35-65, March.
    9. Lintang D. Sekarlangit & Ratna Wardhani, 2021. "The Effect of the Characteristics and Activities of the Board of Directors on Sustainable Development Goal (SDG) Disclosures: Empirical Evidence from Southeast Asia," Sustainability, MDPI, vol. 13(14), pages 1-17, July.
    10. Alicia Girón & Amirreza Kazemikhasragh & Antonella Francesca Cicchiello & Eva Panetti, 2021. "Sustainability Reporting and Firms’ Economic Performance: Evidence from Asia and Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 1741-1759, December.
    11. Teresa Vallet‐Bellmunt & Iluminada Fuertes‐Fuertes & María Luisa Flor, 2023. "Reporting Sustainable Development Goal 12 in the Spanish food retail industry. An analysis based on Global Reporting Initiative performance indicators," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 695-707, March.
    12. Jean Christian Ewane Missomba & Josiane Gaëlle Djeugou Ymele & Alexis Ngantchou, 2020. "La diffusion des informations environnementales par les entreprises camerounaises : Typologie des acteurs et des pratiques comptables," Post-Print halshs-03133686, HAL.
    13. Emma Ik. Okoye & Segun idowu Adeniyi, 2018. "Company Age and Voluntary Corporate Social Disclosure in Nigeria: A Study of Selected Listed Manufacturing Firms on the Nigerian Stock Exchange," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(2), pages 138-145, June.
    14. Sadaf Ehsan & Mian Sajid Nazir & Mohammad Nurunnabi & Qasim Raza Khan & Samya Tahir & Ishfaq Ahmed, 2018. "A Multimethod Approach to Assess and Measure Corporate Social Responsibility Disclosure and Practices in a Developing Economy," Sustainability, MDPI, vol. 10(8), pages 1-18, August.
    15. Segun idowu Adeniyi & Helen Oluwatoyin Adebayo, 2018. "Effect of Financial Leverage on Voluntary Corporate Social Disclosure among Listed Firms on Nigerian Stock Exchange: A Study of Selected Manufacturing Firms," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(3), pages 18-24, September.
    16. Rozenn Perrigot & Komlanvi Elom Gbetchi, 2023. "Social franchise chains operating in African countries: are their social goals aligned with the 2030 United Nations sustainable development goals?," Post-Print hal-03715585, HAL.
    17. Marika Arena & Giovanni Azzone & Sara Ratti & Valeria Maria Urbano & Giovanni Vecchio, 2023. "Sustainable development goals and corporate reporting: An empirical investigation of the oil and gas industry," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 12-25, February.
    18. Luis Fonseca & Filipe Carvalho & Gilberto Santos, 2023. "Strategic CSR: Framework for Sustainability through Management Systems Standards—Implementing and Disclosing Sustainable Development Goals and Results," Sustainability, MDPI, vol. 15(15), pages 1-24, August.
    19. Zeeshan Mahmood & Rehana Kouser & Md. Abdul Kaium Masud, 2019. "An emerging economy perspective on corporate sustainability reporting – main actors’ views on the current state of affairs in Pakistan," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 4(1), pages 1-31, December.
    20. Mohammad Sohail Yunis & Laila Durrani & Amad Khan, 2017. "Corporate Social Responsibility (CSR) in Pakistan: A Critique of the Literature and Future Research Agenda," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(1), pages 65-88, March.

    More about this item

    Keywords

    Sustainable development; Sri Lanka; Principal component analysis; SDGs; Sustainability reporting index;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:116098. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.