csr about bangladeshi company

7/29/2019 Csr About Bangladeshi Company

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Business and Economics Research Journal

Volume2Number3

2011

pp.19-32

ISSN:1309-2448www.berjournal.com

The Corporate Social responsibility Disclosure: A Study of ListedCompanies in BangladeshMd. Abdur Rouf a

a Assist.Prof.,DepartmentofBusinessAdministration,CityUniversity,Bangladesh,[email protected]

Abstract:Thisisanexploratorystudydesignedtoinvestigatetheextantandnatureofcorporatesocialresponsibilitydisclosure(CSRD)incorporateannualreports(CAR)oflistedcompanies in Bangladesh. Specifically, the report examines the relationship betweencorporate attributes and firm-specific factors andcorporate social responsibility disclosures.Data are taken from annual reports of 2007 of the listed companies of Dhaka StockExchanges. The study uses ordinary least squares regression model to examine therelationshipbetweenexplanatoryvariablesandcorporatesocialresponsibilitydisclosureandun-weighted relative disclosure index tomeasurevoluntarydisclosure. The extent ofCSRDlevel is measured using 39 items of information. The result shows a positive associationbetween proportion of Independent Directors (INDs) and Corporate Social ResponsibilityDisclosure (CSRD). But, size of the firm does not affect the level of corporate socialresponsibility disclosure. Control variables suggest that Board Leadership Structure (BLS),Board Audit Committee (BAC) and Percentage Return on Equity (PROE) are positivelyassociatedwithcompanyscorporatesocialresponsibilitydisclosure(CSRD).Theresultshows

thatahigherproportionofindependentnon-executivedirectorsonaboardispositivelyrelatedto the level of corporate social responsibility disclosure but the extent of corporate socialresponsibilitydisclosureisnegativelyrelatedforfirmssize.

Keywords: Corporate social responsibility, Disclosure, Voluntary disclosure, Corporategovernance,Annualreport

JEL Classification:M14,M401. IntroductionTheroleofbusiness,inworldwideandespecially inthedevelopingcountries,

hasevolvedoverthelastfewdecadesfromclassicalprofitmaximizingapproachtoa

socialresponsibleapproach.Itistruehatthatbusinessesarenotonlyresponsibletotheirstockholders butalso toall of theirstakeholders ina broader inclusive sense.Therearemanyreasonsforshiftingtheroleofbusinessfromclassicalconcepttoasocialresponsibleapproach.Enterprisescreatewealthandjobopportunitiesforthesocietyandontheotherhand,theypolluteanddestroyenvironmentandecologywithdevastatingimpactonhumanhealthandbio-diversityworldwide.

Theconceptofsocialresponsibilityofcompanyisrecentphenomenonbutmanyobservers agree that the globalization has spurred its growth and prominence.CorporateSocialResponsibility(CSR)isimportantespeciallyintheareasofgenderequality,race-religion-regionalequality,non-employmentofchildlabor,humanrights,environmental pollution, social-marketing and social activities. The social

responsibility (SR) includesenvironmental, social andhuman rights based impacts


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TheCorporateSocialresponsibilityDisclosure:AStudyofListedCompaniesinBangladesh

wwand initiatives of companies (Suwaidan, 2004) and many countries, in bothindustrializedandthethirdworld,taketheconceptandpracticesseriously(Hossain,etal, 2006). The definition ofSR, therefore, is still beingdebatedand there is noconsensusamongacademiciansorpractitioners(Mohan,2001;Salehetal.,2008).

They argue that, whatever the language used, the basic idea is to understandbusinessaspartofsocietynotsomehowseparatefromit.

Ithasbeenarguedbytheresearchers(like,Hossainetal,2006;Salehetal.,2008; Porwal and Sharma, 1991) that the level of CSRD depends on severalcorporateattributes.Therearesomestudies(forexample,Suwaidan,2004;Salehetal, 2008; Hossain et al, 2006) which empirically examined the extent of socialresponsibilitydisclosureandmeasuredtherelationshipbetweensocialresponsibilitydisclosure and several corporate attributes. However, most of the studies gaveconcentrationondevelopedcountries(e.g.Suwaidan,2004inJordanian;Adamsetal,1998 in Western Europe; Saleh et al, 2008 in Istanbul;Roberts, 1992 inWesternEurope).Very few studiesfocuson developingcountries (e.g.Hossainetal, 2006;

PorwalandSharma,1991in India) andnosuchstudywascarriedoutwithspecialreference toBangladesh.Anwar (2005)stated thatgoodCSRpracticeswillenablecompaniestoattractbetterqualityinvestorsandtobettermeetthechallengesposedbyincreasedcompetitionformarkets.So,itisexpectedthatcompanieswillperformmorecorporatesocialresponsibilities.ItisalsoexpectedthatcompanieswilldisclosemoreinformationintheirCARsregardingCSRs.Thisstudyisdesignedtoinvestigatethe extant and nature of CSRD in CARs of listed companies in Bangladesh.Specifically, the report examines the relationship between corporate attributes andfirm-specificfactorsandcorporatesocialresponsibilitydisclosures.

2. Objectives of this StudyThe aim of this study is to examine the factors that influence companies todisclose social responsibility information in their annual reports. The specific

objectivesofthestudyare:

(a)tomeasurethelevelofcorporatesocialresponsibilitydisclosuremadebythelistedcompaniesinBangladesh.

(b) toexamine theassociationbetweencorporategovernancesattributesandcorporatesocialresponsibilitydisclosureleveloflistedcompaniesinBangladesh.

3. Literature Review and Hypothesis DevelopmentNazlietal.(2003)focusesoncorporatesocialresponsibility(CSR)disclosuresmadeby98listedcompanies,acrossindustries.Contentanalysismethodwasusedin

theirpaper.Theysuggestthatthedisclosureshaveapublic-relationsbias,withaverygeneral,goodnewstypeofdisclosuresbeingthenormandbadnewsdisclosuresareminimal.Tamoietal.(2007)triedtofindoutthelevelandtrendofCSRdisclosurepattern of industrial companies in Malaysia and its relationship with companies'characteristics. Content analysiswas used to analyze the data from the corporateannualreportsofthecompaniesfrom1998to2003forthisstudyandsampleswereselectedusing simple random sampling technique. They find that there is positiverelationship between CSR and companies' turnover, no apparent relationship isnoticed with companies' capital, relationship between CSR and companies'profitabilityispositivebutweakandmoredisclosurebylocalcompaniesascompared

to their foreign counterparts. They show that CSR levelof industrial companies in


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Md.A.Rouf

Malaysiaisincreasingbothintermsofamountofthedisclosureandthenumberofparticipating companies. Nazli et al. (2007) examine the influence of ownershipstructureoncorporatesocial responsibility (CSR)disclosure inMalaysian companyannualreports(CARs).TheirstudyusesaCSRdisclosurechecklisttomeasurethe

extent of CSR disclosure in annual reports and a multiple regression analysis toexamine the association between ownership structure and the extent of CSRdisclosureinannualreports.Theyfindthat,evenamongthelargerandactivelytradedstocksinMalaysia,thereisconsiderablevariabilityintheamountofsocialactivitiesdisclosedincorporateannualreports.Resultsfrommultipleregressionanalysisshowthat, consistent with expectations, companies inwhich the directors hold a higherproportionofequityshares(owner-managedcompanies)disclosedsignificantly lessCSR information, while companies in which the government is a substantialshareholderdisclosedsignificantlymoreCSRinformationintheirannualreports(Nazliet al., 2007). Abdullah et al. try to determine whether board independence andownershiphaveanyinfluenceonthedecisiononCSRdisclosure.Multipleregressionandlogisticregressionanalysisareemployedto test thehypotheses in their study.

They find that family owned firmsare negatively associatedwith the leveland thequality of CSR disclosure. One of the major findings of their study is theineffectiveness of the board of directors in ensuring firms to discharge its socialresponsibility.HossainandReaz(2007)reporttheresultsofanempiricalinvestigationof theextentofvoluntary disclosureby38 listedbankingcompanies inIndia.Theyalso report the results of the association betweencompany specific characteristicsand voluntary disclosureof the sample companies.Theysay that Indianbanksaredisclosingaconsiderableamountofvoluntaryinformation.Theirfindingsalsoindicatethat size and assets-in-place are significant and other variables such as age,diversification, board composition, multiple exchange listing and complexity ofbusinessareinsignificantinexplainingthelevelofdisclosure.

Theextentofliteratureoncorporategovernancefocusesonthedeterminantsofsocial responsibility disclosure and the effect of corporate governance on socialresponsibilitydisclosurese.g.Roberts(1992)inWesternEurope;Ng(1985)inNewZealand;Suwaidan(2004)inJordanian;Saleh,Zulkifli,Muhamad,(2008)inIstanbul;PorwalandSharma(1991)inIndia.Roberts(1992)findsthatmeasuresofstakeholderpower,strategicpostureandeconomicperformancearesignificantlyrelatedtolevelsofcorporatesocialdisclosure.Suwaidan(2004)foundthatthesize,profitabilityandrisk to be significantly and positively associated with the disclosure of socialresponsibility information. Saleh, Zulkifli, Muhamad, (2008) found a relationshipbetween firm sizeand corporate social responsibility.However the authorsare notable to findanysignificant relationshipbetweencorporatesocial responsibility andfinancial performance/profitability. Social responsibility is the major portion of

corporatevoluntarydisclosureinannualreportsofthefirms.However,thereisalackofspecificstudiesregardingontheeffectofcorporatesocialresponsibilitydisclosuresboth in developed and developing countries. No such study was carried out withspecialreferencetoBangladesh.Here,thestudyfocusesthelevelofcorporatesocialresponsibility disclosure linking to board composition, firm size, board leadershipstructure,boardauditcommitteeandprofitability.

3.1. Independent DirectorForthepurposeofthisstudy,thestrengthofcorporategovernanceismeasured

astheproportionofindependentdirectorsontheboard.ChengandCourtenay(2006)andChenandJaggi(2000)foundthatboardswithalargerproportionofindependent

directors are significantly and positively associated with higher levels of voluntary


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disclosure.These findingsareconsistentwithagency theory tenetswhereahigherproportionofindependentdirectorsenhancesvoluntaryfinancialreporting(Barakoet.al.,2006).Thereasonforthisisthatthepresenceofindependentdirectorsreducesthecostofvoluntaryinformationbecausedirectorsaregenerallyindependentofthe

day-to-day businessoperations of the firm.Patelli and Prencipe (2007) stated thatindependent directors are critically important because their extensive knowledge,experience and they are independent from management, and therefore serve animportantroletominimizeagencyproblems.HaniffaandCooke(2002)arguethatanindependent board serves as an important check and balance mechanism inenhancingboardseffectiveness.SupportfortheseassertionsisfurtherprovidedbyPettigrewandMcNulty(1995)andEngandMak(2003).GoodwinandSeow(2002)argue thatsoundgovernancebyboardofdirectors influence thequalityof financialreporting.Consistentwiththisjustificationthefollowinghypothesisisproposed:

H1:Theextentofsocialresponsibilitydisclosurewillbepositivelyrelatedtothepercentageoftheindependentdirectorsontheboard.

3.2. Firm SizeMostofthestudiesfoundthatsizeoffirmdoesaffectthelevelofdisclosureof

companies.Suwaidan(2004);Newetal.(1998);Adamsetal.(1998);Barakoetal.(2006) investigatedthat thelargerthefirm,themorelikelytheywillmakevoluntarydisclosures ofenvironmental issues.Hossainetal. (2006) reportedthatsizeof thefirmdoesnotaffectthelevelofcorporatesocialandenvironmentaldisclosure.Basedon the study done world wide, for example, Watson et al. (2002); Wallace et al.(1994); Ho and Wong (2001); suggested the underlying reasons why larger firmsdisclose more information. The reasons proposed are that managers of largercompanies aremore likely to realize the possible benefits ofbetter disclosure and

small companies are more likely to feel that full disclosure of information couldendanger their competitive position. Suwaidan (2004) find that the firm size isexpected to be positively associated with the extent of social responsibilitydisclosures.Inthisstudy,salesturnoverandtotalassetswillbeusedasthemeasuresofcompanysize.Thefollowingspecifichypotheseshavebeentestedregardingsizeofthefirm:

H2:Theextentofsocial responsibilitydisclosures ispositivelyassociatedwiththetotalassets.

H3:Theextentofsocial responsibilitydisclosures ispositivelyassociatedwiththetotalsales.

3.3. Other Control VariablesAreviewof the literatureonvoluntarydisclosureledtothedecisionto include

several control variables in the multiple regression models for testing the mainhypothesis. These are Board Leadership Structure, Profitability and AuditCommittee. Prior studies have identified board leadership structure significantlyassociated with the level of disclosure (Forker, 1992; Dulacha, 2007). Previousresearchesusedprofitablyasadeterminantofdisclosureincorporateannualreports(Suwaidan,2004;Salehetal,2008;Wallance&Naser,1995;Karim,1996;Owusu-Ansah, 1998). Audit Committee, in previous studies, was found as positivelysignificant in determining disclosure level (Ho and Wong, 2001; McKinnon and

Dalimunthe,1993)


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4. Research Design and Methodology4.1. Disclosure Index Construction and ApplicationIntheinitialstageofthisresearch,comprehensivelistofitemsregardingsocialresponsibility was identified that may be disclosed by companies in their annual

reports.Thelistofdisclosureitemsincludesbothfinancialandnon-financialitemsthatmayberelevanttoinvestmentdecision-making,andwhichthelistedcompaniesmaydisclose. The primary items of social responsibility information include in thedisclosureindexwereselectedfromthestudyofHossain,M.etal.,(2006);Wiseman(1992);PorwalandSharma(1991),whichwereconsideredessentialforcompletingsocialresponsibilitydisclosure.Thepreliminarylistof60itemswasselectedandwassent to various experts (professor, Professional Chartered accounted & Cost andManagementaccountedetc.)forfinalizationonthebasisoftheirfeedback.Theinitiallistof60itemswasreducedto39itemsfinally.Thedisclosureitemsareclassifiedintofive categories: (a) Environmental Information; (b) Employees Information; (c)

CommunityandOthers;(d)Energyand (e)Products.(A listofthe final39 itemsisincludedinAppendix-I)

Thispaperusesanunweightedapproachfordisclosurescoring.Thisapproachismostappropriatewhennoimportanceisgiventoanyspecificuser-groups(Cooke,1989; Hossain et al., 1994; Akhtaruddin, M. et al., 2009). After establishing thedisclosure index, a scoring sheet was developed to assess the extent of socialresponsibilitydisclosure.Ifacompanydisclosesanitemofinformationincludedintheindex, it receives a score of 1, and 0 if it is not disclosed. Themethod of initiallycomputingthedisclosurescoreforeachcompanycanbeexpressedasfollows:

4.2 Sample Selection and Data SourcesSample is taken from annual reports of listed companies on Dhaka Stock

Exchange (DSE). All companies (other than bank, investment, insurance andmiscellaneous)wereconsideredforinclusiveinthesurvey.Themaincriteriausedforsamplingthefirmswere:(i)annualreportsmustbeavailableatthestockexchangeand(ii)thefirmmustbelistedfortheentireperiodofthestudy2007.ThecompanieslistedontheDSEareclassifiedintoseventeencategories(DSE,2008)(AppendixII).Forthepurposeofanalysis,relevantcompanieshavebeenrecategorizedintoseven,i.e. (i) Engineering, (ii) Food & Allied, (iii) Fuel & Power, (iv) Textile & Jute, (v)Pharmaceuticals & Chemicals, (vi) Tannery, Paper & Service and (vii) Cement,Ceramics & IT (see Table-1). On the basis of this category, corporate socialresponsibility attributes were collected from the annual reports of these listedcompanies.Thecomparativedistributionofthecompanies inthepopulationandthesamplearegiveninTable-1.Table-2providesasummaryoftheoperationaldefinition

ofvariableandtheirsources.

DCOR=1j n

dj

Where,

DCOR=theaggregatedisclosuresscore;

dj=1ifthejthitemisdisclosedor0ifitisnotdisclosed;and

n=themaximumscorethatacompanycanobtain.


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4.3. Regression model and Test of HypothesisRegression technique is used for data analysis. The regression equitation is

developed to test the relationship between dependent variable of corporate socialresponsibility disclosure (CSRD) and independent variable of firm specificscharacteristics.TheregressiontechniqueusedtotestH1isasfollows:

Table-1: DistributionofSamplebyIndustryTypesIndustry Types Population Sample Sample to

PopulationNo. % No. % %

EngineeringFood&alliedFuel&powerTextile&JutePharmaceuticals&ChemicalsTannery,Paper&ServiceCement,Ceramics&IT

23341043252219

13%19%6%24%14%13%11%

15141012151215

16%15%10%13%16%13%17%

65%41%100%28%60%55%79%

Total 176 100% 93 100% 53%

TSRDij,t=

Nij

1t

Xij

Where,

TCSRD=Totalsocialresponsibilitydisclosurescoreforthj firmatthetimet,

Nij=thi itemfor thj firm

t=year

TSRD=a+1PIND+2TA+3TSE+4BLS+5PROE+6BAC+

Expectedsign(+)(+)(+)(+)(+)(+)

TCSRD=Totalcorporatesocialresponsibilitydisclosurescorereceivedfromeachcompany

PIND=Percentageofindependentnon-executivedirectorstodirectorsonboard.

TA=Totalassetsofthefirm.

TSE=TotalSalesofthefirm.

BLS=Boardleadershipstructure,1forduelor0non-dual

PROE=PercentageofReturnonequityasnetprofittototalAssets

BAC=Boardauditcommittee,1foryesor0No

a=totalconstant,and

=theerrorterm


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Md.A.Rouf

Thetableshowsthenumberandpercentagesofcompanieswhosedisclosurescoreiswithinthespecifiedrange.

Table-2:Operationaldefinitionsofvariable,expectedsignsandrelationshipintheregression:Independentvariable Operational definition Source of information

Expected sign andrelationship

TCSRDTotalCSRGdisclosureindex

Companyannualreports

Index

1PIND

Ratioofindependentdirectorstothetotalnumberofdirectorsontheboard

Companyannualreports(+)PINDhasasignificantpositiverelationshipwiththelevelofCSRD

2TATotalassetsrepresentthesizeoffirms.

Companyannualreports(+)TAisassociatedpositivelywiththelevelofCSRD.

3TSETotalsalesrepresentthesizeoffirms.

Companyannualreports(+)TSEisassociatedpositivelywiththelevelofCSRD.

4BLS Dichotomous,1or0 Companyannualreports(+)BLSispositivelyrelatedtothelevelofCSRD.

5PROE

PercentageReturnon

equityasnetprofittototalassets Companyannualreports

(+)PROEisassociated

positivelywiththelevelofCSRD.

6BAC

BoardAuditCommittee,1foryesor0forNo

Companyannualreports(+)BACisassociatedpositivelywiththelevelofCSRD.

Table-3: DescriptiveStatisticsforallVariablesVariables Mean Median Minimum Maximum Std. DeviationTCSRDPINDBLSTABAC

TSEPROE

25.6414.30.60

25671.880.66

17255.925.01

25.6417.001.004813.131.00

3844.633.13

10.260.000.0056.950.00

0.00-8.52

41.03221.00

378056.501.00

441016.7125.65

7.327.310.49

65430.440.47

58652.005.71

TCSRD=Totalcorporatesocialresponsibilitydisclosurescorereceivedfromeachcompany;PIND=Percentageof independentnon-executivedirectors todirectorsonboard; TA=Totalassetsofthefirm;TSE=TotalSalesofthefirm;BLS=Boardleadershipstructure,1forduelor0non-dual;PROE=PercentageofReturnonequityasnetprofittototalAssets;BAC=Boardauditcommittee,1foryesor0No

Table -4:CorporateSocialResponsibilityDisclosureScoreDisclosure Score (%) No. of Companies Percentage Cumulative %

70

2943183000

31.246.219.43.20.00.00.0

31.277.496.8100100100100


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5. Results and Discussion5.1. Results of Descriptive StatisticsTable3presentsdescriptivestatisticsforthesamplefirms.Theresultsfromthedisclosureindexindicate(TCSRD)thehighestscoreachievedbyafirmis41.03%and

the lowest score is 10.26%with a standard deviation of 7.32%. So the firms aremediallydistributedwithregardtocorporatesocialresponsibilitydisclosure.Themeanoftheproportionofindependentnon-executivedirectors(PIND)tothedirectorsontheboardis14.30%withstandarddeviationis7.31%.ThemeanoftheBLSandBACare0.60and0.66withstandarddeviation0.49and0.47respectively.ThemeanoftheTAandTSEare25671.88and17255.92withstandarddeviation65430.44and58652.00.TheaveragePercentageofReturnonequityasnetprofittototalAssets(PROE)is5.01%;standarddeviationis5.71%withminimumandmaximumsizesof-8.52%and25.65%respectively.

5.2. Results of Product-moment Correlation TestTable-5 provides the Pearson product-moment correlation coefficients of the

continuousexplanatoryvariables aswellas thedependent variable included in thesurvey.TheresultofPearsonproduct-momentcorrelationexposedthatpercentageofindependent non-executive directors to directors on board (PIND), LeadershipStructure(BLS),Boardauditcommittee(BAC)andPercentageofReturnonequityasnet profit to total Assets (PROE) are positively related with corporate social

responsibilitydisclosure(P


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Md.A.Rouf

seen in the table-7. The results indicate an R-square of 0.724, andan F valueof37.63,which issignificantat the 0.000levels.Bothof thesevalues suggest that asignificantpercentageofthevariationincorporatesocialresponsibilitydisclosurecanbeexplainedbythevariationsinthewholesetof independentvariables.Theresults

ofthemultipleregressionsindicateapositiverelationshipbetweenCSRDandboardindependentdirectorat5%levelofsignificant.ThisoutcomehasthesupportofChengandCourtenay(2006);ChenandJaggi(2000);PatelliandPrencipe(2007).

Thenextsignificantvariableisfirmsize,largersizeinrespecttototalassetsandtotalsales.Therelationshipbetweenthecorporateresponsibilitydisclosureandtotalassetsispositiveandwithtotalsalesisalsopositivebutnotsignificantat1%or5%level. This result is similar to Hossain et al. (2006); Suwaidan, M.S. (2004).Withregard to control variables, the results suggest that BLS, BAC and PROE arepositively associated with companys corporate social responsibility disclosurepracticesandstatisticallysignificantat1%level.ThisresultissimilarwithSuwaidan,M.S. (2004);Saleh,M.etal. (2008);Dulacha,G.B. (2007);Karim(1996);Hoand

Wong(2001);McKinnonandDalimunthe(1993).

6. Conclusions and Implication for Further StudyThis study is an extension of previous research where a set of corporate

governance attributes and firms specific characteristics variables is considered toexaminetheirassociationwiththelevelofcorporatesocialresponsibilitydisclosure.

Theobjectiveofthisstudywastoexaminecorporategovernancefactorsandfirms

Table-6: RegressionResultsAnalysisVariable Beta Coefficient Standard Error Beta t Values SignificancePIND .150 .069 2.178 .032**

BLS .403 1.038 5.774 .000***

TA .071 .000 1.023 .309

BAC .226 1.085 3.194 .002***

TSE -.046 .000 -.660 .511

PROE .343 .081 5.448 .000***

**P


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specific characteristics and their influence on corporate social responsibilitydisclosure.These factors includeproportionof independentnon-executivedirectorsontheboardandfirmsize.Inparticular,thestudyaimedtodeterminewhichofthesefactorsweresignificantlyrelatedtoincreaseddisclosure.Researchersalsocontrolled

the variables suggested in prior research as significant contributions to corporatesocial responsibility disclosure. These control variables included board leadershipstructure,boardauditcommitteeandprofitability.Thestudyusedthedisclosureindexto measure corporate social responsibility disclosure on a sample of 93 listedcompanies of Bangladesh. The first hypothesis of the study proves that a higherproportionofindependentnon-executivedirectorsonaboardispositivelyrelatedtothe levelofcorporatesocialresponsibilitydisclosure.Theresultsof thestudy showthat the extent of corporate social responsibility disclosure isnegatively related forfirmssize.

Thereareanumberoflimitationsofthisstudyaswell.Useofonlynon-financialcompanies asa sample is the first limitationof the study. So, the resultsmay not

extend across all companies in Bangladesh. Second, the researchers constructeddisclosureindexforthestudywhichisverysensitiveandcanaffecttheresultsiftheselecteditemsof informationimproperly.Third,thestudyconsidersdataofonlyoneyear.Theresultsmaydifferacrossdifferentyearsifmultipleyearsareconsideredforanalysis.Comparativestudyamongtheindustryisnotdoneinthisstudy.Theresultsofthestudyshouldbeinterpretedwiththeselimitationsinmind.Futureresearchoncorporatesocial responsibilitydisclosure shouldseek to take into accountall listedcompaniesundernon-financialgroup.Additionally,studyingthesameresearchissuesfoundherebutinadifferentindustrysectorwouldbeaninterestingextensionofthisstudy.Thismaydiscloseinterestingresultsintermsofvariationswithintheindustrialsectors.

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APPENDIX

Table I. D isclosure Index of Co rporate Social Respons ibilitiesA. Environme ntal Information:1.Airemissioninformation.2.Waterdischargeinformation.3.Solidwastedisposalinformation.4.Environmentalpoliciesorcompanyconcernfortheenvironment.5.Installationofeffluenttreatmentplant6.Anti-litterandconservationcampaign7.Landreclamationandforestationprogrammes8. PollutioncontrolofindustrialprocessB. Employees Information:9.HumanResourceDevelopment(e.g.TrainingProgramme/Scheme)10.EducationalFacilities11.HealthandSafetyArrangements(i.e.safetyoftheemployees).

12.Pensions13.RecreationClubsandpubliclibraries14.Reductionoreliminationofpollutants,irritants,orhazardsintheworkenvironment15.Trainingoftheemployeesthroughin-houseprogrammes16.Establishmentoftrainingcentres17.Discussiononstaffaccommodation/staffhomeownershipschemes18.Policiesforthecompanysremunerationpackage/scheme19.Numberofemployeesinthecompany20.Providinginformationonthequalificationofemployeesrecruited21.Providinginformationonthecompany/managementrelationshipswiththe

employeesinanefforttoimprovejobsatisfactionandemployeemotivation22.Sponsoringeducationalconferences,seminarsorartexhibitions23.Providinginformationonthestabilityoftheworkersjobandcompanysfuture

C. Com munity and Others:24.Donationstothecharity,arts,sports,etc25.Relationswithlocalpopulation26.Socialwelfare27.Seminarsandconferences28.Canteen,Transportation,andcrchesfortheemployeeschildren.29.EstablishmentofEducationalInstitution(s).30.MedicalEstablishments31.ParksandGardens

D. Energy:32.Conservationofenergyintheconductofbusinessoperations33.Discussionofthecompanyseffortstoreduceenergyconsumption

E. Products:

34.Informationondevelopmentsrelatedtothecompanysproductsincludingitspackaging(e.g.makingcontainersre-usable);

35.Theamount/percentagefiguresofresearchanddevelopmentexpendituresand/oritsbenefits

36.Informationonresearchprojectssetupbythecompanytoimproveitsproduct37.Providinginformationonthesafetyofthecompanysproduct38.Informationonthequalityofthecompanysproductasreflectedinprizes/awards

received39.Verifiableinformationthatthequalityofthefirmsproducthasincreased.


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