Non-disclosure of Social and Environmental Information in a Separate Statement of Annual Reports by Malaysian Listed Companies

By Noriah Che-Adam, Lian Kee Phua and Fauziah Md Taib.

Published by The International Journal of Climate Change: Impacts and Responses

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

This study examines the status of non-disclosure of social and environmental information in a separate section of annual reports by Malaysian listed companies. Findings suggest that many of the companies do not report social and environmental activities in their annual reports although they do engage in such activities. The non-disclosing companies are also selective over social and environmental related activities preferring those with direct effect in improving their financial standings such as employee training programs, energy consumption programs, employee health and safety, product safety and product quality improvements and conservation of energy activities. The non-disclosing companies perceived that there is no significant benefit or penalty arises out of the disclosure decision. They attributed this to lack of demand from (or inactive role of) investors and other stakeholders. As such the decision not to disclose saves companies from the risk of erosion of competitive advantage and related costs in producing the information. There is an urgent need to encourage investors, consumers and other stakeholders to play their roles as natural control mechanisms to ensure companies are more committed towards sustainable development.

Keywords: Social and Environmental Information, Costs and Benefits Analysis, Non-disclosure, Sustainable Development

The International Journal of Climate Change: Impacts and Responses, Volume 1, Issue 2, pp.85-100. Article: Print (Spiral Bound). Article: Electronic (PDF File; 1.691MB).

Noriah Che-Adam

Lecturer, College of Business, Universiti Utara Malaysia, Jitra, Kedah, Malaysia

Noriah Che Adam is a lecturer in Financial Accounting and Management Accounting at College of Business, Universiti Utara Malaysia and a PhD student at Universiti Sains Malaysia. Her research interest is in the areas of voluntary reporting, financial reporting, Islamic investment and management accounting.

Lian Kee Phua

Senior Lecturer, Scholl of Management, Universiti Sains Malaysia, Penang, Malaysia

Phua Lian Kee is a senior lecturer in Financial Accounting and Reporting. She has more than 10 years of experience in teaching Accounting. She is currently a lecturer in Financial Accounting and Reporting at School of Management, Universiti Sains Malaysia. She was appointed as the chief examiner for an accounting paper of a professional examination body from 2006 to 2009. She also serves as a member of the editorial board of AAM Journal of Accounting and Finance and has presented papers at national and international conferences. Her main research interest is in the areas of voluntary disclosure, financial reporting and corporate governance.

Fauziah Md Taib

Professor, School of Management, Universiti Sains Malaysia, Penang, Malaysia

Fauziah Md. Taib, is a Professor at School of Management, Universiti Sains Malaysia (USM) with a doctoral degree from Department of Accounting and Finance, Lancaster University. Her current research interest includes corporate governance and agency related problems in various business environment. She has published in international journals such as Accounting and Business Research, Managerial Finance, Accountancy, Journal of Economy and Business etc.

Reviews:

There are currently no reviews of this product.

Write a Review