Corporate Sustainability Disclosure Practices In Bangladesh : A Comparison Of Two Banks From An Institutional Perspective
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Date
2011-06
Authors
Sobhani, Farid Ahmad
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
Sustainability is now a global concern because of the effects of climate change,
social unrest, and economic depression. This has encouraged the corporate bodies to
be accountable by disclosing their sustainability activities that may affect the earth
and society at large. The study aims to focus on the extent of corporate sustainability
disclosure (CSD) practices, and identification of the factors behind the disclosure and
nondisclosure of CSD information by two selected banks in Bangladesh. Indeed, it
compared the CSD practices between a conventional and an Islamic bank. “Sun” and
“Moon”, these two banks were purposively selected for this study. “Sun” is a
pseudonym of a conventional and “Moon” is a pseudonym of an Islamic bank. The
study applied the “sequential explanatory mixed method” in data collection. In
addition to annual reports, corporate websites, and other mediums of disclosure such
as newspapers, corporate brochures, and magazines were used in content analysis.
Semi structured interviews were conducted among the senior bankers to ascertain
their perceptions regarding CSD practices. The study applied the Neo Institutional
Sociology (NIS) to explain the findings. The study found that coercive, normative
and cultural-cognitive mechanisms of NIS influenced the banks towards isomorphic
disclosure of sustainability practices. According to the recent critics of NIS,
organizational heterogeneity leads to practice variation. However, the findings
confirm that there is no significant difference between the disclosure practices of the
Sun and the Moon. It is revealed that isomorphic practices may exist even though
organizations are heterogeneous in nature. Factors that lead to the isomorphic
practices are supported by the coercive, normative, and mimetic mechanisms of NIS.
From an institutional perspective, the reasons behind the nondisclosure of crucial
CSD information include the strategies to rationalize the avoidance of disclosure.
Description
Keywords
Extent of corporate sustainability disclosure , two selected banks in Bangladesh