An examination of the corporate social and environmental disclosures of BHP from 1983‐1997

Abstract

This study examines the social and environmental disclosures of BHP Ltd (one of the largest Australian companies) from 1983 to 1997 to ascertain the extent and type of annual report social and environmental disclosures over the period, and whether such disclosures can be explained by the concepts of a social contract and legitimacy theory. This research is also motivated by the opportunity to compare and contrast results with those of Guthrie and Parker, in whose study the social and environmental disclosures made by BHP Ltd were also the focus of analysis. In testing the relationship between community concern for particular social and environmental issues (as measured by the extent of media attention), and BHP's annual report disclosures on the same issues, significant positive correlations were obtained for the general themes of environment and human resources as well as for various sub-issues within these, and other, themes. Additional testing also supported the view that management release positive social and environmental information in response to unfavourable media attention. Such results lend support to legitimation motives for a company's social and environmental disclosures. A trend in providing greater social and environmental information in the annual report of BHP in recent years, and its variable pattern, was also evidenced.

Relationship between Unionized Companies, Government Ownership and Reporting Human Capital Information in Corporate Annual Reports

“…Stakeholder theory states that the management of an organization is bound to meet the demands of stakeholders and report to them the activities of the firm (Friedman & Miles 2006). This theory is consistent with Deegan, Rankin, and Tobin (2002) and Boesso and Kumar (2007), thereby indicating that a stakeholder has the right to be informed about the effects of the organization's activities to them. Hence, the information should be made available to them even though they may not use it.…”

Environmental reporting on the internet by America's Toxic 100: Legitimacy and self-presentation

“…As such, one of the strategies organizations can undertake to gain, repair or maintain legitimacy is to use communication to project an image of social legitimacy (Dowling and Pfeffer, 1975, p. 127). Communication thus plays a pivotal role in the legitimation process and this association potentially explains why legitimacy theory has been widely tested, espoused and validated in the social and environmental accounting and disclosure literature (see, e.g., Deegan and Gordon, 1996;Hackston and Milne, 1996;Neu et al, 1998;O'Donovan, 1999;Patten, 1991;1995;2002a;Deegan, 2002;Deegan et al, 2002;Milne and Patten, 2002).…”

Climate Change and Corporate Environmental Responsibility

“…Deegan, Rankin and Tobin (2002) identified positive correlation between media attention for certain social and environmental issues and the volume of disclosure on these issues. So, it can be expected that the companies will disclose more about GHG emission issues in order to reduce the legitimacy threat.…”