Malaysian local government internet sustainability reporting

Abstract

Purpose – This study aims to examine determinants of the extent of sustainability reporting on Malaysian local council web sites using a disclosure index within an institutional theory framework. Design/methodology/approach – Adopting a simplified disclosure index to measure the extent of sustainability reporting, the unit of analysis for this research is Malaysian local council web sites. To reduce any subjectivity, the disclosure index is unweighted and consists of 57 items. Findings – Several findings were apparent including size, Local Agenda (LA) 21 and public sector award all being found to be significant predictors of disclosure. Overall, the findings indicate the presence of institutional isomorphism – particularly coercive pressure – in explaining the extent of sustainability reporting on web sites. Research limitations/implications – The research has multiple implications as it provides insights into web site sustainability reporting in a developing country. It also adds support to institutional isomorphism as a valid theoretical framework within this context. Based on there being no mandatory requirement for local authorities to produce annual reports, one limitation is that this paper assumes that the web sites of local authorities are the primary medium for communicating sustainability information. Practical implications – One of the most significant practical implications relates to LA 21 which has a significant impact on sustainability disclosure on Malaysian local council web sites. With 113 countries in total implementing LA 21 to some degree (ICLEI), Malaysia's recognition as a key (developing country) player in advancing sustainable development should be acknowledged. Originality/value – With an apparent lack of web site sustainability reporting research in developing country public sector organisations, this study is unique in that it appears to be the first research conducted in Malaysia analysing sustainability web site reporting using a disclosure index in a local government setting – all within an institutional theory framework. Not only can the disclosure index be used as a tool for future public sector corporate social responsibility related research, but the “new” disclosure instrument provides insights into the extent of sustainability reporting in local authorities.

Biodiversity reporting for governmental organisations

“…In this way, it also contributes to the scant literature on sustainability reporting in the public sector (e.g. Guthrie and Farneti, 2008;Guthrie et al, 2010;Joseph et al, 2014;Linch, 2010;Sanchez, 2013;Tagesson et al, 2013). It shows that the disclosure of biodiversity information by local councils is explained by their need to conform with society and to satisfy the information needs of the relevant stakeholders.…”

Coercive Pressures and Anti-corruption Reporting: The Case of ASEAN Countries

“…Coercive isomorphism is the most widely employed subset of institutional theory in CSR accounting research (see for example Othman et al, 2011;Joseph et al, 2014;Cahaya et al, 2015;Cahaya et al, 2016;Joseph et al, 2016;Issa and Alleyne, 2018;Joseph et al, 2019). Coercive isomorphism involves formal and informal pressures exerted by other organizations which a particular organizations is dependent on (Martínez-Ferrero and García-Sánchez, 2017).…”

The Influence of Board Characteristics on Sustainability

“…Other studies by Jaafar et al (2003), Nik Nazli and Maliah (2004), Mohamad Zain and Janggu (2006), Janggu et al (2007); Sumiani et al (2007) have focused the environmental disclosure only, where the extent of environmental disclosures of most companies is however, very low. Not many studies specifically focus on sustainability reporting (Sawani et al, 2010;Joseph et al, 2014). Results from a study by Sawani et al, (2010) provide evidence that most information relating to sustainability disclosure has been integrated into annual reports with no assurance statement due to low levels of awareness and the absence of legislative pressures to commission the practice.…”

“…The study indicates that companies applied selective reporting on issues relating to monetary contribution predominantly due to minority shareholders' insistence on a better return on their investment. Joseph et al, (2014) contributed to the growing literature on the extent of sustainability website reporting by focusing on the Malaysian public sector environment. None of the prior studies, however, examined the relationship between sustainability reporting and board characteristics.…”