6- 2011- Corporate Social Disclosure in Bangladesh A Study of the Financial Sector.pdf - International Review of Business Research Papers Vol 7 No 2

6- 2011- Corporate Social Disclosure in Bangladesh A Study of the Financial Sector.pdf

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International Review of Business Research Papers Vol. 7. No. 2. March 2011. Pp. 37-55 Corporate Social Disclosure in Bangladesh: A Study of the Financial Sector Mohammad Azim*, Ezaz Ahmed** and Brian D‟Netto *** Corporate social disclosure is essential to generate a favorable investment climate and to attract foreign investment, especially in developing countries. This paper investigates corporate social reporting in the financial sector in Bangladesh. In this study, we conducted content analysis of corporate social reporting by listed finance companies in Bangladesh. Analysis of annual reports published in 2007-2008 revealed that 41% of listed finance sector companies made some kind of CSR disclosure. However, three quarters of all disclosures are generalized qualitative statements without any attempt at quantification. More than half the disclosures are located in the director’s report , and the average length of disclosures amounted to less than half a page. The implications of these findings are discussed. Field of Research: Corporate Social Responsibility (CSR), Finance, Management 1. Introduction In recent years, there has been an increasing trend in corporate social responsibility (CSR) reporting among organizations. An international survey of corporate social reporting conducted by KPMG in 2008 found that 70 percent of the world‟s 250 largest companies issued separate reports on corporate social responsibility (CSR) compared to 52 percent in 2005. At the national level, the two top countries in terms of separate CSR reporting are Japan (88% in 2008; 80% in 2005) and the United Kingdom (84% in 2008; 71% in 2005). The recent escalation in CSR disclosures by corporations worldwide signals the significance of CSR for sustainable development (KPMG, 2008). However, in South East Asian countries such as India, Pakistan, Bangladesh and China, only a small number of companies engage in corporate environmental and social disclosure. This exploratory study investigates the extent of corporate social reporting by finance companies listed on the stock exchange in Bangladesh. This research will provide new information on corporate social responsibility (CSR) in banking, insurance, investment and leasing companies. Before making investment decisions, many investors are concerned with social and environmental disclosures by finance companies. By disclosing information on social and environmental issues, finance companies can improve their image and obtain competitive advantage. ____________________ *Dr Mohammad Azim, Faculty of Business and Enterprise, Accounting and Finance, Swinburne University of Technology, Australia, Email: [email protected] **Corresponding author: Dr Ezaz Ahmed, Division of Business, School of Management, University of South Australia, Australia, Email: [email protected], [email protected] ***Professor Brian D‟Netto, Faculty of Business, Australian Catholic Un iversity, Melbourne, Australia, Email: [email protected]
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