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]
