Global Reporting Initiative Research Papers (original) (raw)

An analysis of Social Environmental Accounting (SEA) in ASEAN based on the Global Reporting Initiative (GRI) Index "This paper is an attempt to study a) the level of adoption of Corporate Social Responsibility (CSR) reporting and... more

An analysis of Social Environmental Accounting (SEA) in ASEAN based on the Global Reporting Initiative (GRI) Index

"This paper is an attempt to study a) the level of adoption of Corporate Social Responsibility (CSR) reporting and Global Reporting Initiative (GRI) Index between countries, b) the level of disclosure of GRI performance indicators by companies, and c) the change in disclosure trends over time, in Southeast Asia.

A content analysis of 284 CSR reports from 107 companies between 2001 and 2012 was conducted, using the GRI 3.1 index. Companies were scored for their compliance with the disclosure requirements. These scores were then analysed at regional, national, industrial and ownership levels.

CSR reporting practices in ASEAN correspond strongly with various factors, including political pressure from government and stock exchange rules, institutional factors such as the availability of training and support, exposure to international pressures, and social pressure from NGOs.

Across the region, there is an increasing trend of voluntary CSR and GRI adoption, reflecting the increasing awareness of CSR. Disclosure quality appears to be improving. However, this study still observes poor compliance with the “report or explain” principle, with companies choosing to disclose items which improve legitimacy while omitting others.

Amongst the countries, an upward trend can be seen in CSR and GRI adoption in 5 ASEAN countries (Indonesia, Malaysia, Philippines, Singapore and Thailand), with early signs being observed in Vietnam, Laos, and Cambodia. No GRI adoption was observed in the other two ASEAN countries (Brunei, Myanmar), and no CSR reporting observed in Myanmar. The quality of disclosure on the whole is improving, but at varying degrees. This is thought to be a result of different national factors, mainly relating to CSR drivers.

Companies in industries which are subject to greater scrutiny from regulators and NGOs are more likely to show improvements in their disclosures. The consumer goods industry showed inconsistent disclosure trends, suggesting a lack of regularity in CSR reporting activity in the industry.

While listed companies outnumber private companies in the sample, their disclosures were on a par with private companies until 2005/2006. Amongst the public companies, those based in Singapore demonstrated the poorest CSR disclosure scores, while Thai-based companies performed the best.

This paper provides insight into the quality of disclosure and adoption of the GRI index by companies in Southeast Asia at various levels. To my knowledge, it is the first study to use the GRI index to investigate disclosures at regional, national, industrial and ownership levels.""