By Ataur Rahman Belal
Traditionally, the research of company social accountability (CSR) reporting has mostly been in the context of Western economies. notwithstanding, within the wake of hugely publicized incidents similar to Bhopal and the fight of the Ogoni humans in Nigeria, many huge firms now declare to be taking steps to enhance their environmental and social functionality inside of constructing countries.Using the lens of stakeholder concept, this e-book examines no matter if the present perform of CSR reporting in constructing international locations is influenced by way of a wish to discharge responsibility to all correct stakeholders or if it is being pushed by means of the important of advancing company financial pursuits. whereas recommendations like CSR reporting became extra stylish, they range commonly in several nationwide contexts; this ebook hence clarifies the kinds and roles of CSR reporting and the underlying company motivations.The writer considers the present CSR reporting practices in a couple of constructing nations, with specific recognition given to illuminating a case learn of Bangladesh.
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Additional info for Corporate Social Responsibility Reporting in Developing Countries (Corporate Social Responsibility Series)
As part of that reform project the Companies Act, 1913 was updated in 1994, Securities and Exchange Rules have been amended and updated and the SEC has been established to regulate the re-activated capital market of Bangladesh. The main purpose of these reforms was to protect investors’ interests and to ensure further development of the capital market. In addition to the above laws there are a number of rules and regulations, which govern the social and environmental performance of organisations.
Supporting the application of stakeholder theory to the analysis of corporate social activities and disclosure the author concluded that: Stakeholder theory forms a theoretical foundation in which to analyse the impact of prior economic performance, strategic posture towards social responsibility activities, and the intensity of stakeholder power on levels of corporate social disclosure. (Roberts, 1992, p. 610) In their study of UK social disclosures, Gray et al. (1995b) also used stakeholder theory, as applied by Roberts (1992), to provide ‘ a plausible explanation of the tendency, in certain areas of disclosure, for the company to operate a system of ‘compensation’ in which, as a new issue rises, the disclosure on an older (and negotiated issue) declines’ (p.
An active company would pursue a policy of influencing the key stakeholders through corporate social activities, whereas a firm possessing a passive strategic posture would not continuously monitor its relationship with the stakeholders and engage in minimal corporate social activities. Therefore, it is expected that there would be a greater level of corporate social activity and disclosure in firms possessing an active strategic posture. The third dimension of the model is concerned with past and current economic performance of the firm.