An Empirical Analysis of Sustainability Disclosure Practices: Evidence from India and China

Abstract

The present study seeks to access and compare the sustainability reporting practices in two major economies, that is, India and China. Index developed under global reporting initiative (GRI) guidelines is used. Content analysis is employed as a data collection tool. A total of 17 companies from BSE-30 (India) and 19 companies from SSE 50 (China), producing sustainability reports within the time period 2006–2007 to 2010–2011, comprise the sample set. Independent sample t test is used to compare the disclosure practices of India and China. Also, Kruskal–Wallis H test is applied for inter-category and inter-industry comparison of both countries. The results reveal that the sustainability disclosure scores are higher with respect to Indian companies as compared to Chinese companies. The results of independent sample t test are also significant at 1 per cent level of significance. However, Kruskal–Wallis H test suggests insignificant differences in the category-wise and industry-wise disclosure scores of both countries, that is, India and China. It is strongly recommended that China should strive more for sustainability practices in order to keep pace with its counterpart, that is, India.

Fostering Stakeholders Trust through CSR Reporting: An Analytical Focus

“…The amount and quality of CSD in the developed countries is far better than the developing countries (Bhatia & Tuli, 2014; Wanderley, Lucian, Farache, & de Sousa Filho, 2008). In the race that features two of the fastest emerging economies, India is leading in CSD and China is lagging behind (Baskin, 2006; Bhatia & Tuli, 2014). Bhatia and Tuli (2014) found a significant difference in the extent of CSD between India and China; the total mean disclosure score of India was 81.34 per cent, whereas China registered a meagre 31.25 per cent.…”

“…In the race that features two of the fastest emerging economies, India is leading in CSD and China is lagging behind (Baskin, 2006; Bhatia & Tuli, 2014). Bhatia and Tuli (2014) found a significant difference in the extent of CSD between India and China; the total mean disclosure score of India was 81.34 per cent, whereas China registered a meagre 31.25 per cent. Alon, Latteman, Fetscherin, Li, & Schneider (2010) concluded that Indian firms disclose better than Chinese firms.…”

“…However, the scenario is not as favourable as it seems because only few large Indian firms disclose on environment (Kansal & Singh, 2012). Human resource, by far, is the most reported CSD category followed by community development and product/service contribution in India and other developing nations (Bhatia & Tuli, 2014; Mahadeo et al ., 2011; Murthy, 2008). The environmental disclosure practices are at a nascent and alarming state in other developing countries such as Indonesia, Bangladesh, China, Malaysia, Brazil, Mauritius and South Africa (Anas et al ., 2015; Belal, 2001; Chapel & Jeremy, 2005; De Villiers & Van Staden, 2006; Huang & Wang, 2010; Mahadeo et al ., 2011; Wanderley et al ., 2008).…”

Corporate Environmental Disclosure in India: An Analysis of Multinational and Domestic Agrochemical Corporations

“…Although CSR in India has been favourably compared to that in other emerging economies [189,190], many have noted a continuing lack of priority of CSR issues in India despite the moves to mandatory disclosure [96,191]. Indian CSR reports have often contained little related to environmental issues [37,177,192].…”

Análise da Divulgação de Informações Ambientais por Empresas do Setor Elétrico: um Estudo em Empresas dos Países do BRICS

“…Diversos estudos sobre divulgação ambiental e responsabilidade socioambiental já foram realizados no Brasil, referentes a vários setores e com os mais variados enfoques (OLIVEIRA; MACHADO;BEUREN, 2012;CRISÓSTOMO;PARENTE, 2012;MAZZA;OLIVEIRA, 2013;CABRAL;SANTOS;BRANDÃO, 2014). Há também várias pesquisas no exterior sobre divulgação ambiental e responsabilidade socioambiental, com enfoque e objeto de estudo variados (HA; KRISHNAN, 2011;SEN;MUKHERJEEE;PATTANAYAK, 2011;KUO;YEH;YU, 2012;CHANG, 2013;WANG;BERNELL, 2013;NORONHA;TOU;CYNTHIA;GUAN, 2013;PILLAY;BUYS, 2014;BHATIA;TULI, 2014;KUMAR;GUNASEKARAN;SINGH;PAPADOPOULOS;DUBEY, 2015;FIFKA;POBIZHAN, 2014;ZHANG;MOL;HE, 2016;MIDDLETON, 2015).…”