Corporate Triple Bottom Line Reporting: An Empirical Study on the Indian Listed Power Companies

Abstract

Triple Bottom Line (TBL) approach is a proactive step in providing increased transparency and a broader framework for decision making. In this paper, we have considered listed companies of Bombay Stock Exchange (BSE) comprising BSE 500 index as our population. Considering time and resource constraints, it was decided to restrict the survey to only power generating companies (15 units) among those 500 companies. Annual reports/corporate social responsibility/sustainability reports for these 15 numbers of listed power companies were reviewed. For measuring the extent of corporate triple bottom line reporting in annual reports/corporate social responsibility reports/sustainability reports of the companies, we have constructed a weighted disclosure index based on the previous empirical studies. The study evaluated the combined corporate triple bottom line disclosure score value of the sample companies based on performance with respect to 3 primary indicators - environment, social and economic. The maximum score of corporate triple bottom line disclosure is high enough i.e. 77.3% and the minimum score of corporate triple bottom line disclosure is very low i.e. 22.6%. None of the sample power companies has attained more than 80% corporate triple bottom line disclosure score; on the contrary 40% companies have attained less than 40% corporate triple bottom line disclosure score.

Influence of board characteristics on TBL reporting

“…Content analysis is used to track the items on the checklist that is based on the one used in Roy and Mitra (2015). Similar to Muttakin and Subramaniam (2015), information was handcollected from various sections of the annual reports, e.g.…”

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“…In their study, Roy and Mitra (2015) analyze annual corporate reports of social responsibility and sustainability of 15 energy companies which are included in BSE 500 index in Bombay Stock Exchange within the scope of TBL. They conclude that corporate TBL values of exemplary companies are gathered based on performance in terms of 3 main indicators as environmental, social and economic aspects.…”

The influence of board size and board independence on triple bottom line reporting

“…However, it is important to conduct similar studies in emerging markets like Africa, Gulf countries, India and China to understand how developing nations have embraced TBL reporting. Such research can contribute to the establishment of transparent and accountable governance systems in top companies, enhancing stakeholder understanding (Roy and Mitra, 2015).…”

“…They are concerned with the company's social responsibility, including aspects like avoiding child labor, sweatshops and operating in countries without human rights violations. Stakeholders also seek to ensure compliance with environmental regulations and reduction of carbon footprint and global warming (Roy and Mitra, 2015). TBL reporting addresses these concerns by increasing the transparency of business activities and providing a broader understanding to stakeholders for informed decision-making.…”