Impact of social responsibility disclosure between implementation of green accounting and sustainable development: A study on heavily polluting companies in Bangladesh

Abstract

Based on the empirical data of heavily polluting companies in Bangladesh from 2010 to 2019, this paper conducts an empirical analysis of the application effect of green accounting in the sustainable development of heavily polluting companies. Among 212 listed companies under Dhaka Stock Exchange, the study discovered that the effective implementation of green accounting has significantly improved the sustainable development capabilities of heavily polluting companies; there is a significant positive correlation between the quality of social responsibility information disclosure and the sustainable development capabilities of heavily polluting companies; the quality of social responsibility information disclosure can be positively adjusted the relationship between the implementation of green accounting and the sustainable development capabilities of heavily polluting companies.heavily polluting companies, implementation of green accounting, social responsibility disclosure, sustainable development | INTRODUCTIONEnvironmental protection goals such as climate change, reusing waste materials, and protecting the planet should be the major concerns of organizations seeking sustainable development. Sustainability and sustainable development are currently viewed as issues of concern by society due to high levels of pollution and the measures taken, which often fail to prove their effectiveness. Sustainable and responsible development must be ingrained into the company's culture, and its policies, actions, and beliefs must all be in line with the company's values (Artene et al., 2020). Hence, companies have begun informing investors of their financial and nonfinancial impacts on social and environmental issues alongside their investment in corporate social responsibility (CSR) strategies (García-Sánchez et al., 2020).The punishment of unreasonable development methods of time and the exchange of environment for the economy is the most direct but fiercest counterattack made by the great persecution of the natural environment. Among the textile industry of Bangladesh, the knitwear and ready-made garments make the industry top of the country.Rather than textile industry, pharmaceuticals and chemicals, paper and printing, leather and footwear, steel industry, foods allied, energy, and cement industries have immense contribution in the economic development as well as environment pollution of Bangladesh (Masum et al., 2019;Paik et al., 2017).The environmental pollution incident has sounded the alarm for the sustainable development of Bangladeshi companies. As the country continues to promulgate laws and regulations on environmental protection, and the public pays more and more attention to environmental protection, the standards for their quality of life have also

Impact of corporate social responsibility on financial expert CEOs' turnover in heavily polluting companies in Bangladesh

“…Moreover, heavily polluting companies have high pollution and high risks (Cai et al, 2020). Hence, the company has the dual obligation of fulfilling its general social responsibilities while also fully meeting the environmental compensation requirements (Dhar et al, 2021) for corporate image, enhancing corporate value, and achieving corporate goals (Kong et al, 2020).…”

“…Recent years, regulatory authorities have also increasingly emphasized the necessity of strengthening CSR when it comes to heavy pollution in Bangladesh (Dhar et al, 2021;Rashid et al, 2020;Sarfraz et al, 2020).…”

“…In the research of Dhar et al (2021), Islam and Kokubu (2018) and Jahid et al (2020) it has been found that due to internal constraints in Bangladeshi companies, a complete internal control system enables new senior executives to ensure that social responsibilities continue to be performed. By means of an internal control system, heavy-polluting firms ensure the safety of their production and the protection of the environment, as well as the quality of their final products (Yang et al, 2020).…”

“…Recent years, regulatory authorities have also increasingly emphasized the necessity of strengthening CSR when it comes to heavy pollution in Bangladesh (Dhar et al, 2021; Rashid et al, 2020; Sarfraz et al, 2020). Financial experience becomes more prevalent among top management than other knowledge backgrounds (Huang et al, 2021).…”

“…In fact, Bangladesh is experiencing better economic benefits through the fundamental phenomenon of space‐for‐time and economy‐for‐environment, which is contributing to GDP growth in the country. Since the 1995 Bangladesh Environment Protection Act, Bangladesh has been focusing on environmental protection as a fast‐developing nation (Dhar et al, 2021). According to the Act, organizations must consider the scale, nature, and technology of their products and services.…”