Reported social and environmental taxonomies: a longer‐term glimpse
Abstract
Purpose
The purpose of this study is to identify the taxonomies, and the quality and quantity of environmental and social information disclosed in the annual reports of Australian firms.
Design/methodology/approach
Using content analysis, and the broad categories of the Global Reporting Initiative as interpretive guidelines, the study examines the information disclosed in the annual reports of 187 firms listed on the Australian stock exchange over a five‐year period
Findings
The findings from logistic regression interconnect the firm's categorical imperatives with their reporting of sustainability issues and key performance indicators.
Research limitations/implications
Limitations to this research are: the subjective aspects associated with the use of content analysis and the use of logistic regression does not provide a causal relationship between variables, it only provides an interaction.
Practical implications
The results suggest a considerable reporting improvement is warranted to support user confidence in the representation, the understandability and comparability of social and environmental information. Accountability and a systemic trust by users in the information reported necessitate these qualitative characteristics form part of the reporting process.
Originality/value
The content used to communicate the environmental and social outcomes resulting from a firm's operations has increasingly become aligned to a disclosure strategy, that is, an indication of management imperatives. These results provide pragmatic insights in the disclosure of particular environmental and social classifications in the annual report, and indirectly into management reporting imperatives.
Keywords
Citation
Raar, J. (2007), "Reported social and environmental taxonomies: a longer‐term glimpse", Managerial Auditing Journal, Vol. 22 No. 8, pp. 840-860. https://doi.org/10.1108/02686900710819670
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited