An investigation of the corporate responsibility report assurance statements of the Big Four banks in Australia

The corporate responsibility report demonstrates an organisation’s commitment to sustainability. Currently, not much is known about the quality of the assurance statements of the corporate responsibility reports of banks in Australia. This research study fills the gap in the literature by investigating the corporate responsibility report assurance statements of the Big Four banks in Australia. The assurance statements are evaluated against the criteria provided by O’Dwyer and Owen (2005) and Perego and Kolk (2012). The results reveal that although the assurance statements, on average, meet the criteria highly, there are areas that need improvement. Keywords: assurance, bank, AA1000AS, ASAE 3000, ISAE 3000 JEL Codes:G21, M14, M4

Statutory auditor's role in corporate social and environmental reporting

The social and environmental audit practice is regarded as an effective mechanism for adding accuracy and credibility to the corporate social responsibility reports. In civilised societies, auditing is viewed as an evaluative tool for enhancing corporate accountability and transparency (Power, 1999; Owen and Humphrey, 2000; Sikka et. al, 1998; Smith et. al, 2011; Perego and Kolk, 2012). Throughout the past few decades, previous investigatory studies have provided a critical assessment of the evolution of social audit practices (for example, Gray, 2000; 2007; O’Dwyer and Owen, 2005; 2007; Bebbington and Thomson, 2007; Manetti and Toccafondi, 2012; Bepari and Mollik, 2016; Canning et. al, 2019). However, these studies offered little evidence on issues related to the impact of social audit services on the professional independence and ethic of auditors, and the role of religious and cultural values in shaping the nature of the social audit engagements. Furthermore, there is also a paucity in the prior literature in investigating critical issues, such as the lack of consistency in social and environmental audit practices. Moreover, the influence of socio-environmental factors on the views of stakeholders on social auditing remains largely unaddressed in the mainstream literature. Most studies in the relevant literature examined the social and environmental audit phenomenon from a Western perspective, leaving several open-ended questions and unresearched issues about the social audit practices in non-Western contexts. The present research aims to fill the gap in the literature by highlighting sustainability audits in the emerging economies from an Islamic angle, taking Saudi Arabia as a model. In doing so, the study sought to scrutinise the social audit phenomenon and elicit viewpoints from audit providers and relevant stakeholders, embracing the interpretivist methodology to help in gaining insights from this exploratory examination. Particularly, the study selected a triangulation of mixed methods to collect data through content analysis of audit reports, and semi-structured interviews with statutory auditors and individual stakeholders. Finally, the empirical findings were analysed and interpreted with the consideration of the three theoretical constructs (audit, legitimacy, and stakeholder theories). The interviewed auditors claimed that social and environmental audit services would benefit the audit firms, the companies, and the Saudi Arabian society. However, some interviewees expressed concerns about various risks associated with the ways social and environmental audits are currently exercised. Although the audit of corporate social responsibility reports helps to identify risks in corporate governance systems, it may jeopardise the impartiality and ethics of audit providers. Consequently, the social and environmental audit engagements may pose a reputational risk to the audit firm. Similarly, statutory auditors expressed opposing views about engaging stakeholders in the social and environmental audit processes. While some interviewees admitted that the audit of stakeholder engagements in client companies' social responsibility processes is a daunting, costly and valueless task for Saudi Arabian audit firms, others supported that audit procedure as an accountability and transparency enabler. Nevertheless, there are several problematic issues associated with stakeholder engagement reporting audits. Obstacles to the auditing of stakeholder engagement include, among others, dealing with unreliable evidence, engaging the irrelevant stakeholders, and the inability to assess the stakeholder materiality and relevance. Also, the statutory auditors offered a collective opinion that regarded the accurate representation of stakeholders' views on companies' social performance as a quite challenging and unattainable goal within the Saudi cultural boundaries. On the other hand, the interviewees from stakeholder groups gave a general satisfactory impression of the growing, albeit slowly, social audit performance. The participated stakeholders recognised and appreciated the importance of the voluntary contribution of statutory auditors to the Saudi Arabian business environment through their independent verification of corporate social and environmental responsibility activities and statements. Whereas findings from the content analysis of sixty audit reports revealed a high tendency of statutory auditors to integrate the outcome of social and environmental audit processes with that of the traditional financial auditing within single audit statements. The observation showed also an overwhelming reliance on accountancy-based approaches of generally accepted financial auditing standards in Saudi Arabia, ISA, or the ISAE 3000 in the audits of corporate social and environmental reports. Stakeholder engagements in the social audits were noticed in only one audit report, which illustrated a limited range of assurance on a company-stakeholder dialogue. Although the audit of corporate social and sustainability reports is not mandated in Saudi Arabia, the statutory auditors' voluntary role in ensuring the validity of corporate social responsibility statements is seen as an acceptable act whereby auditors can boost their social legitimacy. From an Islamic perspective, the notion of corporate social and environmental responsibility is strongly encouraged for Islamically permitted or Halal purposes (Dusuki, 2008; Elasrag, 2015). Hence, the provision of sustainability audit services to improve the quality of corporate social reporting and discharge organisational accountability can be viewed as an Islamic permitted act. Overall, social audit exercises in Saudi Arabia are still at an early stage and necessitate substantial improvements

Exploring the use of online corporate sustainability information

Whilst the supply, exclusivity and prominence of online corporate sustainability information has increased in recent years, comparatively little is known about what information is used by whom. This paper explores which user groups access online corporate sustainability information, and assesses the relative use of sustainability reports and other forms of social and environmental information disseminated on corporate Websites. To collect the necessary empirical data, the paper analyses 4,652,471 successful requests for information made by the users of 10 UK FTSE 350 corporate websites. \ud \ud The paper finds that the majority of requests for online sustainability information originate from the reporting company indicative of an inward focus to sustainability reporting. In examining access to different online information sets, distinct profiles of corporate Website users begin to emerge. Requests from employees, private individuals, ISPs and consultants represent the vast majority of the online sustainability reporting audience and the corporate website in general. Contrastingly, a professional financially-orientated profile of users characterised by professional investors, creditors, accounting firms and lawyers make significantly more use of the Annual Report but significantly less use of sustainability reporting information and other online disclosures. Although prior literature notes how companies have yet to utilise the potential of the online medium in disseminating corporate sustainability information, disclosures are found to attract approximately a tenth of all corporate website requests. Environmental and ethical disclosures outside the Annual Report are the most popular sources of online corporate sustainability information whilst ‘standalone’ Sustainability and/or Ethics Reports attract comparatively few requests

An evaluation of sustainability in large British companies

This article undertakes an assessment of the sustainability efforts of some of the largest companies that are listed on the FTSE 100 (a share index composed of the 100 largest companies that are listed on the London Stock Exchange according to market capitalisation). It provides empirical insights into how large listed British companies are addressing sustainability and their efforts in terms of incorporating sustainability factors into their business operations. The study was based on an extended content analysis of each company’s annual and sustainability reports. Our findings demonstrate that companies are trying to integrate sustainability in their business strategies even though there are variations in their efforts. There are indications that the majority of the companies have been able to embed sustainability in their strategy and operations and are now attempting to establish goals for further improvement. We found strong evidence of willingness to engage with relevant stakeholders to evaluate which sustainability issues are of importance to the particular companies and then to communicate to those relevant stakeholders the measures that have been taken to integrate sustainability in their business strategies. However, our findings also revealed areas where there is a need for further improvement such as compliance with international standards for sustainability reporting and establishment of better frameworks to enhance their sustainability efforts

One way forward: non-traditional accounting disclosures in the 21st century

Recent empirical studies (Deegan and Rankin, 1999; Deegan et al., 2000) have indicated that although many corporations have begun to respond to perceived demand for environmental disclosures in published accounts, their perspective of organisational legitimacy is a narrow view, in which information is targeted towards specific stakeholders and not to the general public. This paper considers a range of models (variously called guidelines, standards and charters) which have been put forward by different organisations to aid the development of social and environmental disclosures. In all cases verification and attestation are part of the proposed regimen. The question which the papers attempts to answer is whether any one of the models would be capable of rapid adoption as part of an expanded GAAP, should the professional accounting bodies think that this is desirable. The outcome of our deliberations is cautious support for the use of EMAS and ISO 14000 as the basis for a modified GAAP plus the further development of the GRI 2000 guidelines into a set of standards covering both social and environmental reporting

Accounting, accountants and accountability regimes in pluralistic societies: taking multiple perspectives seriously

Purpose – The purpose of this paper is to synthesize work in the emerging field of how accounting and accountability can be reoriented to better promote pluralistic democracy which recognizes and addresses differentials in power, beliefs and desires of constituencies. An agenda for future research and engagement is outlined, drawing on this and insights fromother papers in this special issue of the Accounting, Auditing and Accountability Journal (AAAJ) aimed at taking multiple perspectives seriously. Design/methodology/approach – The paper reviews and synthesizes the central themes associated with accounting, accountants and accountability regimes in pluralistic societies, especially with respect to the research studies in this AAAJ special issue, and it identifies possibilities for future research and engagement. Findings – Three central themes are identified: the challenges of achieving critical, pluralistic engagement in and through mainstream institutions; the possibilities of taking multiple perspectives seriously through decentred understandings of governance and democracy; and the value of an agonistic ethos of engagement in accounting. The articles in this issue contribute to these themes, albeit differently, and in combination with the extant social science literature reviewed here, open up pathways for future research and engagement. Practical implications – This work seeks to encourage the development of pluralistic accounting and accountability systems drawing on conceptual and practice-based resources across disciplines and by considering the standpoints of diverse interested constituencies, including academics, policymakers, business leaders and social movements. Originality/value – How accounting can reflect and enact pluralistic democracy, not least to involve civil society, and how problems related to power differentials and seemingly incompatible aims can be addressed has been largely neglected. This issue provides empirical, practical and theoretical material to advance further work in the area. Paper type Research pape

Integrating Indicators of Forced Labor and Human Trafficking

This document is part of a digital collection provided by the Martin P. Catherwood Library, ILR School, Cornell University, pertaining to the effects of globalization on the workplace worldwide. Special emphasis is placed on labor rights, working conditions, labor market changes, and union organizing.V_integrating_indicators_of_forced_labor.pdf: 370 downloads, before Oct. 1, 2020

Going beyond Western dualism: towards corporate nature responsibility reporting

Purpose: The purpose of this paper is to outline an ecofeminist lens for the analysis of accounting, which is applied to: first, the critique of corporate social responsibility reporting (CSRR); second, the elaboration of elements of a framework for a new accounting – corporate nature responsibility reporting (CNRR) – as a response to the critique of CSRR; and, third, the consideration of elements of an enabling and emancipatory praxis in the context of CNRR, including a sketch of a research agenda. Design/methodology/approach: The paper presents a critical application of aspects of the ecofeminist critique of Western dualism and its emphasis on wholeness, interconnectedness and relatedness, including its particular delineation of nature, to the critique and design of accounting. Findings: Insights from the application of an ecofeminist lens to the critique of CSRR raise questions about the suitability of the western notion of corporate social responsibility (CSR) and its associated accounting currently in use. In order to go beyond critique, the paper introduces the notions of corporate nature responsibility (CNR) and CNRR and offers an outline of key elements of CNRR and an emancipatory praxis in the context of CNRR, including a sketch of a research agenda. The author’s elaborations suggest that in order to overcome the limitations of CSR and CSRR, a corporation ought to be concerned about its broader and holistic CNR. And, it should provide a CNR report, as part of a holistic CNRR concerned with the performance of the company in the context of CNR. Social implications: Through creating new visibilities, CNRR has the potential to enhance the well-being of people and nature more generally. Originality/value: Ecofeminism’s critique of western dichotomous thinking has been given little consideration in prior studies of accounting. The paper thus draws attention to the relevance of an ecofeminist theoretical lens for the critique and design of accounting by focussing on CSRR. The paper introduces the concepts of CNR and CNRR to address the limitations of CSRR as currently practiced

The Relationship between Corporate Social Responsibility and Corporate Financial Performance – Evidence from Empirical Studies

The aim of this article is to examine correlations between CSR and financial corporate performance, based on empirical studies conducted by other authors in different countries. In total, the analysis comprises 53 studies and the results obtained for 16,119 companies