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Is Green Regulation Effective or a Failure: Comparative Analysis between Bangladesh Bank (BB) Green Guidelines and Global Reporting Initiative Guidelines

Author

Listed:
  • Md. Abdul Kaium Masud

    (Department of Sustainability Management, Inha University, Incheon 22212, Korea
    Department of Business Administration, Noakhali Science and Technology University, Noakhali 3814, Bangladesh)

  • Mohammad Sharif Hossain

    (School of Business, Uttara University, Dhaka 1230, Bangladesh)

  • Jong Dae Kim

    (College of Business Administration, Inha University, Incheon 22212, Korea)

Abstract

Green reporting and green regulation have been commonly used in the sustainability movement. This study evaluates Bangladesh Bank’s (BB’s) green regulation by considering the global reporting initiative (GRI) of environmental regulation along with self-determined content to justify BB’s institutional effort in the banking sector. The analytical study has considered secondary data of all listed banks on the Dhaka Stock Exchange between 2013 to 2016. A multi-theoretical framework has been adopted in which the research is comprised of institutional, stakeholder, and legitimacy theories. Considering the analytical research, we have drawn-up a green reporting score and undertaken SWOT analysis. The results of the study have identified the narrow coverage of BB’s regulation and strategic limitations. Moreover, the findings of the study show that banking companies disclosed more green information in line with BB’s regulation. Furthermore, our analysis has found the lack of transparency of green reporting in terms of absent global reporting as well as external verification. Additionally, we have documented that BB’s regulation falls into a legitimacy threat owing to political, corporate, and social responsibility. Therefore, we concluded that for BB to overcome all possible weaknesses and threats, it should consider all possible opportunities for a holistic international reporting framework while taking into account a transparent financial sector.

Suggested Citation

  • Md. Abdul Kaium Masud & Mohammad Sharif Hossain & Jong Dae Kim, 2018. "Is Green Regulation Effective or a Failure: Comparative Analysis between Bangladesh Bank (BB) Green Guidelines and Global Reporting Initiative Guidelines," Sustainability, MDPI, vol. 10(4), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:1267-:d:142182
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    Cited by:

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    3. Md. Abdul Kaium Masud & Seong Mi Bae & Javier Manzanares & Jong Dae Kim, 2019. "Board Directors’ Expertise and Corporate Corruption Disclosure: The Moderating Role of Political Connections," Sustainability, MDPI, vol. 11(16), pages 1-22, August.
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    6. Dávid Tőzsér & Zoltán Lakner & Novy Anggraini Sudibyo & Anita Boros, 2024. "Disclosure Compliance with Different ESG Reporting Guidelines: The Sustainability Ranking of Selected European and Hungarian Banks in the Socio-Economic Crisis Period," Administrative Sciences, MDPI, vol. 14(3), pages 1-19, March.
    7. Kang Tan & Abu Bakkar Siddik & Farid Ahammad Sobhani & Muhammad Hamayun & Mohammad Masukujjaman, 2022. "Do Environmental Strategy and Awareness Improve Firms’ Environmental and Financial Performance? The Role of Competitive Advantage," Sustainability, MDPI, vol. 14(17), pages 1-24, August.
    8. Teresa C. Herrador-Alcaide & Montserrat Hernández-Solís & Susana Cortés Rodríguez, 2023. "Mapping barriers to green supply chains in empirical research on green banking," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-16, December.
    9. Leidy Katerine Rojas Molina & José Ángel Pérez López & María Soledad Campos Lucena, 2023. "Meta-analysis: associated factors for the adoption and disclosure of CSR practices in the banking sector," Management Review Quarterly, Springer, vol. 73(3), pages 1017-1044, September.
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    11. Md. Abdul Kaium Masud & Mohammad Nurunnabi & Seong Mi Bae, 2018. "The effects of corporate governance on environmental sustainability reporting: empirical evidence from South Asian countries," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 3(1), pages 1-26, December.
    12. Anh Huu Nguyen & Mai Hoang Thi Do & Thinh Gia Hoang & Loan Quynh Thi Nguyen, 2023. "Green financing for sustainable development: Insights from multiple cases of Vietnamese commercial banks," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 321-335, January.
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