IDEAS home Printed from https://ideas.repec.org/a/eee/accfor/v37y2013i2p135-149.html
   My bibliography  Save this article

Corporate social reporting by MNCs’ subsidiaries in Sri Lanka

Author

Listed:
  • Beddewela, Eshani
  • Herzig, Christian

Abstract

This study examines the pressures, barriers and enablers which subsidiaries of multinational companies encounter when engaging in corporate social reporting within a developing country context. The researchers conducted in-depth interviews with eighteen managers across ten subsidiaries in Sri Lanka. The findings show that the subsidiaries are overwhelmingly driven by their need to attain internal legitimacy and conform to formal institutionalised processes for reporting on CSR which act as a barrier against publishing separate social reports in Sri Lanka. The study uncovers a tension between head office reporting requirements and demonstrating accountability for the needs of local stakeholders.

Suggested Citation

  • Beddewela, Eshani & Herzig, Christian, 2013. "Corporate social reporting by MNCs’ subsidiaries in Sri Lanka," Accounting forum, Elsevier, vol. 37(2), pages 135-149.
    • Handle: RePEc:eee:accfor:v:37:y:2013:i:2:p:135-149
    DOI: 10.1016/j.accfor.2012.09.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S015599821200049X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.accfor.2012.09.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ataur Belal & Robin Roberts, 2010. "Stakeholders’ Perceptions of Corporate Social Reporting in Bangladesh," Journal of Business Ethics, Springer, vol. 97(2), pages 311-324, December.
    2. Bryan W Husted & David B Allen, 2006. "Corporate social responsibility in the multinational enterprise: strategic and institutional approaches," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 838-849, November.
    3. Azlan Amran & Roszaini Haniffa, 2011. "Evidence in development of sustainability reporting: a case of a developing country," Business Strategy and the Environment, Wiley Blackwell, vol. 20(3), pages 141-156, March.
    4. Ahrens, Thomas & Chapman, Christopher S., 2006. "Doing qualitative field research in management accounting: Positioning data to contribute to theory," Accounting, Organizations and Society, Elsevier, vol. 31(8), pages 819-841, November.
    5. Uwem E. Ite, 2004. "Multinationals and corporate social responsibility in developing countries: a case study of Nigeria," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 11(1), pages 1-11, March.
    6. Ataur Rahman Belal & David L. Owen, 2007. "The views of corporate managers on the current state of, and future prospects for, social reporting in Bangladesh," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 20(3), pages 472-494, June.
    7. Carol A. Adams & Patty McNicholas, 2007. "Making a difference," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 20(3), pages 382-402, June.
    8. Kolk, Ans, 2010. "Trajectories of sustainability reporting by MNCs," Journal of World Business, Elsevier, vol. 45(4), pages 367-374, October.
    9. Azlan Amran & S. Susela Devi, 2008. "The impact of government and foreign affiliate influence on corporate social reporting: The case of Malaysia," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(4), pages 386-404, April.
    10. Jan Bebbington & Colin Higgins & Bob Frame, 2009. "Initiating sustainable development reporting: evidence from New Zealand," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 22(4), pages 588-625, May.
    11. Ahrens, Thomas & Chapman, Christopher S., 2007. "Management accounting as practice," Accounting, Organizations and Society, Elsevier, vol. 32(1-2), pages 1-27.
    12. Luis Perez-Batres & Van Miller & Michael Pisani, 2010. "CSR, Sustainability and the Meaning of Global Reporting for Latin American Corporations," Journal of Business Ethics, Springer, vol. 91(2), pages 193-209, February.
    13. Klaus E Meyer, 2004. "Perspectives on multinational enterprises in emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 259-276, July.
    14. C Herzig & T Viere & S Schaltegger & R.L Burritt & Ki-Hoon Lee, 2012. "Environmental Management Accounting: Case studies of South-East Asian Companies," Accounting Forum, Taylor & Francis Journals, vol. 36(4), pages 310-312, December.
    15. Muhammad Islam & Craig Deegan, 2010. "Media pressures and corporate disclosure of social responsibility performance information: A study of two global clothing and sports retail companies," Accounting and Business Research, Taylor & Francis Journals, vol. 40(2), pages 131-148.
    16. Ans Kolk, 2008. "Sustainability, accountability and corporate governance: exploring multinationals' reporting practices," Business Strategy and the Environment, Wiley Blackwell, vol. 17(1), pages 1-15, January.
    17. Wendy Chapple & Jeremy Moon, 2007. "CSR agendas for Asia," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 14(4), pages 183-188, September.
    18. Peter S Davis & Ashay B Desai & John D Francis, 2000. "Mode of International Entry: An Isomorphism Perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(2), pages 239-258, June.
    19. Muhammad Azizul Islam & Craig Deegan, 2008. "Motivations for an organisation within a developing country to report social responsibility information," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 21(6), pages 850-874, August.
    20. Newson, Marc & Deegan, Craig, 2002. "Global expectations and their association with corporate social disclosure practices in Australia, Singapore, and South Korea," The International Journal of Accounting, Elsevier, vol. 37(2), pages 183-213.
    21. Belal, Ataur Rahman & Cooper, Stuart, 2011. "The absence of corporate social responsibility reporting in Bangladesh," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 22(7), pages 654-667.
    22. World Bank, 2010. "World Bank South Asia Economic Update 2010 : Moving Up, Looking East," World Bank Publications - Books, The World Bank Group, number 2504, December.
    23. Baxter, Jane & Chua, Wai Fong, 2003. "Alternative management accounting research--whence and whither," Accounting, Organizations and Society, Elsevier, vol. 28(2-3), pages 97-126.
    24. Amy J Hillman & William P Wan, 2005. "The determinants of MNE subsidiaries' political strategies: evidence of institutional duality," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(3), pages 322-340, May.
    25. Dima Jamali, 2010. "MNCs and International Accountability Standards Through an Institutional Lens: Evidence of Symbolic Conformity or Decoupling," Journal of Business Ethics, Springer, vol. 95(4), pages 617-640, September.
    26. Braithwaite,John & Drahos,Peter, 2000. "Global Business Regulation," Cambridge Books, Cambridge University Press, number 9780521784993.
    27. Anthony Ferner & Phil Almond & Trevor Colling, 2005. "Institutional theory and the cross-national transfer of employment policy: the case of ‘workforce diversity’ in US multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(3), pages 304-321, May.
    28. Soon Ang & Larry L. Cummings, 1997. "Strategic Response to Institutional Influences on Information Systems Outsourcing," Organization Science, INFORMS, vol. 8(3), pages 235-256, June.
    29. Adams, Carol A. & Frost, Geoffrey R., 2008. "Integrating sustainability reporting into management practices," Accounting forum, Elsevier, vol. 32(4), pages 288-302.
    30. Chris Durden, 2008. "Towards a socially responsible management control system," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 21(5), pages 671-694, June.
    31. Unerman, Jeffrey & Bennett, Mark, 2004. "Increased stakeholder dialogue and the internet: towards greater corporate accountability or reinforcing capitalist hegemony?," Accounting, Organizations and Society, Elsevier, vol. 29(7), pages 685-707, October.
    32. David Cray, 1984. "Control and Coordination in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(2), pages 85-98, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Teng & Belal, Ataur, 2018. "Authoritarian state, global expansion and corporate social responsibility reporting: The narrative of a Chinese state-owned enterprise," Accounting forum, Elsevier, vol. 42(2), pages 199-217.
    2. Monica Fait & Dirk Meissner & Gian Luca Gregori & Filippo Monge & Valentina Cillo, 2022. "To act or to react? The role of responsiveness in corporate social performance disclosure in preventing plastic pollution in the travel and tourism sector," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 2065-2082, November.
    3. Carol A. Tilt, 2016. "Corporate social responsibility research: the importance of context," International Journal of Corporate Social Responsibility, Springer, vol. 1(1), pages 1-9, December.
    4. Teddy Ossei Kwakye & Emerald Edem Welbeck & Godfred Matthew Yaw Owusu & Fred Kwasi Anokye, 2018. "Determinants of intention to engage in Sustainability Accounting & Reporting (SAR): the perspective of professional accountants," International Journal of Corporate Social Responsibility, Springer, vol. 3(1), pages 1-13, December.
    5. Thoradeniya, Prabanga & Lee, Janet & Tan, Rebecca & Ferreira, Aldónio, 2022. "From intention to action on sustainability reporting: The role of individual, organisational and institutional factors during war and post-war periods," The British Accounting Review, Elsevier, vol. 54(1).
    6. Madalina Dumitru & Nadia Albu & Valentin Florentin Dumitru & Catalin Nicolae Albu, 2014. "Practices Regarding the Forms of Communication with the Consumers used by a Multinational Company at Global and Local Level," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(35), pages 1-41, February.
    7. Xiaofang Chen & P.R. Weerathunga & Mohammad Nurunnabi & K.M.M.C.B. Kulathunga & W.H.M.S. Samarathunga, 2020. "Influences of Behavioral Intention to Engage in Environmental Accounting Practices for Corporate Sustainability: Managerial Perspectives from a Developing Country," Sustainability, MDPI, vol. 12(13), pages 1-30, June.
    8. Irena Jindřichovská & Dana Kubíčková & Mihaela Mocanu, 2020. "Case Study Analysis of Sustainability Reporting of an Agri-Food Giant," Sustainability, MDPI, vol. 12(11), pages 1-19, June.
    9. Eshani Beddewela & Jenny Fairbrass, 2016. "Seeking Legitimacy Through CSR: Institutional Pressures and Corporate Responses of Multinationals in Sri Lanka," Journal of Business Ethics, Springer, vol. 136(3), pages 503-522, July.
    10. Ibrahem Alshbili & Ahmed A. Elamer & Maha W. Moustafa, 2021. "Social and environmental reporting, sustainable development and institutional voids: Evidence from a developing country," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 881-895, March.
    11. Belal, Ataur Rahman & Cooper, Stuart M. & Roberts, Robin W., 2013. "Vulnerable and exploitable: The need for organisational accountability and transparency in emerging and less developed economies," Accounting forum, Elsevier, vol. 37(2), pages 81-91.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Momin, Mahmood Ahmed & Parker, Lee D., 2013. "Motivations for corporate social responsibility reporting by MNC subsidiaries in an emerging country: The case of Bangladesh," The British Accounting Review, Elsevier, vol. 45(3), pages 215-228.
    2. Belal, Ataur Rahman & Cooper, Stuart M. & Roberts, Robin W., 2013. "Vulnerable and exploitable: The need for organisational accountability and transparency in emerging and less developed economies," Accounting forum, Elsevier, vol. 37(2), pages 81-91.
    3. Momin, Mahmood Ahmed, 2013. "Social and environmental NGOs’ perceptions of Corporate Social Disclosures: The Case of Bangladesh," Accounting forum, Elsevier, vol. 37(2), pages 150-161.
    4. Zeeshan Mahmood & Rehana Kouser & Md. Abdul Kaium Masud, 2019. "An emerging economy perspective on corporate sustainability reporting – main actors’ views on the current state of affairs in Pakistan," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 4(1), pages 1-31, December.
    5. Waris Ali & Maha Faisal Alsayegh & Zubair Ahmad & Zeeshan Mahmood & Javed Iqbal, 2018. "The Relationship between Social Visibility and CSR Disclosure," Sustainability, MDPI, vol. 10(3), pages 1-32, March.
    6. Waris Ali & Jedrzej George Frynas, 2018. "The Role of Normative CSR‐Promoting Institutions in Stimulating CSR Disclosures in Developing Countries," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 373-390, July.
    7. Monowar Mahmood & Janet Humphrey, 2013. "Stakeholder Expectation of Corporate Social Responsibility Practices: A Study on Local and Multinational Corporations in Kazakhstan," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(3), pages 168-181, May.
    8. Colin Higgins & Markus Milne & Bernadine Gramberg, 2015. "The Uptake of Sustainability Reporting in Australia," Journal of Business Ethics, Springer, vol. 129(2), pages 445-468, June.
    9. Matthias S. Fifka, 2013. "Corporate Responsibility Reporting and its Determinants in Comparative Perspective – a Review of the Empirical Literature and a Meta‐analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 22(1), pages 1-35, January.
    10. Mădălina Dumitru & Justyna Dyduch & Raluca-Gina Gușe & Joanna Krasodomska, 2017. "Corporate Reporting Practices in Poland and Romania – An Ex-ante Study to the New Non-financial Reporting European Directive," Accounting in Europe, Taylor & Francis Journals, vol. 14(3), pages 279-304, September.
    11. Deegan, Craig & Islam, Muhammad Azizul, 2014. "An exploration of NGO and media efforts to influence workplace practices and associated accountability within global supply chains," The British Accounting Review, Elsevier, vol. 46(4), pages 397-415.
    12. Moazzem Hossain & Angela Hecimovic & Aklema Choudhury Lema, 2015. "Corporate Social and Environmental Responsibility Reporting Practices from an Emerging Mobile Telecommunications Market," Australian Accounting Review, CPA Australia, vol. 25(4), pages 389-404, December.
    13. Pisani, Niccolò & Kourula, Arno & Kolk, Ans & Meijer, Renske, 2017. "How global is international CSR research? Insights and recommendations from a systematic review," Journal of World Business, Elsevier, vol. 52(5), pages 591-614.
    14. Barone, Elisabetta & Ranamagar, Nathan & Solomon, Jill F., 2013. "A Habermasian model of stakeholder (non)engagement and corporate (ir)responsibility reporting," Accounting forum, Elsevier, vol. 37(3), pages 163-181.
    15. Mahadeo, Jyoti Devi & Oogarah-Hanuman, Vanisha & Soobaroyen, Teerooven, 2011. "Changes in social and environmental reporting practices in an emerging economy (2004–2007): Exploring the relevance of stakeholder and legitimacy theories," Accounting forum, Elsevier, vol. 35(3), pages 158-175.
    16. Ataur Belal & Robin Roberts, 2010. "Stakeholders’ Perceptions of Corporate Social Reporting in Bangladesh," Journal of Business Ethics, Springer, vol. 97(2), pages 311-324, December.
    17. Waris Ali & Jedrzej George Frynas & Zeeshan Mahmood, 2017. "Determinants of Corporate Social Responsibility (CSR) Disclosure in Developed and Developing Countries: A Literature Review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(4), pages 273-294, July.
    18. Ali M Gerged & Christopher J Cowton & Eshani S Beddewela, 2018. "Towards Sustainable Development in the Arab Middle East and North Africa Region: A Longitudinal Analysis of Environmental Disclosure in Corporate Annual Reports," Business Strategy and the Environment, Wiley Blackwell, vol. 27(4), pages 572-587, May.
    19. Cory Searcy & Ruvena Buslovich, 2014. "Corporate Perspectives on the Development and Use of Sustainability Reports," Journal of Business Ethics, Springer, vol. 121(2), pages 149-169, May.
    20. Waris Ali & Jeffrey Wilson & Muhammad Husnain, 2022. "Determinants/Motivations of Corporate Social Responsibility Disclosure in Developing Economies: A Survey of the Extant Literature," Sustainability, MDPI, vol. 14(6), pages 1-26, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:accfor:v:37:y:2013:i:2:p:135-149. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/accounting-forum .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.