An Analysis of Social Disclosures Among JSE-Listed Mining Companies

In the contemporary landscape, investors and users of financial statements evaluate factors beyond just financial performance when deciding whether to invest in or purchase items from a certain organisation. The way an organisation manages its social and environmental responsibilities, along with its governance practices, has become a significant factor in stakeholders’ decision-making processes. Therefore, it has become important for companies to show superior performance in environmental, social, and governance aspects. A substantial body of literature addresses the environmental and governance dimensions of ESG, resulting in a deficiency of study concerning the social aspect. This article addresses this gap by analysing the social disclosure aspects of ESG across mining companies listed on the Johannesburg Stock Exchange (JSE). Through qualitative content analysis of integrated reports from 13 mining companies listed on the JSE, it emerged that mining companies, whose operations are a societal threat to the communities they operate in, provide disclosures regarding their impact on human capital. These companies offered comprehensive disclosures on health and safety; but other social issues were presented in a manner that was overly summarized. It was additionally discovered that mandatory disclosures were broader and consistent among the companies. This indicates that companies are more motivated to deliver quality disclosures when there are regulations than in their absence. This exploratory study provides significant insights into the quality of social disclosures by mining companies, assisting them in producing higher-quality integrated reports and addressing a gap in the literature regarding social disclosure quality.