Biodiversity Reporting Among Malaysian Companies: does the Risk Level Matter?

  • Authors

    • Norhayati Mat Husin
    • Azrinawati Mohd Remali
    • Bakhtiar Alrazi
    2018-11-30
    https://doi.org/10.14419/ijet.v7i4.35.22731
  • biodiversity, Malaysia, reporting, risk
  • As Malaysia launched its National Key Economic Areas, biodiversity has been identified as one of the entry point projects for one of the sectors that will drive Malaysia towards high-income status i.e. tourism. Biodiversity, however, is facing a crisis, due to the development of business operation that has direct or indirect contribution to biodiversity loss. Despite the growing concern on biodiversity issue, previous studies have put more focus on general sustainability or environmental reporting issues. This paper aims to provide an analysis on the extent of biodiversity information disclosed by the top 100 Malaysian public listed companies and to see whether there is significant difference, in terms of reporting, between companies from different categories of biodiversity risk. The findings show 80 of the Malaysian companies disclose information regarding biodiversity with ‘mission statement’ being the highest reported biodiversity related item. There is also significant difference, in the context of biodiversity reporting, between companies from different categories of biodiversity risk. Further analysis shows companies with higher biodiversity risk (red-zone) provide more reports on biodiversity related information leading to a statistically significant difference from companies with lower biodiversity risk i.e. amber-zone and green-zone.

  • References

    1. [1] Economic Transformation Programme – ETP, “Economic Transformation Programme – Tourism: Annual Report†Retrieved from http://etp.pemandu.gov.my/annualreport/upload/Eng_ETP2012_08_NKEA06_Tourism.pdf . 2013

      [2] Ministry of National Resources and Environment - NRE, “Biodiversity in Malaysiaâ€, Retrieved from http://www.nre.gov.my/Malay/Pusat-Media/Penerbitan/Biodiversity%20in%20Malaysia.pdf. 2006.

      [3] The World Bank, “2013 World Development Indicatorsâ€, Retrieved from http://www.nre.gov.my/Malay/Pusat-Media/Penerbitan/Biodiversity%20in%20Malaysia.pdf. 2013.

      [4] L. P. Koh and D. S. Wilcove, “Is oil palm agriculture really destroying tropical biodiversity?â€, Conservation Letter, vol. 1, 2008, pp. 60–64.

      [5] D. S. Wilcove and L. P. Kol, “Addressing the threats to biodiversity from oil-palm agriculture’, Biodivers Conserv, vol. 19, 2010, pp. 999–1007.

      [6] E. B. Fitzherbert, M J. Struebig, A. Morel, F. Danielson, C. A. Bru¨hl, P. F. Donald and B. Phalan, “How will oil palm expansion affect biodiversity?â€, Trends Ecol Evol, vol. 23, 2008, pp. 538–545.

      [7] C. H. Cho and D. M. Patten “The role of environmental reportings as tools of legitimacy: A research noteâ€, Accounting, Organizations and Society, vol. 32 (7-8), 2006, pp. 639-647.

      [8] J. Rimmel and K. Jonall, “Biodiversity reporting in Sweden: Corporate reporting and preparers’ viewsâ€, Accounting, Auditing & Accountability Journal, vol. 26 (5), 2013, pp. 746-778.

      [9] D. Hackston and M. J. Milne, “Some determinants of social and environmental reportings in New Zealand companies’, Accounting, Auditing, & Accountability Journal, vol. 9(1), 1996, pp. 77–108.

      [10] C. J. Van Staden and J. Hooks, “A comprehensive comparison of corporate environmental reporting and responsivenessâ€, British Accounting Review, vol. 39(3), 2007, pp. 197-210.

      [11] A. Alazzani and W. N. Wan-Hussin “Global Reporting Initiative's environmental reporting: A study of oil and gas companiesâ€, Ecological Indicators, vol. 32, 2013, pp. 19-24.

      [12] C. Joseph and R. Taplin, “The measurement of sustainability reporting: Abundance versus occurrenceâ€, Accounting Forum, vol. 35 (1), 2011, pp. 19-31.

      [13] Global Reporting Initiative “Biodiversity: A GRI Reporting Resourceâ€, Retrieved from https://www.globalreporting.org/resourcelibrary/Biodiversity-A-GRI-Resource-Document.pdf. 2007.

      [14] International Union for Conservation of Nature & United Nations Global Compact, “A Framework for Corporate Action on Biodiversity and Ecosystem Servicesâ€, Retrieved from http://cmsdata.iucn.org/downloads/biodiversity2012.pdf. 2012.

      [15] L. C. L. Teh, L. S. L., Teh and R. Jumin, “Combining human preference and biodiversity priorities for marine protected area site selection in Sabah, Malaysiaâ€, Biological Conservation, vol. 167, 2013, pp. 396–404.

      [16] T. Soderman, “Treatment of biodiversity issues in impact assessment of electricity power transmission lines: A Finnish case reviewâ€, Environmental Impact Assessment Review, vol. 26 (4), 2006, pp. 319–338.

      [17] F&C Asset Management “Is biodiversity a material risk for companies?†Retrieved from http://www.businessandbiodiversity.org/pdf/FC%20Biodiversity%20Report%20FINAL.pdf. 2004

      [18] The Economics of Ecosystem and Biodiversity, “Chapter 2: Business impacts and dependence on biodiversity and ecosystem services†Retrieved from http://platformbee.nl/page/downloads/TEEBforbusinessch2_1_.pdf. 2012.

      [19] J. Houdet, M. Trommetter and J. Weber, “Understanding changes in business strategies regarding biodiversity and ecosystem servicesâ€, Ecological Economics, vol. 73, 2012, pp. 37-46.

      [20] C. De Villiers and C. J. Van Staden “Can less environmental reporting have a legitimising effect? Evidence from Africaâ€, Accounting Organisations and Society, vol. 31(8), 2006, pp. 763–781.

      [21] D. Campbell, B. Craven and P. Shrives “Voluntary social reporting in three FTSE sectors: A comment on perception and legitimacyâ€, Accounting, Auditing and Accountability Journal, vol. 16(4), 2003, pp. 558–581.

      [22] C. K. Lindblom, “The implications of organisational legitimacy for corporate social performance and reportings’, Paper presented at the Critical Perspectives on Accounting Conference, New York, NY.

      [23] J. Guthrie, R. Petty and F. Ricceri “The voluntary reporting of intellectual capital: Comparing evidence from Hong Kong and Australiaâ€, Journal of Intellectual Capital, vol. 7(2), 2006, pp. 254–271.

      [24] M. V. Tilling and C. A. Tilt, “The edge of legitimacy – Voluntary social and environmental reporting in Rothmans‘ 1956–1999 annual reportsâ€, Accounting, Auditing & Accountability Journal, vol. 23(1), 2010, pp. 55–81.

      [25] N. Mat Husin, “Intellectual capital reporting in Malaysian companies: A multidimensional analysis’, Unpublished PhD Thesis, Auckland University of Technology, Auckland, New Zealand, 2012.

      [26] J. D. Mahadeoa, V. Oogarah-Hanum and T. Soobaroyen, “Changes in social and environmental reporting practices in an emerging economy (2004 – 2007): Exploring the relevance of stakeholder and legitimacy theoriesâ€, Accounting Forums, vol. 35, 2011, pp. 158 -175.

      [27] C. Deegan, M. Rankin and J. Tobin “An examination of the corporate social and environmental reportings of BHP from 1983–1997â€, Accounting, Auditing, & Accountability Journal, vol. 15(3), 2002, pp. 312–343.

      [28] G. Donovan, “Environmental reportings in the annual report: Extending the applicability and predictive power of legitimacy theory†Accounting, Auditing & Accountability Journal, vol. 15, 2002, pp. 344–371.

      [29] D. K. Nyahunzvi, “CSR reporting among Zimbabwe's hotel groups: a content analysisâ€, International Journal of Contemporary Hospitality Management, vol. 25 (4), 2013, pp. 595 – 613.

      [30] L. J. Kemp and J. Vinke, “CSR reporting: a review of the Pakistani aviation industryâ€, South Asian Journal of Global Business Research, 1 (2), 2012, pp. 276 – 292.

      [31] M. A. Islam and M. A. Islam, “Environmental incidents in a developing country and corporate environmental reportings – A study of a multinational gas company’, Society & Business Review, vol. 6(3), 2011, pp. 229–248.

      [32] F. Darus, E. N. Che Ku Hamzah and H. Yusoff, H. “CSR Web Reporting: The Influence of Ownership Structure and Mimetic Isomorphismâ€, Procedia Economics and Finance, vol. 7,2013, pp. 236 – 242.

      [33] E. Esa and N. A. Mohd Ghazali “Corporate social responsibility and corporate governance in Malaysian government-linked companiesâ€, Corporate Governance, vol. 12 (3), 2012, pp. 292 – 305.

      [34] R. Said, Y. H.. Zainuddin and H. Haron, “The relationship between corporate social responsibility reporting and corporate governance characteristics in Malaysian public listed companiesâ€, Social Responsibility Journal, vol. 5 (2), 2009, pp. 212 – 226.

      [35] C. A. Adams, “A commentary on: Corporate social responsibility reporting and reputation risk managementâ€, Accounting, Auditing & Accountability Journal, vol. 21 (3), 2008, pp 365-370.

      [36] J. Unerman, “Strategic reputation risk management and corporate social responsibility reportingâ€, Accounting, Auditing & Accountability Journal, vol. 21 (3), 2008, pp. 362-364.

      [37] C. Grabsch, M. J. Jones and J. Solomon, “Accounting for biodiversity in crisis: A European perspective’ Working paper presented at the 14th Financial Reporting & Business Communications Conference, Bristol, 2010.

      [38] D. Van Liempd and J. Busch, “Biodiversity reporting in Denmarkâ€, Accounting, Auditing & Accountability Journal, vol. 26 (5), 2013, pp. 833-872.

  • Downloads

  • How to Cite

    Husin, N. M., Remali, A. M., & Alrazi, B. (2018). Biodiversity Reporting Among Malaysian Companies: does the Risk Level Matter?. International Journal of Engineering & Technology, 7(4.35), 198-203. https://doi.org/10.14419/ijet.v7i4.35.22731