EXPLORING THE NATURE OF CORPORATE GOVERNANCE RELATED CLIMATE CHANGE DISCLOSURE OF THE MALAYSIAN COMPANIES

Nik Nazli Nik Ahmad; Dewan Mahboob Hossain

doi:10.51200/ljms.v14i.2865

Authors

Nik Nazli Nik Ahmad Department of Accounting, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia
Dewan Mahboob Hossain Department of Accounting & Information Systems, University of Dhaka

DOI:

https://doi.org/10.51200/ljms.v14i.2865

Keywords:

Climate change, Global warming, Corporate environmental disclosure, Legitimacy theory, Malaysia

Abstract

The objective of this paper is to explore the governance related climate change disclosure in the corporate reports of award nominated Malaysian companies. For this, the corporate reports of twenty two (22) Malaysian companies (shortlisted for ACCA Malaysia Sustainability Reporting Award 2016) were analyzed. Content analysis was conducted on the sustainability award nominated reports of the companies under consideration. The findings were explained from legitimacy perspective. It was found that though these award-nominated Malaysian companies are
reporting on climate change issues, the extent of governance related disclosure is less. The format of reporting varies from company to company. Also, few governance related climate change issues were reported by these companies. Reporting was mostly done in narrative form. However, through strategic presentation styles, these companies tried
to legitimize their activities. This study seeks to contribute to the scant literature on climate change disclosure from the perspective of developing economies (in particular, Malaysia). Another important contribution of this study is that, here, the ‘governance related’ climate change disclosures were taken under consideration.

Abstrack

Objektif makalah ini adalah untuk meneroka pendedahan perubahan iklim berkaitan tadbir urus dalam laporan korporat syarikat Malaysia yang dicalonkan untuk anugerah. Untuk ini, laporan korporat dari dua puluh dua (22) syarikat Malaysia (disenarai pendek untuk ACCA Malaysia Sustainability Reporting Award 2016) dianalisis.
Analisis kandungan dilakukan berdasarkan laporan penamaan syarikat yang dipertimbangkan. Penemuan ini dijelaskan dari perspektif kesahan. Didapati bahawa walaupun syarikat-syarikat Malaysia yang dicalonkan untuk anugerah ini melaporkan masalah perubahan iklim, tahap pendedahan berkaitan pemerintahan kurang. Format pelaporan berbeza dari syarikat ke syarikat. Juga, beberapa masalah perubahan iklim yang berkaitan dengan pemerintahan dilaporkan oleh syarikat-syarikat ini. Pelaporan kebanyakannya dibuat dalam bentuk naratif. Namun,
melalui gaya persembahan yang strategik, syarikat-syarikat ini berusaha untuk mengesahkan kegiatan mereka. Kajian ini bertujuan untuk menyumbang kepada literatur yang sedikit mengenai pendedahan perubahan iklim dari perspektif ekonomi membangun (khususnya, Malaysia). Sumbangan penting lain dari kajian ini adalah bahawa, di sini, pendedahan mengenai perubahan iklim 'berkaitan dengan pemerintahan' telah dipertimbangkan.