A Comparative Review on Company Specific Determinants for Sustainability Reporting in United Kingdom (UK) and Malaysia

Faculty of Business, Multimedia University Melaka

^* Corresponding author’ email: xftong@mmu.edu.my

Abstract

This study aims to comparatively assess the effects of company-specific variables on the level of corporate social responsibility (CSR) information disclosed in publicly-traded companies from United Kingdom (UK) and Malaysia. Content analysis was applied to sampled reports from the FTSE 100 Index and FTSE Bursa KLCI against inferred meanings from the Global Reporting Initiative (GRI)-derived coding base to identify similarities and/or differences in CSR disclosure practices. The Spearman’s correlation coefficients and multiple linear regressions (MLR) analyses further gauged the associations between the variables and total quantity of CSR disclosure (TQ_CSR); and, determined the predictive determinants on sustainability reporting.

The Spearman’s correlation has identified a negative association on leverage with TQ_CSR for UK companies. In contrast, the TQ_CSR in the Malaysian sample was positively associated with directors’ CSR-related experiences and profitability but negatively associated with company size. Results from MLR analyses presented company size as a significant determinant on sustainability reporting in the UK model, while directors’ experiences were indicated as the crucial determinant in the Malaysian model. This first, direct cross-market sustainability reporting study highlights the importance of board of directors’ CSR-relevant experience in influencing the level of CSR disclosures in publicly-traded companies.