Environmental reporting of the Malaysian local governments / Che Ku Hisam Che Ku Kassim ... [et al.]

Environmental-related information is increasingly demanded due to the heightened expectations from the stakeholders who require more transparent organisational impacts on the natural environment and sustainability issues. Prior research examining ER practices in the private sector is well documented in the literature. However, little has been researched on ER practices of the public sector within the perspective of developing countries. The research attempts to bridge the gap in the literature by providing empirical evidence on the ER practices of Malaysian LGs. The objectives of the research are three-fold. First, it examines the extent of EDs made by the Malaysian LGs' websites. Although annual reports are the common medium used to supply EDs, details uploaded on the websites have offered an avenue for the stakeholders to experience the different medium of environmental messages reporting. Second, the research intends to examine the patterns of EDs provided on the websites. Examining the patterns, in the form of the nature and type of information, may provide evidence on the motive of disclosure. Third, since ER is a voluntary engagement in the public sector in Malaysia, the research seeks to examine the driving motives for ER and also the underlying reasons for lack of disclosures in an array of reporting media.
The research employed method triangulation in its two-phase data collection processes. The first phase involved a descriptive content analysis to measure the EDs. In the second phase, a mail survey to all LGs' accountants in various geographical locations in Peninsular Malaysia was conducted to examine the motive for ER and also the plausible reasons for lack of environmental disclosures by the Malaysian LGs. The results suggest that the EDs are very much descriptive in nature. In relation to the motive of disclosures, the ER practices of the Malaysian LGs appear to be driven by the need to portray good and responsible organisational image in the eyes of the relevant public. Moreover, the underlying reason for a lack of EDs is due to the shortage of staff that can recognise and report environmental disclosures. The results highlight the important role of education in providing relevant knowledge and training to the existing and future accountants to deal with emerging and complicated environmental issues affecting the LGs.