UNIVERSITY OF IMMACULATE CONCEPTION

Jacinto St., Davao City

MBA – Section 2

CHARMINE A. AMITA ROLANDO G. BORJA, DBM

Student Professor

CASE NO./ TITLE:

Determinants of environmental disclosures of listed firms in Ghana

BACKGROUND OF THE CASE:

Using Global Reporting Initiative (GRI) index as benchmark an analysis is made
to 10-year period (2003-2012) data of 17 firms listed in Ghana Stock Exchange (GSE), to
examine and investigate the type, determinants and trend of environmental disclosures.
Typically social responsibility of organizations to their environment were not
given much importance mainly because it has no financial impact. However, in recent
times approach to environmental concerns have been recognized as relevant to legitimate
business practices. Hence, organizations have disclosed their effort concerns and
activities to adhere environmental issues and demand related to their business practices.

STATEMENT OF THE PROBLEM:

How to compel business organizations in Ghana to disclosed environment related
information.

SWOT ANALYSIS
Strengths
 Long term plan on how to preserve the environment for the generations to come.
 Re-consider environment impact of its business practices

Weaknesses
 Entails additional cost which may not equate to gain/profit
Opportunities
 A way to express business legitimacy.
 Threats
 It may disclose information about current business practices not acceptable to
society, hence may threat integrity.

ALTERNATIVE ACTION:
 create a standard level of reporting/disclosure of environment issue based on industry
that will be part of annual corporate report.
 Impose stringent sanction for non-compliance.

PROS & CONS TO ALTERNATIVE ACTION:

Pros
 The stakeholders investors and government regulatory agency will have an easy
access of information as to business legitimacy of one organization. This will
guide stakeholders of the kind of organization they will patronize. Government
regulatory agency can easily verify compliance to environment regulations as
well.
Cons
 It will put greater societal pressure to sensitive industries and threat that they
maybe defying social responsibility.

RECOMMENDATION:
In view thereof, it will be my recommendation that a strict implementation of the
disclosure of environment related information especially to sensitive industries as they have the
greater impact to the environment and society and impose lenient requirement for non-sensitive
firms.

Reference:

Brammer S., & Pavelin, S. (2008). Voluntary environment disclosures by large UK companies.
Journal of Business Finance and Accounting, 22 (7-8) 1168-1188

Pereira Eugenio, T., Costa Lourenco, I., & Morais, A. I. (2013). Sustainability strategies of the
company Timorl: entending the applicability of legitimacy theory. Management if
Environmental Quality: An International Journal, 24 (%), 570-582.

Reverte, C. (2009). Determinants of corporate social responsibility disclosure ratings by Spanish

listed firms. Journal of Business Ethics, 88(2), 351-366.