Corporate social and environmental reporting in the mining sector: seeking pragmatic and moral forms of legitimacy?
Corporate social and environmental reporting in the mining sector: seeking pragmatic and moral forms of legitimacy?
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Date
2023
Authors
Amos, Gideon Jojo
Journal Title
Journal ISSN
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Publisher
Journal of Accounting in Emerging Economies
Abstract
Purpose – The study examines the social and environmental responsibility indicators disclosed by three International Council on Mining and Metals (ICMM) corporate mining members in their social and
environmental reporting (SER) from 2006 to 2014. To achieve this aim, the author limits the data two years
before (i.e. from 2006 to 2007) and six years after (i.e. from 2009 to 2014) the implementation of the Sustainable
Development Framework in the mining sector in 2008.
Design/methodology/approach – Using the techniques of content analysis and interpretive textual
analysis, this study examines 27 social and environmental responsibility reports published between 2006 and 2014 by three ICMM corporate mining members. The study develops a disclosure index based on the earlier work of Hackston and Milne (1996), together with other disclosure items suggested in the extant literature and considered appropriate for this work. The disclosure index for this study comprised six disclosure categories (“employee”, “environment”, “community involvement”, “energy”, “governance” and
“general”). In each of the six disclosure categories, only 10 disclosure items were chosen and that results in 60 disclosure items.
Findings – A total of 830 out of a maximum of 1,620 social and environmental responsibility indicators,
representing 51% (168 employees, 151 environmental, 145 community involvement, 128 energy, 127
governance and 111 general) were identified and examined in company SER. The study showed that the
sample companies relied on multiple strategies for managing pragmatic legitimacy and moral legitimacy
via disclosures. Such practices raise questions regarding company-specific disclosure policies and their
possible links to the quality/quantity of their disclosures. The findings suggest that managers of mining
companies may opt for “cherry-picking” and/or capitalise on events for reporting purposes as well as
refocus on company-specific issues of priority in their disclosures. While such practices may appear
appropriate and/or timely to meet stakeholders’ needs and interests, they may work against the
development of comprehensive reports due to the multiple strategies adopted to manage pragmatic and
moral legitimacy.
Research limitations/implications – A limitation of this research is that the author relied on self-reported
corporate disclosures, as opposed to verifying the activities associated with the claims by the sample mining companies.
Practical implications – The findings from this research will help future social and environmental
accounting researchers to operationalise Suchman’s typology of legitimacy in other contexts.
Social implications – With growing large-scale mining activity, potential social and environmental
footprints are obviously far from being socially acceptable. Powerful and legitimacy-conferring stakeholders are likely to disapprove such mining activity and reconsider their support, which may threaten the survival of the mining company and also create a legitimacy threat for the whole mining industry
Originality/value –This study innovates by focusing on Suchman’s (1995) typology of legitimacy framework to
interpret SER in an industry characterised by potential social and environmental footprints – the mining industry.
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Citation
Amos, G. J. (2023). Corporate social and environmental reporting in the mining sector: seeking pragmatic and moral forms of legitimacy?. Journal of Accounting in Emerging Economies.