Corporate Social Disclosure

Abstract

Purpose

The core purpose of the study is to verify the compliance of corporate reporting and fulfillment of social responsibility with regards to voluntary disclosures for smooth operation of the business, in Nepalese context. Furthermore, a business needs to provide useful information to various users of financial statements to make economic decision. Perhaps the voluntary disclosure acts as a tool to the users to make correct decisions. Thus this study focuses upon the disclosure requirement in regards to corporate social reporting as performed by the company.

Methods

As a matter of fact, various tools have been utilized to analyze the collected data concerning the corporate reporting compliances. The data has been collected from various banks randomly,analyzedand presented with various suitable quantitative statistical tools. The methods include bar diagram, histogram and likewise the same.

Major Findings

As far as this study is concerned, eventually it came to know thatin thecurrent, statemuch financial institution fails to maintain corporate social reporting(CSR) system. As a matter of fact, it is not mandatory, the voluntary disclosure is in practice and most of the banks, usually public banks do not mention about CSR as well.

Limitation of the study

It is solely descriptive study not a comparative study. It is generated from minimal number of banks’ annual reports on websites only.

Keywords

Corporate social Reporting(CSR), Banks, disclosure

Type

Research Type

Introduction

General Definition of the study

The term voluntary disclosure is a method of providing the additional information to the different user of financial statements such as creditors, investors, government, employees and likewise the same. In the context of Nepal, voluntary disclosure is made by various banks to issue the necessary information so that the stakeholders can make correct economic decisions. It can be defined as,”informing the public with the help of financial statements of the firm (Agca&Onder, 2007:241).” Whatsoever, the only means of distributing the information regarding the performance of a company is through the financial statements of the company.Since the banks being the responsible commercial citizen must not fail to commit towards their stakeholders and society at large. Particularly, Nepalese financial services industry has been facing criticism over different issues. Nowadays, banking sector is massively put under pressure by their shareholders, customers, investors and media.

Subsequently, CSR is taken as an obligation of a company. It is the first and foremost responsibility of a company to generate CSR out the financial position, financial performance. Nowadays, mostly the banks are considered as commercial citizens of the nation. Thus, due to this, they carry a huge burden and pressure of maintaining records and updating the useful information to the shareholders of the company. Furthermore, World Bank has also exerted some rules, so as the firms need practices about the corporate reporting. Moreover the major objective of CSR implies in sustaining and intensifying the profitability of the company.