Corporate Social Responsibility Disclosure Practices in Papua New Guinea

Abstract

This study examines the Corporate Social Responsibility Disclosures (CSRD) among the companies listed on Port Moresby Stock Exchange (POMSoX) in Papua New Guinea (PNG), analysing annual reports published during the three year period of 2011-2013. The study revealed that 60% of the total CRS items expected to disclose by PNG companies have not been disclosed. Further analysis shows that out of the disclosures only 30% are detailed and comprehensive with verifiable and quantifiable evidences whereas other disclosures are loose statements. It was also found that most of the companies place higher emphasis on corporate governance disclosures than other components of Corporate Social Responsibility (CSR). Further, it was found that disclosures in respect of consumer responsibility are poor in all the companies irrespective of the industry type. The findings of the study suggest that company size, profitability, industry type, and listing nature influence the level of CSRD in PNG companies. The findings also suggest room for improvement of CRS practices and CRSD in PNG companies if they are encouraged with proper guidance.