Who cares about climate change reporting in developing countries? The market response to, and corporate accountability for, climate change in Bangladesh

Abstract

Undoubtedly, climate change is one of the greatest problems facing today’s world. Despite this, traditional research has ignored the market response to, and accountability for, climate change reporting in developing countries. Hence, this study critically examines climate change reporting practices in the most affected countries in the world, with specific reference to Bangladesh. In the study, 32 semi-structured interviews and 71 annual reports are evaluated. Using legitimacy theory, the study contributes to building an understanding of companies’ attitude toward stakeholder accountability regarding climate change. The study finds that Bangladeshi companies are reporting climate change information on an average of 2.23 %. More specifically, the study demonstrates that large companies are reporting on more climate change issues than others because of their legitimized positions in the market. Again, a lack of regulation and a culture of low social accountability among the companies contribute to a very low level of disclosure on climate change. Surprisingly, multinationals are not providing satisfactory disclosure. The study has policy implications in developing countries for both local policy makers (the government) and international policy makers (the Intergovernmental Panel on Climate Change, the European Union, the World Bank, the UN Environment Programme, the International Energy Agency and the World Economic Forum) as to how to engage local companies so that they become more socially accountable to climate change reporting.