Effectiveness of Sustainability Disclosure Practices of Selected Indian Companies

Abstract

Purpose

This study aims to investigate the effectiveness of sustainability disclosure practices adopted by companies located in Visakhapatnam, specifically focusing on Visakha Steel Plant (VSP) and Hindustan Petroleum Corporation Limited (HPCL). The research seeks to identify key factors that enhance these practices and propose measures for improvement.

Methodology

Utilizing a quantitative research approach, primary data was collected from 125 respondents, including corporate executives, sustainability officers, and stakeholders. The study employed discriminant analysis and exploratory factor analysis to evaluate and identify critical factors influencing the effectiveness of sustainability disclosures.

Findings

The findings reveal that effective sustainability disclosures are characterized by high levels of comprehensiveness and stakeholder engagement. Detailed reporting and active stakeholder interaction are crucial for effective practices. Companies that adhere to standardized frameworks, maintain transparency, and implement rigorous internal auditing practices produce more reliable and credible sustainability disclosures. Stakeholder involvement through regular meetings, feedback mechanisms, and community engagement is essential in enhancing the quality of disclosures. Transparency and consistency in reporting, achieved through open disclosure, accessible information, and adherence to reporting schedules, are vital for building trust and accountability.

Conclusion

The study concludes that focusing on comprehensive reporting, active stakeholder engagement, adherence to standardized frameworks, transparency, and robust internal auditing can significantly improve the effectiveness of sustainability disclosure practices. These practices contribute to more sustainable and transparent corporate governance.

Implications

For VSP and HPCL, implementing these key areas can lead to enhanced sustainability disclosures, fostering greater trust and accountability among stakeholders. The findings provide valuable insights for other companies aiming to improve their sustainability reporting practices, contributing to overall better corporate governance and sustainable development