Corporate Environmental Disclosures on the Internet: an Empirical Analysis of Indian Companies

Abstract

The impact of industrialization, on natural resources, human health and environment was notclear till 1960s. Rachel Carson for the first time in 1962 raised important questions about humanimpact on nature in her book, Silent Spring. With the growing awareness towards sustainabledevelopment, industries and corporations have a major role in environmental degradationand protection thereof. In the past, accounting theories emphasized primarily on financial performance.This awareness on sustainable development is visible through varied environmentalmanagement mechanisms practiced amongst companies across the world. Environmental concernsare addressed by corporate giants through identification and estimation of environmentalcosts, benefits, investments, assets and liabilities into main stream accounting and reportingpractices, for varied managerial decisions. These focused environmental efforts have sharpenedand improved the global reporting standards. In India, the incorporation of environmentalcosts and benefits into mainstream financial reporting is at its nascent stage at present - but it iscertain to grow. Indian companies have not yet developed a holistic approach to environmentalreporting, as there is lack of environmental reporting guidelines. On the other hand environmentalawareness among Indian stakeholders gets strengthened with advancement in communicationtechnology. High propensity of environmental awareness ensures a more cautious approachamong Indian corporations to be environmentally responsible. With the advancementof information and communications technologies, global corporate information disclosureshave been on rise through the medium of internet, as confirmed by various recent national andinternational surveys. This research has observed that Indian companies follow diverse reportingpractices on the internet viz., stand alone environmental reporting (satellite accounts) orreporting along with the Annual/Financial Reports, or Sustainability Reporting. Copyright © www.iiste.org