Aspects Of CSR Disclosure In UAE Accounting Essay


The intent of this chapter is to discourse the findings of Chapters Six and Seven with regard to the research objectives stated in Chapter One. To accomplish research aims, the survey utilized two chief instruments ( the content analysis of one-year studies and the questionnaire studies ) to work together as complementary research enterprise. In subdivision ( 8.1 ) , the findings of the present research are summarized and discussed. These findings are so used to do recommendations about the possible hereafter development of corporate societal coverage in UAE ( subdivision 8.2 ) . The restrictions of the survey ( subdivision 8.3 ) and suggestions for farther research ( subdivision 8.4 ) in relation to CSR revelations are discussed at the terminal of this chapter.

8.1 Discussion of Consequences

This survey targets to analyze the assorted facets of CSR revelation in UAE. It does non restrict itself merely to the content analysis mensurating the extent and determiners of such revelation, but besides takes into history stakeholders ‘ attitudes to determine their positions about the current province of CSR in UAE and possible hereafter developments and compare those positions with companies ‘ actions. The chief findings from the two chief informations aggregation methods ( the content analysis and the questionnaire study ) will be discussed in this subdivision utilizing the research inquiries addressed in Chapter One to form the treatment.

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8.1.1 First Question:

In chapter one, the first research inquiry addressed was:

What are the perceptual experiences of different stakeholder groups of corporate information in UAE sing the chief intent ( s ) of corporate coverage?

Based on the questionnaire study, the positions of the questionnaire respondents ( fiscal directors, external hearers, faculty members, bank loan officers, and stock agents ) on the intents of current corporate revelation in UAE, the following major decisions resulted: .

The bulk of respondents agreed with the suggestion that most Emirati companies prepare their one-year studies for the intent of supplying information to the stakeholders with purely fiscal involvements, viz. possible investors, proprietors, and fiscal establishments. This monolithic support reflects the accent placed on determination utility by the IFRSs normally applied by Emirati companies from one manus, and the ‘stewardship ‘ map for corporate coverage by UAE Company Law from the other manus.

The importance of proviso information for directors to assist them run their concerns was given a considerable importance by the respondents, although fiscal directors gave a comparatively lower support for this proposal. . Fiscal directors who are responsible for the readying of one-year studies may see one-year studies as being merely one amongst other of import beginnings of other information helping in managerial determinations particularly that most of the companies listed in UAE have direction information systems other than one-year studies.

The respondents saw these companies as paying less attending to the proviso of information in their current one-year studies employees, providers, and society at big. These parties may be considered by respondents as holding indirect involvements in the Emirati companies instead than direct fiscal involvements. However, fiscal directors showed even less support for the proviso of information to each of these three parties than other groups. This may bespeak that fiscal directors who are responsible of fixing one-year studies still unaware or undervalue the moral and societal function that company should play toward these audiences.

Although assorted groups surveyed showed different positions on the revelation of some of the intents of proviso of Emirati companies ‘ one-year studies, no important differences in perceptual experiences between the five stakeholders ‘ groups toward these intents was found.

8.1.2 Second Question:

The 2nd research inquiry addressed was outlined as follows:

What are the perceptual experiences of preparers and different stakeholder groups of corporate information in UAE about corporate societal duty?

The perceptual experiences amongst the respondents toward the different facets of corporate societal patterns in UAE may be summarized as follows:

In footings of the respondents ‘ perceptual experiences of the desirableness and feasibleness of supplying information about societal activities in UAE, the aim was to supply an penetration into whether a “ demand for ” or, at least, a “ acknowledgment and credence of ” societal information and that Emirati companies should unwrap this sort of information. The responses indicate an credence of wider revelation in footings of corporate societal information. They, hence, agree that Emirati companies should pay more attending and take into history societal and environmental issues, wherever possible, so that some good socio-economic effects may emerge.

The respondents believed that the most of import grounds that explain why Emirati companies still have small CSR revelation include the companies ‘ accent in their economic more instead than societal aims, insufficient or absence of legal demands, the deficiency in populace ‘s and direction ‘s cognition of the importance of societal duty information, the deficient demand on CSR revelation, and that direction does non appreciate its societal duty. The bulk of the respondents besides believed that the sensitiveness of CSR information to unwrap and the cost of CSR revelation outweighs profit make non consist serious hindrances to the execution of CSR coverage.

The bulk of respondents believed that Emirati listed companies are motivated to be involved in CSR activities chiefly to warrant their being within the society. In add-on, they thought that a tax-exempt concern environment motivates these companies to develop CSR policies.

As to the perceptual experiences on the benefits to unwraping societal information, the huge bulk of respondents consider that unwraping CSR information will profit the society at big, better companies ‘ images, pull human resources, retain human resources, and guarantee client trueness.

The huge bulk of the respondents agreed that the stakeholders ( Including proprietors, possible investors, fiscal establishments, corporate employees, corporate providers, authorities and its bureaus, and society at big ) have the right to information about the actions for which Emirati companies are held responsible.

The respondents considered that subjects related to merchandises and consumers, community engagement, environment, and energy were the most popular societal points that should be disclosed.

As to the perceptual experiences on the attack ( s ) for set uping duties of Emirati companies, the bulk of respondents shared the believe that Emirati companies are unwilling to unwrap such information without legal and professional force per unit area, and therefore, they gave the strongest support for the jurisprudence as the best attack that may be used to advance CSR revelation among those companies.

The suggestion that corporate societal revelation in one-year studies be a separate subdivision entitled ‘social duty ‘ or the equivalent was found to be the most acceptable location amongst the five respondents groups. All other suggested signifiers and locations ( e.g. in a separate brochure attach toing the one-year study, within the managers ‘ study ) received some support from the respondents as possible locations for unwraping corporate societal information.

It would look that the bulk of respondents would wish to see the suggested CSR revelation for UAE as being expressed in a combination of all three suggested signifiers, i.e. descriptive, statistical, and pecuniary footings.

Third Question:

In chapter one, the 3rd research inquiry addressed in chapter one was outlined as follows:

Are there any spreads between perceptual experiences of different groups of corporate information in United Arab Emirates toward the construct of the corporate societal revelation?

Fourth and Fifth Questions:

In chapter one, the 4th and 5th research inquiries were:

Question Four: What is the extent of societal revelation in corporate one-year studies of companies listed in the stock markets of the UAE?

Question Five: To what extent do listed companies in UAE provide different revelation degrees in their one-year studies refering to different subjects of corporate societal duty?

From the findings that emerged from the content analysis of Emirati companies ‘ one-year studies for twelvemonth 2009, it can be noticed that:

All companies from different sectors ( 100 % ) undertake at least one type of societal revelation in their 2009 one-year studies. This is because they all disseminate some employee-related information. However, although societal revelation has been done by all Emirati companies, the quality of this revelation is still really low as the overall norm of societal revelation mark is merely 27.65 % .

The most common subject in Emirati companies ‘ one-year studies is human resources subject which was disclosed by all the companies ( 100 % ) . The laterality of revelation of information classified under the employee subject has been reported and corroborated in assorted surveies conducted in the country of corporate societal revelation ( e.g. Andrew et al. , 1989 ; Belal, 2001 ; Gray et al. , 1995a ; Guthrie & A ; Parker, 1990 ; Hackston & A ; Milne, 1996 ; Imam, 2000 ; Thompson & A ; Zakaria, 2004 ) . In add-on, the human resources class was scored extremely in relation to the revelation index bespeaking that this subject is besides the most of import class from the position of quality of societal revelation measured by mean societal revelation ( 49.26 % ) . The consequences show that the most of import infinite allotment for societal revelation in general and employee revelation in peculiar is for the three points which are required under the UAE ‘s Company Law to be disclosed by listed companies, viz. , employees ‘ wage, deport employees ‘ terminal of service benefits, and national employees ‘ pension and national insurance parts classs.

Product related information was the 2nd societal subject in footings of both the figure of companies ( 77, or 74 % ) disclosed in their one-year studies, and the mean societal revelation mark ( 36.45 % ) . From the findings it can be noticed that the companies.

While community involvement subject was came in 3rd topographic point in footings of figure of companies ( 39 or 37.50 % ) disclosed it, it

Emirati companies disclosed merely a little sum of environmental information in their one-year studies ; merely 24 companies ( 23 % ) seemed to be interested in unwraping any environmentally-related information. Furthermore, the CSR quality was besides really low as the norm mark for this point was merely 12.20 % . From the findings it is obvious that merely 8 out of 26 industrial companies appeared to be interested in unwraping any information in these classs ; this seems to be unusual because these companies are likely more responsible for damaging the environment than other companies, and industrial companies around the universe tend to be extremely seeable, with comparatively high revelation.

Most companies appeared to be non interested in unwraping energy-related information.

The revelation by Emirati companies to pass on their corporate societal duty information was chiefly a combination of the three chief methods in their societal coverage pecuniary, quantified but non-monetary, and indicative mood.

The location of CSR revelation in other subdivisions of the one-year study ( in the audited fiscal statements ) was often used by Emirati companies ( 100 % of the one-year studies ) . The popularity of this location societal can be explained in the context that information pertains to the commissariats for Employee ‘s wage ( wages, fillips, public presentation strategies ) , expatriate employees ‘ terminal of service benefits, and national employees ‘ pension and national insurance parts are required to be disclosed in the companies ‘ histories by Company Law in UAE. The board of managers ‘ study was besides popular location of CSR information in UAE. However, direction reappraisal subdivision, CSR separate subdivision, and separate brochure attach toing one-year study were the least favorite locations by UAE ‘s companies to unwrap their societal activities.


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