Abstract:
Environmental reporting (ER) is the method of communication of environmental performance information by an organization to its stakeholders. This information discloses environmental impacts, environmental risks, policies, strategies, targets, costs, liabilities, and environmental performance. According to the current environmental regulation of an organization, it is mandatory to disclose financial information. Other information such as environment and social can be disclosed as a voluntary practice in an organization’s perspective it creates a competitive advantages, better reputation, and increased confidence of investors and improvement of relationships with stakeholders. In stakeholder perspective, it generates transparency, reduce negative environmental impact and availability of environment information. Due to these significant benefits, environmental reporting is very vital to practice in the current business world. This study focused to identify the reasons of the plantations sector organizations are less involving in environmental reporting in Sri Lanka and method to improve the current ER practices. Data was collected through content analysis of annual reports and semi-structured interviews. Sample was selected by applying judgmental sampling method. Data analysis was conducted on qualitative approach. Finally, the was identified the lower level of environmental reporting practices in plantations sector companies due to number of factors, which are creating challenges to function a better environment reporting system. Lack of top management commitment, lack of interest of shareholders, high-cost involvement, lack of mandatory legislation and regulations requirement, lack of competent staff and lack of organization policies and procedures are the identified challenges. To overcome these challenges, companies need to be supported through government involved programmes that raise the awareness for top management and stakeholders on the importance of ER, national-level updated legislation for ER, cost reduction system, skill and knowledge development for staff on ER and motivate company level policy and procedure development on ER. |
