Assessing the Impact of Triple Bottom Line Reporting on Problem of Corporate Sustainability in Nigeria
[1]
Ijeoma, N. B., Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria.
This study assessed the impact of triple bottom line reporting on problem of corporate sustainability in Nigeria. The objective of the study is to determine whether triple bottom line reporting contribute to the problem of corporate sustainability by focusing on the environmental performance of the company and also, to ascertain whether triple bottom line disclosures in a company’s financial statement improves employee motivation with a view to reduce labor turnover in Nigeria. The method of data collection used in this study was field survey method involving the use of questionnaire administered to 180 samples. The method of data analysis was the Kruskal-Wallis rank sum test statistic. From the result of the analysis it was found that triple bottom line reporting contributes negatively on the problem of corporate sustainability by focusing on the environmental performance in Nigeria since the Chi-Square test statistic value obtained was 19.89 and a p-value of 0.00 which falls on the rejection region of the hypothesis. Also, it was observed that triple bottom line disclosures in a company’s financial statement improve employee motivation with a view to reduce labor turnover in Nigeria since the Chi-Square test statistic value obtained was 21.93 and a p-value of 0.00 which falls on the rejection region of the hypothesis. Corporate entities giving back to the society in which they operate by reporting on its non-financial aspects such as environmental or social bottom line and its financial aspect will enhance a friendlier operating environment. This is because while business turbulence caused by negative societal reaction could distort profit margin, sustainability reports significantly reduces stakeholder’s pressure and negative reactions from host communities (as was the case in the Niger Delta region in Nigeria). We recommend that standard setting bodies in Nigeria should develop more specific local standards guiding measurement and disclosure of sustainability practices. In addition, we believe that company’s partaking in social responsibility and revealing their corporate social responsibility report would positively affect the goodwill of the company and at times influences profit.
Employee, Profit, Corporate Sustainability, Financial Statement, Turnover, Triple Bottom Line
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