A CASE OF SUSTAINABILITY REPORTING AND ORGANISATIONAL CHANGE IN PRACTICE OF MALAYSIAN PALM OIL COMPANY: BEYOND THE SYMBOLIC AND SUBSTANTIVE DICHOTOMY

SAIDATUL NURUL HIDAYAH JANNATUN NAIM BINTI NOR AHMAD, SAIDATUL NURUL HIDAYAH JANNATUN NAIM (2020) A CASE OF SUSTAINABILITY REPORTING AND ORGANISATIONAL CHANGE IN PRACTICE OF MALAYSIAN PALM OIL COMPANY: BEYOND THE SYMBOLIC AND SUBSTANTIVE DICHOTOMY. Doctoral thesis, UNIVERSITI SAINS MALAYSIA.

Text A CASE OF SUSTAINABILITY REPORTING AND ORGANISATIONAL CHANGE IN PRACTICE OF MALAYSIAN PALM OIL COMPANY BEYOND THE SYMBOLIC AND SUBSTANTIVE DICHOTOMY.pdf - Submitted Version Restricted to Registered users only Download (28MB) | Request a copy

Abstract

The concept of sustainable business practice and reporting have taken centre stage in the global consumer products supply chain and sourcing decision specifically with the widespread prevalence of environmental and social violations in the palm oil industry. The purpose of this study is to explore the institutional pressures and changes in sustainability reporting and practice made in respond to these pressures by a Malaysian public listed company in the palm oil sector. Case study methodology was employed, gathering primary and secondary data through semi-structured interview, observation, informal conversation, focus group discussion and content analysis. Neo-institutional, legitimacy and impression management theory were used as the lens to explain the study findings. The findings show there are both external and internal pressures/motivation for company to embark on sustainability reporting and practices. Externally, stakeholder pressure mainly came from the NGOs and competitors that puts pressure on the multinational buyers, investors and financiers whom in turn place pressure on the case company, making it highly effective, as it risked the company’s financial bottom lines. Regulatory pressures, conforming to industry norms, and seeking support of foreign government also increases the external pressures. Reputational problems and labour shortages, business case for sustainability and philanthropic nature of family-owned firm are the internal motivation behind the endeavour. This refutes earlier literature proposing that corporations are only responding to external pressure for sustainability, as it is proven that internal technical/cost efficiency concern also drives their uptake. Sustainability reporting extent did increase over the years, but mostly in narrative forms, hence of low quality. Reporting of negative incidents were mostly in symbolic nature at first, but it moves towards more corrective action statement in 2016 onwards, which hints substance, but there are issues that was not reported at all such as sexual harassment case and salary disputes. This is an apparent evidence of selective disclosure taking place. In actual practice, structurally, the company did change by creating new department, new procedures, and new committees in regard to sustainability. However, there are policy implementation gaps in these changes. In term of strategy, the company did change in some respects such as in expansion policy but did not change substantively in other aspects such as in traceability issues. In terms of culture, although there is an increasing awareness on sustainability, profit and cost/efficiency consideration still takes prominence, hindering substantive change to happen. Overall, the study found both symbolic and substantive change towards sustainability, but much more inclined towards symbolic. The study provides evidence of symbolic-substantive to be a continuum instead of a dichotomy which mostly assumed in previous literature, and company adopt a mixture of these depending on the severity of issues, level of scrutiny, and cost/efficiency consideration. The study also found that sustainability reporting was not the changing agent towards better sustainability practices and performance. Instead, we found certification process as the agent of change in the case company that influence the reporting process, breadth and depth of information disclosed. This study also adds to the evidence of corporate legitimacy motive, dominance of coercive pressure (showing the industry has yet to mature in sustainability aspects), and continued business unsustainability still prevail in the context of developing country.

Item Type:	Thesis (Doctoral)
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Universiti > Universiti Sains Malaysia (USM)
Depositing User:	Encik Mohd Zulkarnain Hassan bin Mohd Zainudin
Date Deposited:	02 Oct 2024 11:12
Last Modified:	04 Oct 2024 09:19
URI:	https://repositori.mohe.gov.my/id/eprint/7

Actions (login required)

View Item