Sustainability reporting practices in US and UK: an empirical comparison

Abstract

Purpose

This paper aims to investigate and compare the sustainability reporting practices of companies in the two most successful Western economies, the USA and the UK, as per Global reporting initiative framework.

Design/methodology/approach

Content analysis has been applied on a sample of 136 companies listed on the Stock Exchanges of the USA and the UK (USA – NASDAQ 100, 100 companies and Amex major market index, 20 companies; UK – FTSE 100, 100 companies). It uses descriptive statistics and independent sample t-test to identify significant comparisons.

Findings

The findings of the study suggest that the level of sustainability reporting is almost similar in the USA and the UK. It is somewhat low in both the countries. Overall mean disclosure score is 39.1 per cent in case of the USA followed by UK with 34.5 per cent. The result of independent sample t-test shows that these differences are not significant.

Practical implications

Sustenance is not a grave issue in both the USA and the UK. Thus, sustainability reporting is a voluntary practice in both these countries. Even then these countries are fostering in the field of sustenance and sensitizing the developing nations towards its need and relevance. The present study would provide developing countries a base and understanding of need based rules for moving on the path of sustenance.

Originality/value

The USA and the UK are the two most successful Western economies. However, not even a single study was found while reviewing the literature that studied and compared the sustainability reporting practices of these two leading developed countries.

Citation

Bhatia, A. and Tuli, S. (2018), "Sustainability reporting practices in US and UK: an empirical comparison", International Journal of Law and Management, Vol. 60 No. 4, pp. 1034-1056. https://doi.org/10.1108/IJLMA-04-2017-0102