Corporate Disclosure on Combating Bribery: A Study of Two Global Companies in the Telecommunication Industry

TLDR: Azizul et al. as mentioned in this paper examined the influence of media scrutiny and a networked governance of National and International Government Organisation (IGO) on the extent of voluntary corporate disclosure in the global telecommunication sector in response to incidents of corporate bribery.

Abstract: Purpose: The purpose of this paper is to examine the influence of media scrutiny and a networked governance of National and International Government Organisation (IGOs) on the extent of voluntary corporate disclosure in the global telecommunication sector in response to incidents of corporate bribery. Design/Methodology/Approach: An anti-bribery disclosure categorisation index was developed from various anti-bribery guidelines developed by IGOs to collect and analyse the data used in this study. This study relied on a content analysis of news media articles, corporate annual reports and standalone sustainability reports (from 1995-2010) of two global telecommunication companies [Alcatel-Lucent — a French based global company; Siemens AG — a German based global company], to understand corporate performance disclosures on combating corporate bribery. Findings: The findings underpinned by a joint consideration of legitimacy theory, media agenda setting theory and responsive regulation theory, show that the change in corporate disclosures on combating bribery were positively associated with the extent of negative media attention and the movement of IGOs in combating corporate bribery in global corporations. A system of networkedgovernance with IGOs appears to have a significant influence on international business practice. Originality/Value: In the context of the literature on social accounting, this is believed to be the first known study to document and understand the trend in anti-bribery related performance disclosures and the influence of external stakeholders on such practices. *Corresponding author School of Accounting, Economics and Finance, Deakin University, 221 Burwood Highway, Burwood, Victoria 3125, Australia: Ph: 61 3 9244 6523; Fax: 61 3 9244 6283. Email: azizul.islam@deakin.edu.au