The state of disclosure of environmental, social, and governance dimensions in the insurance industry of Iran

Document Type : Research Paper

Authors

1 Ph.D., Department of Accounting, Faculty of Social Sciences & Economics, Alzahra University, Tehran, Iran

2 Professor, Department of Accounting, Faculty of Social Sciences & Economics, Alzahra University, Tehran, Iran

3 Senior Lecturer,Department of Business and Economic Studies, Faculty of Education and Business Studies, University of Gävle, Gavle, Sweden

4 Assistant Professor, Department of Macro Insurance Studies, Insurance Research Center, Tehran, Iran

Abstract

Purpose: The insurance industry plays an important role in sustainable development and directly and indirectly affects the sustainable performance of other industries and society. The main purpose of this study is to investigate the extent of disclosure of sustainability components in the insurance industry.
Methodology: In this study, the model extracted in the research of Mahmoudkhani, Rahmani, Homayoun, and Niakan (2021), which was obtained by analyzing the content of sustainability reports, was modified and supplemented by reviewing sustainability standards and guidelines and obtaining expert opinions. The board activity report of 26 insurance companies (7 members of the stock exchange and 19 members of the OTC market of Iran) for the year 2020 was analyzed. The Chi-square test was used to examine the differences in the disclosure of sustainability components at the company level.
Results: According to the findings, the three main dimensions of sustainability reporting in the insurance industry are environmental, social, and governance dimensions. The results showed that there is a significant difference between the disclosure of environmental, social, and governance components in double and triple comparisons between sustainability components at the level of Iranian insurance companies. The disclosure rate of the governance dimension was 21.71 for each measure and 13.13 for the social dimension on average, while this ratio is 1.53 for the environmental dimension.
Conclusion: In the activity report of the board of directors, most disclosure is related to the governance dimension and no disclosure has been made regarding the climate change component. A reason for paying more attention to the governance aspect is related to the regulations of corporate governance in the insurance industry, which are implemented by insurance companies.
Contribution: The findings of this research enrich the research literature on sustainability reporting in the insurance industry and its results can be used by insurance companies to prepare and improve sustainability reporting.

Keywords

References

بابائی، فاطمه؛ رحمانی، علی؛ همایون، سعید و امین، وحید. (1400). رابطه بین عملکرد پایداری شرکتی و ارزش شرکت: با تأکید بر نقش امتیاز افشا و اندازه شرکت. مجله دانش حسابداری، 12 (3)، 1-27.
بخردی نسب، وحید و ژولانژاد، فاطمه. (1399). تأثیر مسئولیت پذیری اجتماعی بر عملکرد مالی شرکت با در نظر گرفتن نقش تعدیل گر ارزش ویژه نام و نشان تجاری. حسابداری و منافع اجتماعی، 10(4)، 27-72.
تبریزی، منصوره. (1393). تحلیل محتوای کیفی از منظر رویکردهای قیاسی و استقرایی. مجله علوم اجتماعی، 64، 105-138.
حجازی، رضوان و رجب دری، حسین. (1399). رابطه افشای اطلاعات مسئولیت‌پذیری اجتماعی شرکت و دقت پیش‌بینی مدیران. حسابداری و منافع اجتماعی، 10 (4)، 73-92.
حسنی، محسن. (1399). اثر مسئولیت اجتماعی راهبردی بر عملکرد مالی و ضریب واکنش سود شرکت‌ها. حسابداری و منافع اجتماعی، 10(4)، 1-26.
حیاتی، نهاله؛ حجازی، رضوان؛ حسینی، سید علی؛ باستانی، سوسن. (1397). استخراج مولفه‌های زیست‌محیطی از گزارشات فعالیت هیئت‌مدیره شرکت‌ها با استفاده از روش تحلیل محتوای کیفی. پژوهش‌های تجربی حسابداری، 7(4)، 43-70.
رحمانی، علی؛ محمودخانی، مهناز. (1400). ضرورت تهیه و اطمینان بخشی گزارش های پایداری: دیدگاه حسابرسان و خبرگان صنعت بیمه. فصلنامه پژوهش‌های حسابرسی حرفه‌ای، 2(5)، 128-156.
رحمانی، علی؛ محمودخانی، مهناز؛ همایون، سعید؛  نیاکان، لیلی. (1401). بررسی استانداردها، رهنمودها و وضعیت انتشار گزارشگری پایداری در صنعت بیمه. فصلنامه علمی - پژوهشی پژوهشنامه بیمه، 37 (2).
فخاری، حسین؛ ملکیان، اسفندیار و جفایی رهنی، منیر. (1396). تبیین و رتبه‌بندی مؤلفه‌ها و شاخص‌های گزارشگری زیست‌محیطی، اجتماعی و راهبری شرکتی به روش تحلیل سلسله مراتبی در شرکت‌های پذیرفته‌شده در بورس اوراق بهادار. نشریه حسابداری ارزشی و رفتاری،2(4)، 153-187
کاشانی پور، محمد؛ جندغی، غلامرضا و رحمانی، محمد. (1397). بررسی رابطه بین کیفیت گزارشگری مالی با افشا اطلاعات پایداری شرکت‌های پذیرفته‌شده در بورس اوراق بهادار تهران. پژوهش‌های تجربی حسابداری، 8(1). 11-31.
محمودخانی، مهناز؛ رحمانی، علی؛ همایون سعید و نیاکان، لیلی. (1400). شناسایی مولفه‌های گزارشگری پایداری در صنعت بیمه. دو فصلنامه حسابداری ارزشی و رفتاری، ۶ (۱۱)، ۱۸۷-۲۱۶.
مصطفایی، پرستو و حسینی، سید علی. (۱۴۰۰). تحلیل محتوای کیفی گزارش مسئولیت اجتماعی شرکت‌ها با تأکید بر ذینفعان اجتماعی. پژوهش‌های تجربی حسابداری، 11(3)، ۶۱-80.
ملکیان، اسفندیار؛ فخاری، حسین و جفایی، منیر. (1398). بررسی تأثیر ویژگی‌های هیئت‌مدیره شرکت بر میزان گزارشگری زیست‌محیطی، اجتماعی و راهبری شرکتی. فصلنامه دانش حسابداری، پیاپی ۳۷ (تابستان ۱۳۹۸)، ۷۷ -۱۱۲.
References
Al Hawaj, A. Y., & Buallay, A. M. (2022). A worldwide sectorial analysis of sustainability reporting and its impact on firm performance. Journal of Sustainable Finance & Investment, 12(1), 62-86.
Arruda, P. (2018). The P&C Insurance Industry's Role in Sustainable Development and Commerce.
Babaei, F., Rahmani, A., Homayoun, S., Amin, V. (2021). The Relationship between Corporate Sustainability Performance and Firm Value: Emphasizing the Role of Disclosure Score and Firm Size. Journal of Accounting Knowledge, 12(3), 1-27. (In Persian).
Bacani, B., McDaniels, J., & Robins, N. (2015). Insurance 2030: Harnessing insurance for sustainable development. Geneva: International Environment House.
Bekhradi Nasab, V., Zholanezhad, F. (2020). The Role of value Moderator of the Brand Name on the Relationship between Corporate Social Responsibility and Financial Performance of firms Listed in Tehran Stock Exchange. Journal of Accounting and Social Interests, 10(4), 27-72. (In Persian).
Eccles, R., Krzus, M., Rogers, J. & Serafeim, G. (2012). The need for sector specific materiality and sustainability standards. Journal of Applied Corporate Finance, 24 (2), 8-14.
Fakhari, H,. Malekian, E, & Jafaei Rahni, M. (2018). Explaining and Ranking of the components and indicators of environmental, social and corporate governance reporting by Analytic Hierarchy Process in the companies listed in Stock Exchange. Journal of Value & Behavioral Accounting, 2 (4), 153-187. (In Persian).
Frost, G., Jones, S., Loftus, J., & Van Der Laan, S. (2005). A survey of sustainability reporting practices of Australian reporting entities. Australian Accounting Review, 15(35), 89-96.
Gao, S. S., Heravi, S., & Xiao, J. Z. (2005). Determinants of corporate social and environmental reporting in Hong Kong: a research note. In Accounting Forum, 29(2), 233-242.
Garz, H., Kudszus, V., & Volk, C. (2004). Insurance and sustainability: playing with fire. WestLB AG, London.
Gray, R., & Milne, M. (2002). Sustainability reporting: who's kidding whom? Chartered Accountants Journal of New Zealand, 81(6), 66-70.
Hassani, M. (2020). The effect of Social Responsibility on Financial Performance and Earning Response Coefficient. Journal of Accounting and Social Interests, 10(4), 1-26. (In Persian).
Hayati, N., Hejazi, R., Hosseini, S., Bastani, S. (2018). Extraction of Environmental Indicators from the Board of Directors' Report, Using Qualitative Content Analysis. Empirical Research in Accounting, 8(2), 43-70. (In Persian).
Hejazi, R., Rajabdorri, H. (2020). The Relationship between Disclosure of Social Responsibility Information and accuracy of managers Forecast. Journal of Accounting and Social Interests, 10(4), 73-92. (In Persian).
Ho, C. C., Huang, C., & Ou, C. Y. (2018). Analysis of the factors influencing sustainable development in the insurance industry. Corporate Social Responsibility and Environmental Management, 25(4), 391-410.
Ireton, K., Valido, V., & Ramirez, L. (2017). Sustainability Reporting in the Financial Sector: A Governmental Approach.
Kashanipour, M., Jandaghi, G., Rahmani, M. (2018). Financial Reporting Quality and Sustainability Information Disclosure. Empirical Research in Accounting, 8(3), 11-31. (In Persian).
KPMG. (2016). corporate responsibility reporting in the insurance sector. https://assets.kpmg/content/dam/kpmg/xx/pdf/2016/08/corporate-responsibility-insurance-sector.pdf.
KPMG. (2020). the time has come: The KPMG Survey of Sustainability Reporting 2020, https://assets.kpmg/content/dam/kpmg/be/pdf/2020/12/The-Time-Has-Come-KPMG-Survey-of-Sustai.
Mahmoudkhani, M., Rahmani, A,. Homayoun, S, & Niakan L. (2021). Identify the components of sustainability reporting in the insurance industry. Journal of Value & Behavioral Accounting. 2021, 6 (11), 187-216. (In Persian).
Malekian, E., Fakhari, H., Jafaei Rahni, M. (2019). Impact of Board of Directors' Characteristics on Environmental, Social, and Corporate Governance Reporting. Journal of Accounting Knowledge, 10(2), 77-112. (In Persian).
McDaniels, J., Robins, N., & Bacani, B. (2017). Sustainable Insurance: The Emerging Agenda for Supervisors and Regulators. https://wedocs.unep.org/handle/20.500.11822/21609?show=full.
Mostafaei, P., Hosseini, S. (2021). Qualitative Content Analysis of Corporate Social Responsibility Reports with Emphasis on Social Stakeholders. Empirical Research in Accounting, 11(3), 79-112. (In Persian).
Nwobu, O. A., Owolabi, A. A., & Iyoha, F. O. (2017). Sustainability reporting in financial institutions: a study of the Nigerian banking sector. Journal of Internet Banking and Commerce, 22(S8), 1-15.
Obalola, M. (2008). Beyond philanthropy: corporate social responsibility in the Nigerian insurance industry. Social Responsibility Journal, 4(4), 538-548.
Rahmani, A., Mahmoudkhani, M. (2022). The necessity of preparing and assuring sustainability reports:The views of insurance industry experts and auditors. Journal of Professional Auditing Research, 2(5), 128-156. (In Persian).
Rahmani, A., Mahmoudkhani, M., Homayoun, S., & Niakan, L. (2022). Review of the standards, guidelines and publishing status of sustainability reporting in the insurance industry. Iranian Journal of Insurance Research, 37(2), (In Persian).
Reuters, T. (2019). Environmental, social and governance (ESG) scores from Refinitiv. Refinitivhttps://www.refinitiv.com
Scholtens, B. (2011). Corporate social responsibility in the international insurance industry. Sustainable Development, 19(2), 143-156.
Shad, M. K., Lai, F. W., Fatt, C. L., Klemeš, J. J., & Bokhari, A. (2019). Integrating sustainability reporting into enterprise risk management and its relationship with business performance: A conceptual framework. Journal of cleaner production, 208, 415-425.
Sweeney, L., & Coughlan, J. (2008). Do different industries report corporate social responsibility differently? An investigation through the lens of stakeholder theory. Journal of Marketing Communications, 14(2), 113-124.
Tabrizi, M. (2014). Qualitative content analysis: deductive and inductive approaches. Journal of Social Sciences, 64, 105-138 . (In Persian).
UNEP Finance Initiative (2009). The global state of sustainable insurance: Understanding and integrating environmental, social and governance factors in insurance. Retrieved from http://www.unepfi.org/fileadmin/documents/globalstate- of-sustainable-insurance_01.pdf"
Wu, S., Shao, C., & Chen, J. (2018). Approaches on the Screening Methods for Materiality in Sustainability Reporting. Journal of Sustainability, 10(9), 3233.

Files

History

  • Receive Date: 07 March 2022
  • Revise Date: 04 September 2022
  • Accept Date: 04 September 2022

Share

How to cite

Statistics