Could Esg and Halal Practices Be Converged? Preliminary Evidence Based on Integrated Reporting And Sustainability Reporting Of A Halal-Certified Company
DOI:
https://doi.org/10.33102/jfatwa.vol27no4.476Keywords:
ESG, Halal management, Annual Report, Sustainability Reporting, Integrated ReportingAbstract
One of communication mechanism that used by corporations to state their focus, concerns and activities is corporate reports, such as annual report and stand-alone sustainability report. On top of mandatory reporting of financial statements, corporations use corporate reports to convey their philosophy, construct visibility and image. Integrated Reporting (IR) and Sustainability Reporting are two recent reporting frameworks that have been adopted by corporations. The corporations’ value creation process is the main focus of IR, which is based on six capitals of corporations. Sustainability Reporting is a way for a corporation to become more sustainable and focuses on economic, environmental and social aspects. The main objective of this study is to compare the two-reporting frameworks. Particularly, the suitability of the reporting frameworks for halal industry players to communicate their halal commitment and activities. This study also examine whether ESG and Halal practices can be converged based on the reporting framework. This study provides an analysis of corporate reports of a leading halal food manufacturer that is listed in Bursa Malaysia. Based on content analysis, this study highlights halal-related information in the company’s IR and Sustainability Reporting. Results from the study might provide evidence on non-financial reporting that may acts as a communication tool to the stakeholders. Utilizing IR and Sustainability reporting could build trust of capital market and society, thus ensure the sustainability of halal industry.
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Copyright (c) 2022 Nathasa Mazna Ramli, Aimi Nurshahirah Binti Shahrul Kamil, Nurul Nazlia Jamil, Hasnah Haron
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