Board role performance and sustainability reporting practices: managerial perception-based evidence from Uganda

Abstract

Purpose The purpose of this study is threefold: first, to examine among the board role performance attributes, which ones are critical for sustainability reporting practices; second, to establish the relationship between the overall board role performance and sustainability reporting practices; and third, to establish the relationship between board role performance and the three dimensions of sustainability reporting practices. Design/methodology/approach This study is correlational as it aims to establish relationships. Data were collected within a period of one year. Usable questionnaires were received from 48 financial services firms in Uganda. Findings On average, financial services firms in Uganda follow the Global Reporting Initiative sustainability reporting standards to the extent of 64%. The study results also indicate that board role performance is significantly associated with sustainability reporting practices. Board role performance is more associated with social sustainability reporting than environmental and economic sustainability reporting. In terms of board roles, service role is more associated with the sustainability reporting practices than the control and strategic role of the board. Practical implications The board has to provide the necessary support to management by passing decisions aimed at improving sustainability reporting practices and providing the necessary resources such as budgets for training of staff in sustainability reporting standards. Policymakers may require companies to prepare sustainability reports annually. Originality/value This study provides insights on the initial understanding of the link between board role performance and sustainability reporting practices. This study sheds more light on the relationship between board role performance and the dimensions of sustainability reporting. The study further enlightens the academic community and practice on which board roles are critical for enhanced sustainability reporting. This study therefore posts that it is no longer a matter of having board members but, rather, the role these board members play.