Imapct factor(SJIF): 6.56
AN EMPIRICAL STUDY ON ASSESSMENT OF HUMAN RESOURCE DISCLOSURE IN INDIA
ACMA Dr. Meenu Maheshwari
Assistant Professor, Department of Commerce and Management,
University of Kota,Kota
Department of Commerce and Management,
University of Kota,Kota
Dr. Ashok Kumar Gupta
Senior Lecturer (ABST)
Government Commerce College, Kota.
Aim: To know the extent of human resource disclosure made by Indian companies in their annual reports.
Research Methodology: 500 annual reports of 100 companies listed under S&P BSE 100 index over 5 years (2009-100 to 2013-14) have been taken as sample. The study has used content analysis technique to gather and codify the information related to human resource disclosure . The disclosure has been categorized into financial disclosure and non-financial disclosure.
Findings: The results of analysis depicts that 85% of total companies taken as sample disclose some amount of information regarding human resource. Further it has been found that companies show a constant trend in financial disclosure and increasing trend in non financial disclosure.
Keywords: Corporate Social Resporting and Disclosure, Human resource disclosure and Content analysis.
Orthodox management approach regards the business organisation as an economic unit which drives shareholders wealth. But contemporary management approach envisages business organisation as social unit which is responsible for both transparent economic and social progress. This modern thinking has led to the emergence of Corporate Social Reporting and Disclosure (CSRD). Many endeavours regarding Corporate Social Reporting and Disclosure are being taken at international level but the development of CSRD in the developing countries like India is very slow. Therefore, it is believed India to be an interesting case study. In order to fill this gap the current research has been conducted to know the extent of CSRD made by Indian companies in their annual reports. The paper is organized as follows: first section of the paper deals with introduction, the next section deals with synthesis of results of various researchers in form of review of literature. Further, the paper explains the research methodology which includes the sample and research techniques. The next section refers to results and discussion. The last section deals with suggestions and conclusion.
To know the extent of Human Resource Disclosure (HRD) made by Indian companies in their annual reports.
This section deals with the review of literature related to Corporate Social Reporting and Disclosure. Table 1 presents the studies which have been reviewed.
The studies referred above are done in developed countries and are sector specific. The findings of the present study are expected to enrich the existing literature in context of India.
The research paper has adopted following research methodology.
Research design: The empirical research design has been employed to investigate the extent of human resource disclosure made by Indian companies in their annual reports.
Source of Data collection: The data has been collected through secondary source mainly annual reports.
Sample of study: 100 companies listed in S&P BSE 100 index.
Period of study: The study covers the period of 5 years from the year 2009-10 to 2013-14.
Research Technique: The study has used content analysis technique to gather and codify the information related to human resource disclosure.
This section of the paper provides the trends followed by the companies regarding Human Resource Disclosure. Table 2 contain 3 main columns showing information category, type of information disclosed (financial and non financial) and years depicting the period of study from (2009 -10 to 2013-14). Further year –wise column has been divided into 4 parts:
Results have been described by volume (i.e. amount) and incidence (i.e. frequencies) of corporate social reporting and disclosure. It has been assumed that the amount of CSRD is related to the importance placed on a particular subject or issue. Greater the amount of disclosure, the greater importance perceived. Through content analysis Human Resource Disclosure has been categorized into 8 categories- Basic Data, Pension Commitment, Participation of Employees, Health and safety, Employee Shares, Equal Opportunities, Training and Benefits in kinds. An average volume of Human Resource Disclosure is done by 85 companies out of 100 companies from 2009-10 to 2013-14. In general the analysis show that all the companies in the sample do not disclose any information related to ‘Participation of employees’. ‘Basic data’ exhibits the general information of the particular theme which is not included in the other categories.
Table 2: Human Resource Disclosure
N: Number of companies disclosing % Percentage of companies disclosing F: Financial NF: Non Financial W: Average number of words S: Average number of words sentences
Table 2 depicts that Non Financial disclosure in basic data has increased from an average 136 words in an average 13.6 sentences in 2009-10 to an average 148 words in an average 14.57 sentences in 2013-14. Broadly speaking 85% the companies disclosed the information about this category in general during the whole period. ‘Pension commitment’ in financial disclosure has shown a constant trend by 85 companies with an average 8 words in an average 1.8 sentences from 2009-10 to 2013-14. Financial disclosure in ‘Health and safety’ has increased from an average 7 words in an average 1.5 sentences in 2009-10 to an average 9.1 words in an average 1.81 sentences in 2013-14. Non Financial disclosure has increased from an average 58.2 words in an average 5.8 sentences to an average 73 words in an average 7.3 sentences in 2013-14. Non Financial disclosure in ‘Employee shares’ has slightly been increased from an average 33.5 words in an average 3.3 sentences in 2009-10 to 40 words in 4 sentences in 2013-14. Non Financial disclosure in ‘Equal opportunity’ has increased from an average 33.7 words in an average 3.37 sentences in 2009-10 to an average 40.1 words in an average 4.01 sentences in 2013-14. Financial disclosure in ‘Training’ has increased from an average 5.5 words in an average 1 sentence in 2009-10 to an average 6.1 words in an average 1.1 sentences in 2013-14. Non Financial disclosure also increases from an average 150 words in an average 15 sentences in 2009-10 to an average 160 words in an average 16.3 sentences in 2013-14. Financial disclosure in ‘Benefits in kind’ category has increased from an average 13.4 words to an average 2.1 sentences in 2009-10 to an average 16.4 words in an average 3.8 sentences in 2013 -14. Non Financial disclosure increases from 85.5 words in 8.5 sentences in 2009-10 to 100 words in 9.5 sentences in 2013-14.
The research findings have uncovered the fact that HRD in India seems to have received modest attention from most of companies. 85% of total of companies taken as sample have disclosed the human resource information this is perhaps because of employees pressure. Moreover HRD has shown an increasing trend from 2009-10 to 2013-14.Therefore on the basis of above findings following suggestions have been suggested:-
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