The relationship between employee-related disclosures and working days lost because of labour strikes

Abstract

Purpose: This paper aimed to analyse the impact of labour strikes and industry variation on the level of employee-related disclosures (ERD). It argued that the levels of ERD disclosed by companies in the chemical, manufacturing, forestry, mining, construction, and transport industries differ in accordance with the working days lost and the classification of labour strikes they are affected by.

Design/methodology/approach: The integrated reports, consisting of annual reports and sustainability reports, of 81 companies listed in 6 sectors on the Johannesburg Stock Exchange from 2010 to 2018 were sampled.

Findings/results: The study found that companies in the sampled industries respond to protracted labour strikes as per their industry disclosure norms. Further, the results indicate that the level of ERD disclosed by a company operating in the mining industry that is affected by a labour strike is significantly different from that of a company not affected by a labour strike, whether it is within the mining industry or in other industries.

Practical implications: Companies’ response to labour strikes using the ERD varies in accordance with stakeholder power and assumed rights. Moreover, institutions that issue awards for excellent Corporate Social Responsibility (CSR) may award them to unworthy recipients.

Originality/value: This study examines the moderating role of labour strikes on the association between companies’ industry and level of ERD.