Link Between External Pressure and Banks’ Social Disclosure

Sa？etak This paper explored the relationship between external pressure and social disclosure in South African banks. The South African Kings III guideline on corporate governance highlighted the importance of inclusion of social disclosure in the integrated reports of banks; however, little prior research has focussed on external pressure and social disclosure within the South African banking sector. Hence, this paper adds a nuance to this branch of literature within the South African context. It used a sample of banks within the JSE SRI Index and applied the content analysis in data collection on external pressure and bank’s social disclosure. It then applied the panel data multiple regression statistics. Results showed that profit motive, government pressure and customer pressure proved positively and significantly related to banks’ social disclosure at a P value of 0.05. The paper offers practical and policy implication for sustainability advocacy groups and regulators and for academics for research and academic studies. It recommends further expanded research with many years and more financial institutions aside of banks to research on likely strategic reasons behind banks’ social disclosure