An evaluation of corporate sustainability and financial performance for JSE listed companies in the food and drug retail sector = Ukuhlolwa kokusimama kwezezinkampani nokusebenza kwezezimali emkhakheni wokudayisa ukudla nemithi yokwelapha.

Abstract

There has been a recent influx of research into integrated reporting and the degree of sustainability reporting in such reports. South Africa has become a key country of interest following the mandating of King III application for JSE-listed companies and the literature reviewed showed that the food and drug retail sector was particularly unexplored. This Doctor of Business Administration via publication examined annual integrated reports for companies within this sector to conclude on financial performance and the prominence of corporate sustainability reporting therein. Four objectives were addressed through four separate articles: 1) To use content analyses of integrated reports to identify the purpose of a company; 2) To create an analysis technique in which company purpose and financial performance (depicted through profitability) can be portrayed concurrently to stakeholders; 3) To explore the development of integrated reporting, and 4) To quantify and analyse the degree of sustainability reporting within integrated reports. The methodology adopted a mixed methods approach using quantitative and qualitative content analysis to identify company purpose, analyse integrated report development and arrive at sustainability indices, and ratio analysis to determine company profitability. It was first confirmed that annual integrated reports presented the Entity Maximisation and Sustainability Model as the company’s purpose. Thereafter an analysis technique was created, referred to as the purpose-profitability pentagon analysis, resulting in company purpose and profitability being presented in a single setting. The composition of the integrated reports was then analysed, revealing notable shifts in their presentation, with a common decrease in financial statement information and an increase in governance, strategy and sustainability information. Finally, the calculated sustainability indices showed that sustainability information for three of the four companies (Clicks being the exception) increased, but there was room for improvement in the quality of sustainability reporting within the integrated report. The compilation of all four articles contributes to the body of knowledge on integrated reporting, sustainability reporting and profitability and has created a platform for the studies to be applied to other JSE sectors. It is recommended that other JSE sectors are analysed using these techniques for a cross-industry analysis to expand the research base.

Iqoqa.

Kunocwaningo oluningi muva nje mayelana nokubika okudidiyelwe kanye nokuvumelana ekubikeni. INingizimu Afrikha isiphenduke izwe elibalulekile nelithakaselwayo kulandela ukugunyazwa kwesicelo seNkosi yesithathu sokufakwa ohlwini lwezinkampani ezikwi-JSE futhi imibhalo yocwaningo ibonisa ukuthi umkhakha wokudayisa ukudla nemithi yokwelapha usangakalandelwa kakhulu. Lezi ziqu zobuDokotela kweZokuphathwa kweBhizinisi zenziwe ngokushicilela amaphepha ocwaningo ukuhlola imibiko yaminyaka yonke ehlanganisiwe yizinkampani ezingaphakathi kwalo mkhakha ukucubungula ukusebenza kwezimali kanye nokuvelela kokubika kokusimama kwebhizinisi. Ama-athikhili amane ocwaningo aveza lezi zinhloso ezine zocwaningo: 1) Ukusebenzisa ukuhlaziya okuqukethwe kwemibiko edidiyelwe ukuze kuhlonzwe inhloso yenkampani; 2) Ukwakha indlela yokuhlaziya lapho inhloso yenkampani nokusebenza kwezimali (okuboniswa ngenzuzo) kungavezwa kanyekanye kwabathintekayo; 3) Ukuhlola ukuthuthukiswa kokubika okudidiyelwe, kanye 4) nokulinganisa nokuhlaziya izinga lokubikwa kokusimama ngaphakathi kwemibiko edidiyelwe. Indlela yokwenza yamukele indlela yezindlela ezixubile kusetshenziswa ukuhlaziya okuqukethwe komthamo kanye nezinga ukuze kuhlonzwe inhloso yenkampani, ukuhlaziya ukuthuthukiswa kombiko odidiyelwe futhi kufinyelelwe ezindimeni zokusimama, nokuhlaziya isilinganiso ukuze kutholwe inzuzo yenkampani. Kuqale kwaqinisekiswa ukuthi imibiko yonyaka edidiyelwe yethula indlela yokukhulisa nokuthuthukisa izinhloso zenkampani zokwakha inzuzo. Ngemva kwalokho kwasungulwa inqubo yokuhlaziya, ebizwa ngokuthi ukuhlaziya ngenhloso yokwakha inzuzo, okuholele ekutheni inhloso yenkampani kanye nenzuzo yethulwe endaweni eyodwa. Ukwakhiwa kwemibiko edidiyelwe kwabe sekuhlaziywa, kwaveza izinguquko eziphawulekayo ezethulweni zayo, nokwehla okujwayelekile kolwazi lwesitatimende sezimali kanye nokwanda kokubusa, amasu nolwazi lokusimama. Okokugcina, izinkomba zibonise ukukhula kokusimama kwezinkampani ezintathu kwezine (uClicks ungabaliwe), kodwa bekukhona isikhala sokuthuthukiswa kwezinga lokubika kokusimama ngaphakathi kombiko odidiyelwe. Ukuhlanganiswa kwawo amane amaphepha ocwaningo kweza nolwazi oluningi ukuthuthukisa ulwazi mayelana nokubika okudidiyelwe, ukubika okusimeme kanye nenzuzo futhi kuvule ithuba lokuthi lolu cwaningo lusetshenziswe kweminye imikhakha ye-JSE. Kuphakanyiswa ukuba eminye imikhakha ye-JSE ihlaziywe kusetshenziswa la masu ukuze kubhekwe izimboni ezahlukene, kwandiswe isisekelo socwaningo.