A ground-breaking study by researchers Saviesha Samaraweera and Isuru Manawadu from the University of Sri Jayewardenepura sheds light on an overlooked dimension of corporate responsibility in Sri Lanka.
Farm animal welfare (FAW) is a pressing ethical concern within the global food industry, yet it remains glaringly absent in many corporate sustainability reports. In Sri Lanka, where societal values are deeply interwoven with cultural, religious, and economic considerations, addressing this gap could redefine corporate responsibility. New research by Saviesha Samaraweera and Isuru Manawadu from the Department of Accounting at the University of Sri Jayewardenepura highlights the urgent need for farm animal welfare disclosures in sustainability reports of listed food companies, urging businesses to prioritize this critical issue.
Farm Animal Welfare: The Forgotten Pillar of Sustainability
The study underscores a pivotal reality: while sustainability reporting has gained traction globally, the welfare of farm animals, integral to food supply chains, often remains overlooked. This omission not only compromises transparency but also undermines the ethical foundations of the food industry. The researchers argue that companies have a moral and operational obligation to integrate FAW into their policies and practices.
Despite Sri Lanka’s rich cultural and religious heritage, which emphasizes compassion for animals, corporate reporting often neglects this aspect. Many listed food companies on the Colombo Stock Exchange fail to reflect their farm animal footprint in their sustainability disclosures. This study identifies and examines the behavioral drivers influencing such gaps, offering critical insights for change.
Understanding Intentions: The Theory of Planned Behavior
Samaraweera and Manawadu employed the theory of planned behavior to explore the intentions of individuals involved in sustainability reporting to include FAW disclosures. The study analyzed responses from CFOs, directors, managers, and other key personnel across 61 food companies with direct or indirect farm animal footprints. Using structural equation modeling (PLS-SEM), the research revealed two key behavioral drivers influencing intentions:
1. Perceived Behavioral Control (PBC):
PBC emerged as the strongest determinant. Decision-makers with greater control over corporate practices, including CEOs, CFOs, and senior managers, were more likely to support FAW disclosures. This highlights the importance of empowering leadership with the knowledge, skills, and financial resources necessary to adopt new disclosure practices.
2. Subjective Norms:
In Sri Lanka’s collectivist culture, societal expectations and the perceptions of family, colleagues, and community significantly influence individual behavior. The study found that these social pressures strongly shape the intention to include FAW in sustainability reporting. Sri Lanka’s multi-religious ethos further amplifies this dynamic, as cultural, and religious values deeply influence societal norms around animal welfare.
Why Farm Animal Welfare Matters
Farm animal welfare is not just an ethical obligation—it is a critical component of sustainability that intersects with environmental, social, and governance (ESG) criteria. Poor animal welfare practices can lead to environmental degradation, food safety concerns, and reputational risks for companies. Transparent reporting on FAW helps stakeholders, from investors to consumers, assess a company’s ethical and operational standards.
The researchers stress that addressing FAW in sustainability reports is not merely a box-ticking exercise but a reflection of corporate accountability. By integrating FAW disclosures, companies can demonstrate their commitment to ethical practices and align themselves with global sustainability trends.
A Call for Standardized Guidelines
One of the study’s most significant contributions is its call for standardized guidelines and mandatory regulations on FAW reporting in Sri Lanka. Regulatory bodies, such as the International Sustainability Standards Board (ISSB) and the Business Benchmark on Farm Animal Welfare (BBFAW), can leverage these findings to enhance global reporting standards.
At a national level, the Sri Lankan government and legislative bodies are urged to establish statutory requirements for companies involved with farm animals in their supply chains. These regulations could pave the way for more transparent, ethical, and sustainable business practices.
The Road Ahead: Recommendations for Change
The study offers several practical recommendations for businesses and policymakers:
- Empowering Leadership: Senior managers must be equipped with the tools and resources necessary to adopt FAW disclosures. This includes training programs and access to financial and technical support.
- Enhancing Awareness: Awareness campaigns targeting all stakeholders in the sustainability reporting process are crucial. By highlighting the ethical, cultural, and operational importance of FAW, companies can foster a culture of accountability.
- Regulatory Frameworks: Policymakers must develop and enforce guidelines to ensure FAW is a mandated aspect of sustainability reporting.
- Promoting Transparency: Companies should actively engage with stakeholders to communicate their FAW practices, building trust and credibility.
Sri Lanka’s Unique Position
Sri Lanka’s societal fabric offers a unique opportunity to lead by example in FAW reporting. The nation’s collectivist culture and strong religious and ethical values position it to champion this cause on a global scale. By prioritizing FAW disclosures, Sri Lankan companies can set benchmarks for others in the region, showcasing how sustainability and ethics go hand in hand.
A Wake-Up Call for the Food Industry
This research is a clarion call for Sri Lanka’s food industry to rethink its approach to sustainability reporting. By recognizing farm animals as silent stakeholders in their value chains, companies can drive meaningful change that resonates with societal values and global standards.
As businesses strive to align with evolving sustainability expectations, integrating farm animal welfare into reporting practices is not just an option—it’s a necessity. This study by Saviesha Samaraweera and Isuru Manawadu offers a timely roadmap for achieving that goal, reminding us that true sustainability is inclusive, ethical, and accountable.
“Farm animals may not have a voice, but through comprehensive sustainability reporting, Sri Lankan companies can ensure their welfare is no longer ignored.”
Ms. Saviesha Samaraweera, BSc.(Hons) in Accounting (Special) (First class) USJP, ACCA strategic professional level (Reading), CA strategic level (Reading).
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Dr. Isuru Manawadu, Ph.D. (University of Malaya), B.Sc. (Hons) in Accounting (Special) USJP, FCA, CPFA (UK)