The relationship between poor CSR performance and hard, negative CSR information disclosures

Abstract

Purpose

The purpose of this paper is to investigate the relationship between hard, negative corporate social responsibility (CSR) information disclosure and corporate social performance.

Design/methodology/approach

This study uses a generalised least squares panel data analysis based on a sample of firms ranked in the Fortune Global 500 for the period 2013–2016. Robustness check tests were conducted to limit endogeneity concerns.

Findings

The results show that in line with strategic legitimacy theory, agency theory and organisational stigma theory, poor sustainability performers disclose a low quality of hard, negative CSR information.

Practical implications

This paper provides guidance for stakeholders to identify good and poor CSR performers by better understanding whether corporate CSR reports are more likely to be symbolic or substantive when considering the amount of hard, negative content in their CSR stand-alone reports.

Social implications

The research highlights the opportunistic behaviour of CSR reporting, which is used more as a legitimation device than as an accountability mechanism. Thi

Originality/value

Although numerous studies have investigated the association between the level of corporate social disclosure (CSD) and corporate social performance, no research has focussed on hard, negative CSD. Also, an index that captures the disclosure quality rather than the quantity of negative CSR information was constructed.

Citation

Jeriji, M. and Louhichi, W. (2021), "The relationship between poor CSR performance and hard, negative CSR information disclosures", Sustainability Accounting, Management and Policy Journal, Vol. 12 No. 2, pp. 410-436. https://doi.org/10.1108/SAMPJ-04-2020-0094