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1 – 10 of over 4000Anne Marie Gosselin and Sylvie Berthelot
The purpose of this study is twofold: to examine the reliability of voluntary corporate social responsibility reporting (CSRR) to determine whether users can rely on the…
Abstract
Purpose
The purpose of this study is twofold: to examine the reliability of voluntary corporate social responsibility reporting (CSRR) to determine whether users can rely on the information released by corporations and to examine the determinants of CSRR reliability in a voluntary context.
Design/methodology/approach
This study analyses the information included in a sample of 190 standalone corporate social responsibility (CSR) reports issued by Canadian corporations listed on the Toronto Stock Exchange S&P/TSX Composite Index from 2016 to 2018.
Findings
The results of this study show that CSR reports lack reliability. The determinants identified (image, corporate governance and financialisation) partially explain the quality of the information disclosed. As well, the results suggest that corporations may attempt to manipulate users’ perception through their disclosures.
Practical implications
TThis study provides a greater understanding of the current state of CSRR in a voluntary context. It offers further insights into the strategies corporations use to manage impressions through CSR disclosures.
Social implications
This study provides further empirical data as to current shortcomings of voluntary CSRR and the potential benefits of further regulation.
Originality/value
Few studies have specifically focused on the reliability of CSRR and its determinants in a voluntary context.
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Paul A. Griffin and Estelle Y. Sun
This study examines the relation between voluntary corporate social responsibility (CSR) disclosure and the local religious norms of firms’ stakeholders. Little is known about how…
Abstract
Purpose
This study examines the relation between voluntary corporate social responsibility (CSR) disclosure and the local religious norms of firms’ stakeholders. Little is known about how these local norms (measured at the county level) affect firms’ disclosure practices and firm value, especially voluntary disclosure on climate change and environmental and social responsibility.
Design/methodology/approach
Poisson regression models test for a significant relation between firms’ voluntary CSR disclosure intensity and the local religious norms of firms’ stakeholders. Also, an event study tests whether the local religious norms affect investment returns. The data analyzed are extracted from the archive of CSRwire, a prominent news organization that distributes CSR news to investors and the public worldwide.
Findings
The study finds that firms in high adherence (high churchgoer) locations disclose CSR activities less frequently, and firms in high affiliation (a high proportion of non-evangelical Christian churchgoers) locations disclose CSR activities more frequently. The study also finds that managers make firm-value-increasing CSR disclosure decisions that cater to the religious and social norms of the local community.
Practical implications
The results imply that managers self-identify with the local religious norms of stakeholders and appropriately disclose less about CSR activities when religious adherence is high and when religious affiliation (the ratio of non-evangelicals to evangelical Christians) is low. The authors find this noteworthy because religious bodies often call for greater CSR involvement and disclosure. Yet, at the firm level, it would appear that local community religious norms also prevail, as it is shown that they significantly explain firms’ CSR disclosure behavior, implying that managers cater to local religious norms in their disclosure decisions.
Social implications
The findings suggest that managers vary the timing and intensity of voluntary CSR disclosure consistent with stakeholders’ local religious and social norms and that it would be costly and inefficient if the firms were to expand CSR disclosure without considering the religious norms of their local community.
Originality value
This is the first large-sample study to show that local religious norms affect CSR disclosure behavior. The study makes use of a unique and novel data set obtained exclusively from CSRwire.
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Jun Guo, Sungsoo Kim, Yang Yu and Jung Yeun (June) Kim
The study aims to understand the role of accountant in corporate social responsibility (CSR) practice.
Abstract
Purpose
The study aims to understand the role of accountant in corporate social responsibility (CSR) practice.
Design/methodology/approach
In this study, the authors examine whether and how chief financial officer (CFO) accounting expertise and previous work experience influence voluntary CSR disclosure, using textual analysis and natural language processing (NLP) techniques. The authors find that firms' CFOs with accounting expertise disclose more CSR issues in their 10-K reports. Overall, this study provides evidence of the impact of CFOs' professional and personal attributes on voluntary CSR disclosure in corporate annual reports. This study has important implications to investors and policy makers in the context of CSR disclosure regulations in annual reports.
Findings
Overall, this study provides evidence of the impact of CFOs' professional and personal attributes on voluntary CSR disclosure in corporate annual reports. This study has important implications to practitioners and policy makers in the context of CSR disclosure regulations in annual reports.
Research limitations/implications
There is an inherent limitation of textual analysis as the tool tries to read key words from the text.
Practical implications
This finding is useful for policy maker and investors as CSR is known to have impact on the share price.
Originality/value
This paper is the first attempt to find out accountants' role in CSR activities, which has not been examined in the prior literature.
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Ehtazaz Javaid Lone, Amjad Ali and Imran Khan
This paper aims to investigate whether there is any change in corporate social responsibility (CSR) disclosure in Pakistani companies after the introduction of CSR voluntary…
Abstract
Purpose
This paper aims to investigate whether there is any change in corporate social responsibility (CSR) disclosure in Pakistani companies after the introduction of CSR voluntary guidelines in 2013 by Securities and Exchange Commission of Pakistan (SECP) and determine the effect of corporate governance (CG) elements on CSR disclosure.
Design/methodology/approach
Content analysis was applied to measure CSR disclosure from annual and sustainability reports of 50 companies from eight different sectors from 2010 to 2014. Paired-samples t-test was applied to examine the difference in CSR disclosure. Regression analysis was used to examine the relationships between CG elements and CSR disclosure.
Findings
Paired-samples t-test shows an increase in the extent of CSR disclosure after the introduction of CSR voluntary guidelines in 2013. The one-way ANOVA test reveals that the extent of CSR disclosure is different across various sectors. Multiple regression results prove that independent directors, women directors and board size positively affect the extent of CSR disclosure.
Practical implications
SECP should enforce medium-sized firms to start producing CSR reports. Voluntary guidelines of 2013 moderately improved CSR reporting. Therefore, enforcement of the SECP rule of independent directors may enhance the extent of CSR disclosure.
Originality/value
This study is the first to examine the effect of CSR voluntary guidelines issued by SECP in 2013 and CG elements on CSR disclosure in Pakistan.
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Ayman Issa, Mohammad A.A. Zaid, Jalal Rajeh Hanaysha and Ammar Ali Gull
The purpose of this study is to examine the impact of board diversity (e.g. education, gender, nationality and royal family members) on voluntary corporate social responsibility …
Abstract
Purpose
The purpose of this study is to examine the impact of board diversity (e.g. education, gender, nationality and royal family members) on voluntary corporate social responsibility (CSR) disclosure for a sample of banks listed in the Arabian Gulf Council countries.
Design/methodology/approach
The authors use the Global Reporting Initiative guidelines to construct the CSR disclosure index. The empirical analysis is based on the data of banks listed in the Gulf Cooperation Council countries over the period 2011–2019. To tackle the potential issue of endogeneity, the authors apply the system generalized method of moments (GMM) estimation approach to investigate the relationship between board diversity and CSR disclosure index.
Findings
The findings of the analysis show that there is a significant relationship between board diversity and the level of voluntary CSR disclosure. Specifically, the authors find that diversity captured by the education level, nationality and the presence of royal family members on board is positively associated with the level of voluntary CSR disclosure while diversity captured by the gender of board members is negatively associated with the level of voluntary CSR disclosure.
Practical implications
The regulators, policymakers, stakeholders and the board of directors become aware of the diversity mechanisms that must be used to promote CSR practices in the banking sector of Arabian Gulf countries.
Originality/value
The authors extend the existing literature by providing empirical evidence on the association between board diversity and voluntary CSR disclosure practices of banks operating in the Arabian Gulf countries. This study also highlights that board gender diversity may have a different impact on voluntary CSR disclosure between developed countries and developing countries. This paper also provides preliminary evidence on the importance of education level, the presence of foreign and royal directors on board to influence CSR practices of banks operating in the Arabian Gulf countries.
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Frank H.M. Verbeeten, Ramin Gamerschlag and Klaus Möller
The purpose of this paper is to examine whether narrative corporate social responsibility (CSR) disclosures (the provision of textual information on companies’ environmental and…
Abstract
Purpose
The purpose of this paper is to examine whether narrative corporate social responsibility (CSR) disclosures (the provision of textual information on companies’ environmental and social performance to external stakeholders) are associated with firm value in Germany.
Design/methodology/approach
Based on the global reporting initiative guidelines, the paper uses content analysis to assess the value relevance of CSR disclosures of 130 German companies over four years.
Findings
The results show that CSR information is value-relevant, but the value relevance of CSR information differs among CSR categories. Specifically, the disclosure of social information is positively associated with firm value yet environmental disclosures are not.
Practical implications
The results confirm that management should be aware of the potential capital market effects of voluntary CSR disclosures, even though such disclosures may be directed at other stakeholders.
Originality/value
Germany is an interesting setting as CSR disclosures are voluntarily, even though the institutional environment appears sensitive to CSR disclosures. Despite this, little research has focussed upon the value-relevance of CSR-disclosures in Germany. In addition, the results confirm that management should be aware of the potential capital market effects of voluntary CSR disclosures, even though they are not directed at shareholders as such.
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Dimaz Ramananda and Apriani Dorkas Rambu Atahau
The purpose of this paper is to determine the extent of voluntary corporate social responsibility (CSR) disclosure by Indonesian firms on their social media and to compare it with…
Abstract
Purpose
The purpose of this paper is to determine the extent of voluntary corporate social responsibility (CSR) disclosure by Indonesian firms on their social media and to compare it with the mandatory disclosure on their annual reports.
Design/methodology/approach
The authors use publicly listed Indonesian firms that are included in the SRI-KEHATI Index as the sample. Further, by using NVIVO software, the authors qualitatively analyze CSR activities disclosed on firms’ social media and annual reports with an interpretive approach.
Findings
The findings indicate that Indonesian firms still exhibit early stages of social media-based voluntary CSR disclosure. Further, issues on training, education and skill building dominate firms’ disclosure. Finally, Indonesian firms disclose less CSR information in their social media than in their annual reports, thus confirming the early stages of social media-based CSR disclosure.
Research limitations/implications
The small sample size limits the generalizability of the results.
Practical implications
This paper provides insights on which CSR issues are commonly disclosed in firms’ social media. This study may also inform regulators the extent of disclosures that could be regulated in social media.
Originality/value
Social media-based CSR disclosure in developing countries is relatively understudied. Thus, this paper empirically shows the topic and intensity of CSR disclosure in social media and the comparison between this type of CSR disclosure with CSR disclosure using other media.
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Isabel Gallego-Álvarez and Ivo Alexandre Quina-Custodio
– The purpose of this paper is to analyze the voluntary disclosure of corporate social responsibility (CSR) in companies of different countries.
Abstract
Purpose
The purpose of this paper is to analyze the voluntary disclosure of corporate social responsibility (CSR) in companies of different countries.
Design/methodology/approach
Based on a sample of 110 companies for the year 2014, a total of 79 indicators were analyzed, nine of which correspond to economic aspects of the company, 30 to environmental aspects and 40 to social aspects, according to the Global Reporting Initiative (GRI G3.1). Moreover, a dependence model was set up to see which variables may affect the disclosure of economic, social and environmental information, both separately and as a whole.
Findings
The companies in the sample showed an average of six economic indicators, 20 environmental indicators and 27 social indicators. Regarding the explanatory variables tested, the results obtained showed that company SIZE, LEVERAGE, DJSI and CIVILLAW were the most significant variables, most affecting a company’s decision to make voluntary disclosure in relation to CSR issues.
Practical implications
The disclosure of more information about economic, environmental and social aspects can be used by the firm as a mechanism to reduce social and governmental pressure. It is important to point out that the information provided by companies in their CSR reports is essential in corroborating the legitimacy of their activity.
Social implications
Improving a company’s image in society is one of the reasons why firms disclose CSR information and Internet and online tools are appropriate means of dissemination in an age of increasing speed of knowledge.
Originality/value
Previous studies have provided scores to reflect whether or not companies disclosed CSR, whereas the present study goes deeper by making a detailed analysis of the type of economic, environmental and social information presented by companies analyzed.
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Mohammad Badrul Muttakin, Dessalegn Getie Mihret and Arifur Khan
The purpose of this paper is to examine the association of corporate political connection with the level of voluntary corporate social responsibility (CSR) disclosures to…
Abstract
Purpose
The purpose of this paper is to examine the association of corporate political connection with the level of voluntary corporate social responsibility (CSR) disclosures to determine how the relationships between the state and the corporate sector influence CSR engagement.
Design/methodology/approach
Based on a neo-pluralist view of legitimacy theory, which conceptualizes the state as a concentration of power amenable to exploitation by the corporate sector, the study develops and empirically tests a hypothesis that CSR disclosures are inversely associated with political connection. A sample of 936 firm-year observations is used with data collected from annual reports of companies listed on the Dhaka Stock Exchange in Bangladesh from 2005 to 2013.
Findings
Results indicate that corporate political connection is associated with reduced CSR disclosures. This finding suggests that the perceived need for CSR disclosures as a legitimation strategy diminishes for politically connected firms. The finding supports a neo-pluralist argument that political connection could enable firms to eschew stakeholder pressure associated with potential legitimacy threats originating from poor CSR performance. This conclusion challenges the pluralist view of legitimacy theory that considers the state as a neutral arbiter resolving conflict among stakeholder groups in society.
Originality/value
The study makes a significant contribution to the literature by developing a neo-pluralist theorization of voluntary CSR disclosures within legitimacy theory and empirically testing it. Because prior empirical CSR disclosure research is largely underpinned by the pluralistic conception of society, examining this phenomenon from a neo-pluralist perspective enables a more complete understanding of CSR disclosure behaviors of firms.
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Ameeta Jain, Monica Keneley and Dianne Thomson
The purpose of this paper is to evaluate corporate social responsibility (CSR) reporting in six large banks each from Japan, China, Australia and India over the period of…
Abstract
Purpose
The purpose of this paper is to evaluate corporate social responsibility (CSR) reporting in six large banks each from Japan, China, Australia and India over the period of 2005-2011.
Design/methodology/approach
CSR and banks’ annual reports and websites were analysed using a comprehensive disclosure framework to evaluate the themes of ethical standards, extent of CSR reporting, environment, products, community, employees, supply chain management and benchmarking.
Findings
Over the seven years, bank CSR disclosure improved in all four countries. Australian banks were found to have the best scores and Indian banks demonstrated maximum improvement. Despite the absence of legislative requirements or standards for CSR, this paper finds that CSR reporting continued to improve in quality and quantity in the region on a purely voluntary basis.
Research limitations/implications
This study indicates that financial institutions have a commitment to CSR activities. The comparison between financial institutions in developed and developing economies suggests that the motivation for such activities is complex. A review of the studied banks suggests that strategic rather than economic drivers are an important influence.
Practical implications
Asia-Pacific Governments need not mandate bank CSR reporting standards as the banks improved their CSR reporting consistently over the seven years despite the Global Financial Crisis (GFC).
Originality/value
A disclosure framework index is used to assess the comprehensiveness of bank practice in relation to CSR reporting. This approach enables cross-sectional and cross-country comparisons over time and the ability to replicate and apply to other industries or sectors.
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