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Article
Publication date: 20 September 2011

Marinilka Barros Kimbro and Zhiyan Cao

The UN Global Compact (GC) is the world's largest voluntary corporate social responsibility (CSR) initiative. Signatory companies voluntarily agree to abide by the GC ten…

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Abstract

Purpose

The UN Global Compact (GC) is the world's largest voluntary corporate social responsibility (CSR) initiative. Signatory companies voluntarily agree to abide by the GC ten principles and explicitly declare compliance with social and human rights, environmental protection, and anti‐corruption practices. Participants commit to CSR and are required to publish a yearly report called Communication on Progress (COP). If firms fail to provide a COP for one year they are labeled “non‐communicating”, and for two years they are “delisted” from the GC. In 2006, the first list of non‐communicating and delisted firms was announced. The purpose of this paper is to investigate the extent by which being a signatory company – that reports COP – reduces information risk, and thus leads to better market returns, lower cost of debt, and lower cost of equity.

Design/methodology/approach

The authors studied the period from the launch of the GC until the first list of non‐communicating firms was made public, investigating the extent by which being a signatory company – that reports COP – reduces information risk, and thus leads to better market returns, lower cost of debt, and lower cost of equity.

Findings

The results suggest that communicating (reporting) firms have statistically significant higher market valuation – lower book to market – than companies that initially agree to participate in the GC but that do not comply with the reporting requirement. Communicating firms also have statistically significant higher ROA, lower cost of debt, lower cost of equity, and lower beta indicating better performance and less risk. The authors also find some evidence that non‐communicating firms might be “free riding” and could have joined the GC to improve their corporate image.

Originality/value

The paper provides evidence of the value of CSR reporting. It is not enough to disclose compliance with CSR, but it is also necessary to account for this through some sort of formal mechanism such as a CSR report. Voluntary disclosures and narrative statements in annual reports will continue to have questionable information content, but standards of environmental reporting, such as the Global Reporting Initiative, not only improve the way in which social and environmental performance is measured, but they also provide evidence of compliance. This paper also presents evidence of the value of voluntary initiatives such as the GC when these initiatives are supported by formal reporting and when accountability/enforcement measures are in place.

Details

International Journal of Accounting & Information Management, vol. 19 no. 3
Type: Research Article
ISSN: 1834-7649

Keywords

Content available
Article
Publication date: 22 February 2013

Chunhui Liu

98

Abstract

Details

International Journal of Accounting & Information Management, vol. 21 no. 1
Type: Research Article
ISSN: 1834-7649

Keywords

Content available
Article
Publication date: 20 September 2011

Kashi Balachandran and Paolo Taticchi

410

Abstract

Details

International Journal of Accounting & Information Management, vol. 19 no. 3
Type: Research Article
ISSN: 1834-7649

Article
Publication date: 1 June 2020

Mohammadreza Akbari and Robert McClelland

The purpose of this research is to provide a systematic insight into corporate social responsibility (CSR) and corporate citizenship (CC) in supply chain development, by…

1700

Abstract

Purpose

The purpose of this research is to provide a systematic insight into corporate social responsibility (CSR) and corporate citizenship (CC) in supply chain development, by analyzing the current literature, contemporary concepts, data and gaps for future discipline research.

Design/methodology/approach

This research identifies information from existing academic journals and investigates research designs and methods, data analysis techniques, industry involvement and geographic locations. Information regarding university affiliation, publishers, authors, year of publication is also documented. A collection of online databases from 2001 to 2018 were explored, using the keywords “corporate social responsibility”, “corporate citizenship” and “supply chain” in their title and abstract, to deliver an inclusive listing of journal articles in this discipline area. Based on this approach, a total of 164 articles were found, and information on a chain of variables was collected.

Findings

There has been visible growth in published articles over the last 18 years regarding supply chain sustainability, CSR and CC. Analysis of the data collected shows that only five literature reviews have been published in this area. Further, key findings include 41% of publications were narrowly focused on four sectors of industry, leaving gaps in the research. 85% centered on the survey and conceptual model, leaving an additional gap for future research. Finally, developing and developed nation status should be delineated, researched and analyzed based on further segmentation of the industry by region.

Research limitations/implications

This research is limited to reviewing only academic and professional articles available from Emerald, Elsevier, Wiley, Sage, Taylor and Francis, Springer, Scopus, JSTOR and EBSCO containing the words “corporate social responsibility”, “corporate citizenship” and “supply chain” in the title and abstract.

Originality/value

This assessment provides an enhanced appreciation of the current practices of current research and offers further directions within the CSR and CC in supply chain sustainable development.

Details

Benchmarking: An International Journal, vol. 27 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

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