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1 – 10 of over 8000Stevie Dobbs and Chris van Staden
This paper aims to investigate corporate motivations for voluntarily reporting social and environmental information in New Zealand. The approach used in this study also gives the…
Abstract
Purpose
This paper aims to investigate corporate motivations for voluntarily reporting social and environmental information in New Zealand. The approach used in this study also gives the opportunity to gain insights into the internal systems and views of companies and allows the authors to make better judgements of the intentions of companies in undertaking corporate social responsibility (CSR) reporting.
Design/methodology/approach
A survey is used and then extended to match corporate survey responses with content analysis results of actual company reporting. The results of the survey and the content analysis are examined both individually and collectively to gather more context for corporate motivations.
Findings
The authors find that community concerns and shareholder rights were the most important factors that influenced the companies’ decision to report. The driving force for a sustainability agenda within these companies is usually a member of senior management. The authors also find that reporting frameworks and highly formalised internal systems were not frequently used, external assurance of CSR reporting was lacking and there were low levels of stakeholder engagement. A commitment to reporting comprehensive CSR disclosures and accepting responsibility towards a range of stakeholders were, therefore, not in evidence.
Research limitations/implications
For researchers, the value is in further revising analysis techniques and expanding existing research methods used in this area. The study brings together important CSR topics from across the literature, including reporting levels and characteristics, internal CSR systems, CSR assurance and stakeholder engagement, to investigate the motivation for CSR reporting.
Practical implications
The results suggest that New Zealand companies are not currently fully committed to social and environmental reporting and that CSR reporting is most likely used to create the impression of being concerned about sustainability to increase legitimacy with stakeholders and society. The results highlight the importance of having formalised systems to ensure that disclosures are accurate and comprehensive.
Originality/value
The results contribute to the literature by providing a current view of the motivations for reporting companies to report or not report. The approach used gives the opportunity to gain insights into the internal systems and views of companies and allows the authors to make better judgements of the intentions of companies in undertaking CSR reporting.
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M. Karim Sorour, Philip J. Shrives, Ahmed Ayman El-Sakhawy and Teerooven Soobaroyen
This paper seeks to investigate to what extent (and why) CSR reporting in developing countries reflect instrumental and/or “political CSR” motivations and the types of…
Abstract
Purpose
This paper seeks to investigate to what extent (and why) CSR reporting in developing countries reflect instrumental and/or “political CSR” motivations and the types of organisational legitimacy sought in these circumstances.
Design/methodology/approach
We adopt a theoretical framework based on neo-institutional theory, “political CSR” framework and types of organisational legitimacy. This interpretive research is set in the Egyptian context post-2011 revolution. We first carry out a content analysis of web disclosures for 40 banks in 2013 and 2016 to ascertain the nature of CSR activities and any changes over time. Second, we draw on 21 interviews to tease out the implications of the change in societal expectations due to the revolution and to deepen our understanding of the organisational motivations underlying CSR reporting.
Findings
Following the 2011 revolution, the banks’ CSR reporting practices have gradually shifted from a largely instrumental “business-case” perspective towards a more substantive recognition of a wider set of societal challenges consistent with a political CSR perspective. Overall, the maintaining/gaining of legitimacy is gradually bound to the communication of accounts about the multi-faceted socially valued consequences or structures performed by banks. Our interview data shows that participants reflected on the legitimation challenges brought by the revolution and the limits of transactional strategies involving traditional constituents, with a preference for pursuing consequential and structural forms of moral legitimacy.
Research limitations/implications
This study demonstrates a constructive shift by businesses towards engaging with the new social rules in response to sociopolitical changes and the need to achieve moral legitimacy. Hence, policymakers and stakeholders could consider engaging with different economic sectors to foster more transparent, accountable, and impactful CSR practices.
Originality/value
We highlight the implications of Scherer and Palazzo’s political CSR approach for accountability and CSR reporting. CSR reporting in some developing countries has typically been seen as peripheral or a symbolic exercise primarily concerned with placating stakeholders and/or promoting shareholders’ interests. We suggest that researchers need to be instead attuned to the possibility of a blend of instrumental and normative motivations.
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This paper aims to investigate the motivations behind the publication of corporate social responsibility (CSR) reports, and particularly the effect of information asymmetry…
Abstract
Purpose
This paper aims to investigate the motivations behind the publication of corporate social responsibility (CSR) reports, and particularly the effect of information asymmetry between firms and their owners.
Design/methodology/approach
A natural experiment contrasting the CSR reporting of private vs public firms is used to test whether the degree of information asymmetry is a significant factor in the decision to publish CSR reports. Using a hand-collected sample of the 239 largest US private companies matched with publicly-traded firms, the effect of these inherently different information environments on CSR reporting is tested through logistic regression. Factors suggested by stakeholder and legitimacy theories are tested for their differential impact on private vs public firms’ decisions to publish a CSR report.
Findings
Results indicate that private firms are less likely to publish a CSR report than similar public firms. Public firms also follow Global Reporting Initiative guidelines more frequently, consistent with signaling report quality to dispersed investors. A subsample of private companies facing greater information asymmetry is found to be similar to public firms in their reporting behavior, reinforcing the link between information asymmetry and CSR disclosure. Further analysis suggests that non-owner stakeholders play an important role in private companies’ CSR reporting decisions.
Practical implications
In addition to accounting and governance scholars, the findings should interest private firm managers preparing for an initial public offering (IPO), as the evidence suggests that CSR reporting is used to communicate information to dispersed investors. The insight into reporting motivations should be useful to accountants engaged in CSR consultation and assurance.
Social implications
With the growing attention paid to the CSR performance of firms, demonstrated by the growth in socially responsible investing, the study provides evidence that effective communication of CSR information to investors may play a key role in CSR-engaged firms’ disclosure strategies.
Originality/value
To the best of the author’s knowledge, this study is the first to analyze the CSR reporting decisions of a large sample of publicly-traded and privately-held firms. The results add to our understanding of what motivates firms to publish CSR reports, highlighting the importance of information asymmetry between the firm and its owners.
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Veronica Smith, James Lau and John Dumay
This paper aims to investigate the extent of shareholder engagement and satisfaction with corporate social responsibility (CSR) reports of a Chinese-owned company compared to an…
Abstract
Purpose
This paper aims to investigate the extent of shareholder engagement and satisfaction with corporate social responsibility (CSR) reports of a Chinese-owned company compared to an Australian-owned company in the Australian mining industry. The study is motivated by the speed, extent and nature of Chinese foreign direct investment in Australia, the resulting negative social attitudes and the impact on the perceptions of a report’s credibility.
Design/methodology/approach
The authors conducted a survey of 202 minority shareholders of two Australian mining companies, one has a Chinese majority shareholder and the other an Australian majority shareholder. The responses highlight users’ comparative perceptions of corporate motivations for reporting, the level of perceived shareholder power over reporting decisions and the resulting propensity to read CSR reports.
Findings
The authors found that, contrary to decision-usefulness theory, which posits that users will read CSR reports only if they are deemed to be reliable, that perceptions of poor credibility and poor CSR performance actually result in a higher propensity to read the reports. This suggests that the minority shareholders of the Chinese acquired firm are using reports to monitor the level of corporate accountability.
Originality/value
The findings have implications for firms operating in politically or socially sensitive industries that are likely to use CSR reporting as a legitimising strategy. The paper also provides guidance to regulators in the provision of information, which is meaningful to minority shareholders.
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Claudia Arena, Ronald Liong and Petros Vourvachis
Motivated by legitimacy theory, this paper aims to examine comprehensively corporate social responsibility (CSR) disclosure in Southeast Asian (Association of Southeast Asian…
Abstract
Purpose
Motivated by legitimacy theory, this paper aims to examine comprehensively corporate social responsibility (CSR) disclosure in Southeast Asian (Association of Southeast Asian Nations [ASEAN]) countries with the aim of disentangling whether such disclosures are the result of a proactive stance or a reaction to regulations.
Design/methodology/approach
After a content analysis of CSR stand-alone reports that relies on the Global Reporting Initiative as the basis for comparison, a multivariate analysis is carried out while controlling for firm-specific incentives and industry, country and year fixed effects.
Findings
The paper finds that CSR disclosure increased across the entire ASEAN. Although this increase cannot be directly ascribed to the introduction of regulations in Indonesia and Malaysia, the latter may have impacted choices of disclosure media. In countries where reporting requirements have become mandated, mandatory reporters show low levels, and voluntary reporters high levels, of CSR disclosure. The paper also finds that the attainment of CSR awards is related to disclosure. Additional analyses reveal a substitution effect between voluntary and mandatory incentives in countries with high levels of law enforcement.
Practical implications
The evidence suggests that the introduction of regulations can be effective in improving the level and breadth of CSR reporting only in the presence of institutions that ensure the enforcement of the disclosure regulations.
Social implications
The evidence suggests that organizations are reluctant to report on issues such as child labor, human rights and corruption. Organizations opportunistically employ related disclosure strategies that deviate from the underlying CSR performance.
Originality/value
The paper analyzes not only the level and breadth of CSR disclosure but also the motivation for its use across the still under-investigated ASEAN area, thus allowing an examination of the influence of institutional incentives above and beyond the firm-specific factors that drive CSR activities.
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Leila Emily Hickman and Jane Cote
Drawing on new insights from the experiences and perspectives of a prominent reporting client and its assurance team, the purpose of this paper is to explore the question: what…
Abstract
Purpose
Drawing on new insights from the experiences and perspectives of a prominent reporting client and its assurance team, the purpose of this paper is to explore the question: what are challenges to the legitimacy of corporate social responsibility (CSR) reporting and assurance?
Design/methodology/approach
Using a qualitative research approach, in-depth, semi-structured interviews are conducted with a Fortune 200 firm’s Vice President responsible for CSR oversight (including CSR reporting), and with the report’s assurance team from a Top 20 accounting firm. Questions are informed by existing literature, and analysis focuses on new insights that conform to, or contrast with, prior studies in areas that may challenge the legitimacy of CSR reporting.
Findings
The study documents that reporting and assurance may often serve the respective commercial and professional interests of the firm and the assuror, rather than providing accountability to the public interest. Specifically, the authors find that legitimacy-challenging instances of managerial capture of CSR reporting may co-exist in a firm with management-as-CSR-champion, in contrast with existing literature. Prior research has assumed these two constructs are not likely to co-exist within a single organization. The interviews suggest that managerial influence is fostered by the lack of reporting standards and the absence of agreement regarding the over-arching purpose of CSR reports and their assurance.
Research limitations/implications
Going forward, researchers should consider the multifaceted role management can play in CSR reporting and assurance, rather than treating managerial capture and management-as-champion as mutually exclusive. Future research could also examine how standards may balance desired comparability with flexibility in CSR reporting.
Practical implications
The study will interest report users who may assume that a seemingly supportive management would not play a restrictive role in the reporting and assurance processes. Reporters and assurors will benefit from reading the perspectives provided by professionals engaged in similar work, including the challenges they face, such as the consequences resulting from the lack of standards for CSR reporting and assurance.
Originality/value
The study is the first to provide a behind-the-scenes view of the report–assuror dyad by interviewing both the reporting firm and the assurance team engaged on the same CSR report.
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Avinandan Mukherjee and Rosita Nuñez
Management is sometimes challenged by investors to justify the financial benefits of voluntary disclosure and transparency related to corporate social responsibility (CSR)…
Abstract
Purpose
Management is sometimes challenged by investors to justify the financial benefits of voluntary disclosure and transparency related to corporate social responsibility (CSR). Researchers have found inconsistent results when examining the relationship between CSR reporting and financial performance. The purpose of this paper is to explore the relationship between voluntary CSR reporting and financial performance. Specifically, this paper addresses three questions. First, is there a significant difference in Global Reporting Initiative (GRI) reporting level for firms in a high environmental risk sector compared to those in a low environmental risk sector? Second, does GRI reporting level significantly influence financial performance measures, such as the risk ratios and information ratio? And third, does the relationship between GRI reporting level and financial performance measures differ significantly based on sector environmental risk? These questions are particularly relevant to the Indian business environment, where CSR is not just voluntary but mandated by regulation since 2013. The Indian Government is the first to do so and is ahead of many nations in collaborating with businesses to address not just environmental impacts but also social effects of industry on the community.
Design/methodology/approach
This study examined the relationship between GRI reporting level and financial performance for 173 firms with different levels of environmental risk. ANOVA and MANOVA were used to examine for differences in GRI reporting level and financial performance for firms from the various sectors and also to determine if there were significant relationships between GRI level and certain financial risk ratios.
Findings
Results indicate that firms in sectors with high environmental risk adopt GRI framework at a higher level than firms with low environmental risk. There is no significant relationship found between GRI reporting and financial performance at an aggregate level. However, environmental risk is found to moderate the relationship between GRI reporting and financial reporting, such that firms with high risk experience a more significant relationship between the GRI level that is adopted and financial performance.
Originality/value
CSR is quickly becoming a pathway to sustainable competitive advantage for businesses today. Such CSR efforts can lead to both reputational and financial performance implications. Organizations not only adopt CSR in response to regulatory requirements, but also frequently do so voluntarily to address stakeholder concerns. This study sheds valuable insight on the positive effects of CSR reporting, which provides important implications for Indian organizations.
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Sumit Lodhia and Nicole Angela Mitchell
This study aims to explore the use of corporate social responsibility (CSR) disclosures by the “Big Four” Australian banks post the banking royal commission (BRC) to manage their…
Abstract
Purpose
This study aims to explore the use of corporate social responsibility (CSR) disclosures by the “Big Four” Australian banks post the banking royal commission (BRC) to manage their reputational risk.
Design/methodology/approach
This paper uses a case study approach through a thematic analysis of the Big Four banks’ annual and sustainability reports and uses reputation risk management (RRM) as a conceptual lens to explore the image restoration strategies used by these banks.
Findings
The study finds that a corrective action strategy was disclosed extensively by all four banks whereby each bank outlined the actions that they were undertaking to correct the deficiencies identified by the BRC. However, the impact of these proposed actions was tampered by the fact that each bank sought to use strategies to reduce the offensiveness of their misdemeanours. It is argued that while disclosure on corrective actions and compensation is useful, an emphasis on reducing offensiveness of actions impacts the effectiveness of banks’ responses and their acceptance of full responsibility for their actions.
Research limitations/implications
This paper applies the RRM perspective to a recent reputation damaging event, thereby expanding the literature on image restoration strategies used by companies during major incidents.
Practical implications
This study provides useful insights in relation to the approaches used to manage the reputational risk arising from the BRC. It provides insights into the credibility of information disclosed post an incident and has potential implications for the assurance of such information.
Social implications
Given the critical importance of the banking industry to modern society, misconduct in this sector needs a closer examination, requiring a greater need for responsibility from its key players.
Originality/value
This study extends the applicability of the RRM perspective to a social incident and highlights that it is reputation, rather than legitimacy, that is critical when organisations in an industry face extensive public scrutiny. A thematic analysis approach adds value to the methods used for analysing CSR disclosures.
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The aim of the study is to investigate managerial perception-based determinants of the adoption of sustainability reporting (SR) by companies in Uganda.
Abstract
Purpose
The aim of the study is to investigate managerial perception-based determinants of the adoption of sustainability reporting (SR) by companies in Uganda.
Design/methodology/approach
This study is cross-sectional. Data were collected through a questionnaire survey of 194 companies belonging to the Uganda Manufacturers Association (UMA) and were analysed using multiple regression analysis.
Findings
The findings suggest that lack of expertise, lack of training and negative attitudes/beliefs towards SR are significant and negative determinants of the adoption of SR. The results also show that resources, free training and support and positive attitudes/beliefs towards SR are significantly and positively associated with the likelihood of the adoption of SR. Lack of time, lack of legal requirements and lack of stakeholder pressure are not significant determinants of the adoption of SR.
Research limitations/implications
Since the results are based on a questionnaire survey, they may suffer from issues associated with self-reporting data such as consistency seeking, self-enhancement and self-presentation, which may affect the reliability of the data. Nonetheless, the findings imply that there is a need to sensitise, provide free training and support for companies to engage with SR.
Practical implications
There is a need to sensitise, train and provide support for free to encourage companies to engage with SR.
Originality/value
This study contributes to the literature on managerial perception-based determinants of the adoption of SR by extending the analyses using a multivariate approach. This enhances our understanding of how the determinants interact to explain the adoption of SR by companies in developing countries.
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Dinithi Dissanayake, Sanjaya Kuruppu, Wei Qian and Carol Tilt
The purpose of this paper is to provide insights into the barriers for sustainability reporting practices in five different countries in the Indo-Pacific region.
Abstract
Purpose
The purpose of this paper is to provide insights into the barriers for sustainability reporting practices in five different countries in the Indo-Pacific region.
Design/methodology/approach
This paper uses surveys and semi-structured interviews to explore the main barriers faced by the managers of listed companies in undertaking sustainability reporting.
Findings
The findings of the study reveal that the main barriers for sustainability reporting are attributable to lack of knowledge and understanding, additional cost involved, time constraints, lack of awareness and education in sustainability reporting and a lack of initiatives from government. These vary between three groups of countries: those with more developed reporting, those with less developed reporting and those with strong cultural constraints to reporting.
Research limitations/implications
This study adapts Lewin’s field theory and three-step model of change to be applied to group dynamics at a broader country level rather than at an organisational level.
Practical implications
The barriers identified in this paper are important for reporting companies to come up with strategies to mitigate existing barriers and for regulatory authorities to provide subsidies and other incentives to supplement the efforts of these listed companies. Also, non-reporting companies could use the findings as a measure of cautiousness to set up the necessary processes to have a smooth sustainability reporting process in their companies.
Originality/value
This is one of the few studies that explore the barriers for sustainability reporting in five countries in the Indo-Pacific region.
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