An Analysis of Chinese Publicly Listed Pharmaceutical Company CSR Disclosures

Abstract

Increased public awareness toward Corporate Social Responsibility (CSR) has intensified the pressure on the pharmaceutical industry to adopt more responsible practices. As a top supplier of Western pharmaceutical companies, Chinese pharmaceutical companies are not immune to these same pressures as they engage with overseas regulators and investors. This study analyzes the factors that contribute to the CSR disclosures of publicly listed Chinese pharmaceutical companies covering 2014–2018. In the analysis, peer comparison and market-driven incentives to disclose a firm’s CSR impacts and risks come out as a robust determinant of overall disclosure and its components. While stakeholder awareness and strategic CSR have some varying degrees of associations with the five pillars of CSR disclosures, institutional framework and spill-over effect seem to have only limited influence on these disclosures. The results highlight some interesting dynamics and can provide insights into the implications of fostering a CSR-oriented business culture.