Abstract
Interest is increasing in what information companies disclose regarding the social aspects of their operations. This research therefore develops an index to analyze the social disclosure of companies from various countries and geographical regions including Latin America, Europe, Africa, Asia, and the United States. Using categorical principal component analysis and partial triadic analysis, we build a numerical value for a specific social individual index by firm. Then, we analyze the extent to which this disclosure follows the Global Reporting Initiative 400 social standards, which became effective on 1 July 2018. In addition to considering geographical aspects, we also analyze social disclosure based on industry, which facilitates firms’ decision-making and policy formation in social disclosure.
Highlights
IntroductionInterest in companies’ social disclosure has increased substantially
Over the last decade, interest in companies’ social disclosure has increased substantially
Prior research primarily relies on sociopolitical approaches, which confirm that companies disclose social information to protect their reputation and identity by engaging with stakeholders
Summary
Interest in companies’ social disclosure has increased substantially. The United Nations Environmental Program [1] shows that the number of companies that released social information doubled between 2006 and 2013. Burrit [2] defines social disclosure as the qualitative and quantitative information that measures, calculates or estimates companies’ social impact. The Global Reporting Initiative (GRI) requirements categorize nonfinancial disclosure information as workforce, human rights, community, and product responsibility. The information disclosed in sustainability reports allows firms to confirm their attempts to adapt to the social and economic context in which they operate. Social information disclosure legitimizes firms’ actions [4]. Prior research suggests that this desire for legitimacy is the primary reason why firms reveal social information [5]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
