Are Corporate Social Responsibility (CSR) Disclosure High Performers Authentic? - Perspective from Supply Chain Cash Conversion Cycle (CCC)

Abstract

AbstractAlthough with significant momentum in quantity for over ten years, Chinese firms’ CSR disclosures have been criticised as low comparability, content quality and reliability. The situation reveals that Chinese CSR disclosure may be in an institutionalised box-ticking fashion, and consequently, the questionable CSR authenticity. Thus, this study tries to empirically consider whether CSR disclosure high performers are authentic and really responsible supply chain members. The study defines the supply chain egocentrism index, calculated as the ratio of the Focal firm’s cash conversion cycle (CCCFF) to the sum of Suppliers’ CCC (CCCS) and Customers’ CCC (CCCC), as the proxy for the extent of the firm’s CSR inauthenticity. It shows the focal firm’s egocentrism in winning finance advantages by suppressing other supply chain stakeholders’ welfare. Four quadrants of CSR authenticity are identified based on the discrepancy between CSR disclosure score and the egocentrism index: questionable authenticity, grey zone, authentic CSR and silent saint. By comparing features between firms in different quadrants, the study provides a new angle to view the relationship between CSR ratings and corporate features considering CSR authenticity and supply chain network settings. The preliminary result shows that firms located in the first quadrant with questionable authenticity are statistically larger in firm size, especially than truly CSR authentic firms in the third quadrant and forth quadrant. The higher tendency of possibly abused CSR marketing for larger firms calls for a more substantial evaluation and related research on the CSR process performance and authenticity.KeywordsCorporate Social ResponsibilityCSR authenticitySupply chain financeCash conversion cycle