CORPORATE CHARACTERISTICS & SOCIAL RESPONSIBILITY REPORTING

Abstract

Empirical studies on corporate social responsibility disclosures have been conducted in Western countries to consider the possible sources of pressure for disclosure and also to examine the effect of corporate size, systematic risk, social constraints and management decision horizon upon such disclosure. This paper undertakes an empirical study in India, in order to extend the understanding of specific relationships between individual corporate characteristics and the types of social responsibility disclosures that public sector companies make. One hundred annual reports from ten industries are analysed use to consider the impact of four independent variables (size, industry, profitability, and presence of social responsibility committee) on the number of disclosures in each of the seven categories (environment, energy, fair business practices, human resources, community involvement, product safety and other disclosures). Regression analysis revealed, amongst other findings, that 28% of the variation in total number of disclosures is explained by four independent variables and that company size is the most significant variable.