Exploring Transparency–Sustainability Linkage: Analysis of CSR Disclosures

Abstract

Corporate social responsibility (CSR) reporting is a strategy for communicating sustainability data to stakeholders. Sharing data with stakeholders is the key to the effectiveness and validity of CSR. However, the often-voluntary nature of CSR disclosure reporting results in perceived bias. Consequently, the relationship between CSR disclosure transparency and the sustainable character of a company remains unclear. The article suggests a methodology for evaluating corporate transparency through t-value analysis. The t-value analysis of CSR reports from Corporate Knights’ 2021 Global 100 Most Sustainable Corporations quantifies the total number of negative disclosures in a CSR report. This research shows a lack of correlation (p value = .805) between observable levels of transparency and third-party sustainability rankings amongst the sustainability elite of the corporate world.