How do infectious diseases affect corporate social responsibility? Evidence from China

Purpose– The paper aims to examine the determinants of corporate social responsibility (CSR) disclosures in the annual reports of Malaysian public listed companies (PLCs). In 2006, Bursa Malaysia Berhad (BMB) launched its CSR Framework (effective in 2007) which is supposed to guide the Malaysian PLCs’ CSR disclosures. It is believed that this CSR framework may influence CSR disclosures to be more systematic, yet there is no evidence whether this framework influences the extent and quality of CSR disclosures. Thus, this study examines this area of research. The study also tests the influence of award on CSR disclosures.Design/methodology/approach– CSR disclosure checklist was developed to analyse the extent and quality of CSR information disclosures in the year 2008 annual reports of the Malaysian PLCs.Findings– Malaysian PLCs disclose more CSR information related to community and environment than workplace and marketplace CSR themes. On the other hand, the quality of disclosure practices was minimal when it is compared to the extent of disclosure practices. Finally, the study also found that the award’s variable has a significant positive relationship with both the extent and quality of CSR disclosure practices of the Malaysian PLCs.Research limitations/implications– The recently developed BMB’s CSR framework seems to have impact on the level and systematic CSR reporting practices of Malaysian PLCs. However, the quality of CSR disclosures is considered minimal.Practical implications– The results of the study bring some practical implications to the regulators, particularly Bursa Malaysia. First, it is good to observe that most companies have practiced specific disclosure in a separate statement with regard to CSR. However, the format of presentation and the extent of disclosure vary among the firms. Second, further guidelines need to be developed to provide a clearer framework of disclosure for CSR information. At the moment, Bursa Malaysia only listed down general principles of CSR themes. In addition, the regulators should also look into the evolving issues in CSR, such as the issue of climate change reporting. For example, the Climate Disclosure Standards Board has issued a voluntary Climate Change Reporting Framework.Originality/value– This study examined both the traditional (i.e. firm size and profitability) and non-traditional (i.e. award) factors influencing management’s decision to disclose CSR information in the annual reports of the Malaysian PLCs. Furthermore, the study reported how Malaysian PLCs comply with the recently implemented CSR framework issued by BMB.

Purpose The purpose of this paper is to introduce a model to assess web-based corporate social responsibility (CSR) disclosure prominence and use this model to explore the prominence of CSR disclosures of listed New Zealand (NZ) companies. Design/methodology/approach A CSR Disclosure Prominence Indicator Model was constructed using five key elements that include the dissemination medium, accessibility, location, content variety and extent of CSR disclosures. The websites of 65 of the largest listed NZ companies from 11 industry groupings were explored through this model. Findings A significant proportion (81.5 per cent) of listed NZ companies in the sample were utilising their websites for communicating CSR information to stakeholders. The CSR Disclosure Prominence Indicator Model revealed that companies that have CSR-related disclosures on their websites used multiple dissemination media and locations to enhance prominence of such disclosures. CSR commentary on the webpage was the most prominent dissemination medium due to its ease of accessibility, with a separate CSR webpage being the most prominent location. Environmental performance and society-related issues received the most prominent emphasis. Although companies from “sensitive” industry sectors appeared to disclose their CSR information more prominently, those from “less sensitive” industries also attempted to make their CSR disclosure more prominent and noticeable through strategic placement and through the extent of disclosure. Research limitations/implications The paper highlights the importance of managing web-based CSR disclosure prominence, thereby highlighting its significance in communication of CSR information. Practical implications Prominently placed CSR disclosures could be a significant platform for companies to strategically manage their image and identity. The CSR Disclosure Prominence Indicator Model could be utilised by companies to effectively assess and manage the prominence of CSR disclosures on their websites for more effective communication with stakeholders. Originality/value The paper complements earlier studies on CSR disclosures by constructing and applying a model to assess the prominence of web-based CSR disclosures.

This study examines the trend of corporate social responsibility (CSR) disclosures and the role of corporate governance attributes in the CSR disclosures of Shari’ah compliant companies (ShCCs) in Malaysia for the years 2006 and 2009, a period which corresponds before and after a plethora of significant changes in Malaysia, encompassing the recent financial crisis and policy changes in the form of corporate governance restructuring. Using a CSR disclosure checklist, the extent and quality of CSR discourses of a sample of 76 ShCCs was examined. The results indicate that the extent and quality of CSR disclosures by the ShCCs is in overall low. However, there was a significant increasing trend in both the extent and quality of the CSR disclosures by the ShCCs over time. results of this study offer a number of practical implications. First, whilst the findings reveal a significant increasing trend of CSR information subsequent to the policy changes and the recent financial crisis, the CSR information was however not systematically provided, with most of the disclosures being stated in a narrative form. Hence, the policy makers in Malaysia may want to re-enforce the mandatory requirement of CSR information and provide a detailed CSR framework for the companies to follow such as "what" and "how" the CSR information should be disclosed. Second, the role of corporate governance attributes in the social disclosures of the ShCCs did not improve following the revised code, perhaps due to the unfolding recent global financial turmoil which may have undermined the effectiveness of the corporate governance attributes. <br />Finally, this study offers the first empirical study to have assessed the trend of CSR disclosures and the role of governance attributes in CSR disclosure practices by the ShCCs.

The Effect of Ownership Structure and Iso 14001 Certification on Corporate Social Responsibility Disclosure with Company Size as A Moderating Variable

PurposeThe purpose of this paper is to systematise the current state of research on the association between companies’ corporate social responsibility (CSR) engagement and financial analysts’ company assessment. Additionally, it aims to identify fruitful directions for future research that contribute to a further exploration of the link between CSR and financial analysts.Design/methodology/approachThis study reviews and synthesises existing research on CSR and financial analysts. Based on the research question, “What is the relationship between CSR engagement and financial analysts’ metrics?,” the authors conduct a systematic literature review. The authors search three major databases and use an extensive search term to ensure exhaustive coverage of the field. The paper then systemises the current state of research and identifies knowledge gaps and potential directions for future research.FindingsThe review of existing research shows that several studies confirm a positive link between CSR performance and analyst coverage, suggesting that external monitoring through analysts incentivises companies to enhance their CSR engagement. Further, results indicate that a company’s involvement in “sin” industries is linked to lower analyst coverage. Besides, a higher level of CSR disclosure is positively associated with analyst forecast accuracy, thus indicating that the provision of CSR-related information is linked to an enhanced information environment. High levels of CSR performance are associated with more positive recommendations from analysts. However, recent surveys and interview studies on analysts’ perceptions of CSR fail to uniformly support an increasing interest in CSR.Research limitations/implicationsFor a better understanding of the link between CSR engagement and financial analysts, two fruitful directions for future research are observed. First, future research designs should clearly differentiate between CSR disclosure and CSR performance and take account of interdependencies between them. Second, studies should address behavioural insights into how analysts process information and the influence of individual analyst characteristics on the link between CSR engagement and an analyst’s assessment of a company.Originality/valueThis study is the first to review the literature on the relationship between CSR and financial analysts. The association between CSR and financial analysts is particularly interesting given the pivotal role financial analysts play as information intermediaries in financial markets. This study delivers an in-depth understanding of existing studies and their theoretical underpinnings. Based on the existing literature, this paper develops innovative directions for future research.

PurposeThis paper aims to report on the quality of corporate social responsibility (CSR) disclosure in S&P Europe 350 companies. The paper also examines the impact of corporate governance structure and other firm-specific characteristics on the quality of CSR disclosure in European companies.Design/methodology/approachThe paper uses a disclosure index adopted from Jizi et al. (2014). Moreover, the paper contributes to the CSR disclosure literature by developing a new index that includes all the aspects introduced by the Global Reporting Initiative version 4.The data of CSR reporting are manually collected from the firms’ reports. The population and sample of this study are related to 350 companies operating in 16 European countries. Tobit regression analysis is used to test the hypotheses.FindingsThe results reveal that directors’ ownership, the presence of a CSR committee and firm size positively affect the quality of CSR reporting. Further testing of the independent variables on each CSR sub-category is made. The CSR sub-categories used are, namely, community involvement, employees, environment, social product and service quality, supply chain sustainability and business ethics. The presence of a sustainability committee inside the company is the only factor that shows a strong positive effect on the disclosure of every CSR sub-category and the CSR inclusive index.Research limitations/implicationsThe limitations of this research are that it focuses exclusively on the effect of the internal corporate mechanisms on the quality of CSR reporting; disregarding the economic, institutional, political and cultural factors that can play a role in influencing sustainability reporting of the companies.Practical implicationsBetter CSR disclosure leads to the firm having a better image in the society; this, in turn, has implications on firm performance, attracting funds, as well as recruiting and retaining high profile employees. Stakeholders are placing cumulative significance to corporate transparency particularly in the area of CSR. Managers should exert more efforts into not only improving the disclosure of the various facts of CSR but also into using the various media available for disclosure. Companies should take the initiative of establishing a CSR committee to ensure effective formation and implementation of CSR policies and disclosure of CSR activities.Social implicationsThe CRS research itself bears the merit of social implications. Moreover, the findings of this research pave the way for future researches to examine the effect of the adoption of global CSR initiatives and frameworks on the quality of CSR reporting.Originality/valueThis paper contributes to the CSR disclosure literature by developing a new index that includes all the aspects of CSR and exploring the relation between the rarely explored “presence of sustainability committee” and CSR disclosure, as well as testing a vast number of CSR sub-categories that is not extensively covered in previous studies. Moreover, the paper covers a large sample of companies across 16 European countries, in terms of their stand-alone sustainability reports, dedicated chapters of CSR in annual reports, integrated reports, website CSR information and any attachments/links provided on the websites for further CSR documents, brochures or data sheets.

This study analyzed Chinese companies’ behavior regarding corporate social responsibility (CSR) disclosure, and its impact on national and regional climate change measured by carbon emissions. CSR disclosure, supported by existing theories, is considered a powerful tool to curb climate change issues. We combined data of companies’ publicly traded annual financial reports and CSR reports from the China Stock Market and Accounting Research (CSMAR) database and provincial macroeconomic statistics from the Chinese National Bureau of Statistics to run panel regressions. The results verify the following: (a) China is in a relatively early stage of CSR development, and Chinese firms’ internal incentives to adopt CSR projects are low since none of the internal factors researched contribute to CSR disclosure. (b) External factors work slightly better for CSR practices, but at the same time, the CSR regulations still need further improvement. (c) The current CSR disclosure practices do not have a clear impact on carbon emission reduction, contrary to some predictions that CSR could help reduce carbon emissions.

PurposeBased on a set of complementary theories, namely, the legitimacy, stakeholder and signaling theories, the purpose of this paper is to investigate the visibility of corporate social responsibility (CSR) disclosures on bank websites. In particular, we explored the accessibility, placement, reporting format, extent and content of online CSR information. This paper also examined the effect of size, being listed, ownership structure and the internationalization of banks on online CSR reporting.Design/methodology/approachA sample consisting of 20 banks was used where the data were manually collected from the websites of various banks during the fourth quarter of 2017. Three reporting formats were explored: information posted directly on the website, information contained in a separate CSR report and information within a management commentary or annual report or integrated report. Content analysis was used to measure the level of online CSR disclosures in four sub-dimensions: environment, human resources, products and customers and community involvement. The sample was grouped according to the criteria of size, being listed, ownership structure and internationality. Non-parametric statistics were used to analyze some factors that influence CSR disclosure, namely, size, public ownership, internationalization and foreign ownership.FindingsThe results indicate that accessibility to CSR information is relatively good. The placement of CSR information on websites varies among banks. Moreover, community involvement was the most disclosed dimension on the banks’ websites. There was a lack of disclosure on items regarding the environment. Furthermore, the findings of this paper showed that significant determinants for explaining online CSR disclosure level were size and being listed.Originality/valueThis study contributes to the literature by examining the online CSR disclosure practices of banks from an emerging market with a different socio-economic context and regulations compared to the developed market.

The nexus between corporate governance (CG) and corporate social responsibility (CSR) is well researched and established in literature. However, the debate regarding the influence corporate governance exerts on corporate social responsibility engagements and reporting is still inconclusive. This study investigates the impact of CG mechanisms on CSR disclosure among the listed companies in Botswana. The study employs content analysis to extract relevant data from annual reports for period 2014 to 2017. Comprehensiveness of descriptions of entity engagements in community involvement, human resources, environment and product and consumers is used as dependent variable while board size, board meeting frequency, ratio of independent directors to board size, the size of audit committee and its meeting frequency are used as independent variables. Company size and Return on assets are controlling variables. Least square regression method is used to analyse the effect of CG attributes on CSR disclosures. Comprehensiveness of disclosure is measured by sentences of reporting, availability of comparative figures, presence of photos and quantified CSR descriptions. The results suggest that the board size, board independence and audit committee meetings frequency have a statistically significant positive influence on corporate social responsibility reports. Company size also reflected a significant positive association with CSR disclosure. These results have implications on composition and structure of the board of directors which should be accorded due attention as the firms work to improve responsiveness to their stakeholders’ demands through CSR investments and disclosures. Keywords: Corporate governance, Corporate social responsibility, Disclosure, Agency theory, Legitimacy theory, Botswana DOI : 10.7176/RJFA/10-20-05 Publication date :October 31 st 2019

PurposeThis study aims to apply signaling theory to examine whether corporate social responsibility (CSR) disclosure can deliver effective signals to stakeholders to increase a firm’s competitive advantage in China. Whether ownership patterns or environmental sensitivity causes a significant difference in the relationship between a firm’s CSR disclosure and competitive advantage is also examined.Design/methodology/approachData analysis is based on a regression model. Content analysis is performed to convert qualitative CSR information of Chinese firms into quantitative data, while intellectual capital (IC) is used as a proxy variable for competitive advantage.FindingsThe difference in competitive advantage impairment between environmentally sensitive industries (ESIs) and non-environmentally sensitive industries (NESIs) is significant. Further comparisons on the relationship between overall CSR disclosure and competitive advantage among state-owned enterprises, privately owned enterprises, ESIs and NESIs suggest that the relationship is negative.Research limitations/implicationsThe study extends research of strategic CSR to signaling theory and competitive advantage. In particular, a research using IC as a proxy for competitive advantage is rare. It also contributes to the literature on competitive advantage and strategic CSR by examining the effects of both CSR disclosure and IC.Originality/valueThis paper provides evidence related to stakeholders’ reaction to managers’ various CSR strategies in China. The contribution of this study is that it confirms that different CSR initiatives have different effects on the competitiveness of enterprises in China.

PurposeThis paper aims to investigate the effects of board model and board independence on corporate social responsibility (CSR) disclosure of multinational corporations (MNCs).Design/methodology/approachThe authors developed an empirical model in which CSR disclosure is the dependent variable and board model (two-tier vs one-tier), board independence (a proportion of independent directors on a board) and the interaction variable of board model and board independence together with several variables conventionally used as control variables are independent variables. The authors collated the panel dataset of 244 Fortune World’s Most Admired (FWMA) corporations from 2005 to 2011 of which 117 MNCs use the one-tier board model, and 127 MNCs use the two-tier board model from 20 countries. They used the random-effect regression method to estimate the empirical models with the data they collated and also ran regressions on the alternative models for robustness check.FindingsThe authors found a significantly positive effect of a board model on CSR disclosure by MNCs. Two-tier MNCs tend to reveal more CSR information than one-tier MNCs. The results also confirm the significant moderating impact of board model on the effect of board independence on CSR disclosure. The effect of board independence on CSR disclosure in the two-tier board MNCs tends to be higher than that in the one-tier board MNCs. The results do not support the effect of board independence on CSR disclosure in general for all types of firms (one-tier and two-tier board). The impact of board independence on CSR disclosure is only significant in two-tier board MNCs and insignificant in one-tier board MNCs.Practical implicationsThe authors advise the MNCs who wish to improve CSR reporting and transparency to consider the usage of two-tier board model and use a higher number of outside directors on board. They note that once a firm uses one-tier model, number of IDs on a board does not matter to the level of CSR disclosure. They advise regulators to enforce an application of two-tier board model to improve CSR reporting and transparency in MNCs. The authors also recommend regulators to continue mandating publicly traded companies to include more external members on their boards, especially for the two-tier board MNCs.Originality/valueThis paper is the first that investigates the role of board model on CSR disclosure of MNCs.

PurposeThe purpose of this paper is to examine the impact of corporate social responsibility (CSR) disclosure on the firms’ weighted average cost of capital (WACC) of Jordanian industrial firms listed in the Amman Stock Exchange (ASE) over the 2009–2019 period. In particular, this paper examines whether stockholders and creditors value CSR information disclosure positively when they decide to provide financing to the firm.Design/methodology/approachTo investigate the relationship between the firm's disclosure of CSR and its WACC within Jordanian industrial firms, this study used the generalized method of moments. This study first describes the variables and then the model specification. The dependent variable is the WACC, calculated as the weighted average cost of debt and the cost of equity. For the main independent variable, this study used the CSR disclosure index developed by Abu Qa'adan and Suwaidan (2019), which includes 42 items of information classified into four categories: environmental information, human resources information, community involvement information and product/services to customer information. The sample includes 42 industrial firms listed in the ASE over the period 2009–2019.FindingsThis study finds find that there is no impact of total CSR disclosure on the WACC. However, firms that do not disclose enough information and engage in socially responsible activities related to the environment and the human resources are considered high risk to the market participants (i.e. creditors and equity holders) and consequently are penalized by being charged high financing costs. Furthermore, profitable firms that engage in CSR activities are seen to be highly risky.Research limitations/implicationsAs the period chosen for the study is considered a period of an economic slowdown in Jordan, it is highly likely that the impact of the economic slowdown increased the required return on investment by equity holders. The results of the study are consistent with the idea that managers regard CSR as philanthropy rather than as a necessary activity that leads to the sustainability of their businesses. On the other hand, it could be that investors do not give any attention to the CSR information provided by the firm, and hence, their required return is determined by other factors.Originality/valueThis research contributes to the literature on CSR in the following: first, contrary to previous research that examines the impact of CSR on a firm's value or its cost of equity capital, this study will examine the effect of CSR disclosures on the company’s WACC. Second, this research examines the CSR disclosure in a small market where information asymmetry is high, thus the authors suggest that their CSR disclosure is one channel through which firms can reduce this information asymmetry and improve their performance.

This study examines factors that explain corporate social responsibility (CSR) engagement in Chinese firms. Contrary to the developed markets, the Chinese government plays a determinant role in CSR engagement of Chinese firms. For the state-owned firms, several results are noted. First, a firm’s CSR engagement appears to serve the government interest rather than the various stakeholders. Second, managers will overinvest in CSR for political reasons or private reputation building. The behavior supports the overinvestment hypothesis. Third, a state-owned enterprises firm with more earnings management will likely reduce CSR engagement. SOEs that have CSR engagements tend to have higher research and technical development expenditures and lower financial performance. For non-state-owned firms, the CSR engagements appear to mitigate conflicts among stakeholders and associate with higher firms’ value, supporting the conflict-resolution hypothesis. Our results find that firms of a larger size are more likely to participate in more CSR engagement for both SOEs and non-SOEs.

PurposeThe purpose of this paper is to identify the web-based features of corporate social responsibility (CSR) disclosure that play a role in making CSR information prominent to investors and give the information better recognition for investment decisions.Design/methodology/approachThe authors posit a positive association between the company’s capital market performance and the web-based features used for CSR disclosure by the company. The authors argue that the more effective the feature is in enhancing the prominence of CSR information, the higher is the share turnover and market value of shares of a company, and the lower is its share prices’ bid-ask spread. Five specific web-based features, namely, the location, accessibility, medium, variety and extent of disclosure are identified as features used for web-based CSR disclosure. The research framework is drawn from Brennan and Merkl–Davies’ (2013) impression management strategies and Merton’s (1987) “investor recognition hypothesis”.FindingsThe findings show that visual and structural emphases of CSR information via specific web-based features enhance information prominence and could favourably influence investors’ impression towards the company. Investors are likely to make investment decisions in favour of the company, resulting in a higher share turnover along with increased market value of the shares of the company and lower bid-ask spread of its share prices.Research limitations/implicationsThe paper highlights the significance of utilisation of web-based features in enhancing CSR information prominence for impression management purposes.Practical implicationsThe findings have the potential to benefit preparers, users and policymakers by enhancing their knowledge and understanding of the utilisation of web-based CSR disclosure features. Specifically, preparers will be more aware of web-based feature(s) that could be useful in projecting CSR-related information to their stakeholders.Social implicationsThe study will help enhance the dissemination of web-based CSR information.Originality/valueThe study adds to the literature on web-based CSR disclosure, by developing a structured approach to examine the effectiveness of web-based features for investors’ impression management.

Although 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