Institutional dynamics and CSR disclosures: evidence from Latin America

PurposeThis study aims to investigate the extent and nature of corporate social responsibility (CSR) disclosure in the context of Jordan. It also empirically examines the impact of board composition variables (size, independent [non-executive] directors, CEO/chairman duality, age and gender) and ownership structure variables (board ownership concentration, institutional ownership and foreign ownership) on CSR disclosure level.Design/methodology/approachA CSR disclosure index is constructed, and content analysis is used to analyze the extent and nature of CSR disclosure in the annual reports of Jordanian manufacturing companies listed on the Amman Stock Exchange (ASE) during the period (2013-2015). Regression analysis using panel data is undertaken to analyze the potential impact of board composition and ownership structure on CSR disclosure level.FindingsThe results reveal that, on average, a listed Jordanian manufacturing company has disclosed 30.8 per cent of the 42 items of CSR information included in the disclosure index. In addition, there was a very slight improvement in the CSR disclosure over the study period. These results suggest there is considerable room for improvement in CSR disclosure. The regression analysis identified board size to be significantly and positively associated with CSR disclosure level. On the other hand, the percentage of independent (non-executive) directors on the board, duality of CEO and chairman positions, director’s age, board ownership concentration and the percentage of shares outstanding held by institutional shareholders were found to have had a significant negative impact on CSR disclosure level.Originality/valueThe study contributes to the literature on CSR practice and disclosure in various ways. First, it demonstrates the extent to which listed companies in developing countries, such as Jordan, take their social role seriously. Second, the study adds to the existing literature on the potential impact of board composition and ownership structure on CSR disclosure by using new variables that have not been tested before using Jordanian data. Third, the study is anticipated to provide feedback to Jordanian regulators in the Jordan Securities Commission and the ASE on the adequacy of current regulations on corporate disclosure requirements in Jordan. Finally, the study raises some issues of interest to other researchers who are currently or intend to conduct research in this area.

Corporate social responsibility (CSR) disclosure has become a crucial aspect of business operations, influenced by various institutional pressures. This study examines the relationship between institutional pressures and the level of CSR disclosure among firms. Empirical evidence collected through a survey of 208 senior executives of listed firms in Vietnam’s stock exchange indicates that coercive pressure, normative pressure, and mimetic pressure have a positive relationship with various aspects of CSR disclosure levels. This study employs an empirical approach to assess how institutional factors influence CSR disclosure in Vietnam. The findings provide valuable insights for both corporate managers and policymakers in fostering a more transparent and responsible business environment. Finally, the research offers practical recommendations to enhance CSR disclosure, ensuring that businesses align with global sustainability standards while addressing local institutional challenges.

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.

The purpose of this article is threefold. Firstly, it is aimed at ascertaining whether, in seeking social legitimization, companies disclose CSR information as a response to mimetic pressures. Secondly, it ascertains whether, by seeking economic legitimization, companies with superior CSR performance disclose CSR information to differentiate themselves from low‐performing counterparts. Thirdly, it examines the moderating effects of CSR performance in the relationship between mimetic pressures and CSR disclosure, exploring how the social and economic legitimacy influence in tandem the CSR disclosure. The study is based on a sample of 10,395 firm‐year observations coming from 1,993 international companies that released their CSR report in the 2011–2017 timespan. The results, in addition to demonstrating that both mimetic pressures and CSR performance have a positive bearing on the disclosure of CSR information, suggest that the interaction between mimetic pressures and CSR performance has an additive positive effect on CSR disclosure.

This study aims to determine the effect of managerial ownership, profitability, leverage, and tax aggressiveness moderated by firm size on Corporate Social Responsibility (CSR) disclosure. The population in this study comprises energy sector companies listed on the Indonesia Stock Exchange (IDX), which have a capitalization value of more than 5,000,000,000. Determining the minimum number of samples using Slovin theory shows that 33 minimum samples must be met. The method of determining using purposive sampling with the criteria of energy companies listed on the IDX and issuing annual and sustainability reports in 2019-2021. The results showed that managerial ownership has a significant effect on CSR disclosure. Profitability has no significant effect on CSR disclosure. Leverage has a significant effect on CSR disclosure. Tax aggressiveness has a significant effect on CSR disclosure. Managerial ownership, profitability, leverage, and tax aggressiveness have significant simultaneous effects moderated by firm size on CSR disclosure. Future studies are anticipated to use a bigger sample size because this research is still only applicable to one industry, allowing the findings to reflect a wider range of businesses. Additionally, institutional ownership or shares as illustrations of effective corporate management can be introduced as additional variable factors, which may affect the company's CSR disclosure.

This study examines the influence of foreign ownership, CEO tenure, and ownership concentration on corporate social responsibility (CSR) disclosure, with board gender diversity as a moderating variable, in energy sector companies listed on the Indonesia Stock Exchange (IDX) during 2019–2023. Using a quantitative associative approach, data were collected from 47 purposively sampled companies. CSR disclosure was measured using the CSR Disclosure Index (CSRDI) based on the Global Reporting Initiative (GRI) Standards 2021, while ownership structure and managerial characteristics were measured through secondary data obtained from annual and sustainability reports. Data analysis employed Structural Equation Modeling (SEM) with WarpPLS 7.0 to test the research hypotheses. The results reveal that foreign ownership and ownership concentration have significant positive effects on CSR disclosure, whereas CEO tenure has a significant negative effect. Interestingly, board gender diversity does not significantly moderate the relationships between ownership structure, CEO tenure, and CSR disclosure. These findings contribute to the development of legitimacy theory and stakeholder theory by showing how ownership and leadership characteristics influence disclosure practices in emerging markets. Practically, the study provides implications for regulators and companies in Indonesia to strengthen sustainability governance, improve CSR reporting quality, and encourage meaningful board diversity

Transparency through Corporate Social Responsibility (CSR) disclosure has become a critical issue in the energy sector, which often faces public scrutiny regarding its environmental and social impacts. However, the internal factors that drive energy companies in Indonesia to enhance their CSR disclosure remain underexplored. This study aims to analyze the influence of gender diversity in management, foreign ownership, and organizational slack resources on the extent of CSR disclosure in energy sector companies. This study employs a quantitative approach using secondary data obtained from annual reports and sustainability reports of energy sector companies listed on the Indonesia Stock Exchange for the period 2021–2024. A total of 16 companies met the sample selection criteria, resulting in 48 observational data points. Data were analyzed using multiple linear regression with SPSS 25.0 software. The results show that all three independent variables have a positive and significant effect on CSR disclosure. Gender diversity has a t-value of 4.454 with a significance of 0.000, foreign ownership has a t-value of 4.737 with a significance of 0.000, and slack resources has a t-value of 8.376 with a significance of 0.000. Simultaneously, these three variables significantly influence CSR disclosure, with an F-value of 82.447 and a significance of 0.000. The coefficient of determination (R²) of 0.849 indicates that 84.9% of the variation in CSR disclosure can be explained by gender diversity, foreign ownership, and slack resources. These findings confirm stakeholder theory, suggesting that pressure from stakeholders and the availability of resources encourage companies to be more transparent and socially responsible. This study provides practical implications for energy sector management to strengthen gender diversity policies at the managerial level and optimize resource allocation to improve the quality of sustainability reporting. Furthermore, the results offer insights for regulators in formulating policies that promote CSR transparency in the energy sector.

PurposeThe purpose of this paper is to review the current status of research works on corporate social responsibility disclosure (CSRD) in both non-Asian and Asian countries. It seeks to provide an overview of existing literatures to facilitate future research.Design/methodology/approachThe present study used the content analysis of 64 empirical research papers from 41 countries from 1990 to 2020 to show the rapid development of and global focus on CSRD. Various CSRD measures had been used in previous researches on the extent and quality of disclosure.FindingsCompany characteristics, namely, company size, age, profitability, industry, share price performance and corporate governance mechanisms and their impact on CSRD, were investigated. Crucial variances between the determinants of CSRD in non-Asian and Asian countries were also reviewed. In non-Asian countries, especially the advanced ones, specific stakeholders such as regulators, the environment, shareholders, ownership and media are considered very significant in the disclosure of CSR information. Meanwhile, in Asian countries, CSRD is more affected by external strength and stakeholders, which include international capital markets, creditors, the environment, international media and ownership.Research limitations/implicationsThe determinants of CSRD, namely, community, workplace, environment and marketplace issues received very little pressure from the public. This paper suggests that there is a need for more studies examining CSRD in non-Asian and Asian (emerging) countries.Social implicationsBusiness organisations in non-Asian and Asian countries should take social practices into consideration in their CSRD decision-making. This review highlights the significance of merging organisational and social activities.Originality/valueThis study adds value by examining CSRD aspects that were not reviewed in previous studies on CSRD in non-Asian and Asian countries. This study provides a comprehensive review of the determinants of CSRD in both non-Asian and Asian countries.

This study aims to investigate the impact of Green Accounting, Public Share Ownership, and Media Exposure on Corporate Social Responsibility (CSR) disclosure. The sample in this study comprises mining sector companies listed on the Indonesia Stock Exchange (IDX) that have consistently published annual financial reports from 2020 to 2023. The population in this study consists of 56 companies in the mining sector. The sampling method employs a purposive sampling approach, utilizing secondary data obtained from annual reports and sustainability reports. Consequently, the sample used in this study comprises 10 companies. The analysis techniques used are descriptive statistical analysis, classical assumption tests, and multiple linear regression analysis. The results of the analysis concluded that Green Accounting has a significant effect on Corporate Social Responsibility Disclosure, and Public Share Ownership and Media Exposure do not have a significant effect on Corporate Social Responsibility Disclosure. The results of the F-test show that the regression model has a significant effect on Corporate Social Responsibility Disclosure, with a significance value of F of 0.002 (<0.05). Meanwhile, the R² value of 0.392 indicates that the independent variables in this study can explain 39.2% of the variability in Corporate Social Responsibility Disclosure, while the remainder is influenced by other variables outside the scope of this study.

This study explores the nexus between internal audit, audit committee attributes, and Corporate Social Responsibility (CSR) disclosure quality in A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2010 to 2019. Utilizing refined samples and robust datasets, this investigation reveals critical insights that a robust internal control system significantly correlates with higher-quality CSR disclosure, underscoring its pivotal role in safeguarding non-financial reporting integrity and enhancing transparency in CSR disclosures. Larger audit committees are positively associated with improved CSR disclosure quality. This highlights the strategic advantage of a diverse and expansive audit committee in navigating the complexities of CSR reporting. Contrary to expectations, the proportion of independent directors on the audit committee and the frequency of audit committee meetings do not show a significant positive relationship with CSR disclosure. Companies benefit from strategic investments in internal control systems, crucial for non-financial reporting integrity and fortified CSR disclosure practices. In conclusion, this study provides concise insights into critical factors influencing CSR disclosure quality in Chinese companies, offering actionable implications for corporate practices and regulatory frameworks. AcknowledgmentThis paper is co-funded by the European Union through the European Education and Culture Executive Agency (EACEA) within the project “EU BEST PRACTICE OF LIFE CYCLE ASSESSMENT, SOCIAL, ENVIRONMENTAL ACCOUNTING AND SUSTAINABILITY REPORTING” – 101047667-ERASMUS-JMO-2021-MODULE https://jm.snau.edu.ua/en/eu-best-practice-of-life-cycle-assessment-social-envi­ron­mental-accounting-and-sustainability-reporting/ Oleh Pasko expresses sincere gratitude for the support from the Kirkland Research Program, generously provided by the Leaders of Change Foundation established by the Polish-American Freedom Foundation.

This study examine the role of good corporate governance (GCG) and firm characteristics to expand corporate social responsibility (CSR) disclosure. CSR disclosure is measured by fraction of total items reported in Sustainability Report to 58 items index released by Global Reporting Initiative. Samples are collected from listed companies in BEI (Bursa Efek Indonesia) and have been participated in Indonesian Sustainability Report Award (ISRA during 2014-2016. As much as 22 companies have complete data for further analysis. Using multiple regression analysis, results showed that profitability have a positive effect on CSR disclosure and become the only accepted hypothesis in this research; size of board of commissioner, company size, and leverage have no effect on CSR disclosure; while audit committee meeting frequency have negative effect on CSR disclosure.

PurposeThis study aims to investigate the extent and trend of corporate social responsibility (CSR) disclosure by UAE listed banks and the impact of corporate governance mechanisms on this disclosure.Design/methodology/approachContent analysis of banks’ annual reports from 2009 to 2019 was applied to investigate the CSR disclosure level by constructing a disclosure index. Panel data regressions were applied to analyze the impact of corporate governance mechanisms on CSR disclosure.FindingsUAE banks show an improving trend in the CSR disclosures. In addition, the board of directors and ownership structure are significantly and positively associated with the CSR disclosures. The results vary across the banking systems.Research limitations/implicationsThis study considers the extent of the CSR disclosure in UAE banks’ annual reports, and future research should consider more industries and communication channels.Practical implicationsThis study sheds light on the extent of the CSR disclosure of UAE listed banks and assists UAE policymakers in implementing appropriate corporate governance mechanisms.Social implicationsThe findings provide banks with a better understanding of the benefits of strengthening corporate governance to improve their CSR disclosure.Originality/valueThis study contributes to the literature by constructing a more comprehensive disclosure index and examining the impact of corporate governance mechanisms on CSR disclosure by considering both the conventional and Islamic banking systems.

PurposeThis paper aims to highlight the relationship between the attributes of external auditor companies and voluntary corporate social responsibility (CSR) disclosures of audited firms using a sample of Abu Dhabi Securities Exchange (ADX)-listed companies.Design/methodology/approachBased on a sample of 410 firm-year observations for the period 2010–2016, this study first computes an eight-item CSR disclosure index, then ran a multivariate regression analysis between CSR disclosure scores and external auditor attributes, along with client firm characteristics and additional control variables. Finally, this paper performs various additional robustness checks.FindingsThe results reveal that external auditor attributes have a significant impact on shaping the CSR disclosures of ADX-listed firms. Overall, auditor age, size, industry specialisation and portfolio diversification positively affect the level of customers’ CSR disclosures. By contrast, the magnitude of audit fees and auditor experience in the UAE has no impact on the CSR disclosures of ADX-listed firms. This study controls for client firm size, financial leverage, ownership concentration and the proportion of independent directors on companies’ board of directors. The results remain robust to additional sensitivity checks such as audit company CSR practices, extreme quartiles of CSR disclosures and the panel data estimation method.Research limitations/implicationsThe research exhibits some limitations. First, this paper uses a simple index to measure CSR disclosures based on previous empirical studies, especially those related to emergent markets, which are not free from bias due to the lack of voluntary disclosure transparency for some companies listed on ADX. Second, although this study uses a seven-year observation period, the total number of observations remains limited due to ADX size. Third, other context-specific disclosures should be included such as cultural and governance variables (royal families ownership).Practical implicationsThe study highlights the role of external attributes that can affect companies’ CSR disclosure policy, rather than firm-specific factors. The study also reshapes the concept of auditor quality beyond the dichotomy (“Big Four”/non-Big Four) used in the current literature.Originality/valueThe research adds to the current literature on CSR by revealing the impact of external auditor attributes on client firm CSR disclosure policy in an emerging market, the ADX.

This study aims to examine the impact of managerial ownership and family ownership on Corporate Social Responsibility (CSR) disclosure in companies listed in the LQ45 Index on the Indonesia Stock Exchange during the 2019-2022 period. This study employs a quantitative approach and uses secondary data from annual financial and sustainability reports. Data analysis was carried out using multiple linear regression analysis, and testing was carried out using STATA 14.0 statistical tools to test the effect of managerial ownership and family ownership on corporate social responsibility (CSR) disclosure. The results of this study show that managerial ownership has a negative effect on CSR disclosure, which suggests that higher managerial ownership correlates with less transparency in CSR reporting. In contrast, the results of this study show that family ownership does not significantly affect CSR disclosure, which indicates that family-controlled companies do not necessarily exhibit better CSR reporting practices. This study provides practical implications for policymakers and corporate stakeholders by emphasising the need for a regulatory framework that encourages transparent and fair CSR disclosure.

This study aimed to explore the relationship between corporate social responsibility (CSR) disclosure and firm value from an accounting perspective. A qualitative research design was employed, utilizing semi-structured interviews with 24 accounting professionals, corporate executives, and financial analysts from Tehran. Purposive sampling ensured participants possessed relevant expertise, and data collection continued until theoretical saturation. Nvivo software was used for thematic analysis, involving open, axial, and selective coding to identify key themes related to CSR disclosure and firm value. The study revealed that CSR disclosure positively influences firm value by enhancing financial performance through improved profitability, revenue stability, and operational efficiency. It increases investor trust by reducing risk perception and fostering long-term investment. CSR initiatives contribute to market competitiveness by strengthening brand reputation and customer loyalty, while also ensuring regulatory compliance by reducing legal risks and fostering positive relationships with policymakers. Challenges such as high implementation costs, lack of standardized metrics, and internal resistance were also identified, along with the critical role of strong corporate governance in ensuring effective CSR disclosure. CSR disclosure is a strategic tool that enhances firm value through financial performance, investor trust, market competitiveness, and regulatory compliance. Despite the challenges associated with CSR implementation, firms that adopt comprehensive CSR disclosure practices benefit from improved financial outcomes and competitive positioning. Strong governance structures are essential for effective CSR reporting, ensuring transparency and accountability in corporate practices.