Corporate Social Responsibility Disclosure Practices Research Articles

Web‐based corporate social responsibility disclosure practices: A systematic literature review and research directions

AbstractThe current paper aims to conduct a comprehensive systematic review of the existing literature on web‐based Corporate Social Responsibility (CSR) disclosure practices and introduce suggestions for scholars in this research area. To achieve this main objective, a systematic literature review technique was adopted, consisting of the content analysis of 119 papers from different scientific databases utilizing specific inclusion and exclusion criteria. The findings of the study show that scholars have a strong and continuing interest in a variety of web‐based Corporate Social Responsibility disclosure (CSRD) aspects. Moreover, the investigation revealed that stakeholder, legitimacy, institutional, and Media‐Richness theories were more prevalent in the online CSRD literature. According to the investigation, the two key determinants of online CSRD are firm‐ and country‐level characteristics. The results further confirm that content analysis is the most common research methodology. Furthermore, the bulk of online CSRD studies are from Spain, Malaysia, and the United States. Moreover, findings indicate that samples of 91 up to 200 entities from listed companies from multiple industries and banks are the most common sample sizes and sectors. The review suggests that there is a gap in the use of mixed methodological studies. The current work has some limitations. In more detail, this study limited the search to reviewing 119 papers published in English peer‐reviewed journals that focused on web‐based CSR disclosure practices until February 2023, so there might be other academic studies accidentally missed. Future studies will require a mixed methodological approach, including quantitative (e.g., document analysis) and qualitative research methods (i.e., interviews and case studies), to examine, for example, the determinants (e.g., corporate governance mechanisms, cultural dimensions, ESG performance scores, and prosperity status like country governance, investment environment) and consequences (i.e., corporate cash holdings, credit ratings) of web‐based CSR disclosure in various sectors such as the banking sector, Universities, SMEs, and MNCs. The study reveals a strong interest in web‐based CSR aspects, emphasizing its significance in fostering societal relationships among businesses and their stakeholders. Furthermore, the study suggests that professional bodies, regulators, and policymakers should establish effective standards for CSRD on websites to ensure the quality, quantity, and type of information available. The originality of this paper derives from its being one of the first papers to date that analyses comprehensively and systematically all the articles related to internet CSR disclosure practices and brings out interesting directions for future research.

Does internal audit matter? Audit committee, its attributes, and corporate social responsibility reporting quality

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.

INFLUENCE OF FAMILY OWNERSHIP, BOARD AND TOP MANAGEMENT CHARACTERISTICS ON THE QUALITY OF WEBSITE CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE IN INDONESIA

Background and Purpose: This study aims to investigate the effect of family ownership, board characteristics (board foreign experience and board accounting expertise), and top management characteristics (management education level) on the quality of website Corporate Social Responsibility (CSR) disclosure via corporate website among the top companies listed in the Indonesia Stock Exchange (IDX). This study adds to the body of literature by examining the moderating effect of family ownership towards the relationship between board characteristics and website CSR disclosure, which is useful for investors who might have concerns on the level of CSR disclosure as a gauge of firm ethics, particularly in respect to family-owned firms.
 
 Methodology: Sample of this study consisted of 100 non-financial companies listed in Indonesia Stock Exchange (IDX) for the year of 2019. To test the study’s hypothesis, multiple linear regression analysis was applied.
 
 Findings: Empirical results from this study have shown that family ownership is negatively related to the quality of website CSR disclosure. Board foreign experience has a positive effect on CSR disclosure practices in their respective corporate websites. Meanwhile, top management education level was found to have a negative and statistically significant relationship with the quality of voluntary website CSR disclosure. Lastly, this study demonstrated that family ownership moderates the relationship between board accounting expertise and the quality of CSR disclosure on corporate websites.
 
 Contributions: This study contributes to the literature on CSR disclosure by introducing a set of index measuring the quality of voluntary website CSR disclosure, which captures not only the variety, but also the richness of CSR information. The moderating role of family ownership on such relationships, which is rarely investigated in the context of developing countries, was also explored by this study.
 
 Keywords: CSR disclosure, voluntary disclosure, family ownership, board characteristics, top management.
 
 Cite as: Melati, I., Arshad, R., Ahmad Nadzri, F. A., Nair, R., & Hermawan, A. A. (2023). Influence of family ownership, board and top management characteristics on the quality of website corporate social responsibility disclosure in Indonesia. Journal of Nusantara Studies, 8(TI), 351-381. http://dx.doi.org/10.24200/jonus.vol8issTIpp351-381

An examination of board diversity and corporate social responsibility disclosure: evidence from banking sector in the Arabian Gulf countries

PurposeThe purpose of this study is to examine the impact of board diversity (e.g. education, gender, nationality and royal family members) on voluntary corporate social responsibility (CSR) disclosure for a sample of banks listed in the Arabian Gulf Council countries.Design/methodology/approachThe authors use the Global Reporting Initiative guidelines to construct the CSR disclosure index. The empirical analysis is based on the data of banks listed in the Gulf Cooperation Council countries over the period 2011–2019. To tackle the potential issue of endogeneity, the authors apply the system generalized method of moments (GMM) estimation approach to investigate the relationship between board diversity and CSR disclosure index.FindingsThe findings of the analysis show that there is a significant relationship between board diversity and the level of voluntary CSR disclosure. Specifically, the authors find that diversity captured by the education level, nationality and the presence of royal family members on board is positively associated with the level of voluntary CSR disclosure while diversity captured by the gender of board members is negatively associated with the level of voluntary CSR disclosure.Practical implicationsThe regulators, policymakers, stakeholders and the board of directors become aware of the diversity mechanisms that must be used to promote CSR practices in the banking sector of Arabian Gulf countries.Originality/valueThe authors extend the existing literature by providing empirical evidence on the association between board diversity and voluntary CSR disclosure practices of banks operating in the Arabian Gulf countries. This study also highlights that board gender diversity may have a different impact on voluntary CSR disclosure between developed countries and developing countries. This paper also provides preliminary evidence on the importance of education level, the presence of foreign and royal directors on board to influence CSR practices of banks operating in the Arabian Gulf countries.

Corporate Social Responsibility Development and Climate Change: Regional Evidence of China

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.

Exploring Corporate Social Responsibility in the Italian wine sector through websites

PurposeThis paper aims to explore how the Italian wine industry discloses corporate social responsibility (CSR) practices and quality certifications and the corresponding determinants via websites. The study also aims to investigate the relationship between CSR practices and financial performance. The information consistency between the quality certificates reported on corporate websites and official database statements is also explored. Lastly, the paper investigates how the relationship between the size of wineries and CSR disclosure changes according to firms' geographic location.Design/methodology/approachThis paper analyses CSR corporate communication via the websites of a sample of Italian wineries by adjusting the theoretical framework developed by Amran (2012) to the wine sector's peculiarities. Moreover, a cross-certification analysis and a moderation analysis were performed to fulfil the purpose of the research.FindingsThe analysis revealed the extensive use of CSR disclosure via websites. It was found that company size positively affects CSR disclosure and Quality Certification Disclosure (QCD), while geographic location slightly moderates the relationship between the two variables. In addition, a negative relationship between CSR disclosure and corporate financial performance and its reverse causality emerged. Moreover, for most wineries, information consistency between the quality certificates reported on corporate websites and official database statements was observed.Research limitations/implicationsThe study's main limitation is that the search process was performed during lockdown. Therefore, the examined issues could change in the near future due to the shift in priorities that the COVID-19 pandemic is determining.Practical implicationsThe results can help managers implement CSR disclosure and QCD practices to enhance stakeholder legitimacy and enable their companies to compete in strongly competitive international markets.Originality/valueThe paper represents the first study investigating online QCD and its consistency in the Italian wine sector.

The effects of board size and board composition on CSR disclosure: a study of banking sectors in Bangladesh

PurposeThe purpose of this study is to provide a profound understanding of the nature and extent of corporate social responsibility (CSR) disclosure in the annual report by the listed banking sectors in Bangladesh for examining the effect of board size and board composition on CSR disclosure.Design/methodology/approachThe sample selected of all the 30 listed banks enlisted in the Dhaka Stock Exchange and the study used a content analysis approach. An ordinary least square regression model is fitted to the data for assessing the effect of independent variables on the total CSR disclosure score. An un-weighted approach has been used for this study.FindingsThe results of the study demonstrate that the extent of CSR disclosure of listed banks in Bangladesh varies from 11.11% to 73.33%, and on average, they report 45.37% and 43.44%, respectively. Moreover, the study observed a significant relationship between the proportion of female directors and CSR disclosure. Conversely, board size has been found no significant relationship with the CSR disclosure but the proportion of independent directors has been found a significant relationship with the CSR disclosure in the annual report by the listed banking sectors in Bangladesh.Social implicationsThe study is expected to get a maximum scenario of CSR disclosure of banking sectors in Bangladesh. Government and other regulatory bodies can also get full information concerning CSR disclosure practices for formulating guidelines in this regard. If the Government of Bangladesh implicates the policies that the banks are to nominate a required number of female directors to boards, the consideration of the significant number of female directors and their power will be able to protect the interests of different stakeholder groups notably.Originality/valueThe study contributes to the CSR literature as it presents empirical evidence of the effects of board size and board composition on the CSR disclosure of banking sectors in developing countries such as Bangladesh.

Corporate social responsibility extent and quality: evidence from Jordan

Purpose This study aims to examine the extent and quality of corporate social responsibility (CSR) disclosure in Jordan for the time periods of 2005–2006 and 2014–2015, ultimately establishing whether there was a change in the extent and quality of disclosure practices before and after the new regulations for CSR. Furthermore, this study additionally seeks to determine if the regulations are a major factor in changing CSR disclosure practices, or whether there are other factors for such a change. Design/methodology/approach The annual reports of 55 manufacturing companies (11 sub-sectors) on the Amman Stock Exchange for the years 2005–2006 and 2014–2015 were selected, and a CSR checklist was measured via the construction an index covering 36 items in 4 themes: environmental; human resources; community; and products and others. The study measures the quantity of CSR via the number of sentences and the quality of CSR by the weighting approach (on a scale of 0–3); furthermore, the paired sample t-test and Wilcoxon signed rank tests were used to establish whether there was a change in the extent and quality of CSR disclosure practices. Findings The results of the study revealed that there being a significant increase in the extent and quality of CSR for the period 2014–2015 compared to that of 2005–2006, the most optimal performance being in 2015, bragging an average of 61,41 total sentences per annual report and an average quality score of 1.423. Moreover, detailed analysis of CSR extent and quality by theme reveals that the highest percentage of CSR extent and quality was within the environmental theme, with an average score 28.6% of total sentences in 2014 (extent) and 1.743 in 2015 of total sentences (quality). Research limitations/implications The current study has some limitations, which have implications for future studies. First, this study examined the extent and quality of CSR for only two time frames: before and after regulation. However, a longitudinal study would have provided a wider scope of study. Second, the study focussed only on the industrial sector, thus limiting the results to only this area. Indeed, the exploration of the CSR extent and quality for other sectors (e.g. financial and services) would generalise the results further, allowing for the making of comparisons compare among different sectors. Moreover, the study at hand has focussed solely on annual reports, which could lead to subjectivity, thus reducing the reliability of results. Future studies should thus focus on other means of disclosure (e.g. websites; environmental reports). Practical implications The current mandatory requirements would suggest Jordanian regulators have begun specifying CSR disclosure requirements in an easier, more user-friendly and traceable format. Indeed, the increase in CSR extent and quality for the post-regulations period would increase the need to organise mandatory requirements in CSR. For managers, on the other hand, the study provides the CSR as a strategic tool for reflecting the actual environmental activities, comparing it with the society’s expectations. Moreover, when budgets are limited, managers prioritise CSR activities that yield a positive impact on financial performance by allocating the limited resources in a broad manner. Social implications The results additionally highlights the ways in which the Jordanian industrial companies increase their levels within the environmental theme in CSR for the post-regulations. It could be argued that a great number of companies in the past decade have started adopting environmentally friendly practices and strategies to protect the natural environment, such as greenhouses, extracting non-renewable resources and reducing amount of industrial waste. Originality/value To the best of the authors’ knowledge, there is currently no existing study within Jordan exploring the change of CSR over time – specifically in terms of before and after the regulations. In addition, exploring the quality of CSR using a weighted approach (scale out of 3) is not conducted in Jordanian studies before.

Factors influencing corporate social responsibility disclosures in Nepalese banks

PurposeThis paper examines the relationship between selected firm-specific variables and the extent of corporate social responsibility (CSR) disclosures made by Nepalese banks.Design/methodology/approachA content analysis approach of the banks' annual reports is applied using a CSR disclosure index based on the Global Reporting Initiative guidelines. The factors identified in this study – bank size, bank age and bank profitability – are analyzed against the extent of CSR disclosures in the Nepalese banks using multiple regression.FindingsThe main finding from the content analysis indicates that the extent of CSR disclosures made by Nepalese banks in their annual reports is mostly descriptive, with charity and donation being the most disclosed items. The main findings from the correlation and regression analyses show that there are positive and significant relationships between both bank size and profitability and the extent of CSR disclosures in the Nepalese banks, while bank age is a partial determinant.Originality/valueBanks have a significant role in the Nepalese economy. This study offers insights into the CSR disclosure practices of Nepalese banks, examines the potential factors affecting CSR disclosure and expands the pool of CSR knowledge in the developing country context, especially in the banking sector.

Stage of development of a country and CSR disclosure – the latent driving forces

PurposeThe purpose of this paper is to investigate the impact of various determinants at the country level, the industry level, the firm level and the corporate governance (CG) level on the extent of corporate social responsibility (CSR) disclosure in the group of developing and developed nations.Design/methodology/approachThe data set comprises 310 companies listed on stock exchanges of developing and developed markets (Brazil – IBrX 100, 42 companies; Russia – Broad Market Index; 48 companies; India – Bombay Stock Exchange (BSE) 100, 50 companies; China – Shanghai Stock Exchange (SSE) 180, 27 companies; South Africa – The Financial Times Stock Exchange (FTSE)/Johannesburg Stock Exchange (JSE) All Share index, 49 companies; the USA – New York Stock Exchange (NYSE) 100, 47 companies; and the UK – London Stock Exchange (LSE) 100, 47 companies). CSR disclosure is measured through CSR disclosure index. Five separate regression models are run to investigate the impact of the factors that affect the extent of CSR disclosure.FindingsThe findings reveal that CSR disclosure is influenced by factors both at micro and macro levels. Governance environment, globalization and income inequality are found to be significant determinants of CSR disclosure for developing countries. International listing significantly influences CSR disclosure in the developed countries. The results also exhibit that board with large proportion of independent directors, high presence of CSR committee and environmental sensitive industries are more likely to engage in CSR disclosure practices in developing as well as in developed nations.Research limitations/implicationsThis study implicates that varied factors – at country level, industry level, firm level and CG level – need assessment to know their impact differently in countries at different stages of economic development. However, longitudinal study covering longer period would lead to better generalization of results.Practical implicationsThe findings of this present study implicate that managers must evaluate country’s political, social and economic forces and not just rely on company-level indicators affecting disclosure. Policymakers in emerging nations must emphasize on improving country governance features to enhance CSR disclosure of companies. Developing countries must respect and conform to rules and regulations while going global. More endeavors should be made to raise awareness about the benefits of CSR disclosure on reducing income inequality among companies listed on stock exchanges of developing countries. Emerging nations should follow developed nations in assuming responsibility toward stakeholders in foreign markets. This study also recommends regulatory bodies in both developing and developed countries to frame stringent policies regarding CG for improving CSR disclosure by companies.Originality/valueThis study overcomes the limitations of prior literature by considering both country- and company-specific determinants in prominent group of developing (Brazil, Russia, India, China and South Africa) and developed (the USA and the UK) countries.

Corporate Social Responsibility and Financial Performance: Evidence from Pakistani Listed Banks

This study intends to examine corporate social responsibility (CSR) in Pakistan’s banking sector, CSR disclosure practices and their impact on financial performance. For the study, relevant data was collected from the banks’ annual reports, financial websites, the State Bank of Pakistan (SBP) and the Pakistan Stock Exchange (PSE) from 2008 to 2018. The methods utilized in this research study were content analysis and panel data techniques. The results indicate an increase in overall CSR disclosure by all banks in the sample and the findings suggest the involvement of commercial banks in CSR activities, and its proper disclosure has helped to improve their accounting-based financial performance proxied by the return on equity (ROE) and return on assets (ROA). The research findings contribute to a better understanding of the CSR practices in the financial sector of an emerging country, which makes a dynamic effort to develop its financial culture and can encourage rapprochement with Pakistan’s financial sector.

Board of directors characteristics and disclosure practices of corporate social responsibility: a comparative study between Brazilian and Spanish companies

Purpose The purpose of this paper is to verify if the characteristics of the board of directors (BD) affects the disclosure practices of corporate social responsibility (CSR). Two different population samples were used from the period 2008-2011: Brazilian listed companies and Spanish companies. It is observed that the size of the board positively affects CSR disclosure practices of the two groups of companies. The percentage of independent directors of the board members positively affects the disclosure practices of CSR in Spanish companies. The percentage of participants of the board women positively impacts the disclosure practices of CSR in Brazilian companies. Design/methodology/approach The authors worked with two different population samples: one, composed by the Brazilian listed companies in BM&FBOVESPA and other by Spanish companies listed on Madrid Stock Exchange. The selection of this period was due to the increase in the adoption of GRI guidelines from 2008 (Prado-Lorenzo et al., 2012). In addition, as Spanish companies disclose more CSR reports according to the GRI guidelines (Global Reporting Initiative, 2012), this is a suitable environment for the analysis. Findings Regarding the research question of this study, it was found that the profile of the board affects the disclosure practices of CSR of Brazilian and Spanish companies. The size of the board positively affects CSR disclosure practices of the two groups of companies. The percentage of independent directors of the board members positively affects the disclosure practices of CSR in Spanish companies. The percentage of participants of the board women positively impacts the disclosure practices of CSR in Brazilian companies. Research limitations/implications Both the BD of Spanish companies as the Brazilian still requires the participation of a greater number of women. It is important to remember that the variable that represents women in the board presented a positive impact on the dependent variables, and it is statistically significant, so it is possible to affirm that when a large number of women are on the Board, the company tends to disclose more standardized information about CSR practices. These results are in line to other empirical analysis that defend that women usually introduce more philanthropic worries (Ibrahim and Angelidis, 1991) and tend to provide higher information transparency, especially about sustainability issues (Barako and Brown, 2008; Prado-Lorenzo and García-Sánchez, 2010; Frías-Aceituno et al., 2012). Practical implications This research should benefit, in this sense, investors, managers and policymakers, civil society representatives and corporate managers themselves active in the two economies investigated. Social implications It should be noticed that both Brazil and Spain use to encourage joint research between researchers of Brazilian and Spanish universities, funding projects developed in partnership as Cooperation Programme signed in 2001 by the Ministries of Education in both countries. Thus, it is justified the choice of Spain for its comparative analysis due to the need for more field studies on this topic in both countries, and also that it has been promoted by their governments. Originality/value It is expected that the results of this research contribute to the identification of relevant factors in disclosure of corporate environmental policies and actions that may be useful in the decision-making process of various stakeholders. Such identification will also allow us to identify possible relationships between environmental initiatives, the profile of BD.

Carroll’s dimensions and CSR disclosure: empirical evidence from Pakistan

Purpose This study aims to ascertain the relevance of Carroll’s four dimensions of corporate social responsibility (CSR), namely, economic, legal, ethical and discretionary in a dynamic regulatory context of a developing economy – Pakistan. Design/methodology/approach This study has operationalized these dimensions as four categories of CSR disclosure index. This disclosure index measured the relevance of CSR dimensions by examining CSR disclosure practices of Pakistan Stock Exchange-100 index firms. Findings The authors have found that the firms of Pakistan disclose more information pertaining to discretionary dimension of CSR than economic, legal and ethical dimensions. Interestingly, the authors have observed that after the enactment of state regulation, there is an increasing trend of the overall CSR disclosure level at a decreasing rate. Practical implications For policymakers, these findings imply that firms tend to perceive law as a box-ticking exercise and refrain to involve in those CSR activities that can have both strategic and societal benefits over the long run. These finding imply for business managers that if they will not undertake CSR notion seriously then the policymakers will take statutory initiatives to curtail the greenwashing effect and these initiatives can lead to higher transaction costs. Originality/value This study presents evidence about the relevance of Carroll’s four dimensions of CSR in a developing economy. The evidence shows that the CSR disclosure in developing economy continues to take a largely philanthropic form thereby dominating other CSR dimensions namely ethical, legal and economic. These findings also confirm that CSR practices are context-dependent and these cannot be isolated from their unique social context.

The joint effect of board independence and CSR committee on CSR disclosure: Evidence from Italian listed companies

Sustainability has become one of the key hubs around which the actions conducted by international economic operators revolve. This new perspective, perhaps better defined as “requirement”, given its specific weight in the global context, needs analysis of firms’ behaviours with regard to sustainability disclosure and the corporate governance (CG) mechanisms influencing the information released. Board of directors and CSR committee are critical CG mechanisms in that sense. This paper aims at investigating the relationship between specifics board characteristics and corporate social responsibility (CSR) disclosure. More specifically, the study investigates the relation between board independence and CSR disclosure, and how this relationship is moderated by the presence of a CSR committee. The analysis has been conducted on a sample of 119 Italian non-financial listed companies. The results obtained, using OLS regression method, show the existence of a positive and significant relationship between board independence and CSR disclosure. Moreover, the findings reveal that the presence of a CSR committee positively moderates the previous relationship, showing the complementary role played by board independence and CSR committee. These results have critical implications for boards, managers, regulators, and policymakers operating to define better corporate governance mechanisms, highlighting the importance of the joint effect of board independence and CSR committee in improving firms’ CSR disclosure practices. Our study also has relevant implications for researchers, evidencing the need to study the complementary effects of different CG mechanisms, rather than the single effect, on influencing CSR disclosure.

Online corporate social responsibility (CSR) disclosure in the banking industry: evidence from Poland

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 impact of country‐level institutional differences on corporate social responsibility disclosure engagement

AbstractWe examine the impact of country‐level governance and legal system, on corporate social responsibility disclosure (CSRD) engagement. Our analysis evaluates the extent to which they have endured the global financial crisis, as reflected in the CSRD of listed firms. We explore whether CSRD practices are similar or different in organizations from six countries and two different continents corresponding to two different legal systems, corporate governance systems, and accounting models. These factors, among others, may influence the disclosure policy of CSR information. We provide evidence that CSRD increasing effect of country‐level governance is more pronounced for companies in the Anglo‐American legal and regulatory environment and less pronounced for those in Euro‐Continental institutional environment.

Corporate Social Responsibility Information Disclosure and Corporate Fraud—“Risk Reduction” Effect or “Window Dressing” Effect?

We examine the impact in Chinese capital markets of publishing information on corporate fraud in a corporate social responsibility (CSR) report. We develop and test two competing hypotheses of “risk reduction” and “window dressing”. Based on the listed company’s CSR report, we analyze the effect of CSR disclosure on the commission of corporate fraud, fraud detection and the severity of corporate fraud. The research results show that after controlling for the firms’ characteristics and corporate governance factors, the CSR report’s information disclosures have a significantly negative relation to corporate fraud. Specifically, the CSR report’s publication reduces the information asymmetry between the insiders and the stakeholders, thus decreasing the tendency to commit fraud. Our findings support the risk reduction hypothesis but not the window dressing hypothesis. Further research shows that firms with a good CSR disclosure practice have a lower probability of committing corporate fraud and have fewer types of fraud violations, thereby mitigating the severity of corporate fraud.

CSR website disclosure: the influence of the upper echelons

PurposeUsing upper echelons theory (UET), the purpose of this paper is to unravel the influence of a CEO’s ethical ideology on the presence of corporate social responsibility (CSR) disclosure on corporate websites. It also considers the CEO’s perception of the importance of CSR (i.e. the extent of the CEO’s detachment from the stockholder-oriented logic and attachment to the stakeholder-oriented logic).Design/methodology/approachFirst, a survey was sent to CEOs of large unlisted Belgian companies. Its intention was to assess CEOs’ ethical ideology along the idealism and relativism dimensions and their perceptions on the importance of CSR (PRESOR-detachment-from-stockholder view; PRESOR-attachment-to-stakeholder view), and to gather some demographics. Second, a content analysis of corporate websites was conducted so as to classify companies as being either CSR disclosing or non-disclosing. Third, the annual accounts of these corporations were investigated and follow-up phone calls were conducted to obtain data on managerial discretion (MD).FindingsCEOs’ ethical ideology influences the degree to which they detach from the stockholder-oriented logic and attach to the stakeholder-oriented logic. Moreover, when MD is high, the degree of these CEOs’ attachment to the stakeholder-oriented logic is the factor that influences the presence of CSR disclosure on their corporate websites. Finally, CEO’s idealism indirectly influences the presence of CSR disclosure through the effect of idealism on the degree to which CEOs attach to the stakeholder-oriented logic.Originality/valueThis paper shows that, when MD is high, CEOs’ values and perceptions influence CSR disclosure decisions. This study thereby enhances our knowledge regarding the internal drivers of CSR disclosure practices and offers UET as a lens through which the importance of CEOs’ personal characteristics in the decision-making process might be further explored.

The relevance of assurance statements on CSR information to independent directors

This paper aims to examine the relationship between board independence and the level of corporate social responsibility (CSR) disclosures and to check whether such a relationship is moderated by the existence of an assurance statement that increases the credibility and reliability of such information. Using an international sample of 780 companies from 2004 to 2010 as well as the GMM estimator methodology for panel data, our evidence supports the idea that independent directors show initial opposition to CSR disclosure practices, owing to concern for their career or reputation, because this reporting could lack credibility. However, the existence of an assurance statement moderates it in the sense that it protects directors from the reputation risks associated with potentially misleading CSR information.

Which Corporate Governance Mechanisms Drive CSR Disclosure Practices in Emerging Countries?

Although several studies have analyzed the role that specific corporate governance mechanisms have on Corporate Social Responsibility (CSR) reporting practices, their findings have not been conclusive and the evidence from developing countries is scarce. The theoretical support for this relationship in the previous literature is found in Stakeholder, Agency, Legitimacy, and Good Management theories. Undoubtedly, as the institutional environment has an important impact on CSR reporting practices, it would be relevant for this field of research to analyze this relationship in companies from emerging countries. It is suggested for the sake of convenience to consider different levels of corporate governance mechanisms together due to the high interdependence among them. Consequently, the aim of this paper is to analyze whether different levels of corporate governance mechanisms (at the institutional, group, and firm level) are determinant factors of the CSR reporting practices in BRICS countries (Brazil, Russia, India, China, and South Africa). The final sample was composed of 281 companies. On the basis of our results, we conclude that institutional corporate governance mechanisms influence the company’s CSR reporting strategy and that both CSR disclosure practices analyzed are affected by group-level corporate governance mechanisms in companies from family-based societies. Our findings support the appropriateness of separately analyzing this issue in emerging countries.