Corporate Social Responsibility Disclosure Score Research Articles

A Study of Impact on Financial Performance of Top listed Indian Companies with Reference to Emission of Carbon and Harmful Gases related CSR Disclosure Practices

Corporate Social Responsibility (CSR) as a notion has been the focal point of various considerations and much research over the past few years; and has occupied a significant role in the academic and business area. Evolving all the time, it has deformed from a purely charitable to a structural and finally tactical activity. For an organization to be victorious, creating earnings is the main aim but at the same time it conveys the consciousness of being socially responsible. India is the first country to have legislated CSR mandates. It is very probable that the new legislation will be a game-changer, inspiring new investments, judicious attempts and responsibility in the way CSR is being formed and survived in India. CSR Disclosures are basically categorized into Mandatory and Voluntary practices of disclosure. Firm’s performance and reputation are linked with Voluntary disclosure patterns. Various categories like Environment, Human resource, Community involvement, Energy etc. affect CSR Disclosure which in turn affects the financial performance of the firm which is relevant for the stakeholders of the firm. This paper makes a humble attempt to study the various corporate characteristics like size and age of the company, sectorial influence and ownership concentration on emission of carbon and harmful gases. It also attempts to study the CSR disclosure score of the company, which in turn affects the financial performance of the company measured by ROA, ROE and Tobins Q of the Company.

The Moderating Effect of Corporate Governance on Corporate Social Responsibility and Information Asymmetry: An Empirical Study of Chinese Listed Companies

This study is conducted to investigate the relationship between corporate social responsibility (CSR) and information asymmetry (IA), as well as the role of corporate governance (CG) as a moderating factor. This paper employs panel data regression analysis. The CSR disclosure scores are collected from the HX database by way of Hexun.com, while financial data are collected from the CSMAR database. The association between CSR and information asymmetry is examined using generalised least squares (GLS). The current evidence shows that CSR disclosure reduces information asymmetry. In addition, the findings illustrate that particular aspects of CG moderate the relationship between CSR and information asymmetry. More specifically, board size, CEO duality, and board independence positively affect the bid–ask spread. Moderation by the independence board positively affects the relationship between CSR disclosure and information asymmetry. Since the sample is derived from large Chinese companies, the results should be supported by samples obtained from the COVID-19 pandemic in 2020 and, subsequently, comparisons with the entire stock market. In future studies, we recommend conducting research using other variables as proxies regarding information asymmetry. The current study extends existing research on CSR and IA by adding both board characteristics and ownership concentration variables as moderating variables.

The effect of corporate social responsibility on Malaysian financial institutions' dividend payout

Background: The corporate social responsibility (CSR) disclosure was made mandatory in Malaysia in 2007 with the introduction of the CSR Framework by Bursa Malaysia. Since then, the practice of CSR disclosure is growing, as Malaysia joins global efforts towards sustainable development. Despite increased research on CSR; limited studies are assessing the relationship of specific dimensions – environmental, community, workplace and marketplace, towards dividend payout, which is crucial to investment and corporate financial decision making. Method: The study involved 32 Malaysian public listed finance companies as of 2017. It deployed data from annual reports and databases. Additionally, the study used content analysis to measure the CSR disclosure score, and dividend payout was calculated from the database. Results: There was a significant correlation between community and workplace dimensions with dividend payout. Despite the absence of significant results, the regression analysis showed a positive relationship between community and workplace dimensions with dividend payout. Besides, there was an inverse relationship between the environmental and marketplace dimension with dividend payout. The results indicated that active involvement in the community dimension resulted from an immediate positive impact towards brand equity, attracting current and new customers, and therefore improving the earning levels and dividend payout. Additionally, greater participation in the workplace dimension solidifies employees' engagement and motivation, improves the productivity level, which can be translated into enhanced earning levels and dividend payout. Meanwhile, participation in environmental and marketplace dimensions requires a longer period to yield an impact, higher development expenditure, and involve sensitive information that might benefit competitors. Hence, companies tend to utilise internal funding instead of redistributing the wealth through dividend payout. Conclusion: The study contributes to the literature of CSR by explaining the relationship of specific dimensions of environmental, community, workplace, and marketplace towards dividend payout using the evidence from the emerging economy.

Board directors' home regions and CSR disclosure: evidence from France

PurposeThe aim of this paper is to examine the impact of directors' home regions on corporate social responsibility (CSR) disclosure. Specifically, the authors aim to determine whether Anglo-American, European, French, other European and other regional directors' presence affects CSR disclosure differently.Design/methodology/approachThis empirical study uses panel data analysis of all listed firms on the SBF 120 from 2008 to 2019. The environmental, social and governance (ESG) scores are collected from the Bloomberg database and indicate the extent of CSR information disclosure by French companies. The paper is based on a dynamic generalized method of moments panel estimator that makes it possible to control for unobservable heterogeneity and endogeneity and reduces estimation bias.FindingsThe findings of this study provide evidence that home region diversity and the presence of Anglo-Americans on a board are positively and significantly associated with ESG disclosure and environmental disclosure, whereas they are negatively associated with social and governance disclosure. Surprisingly, when directors come from European countries, they disclose less ESG and environmental information. Nevertheless, when only French directors are present, the company tends to divulge all dimensions of CSR. Indeed, while there is a significant positive influence of French directors on ESG disclosure, the presence of other European directors displays negative and statistically significant regression coefficients.Research limitations/implicationsThis study may be interesting the French policy makers who can now pay more appropriate attention to directors' nationality or region. Thus, firms should identify the foreign directors who can support their strategy with relevant experience in terms of CSR. This could help to change the opinion of some companies that consider the internalization of the board as a constraint rather than an opportunity. These results will be useful for French-listed companies in setting the criteria for the appointment of foreign directors. It may be interesting to recruit directors across European boundaries.Practical implicationsThis paper attempts to provide a better understanding of the effects of the home regions of directors on CSR disclosure in order to enlighten corporate managers whose companies operate in different cultures given that they have to deal with this aspect. In this international business environment, CEOs should increasingly consider the international CSR experience of directors to be a resource. In addition, this study may be of relevance to French market authorities, which constantly encourage firms to diversify the profiles of directors on their boards and recruit more international members.Originality/valueThis study is the first to evince that the disclosure of each CSR disclosure score differs depending on the directors' home regions. Unlike previous studies, the authors focused simultaneously on the resource-based view (RBV) and institutional theory.

Corporate Social Responsibility Disclosure and Financial Performance: The Mediating Role of Financial Statement Comparability

The aim of this study is to investigate the relationship between corporate social responsibility (CSR) disclosure and financial performance with the consideration of the mediating role of financial statement comparability (FSC) for a sample of Vietnamese listed firms. We used content analysis of the information related to the GRI Standards on annual reports in order to construct CSR disclosure score. We used a dataset of 1125 firm-year observations, covering 225 firms listed on Vietnam’s stock market in the period 2014–2018. Applying OLS and GMM estimation methods, Sobel test, and using different proxies of the mediator variable to increase the robustness, we obtained two remarkable conclusions. First, CSR disclosure has a positive impact on the financial performance of listed companies in Vietnam. Second, there is a complementary mediation effect of financial statement comparability in the above relationship. Our results suggest that it is necessary to develop a legal framework for the practice and disclosure of CSR as well as to apply the international accounting standards in the Vietnamese stock market.

Do creditors value corporate social responsibility disclosure? Evidence from Ghana

Purpose Drawing on risk mitigation theory, this study aims to examine the link between corporate social responsibility (CSR) disclosure and the cost of debt financing (CDF). In particular, this paper seeks to determine whether firms with higher CSR disclosure scores have a lower CDF. Design/methodology/approach This paper uses a panel data analysis of non-financial Ghanaian firms listed on the Ghana Stock Exchange from 2006 to 2019. The CSR index constructed from firms’ annual reports and sustainability reports is used as a proxy for the extent of CSR information disclosures by Ghanaian companies. Findings The empirical results demonstrate that CDF is positively related to CSR disclosure scores. Besides, the results show that the levels of long-term debt increase with CSR disclosure in a highly risky industry. However, the finding does not meet the lenders’ expectations in terms of CSR attracting favourable debt financing sources. Research limitations/implications The research is based only on the quantity of the CSR information disclosed by Ghanaian companies and does not account for the quality of the CSR disclosures. The empirical model omits some control variables such as the age of the firm and external business conditions. The results should not be generalized, as the sample was based on three listed industries in Ghana for 2006–2019. Originality/value This study extends the scope of previous studies by examining the importance of CSR disclosures in financing decisions. More precisely, it focuses on the relatively little explored relationship between the extent of CSR disclosures and access to debt financing. Moreover, this study focuses on the rather interesting empirical setting of Ghana, which is characterized by its low level of CSR awareness. Achieving a better understanding of the effects of CSR information is useful for corporate managers desiring to meet lenders’ expectations and attract debt financing sources.

How do external auditor attributes impact corporate social responsibility disclosures: empirical evidence from ADX-listed companies

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.

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.

Is Institutional Environment the Only Force Behind Corporate Social Responsibility Disclosure? An Insight into Indian Companies

Purpose: Companies Act, 2013, has brought a revolution in the regime of corporate social responsibility (CSR) disclosure in India, making it a mandatory practice for the corporate sector. The purpose of this article is to examine the impact of statutory provisions on the extent of CSR disclosure in India.Design/methodology/approach: This article considers an effective sample of 144 companies selected on the basis of average market capitalisation. The study relates to the year 2015–2016, which represents the time period when companies started reporting CSR issues mandatorily. CSR disclosure scores are calculated by using content analysis. Both univariate and multiple regression models are applied to check the effect of statutory provisions on CSR disclosure.Findings: The results indicate that variables namely NETWORTH, TURNOVER and DOMESTIC dummy have positive and statistically significant impact on CSR disclosure scores. However, TOBINSQ, representing profitability of companies, has negative and statistically significant impact on CSR disclosure scores, thus leading to anxious results.Research limitations/implications: Factors affecting CSR disclosure score have been selected on the basis of new statutory provisions introduced by the Ministry of Corporate Affairs. Certain other vital attributes, especially related to corporate governance variables, too can be controlled for so that results have strong implications for companies.Practical implications: The empirical findings of this article implicate that institutional setup of a country has a strong bearing on the disclosure practices of the corporate sector. Thus, the authors strongly recommend to the statutory bodies that it is not sufficient just to make statutes but their implementation too should be ensured.Originality/value: With specific reference to India, mandating CSR disclosure is a recent law; so, the current study being first of its kind, would definitely add to the available literature and open gateways for future research.

Determinants of CSR disclosure: an evidence from India

PurposeThis paper aims to undertake an empirical investigation on firm characteristics determining corporate social responsibility (CSR) disclosure and its subcategories such as environmental, social and governance disclosures.Design/methodology/approachThe sample consisted of listed companies in BSE 500 index for a period of 10 years from 2007 to 2016. Panel data regression method is used for the analysis. Seven variables are analyzed, namely, firm age, financial leverage, firm size, foreign ownership, promoter ownership, export performance, innovation and firm popularity.FindingsThe result shows that firm age and financial leverage are positively influencing CSR, environmental and social disclosure score but both are negatively influencing governance score. Firm size is positively associated with all four disclosure scores. Among ownership variables, foreign ownership shows a positive influence and promoters ownership shows a negative influence towards CSR, environment and social disclosures. No association is found between both ownership variables and governance disclosure score. Further analysis also finds that there is a difference in this relationship during crisis period.Research limitations/implicationsThe study focuses only on listed companies in Indian capital market. In terms of implication, theoretical bases discussed in the literature review and hypotheses development are mostly validated.Practical implicationsThe findings are important for the firm, stakeholders and policymakers. A firm may think about appointing experts in CSR to spend the amount wisely and improve CSR disclosure to compete in the international market; stakeholders have to pressure the firm to provide more CSR disclosure and for policymakers this study study provides useful inputs to design legal framework on CSR.Originality/valueThe measurement of CSR disclosure using environmental, social and governance (ESG) score is novel in Indian context, even though the methodology is often used in literature.

Corporate social responsibility disclosure and debt financing

PurposeThe purpose of this paper is to examine how corporate social responsibility (CSR) reporting influences leverage ratios. In particular, this paper aims to determine whether firms with higher CSR disclosure scores have better access to debt financing.Design/methodology/approachThis paper uses a panel data analysis of non-financial French firms listed on the Euronext Paris Stock Exchange and members of the SBF 120 index from 2010 to 2015. The environmental, social and governance (ESG) disclosure scores that are collected from the Bloomberg database are used as a proxy for the extent of ESG information disclosures by French companies.FindingsThe empirical results demonstrate that leverage ratios are positively related to CSR disclosure scores. In addition, the results show that the levels of long-term and short-term debt increase with the disclosure of ESG information, thus suggesting that CSR disclosures play a significant role in reducing information asymmetry and improving transparency around companies’ ESG activities. This finding meets the lenders’ expectations in terms of extrafinancial information and attracts debt financing sources.Research limitations/implicationsThe research is based only on the quantity of the ESG information disclosed by French companies and does not account for the quality of the CSR disclosures. The empirical model omits some control variables (e.g. the nature of the industry, the external business conditions and the age of the firm). The results should not be generalized, since the sample was based on large French companies for 2010–2015.Practical implicationsFrance is a highly regulated context that places considerable pressure on French firms in terms of CSR policies. The French Parliament has adopted several laws requiring transparency in the environmental, social, and corporate governance policies of French firms. In this context, firms often regard CSR policies as constraints rather than opportunities. This study highlights the benefits that result from transparent CSR practices. More precisely, it provides evidence that the high disclosure of ESG information is a pull factor for credit providers.Originality/valueThis study extends the scope of previous studies by examining the value and relevance of CSR disclosures in financing decisions. More precisely, it focuses on the relatively little explored relationship between the extent of CSR disclosures and access to debt financing. This paper demonstrates how each category of CSR disclosure information (e.g. social, environmental and governance) affects access to debt financing. Moreover, this study focuses on the rather interesting empirical setting of France, which is characterized by its highly developed legal reforms in terms of CSR. Achieving a better understanding of the effects of ESG information is useful for corporate managers desiring to meet lenders’ expectations and attract debt financing sources.

Impact of statutory regulation and key internal factors on firm’s corporate social responsibility

PurposeThis study aims to examine the impact of statutory regulatory order by the government on the degree of corporate social responsibility (CSR) performance and disclosures. It also aims to empirically investigate the relationship of a firm’s key internal and governance factors with CSR performance and disclosures.Design/methodology/approachThe study is based on empirical data from all banking firms listed in the Dhaka Stock Exchange (DSE) for a period of 2011-2015. The difference in difference analysis has been used to test the regulatory impact, where content analysis has been performed to find CSR disclosure scores. The multivariate regression analysis has been used to test hypotheses to find impact of firm’s internal factor on CSR disclosures.FindingsThe analysis and results of the study show that there is no significant impact of statutory regulatory impact on a firm’s level of CSR performance and disclosure. On the other hand, the study has found that board expertizes and board meetings have significant positive impact on firm’s CSR while no significant impact is found for firm networks to influence firm’s CSR disclosures.Research limitations/implicationsThe main research limitation of the study is that it covers all listed firms of the banking industry in Bangladesh. Because of data inconsistency, other industries are not included in the data sample of this study.Originality/valueThe value of the study lies in its contribution to the empirical investigation of regulatory impact and key internal and governance factors in a developing country perspective, which will add value to the CSR literature.

CSR disclosure in developing and developed countries: a comparative study

PurposeThis paper aims to examine and compare the nature and extent of corporate social responsibility (CSR) reporting practices of companies in developing (BRICS [Brazil, Russia, India, China and South Africa]) and developed (the USA and the UK) countries.Design/methodology/approachContent analysis is conducted on the annual reports and websites of 325 companies listed on stock exchanges of developing markets and of developed markets (Brazil – IBrX 100, 46 companies; Russia – Broad Market Index, 50 companies; India – BSE 100, 50 companies; China – SSE 180, 29 companies; South Africa – FTSE/JSE All Share index, 50 companies; the USA – NYSE 100, 50 companies; the UK – FTSE 100, 50 companies). Descriptives are used to calculate company wise and item wise scores. T-test analysis is applied to check for significant differences between mean scores of developing and developed countries.FindingsThe findings of the study reflect that developed countries have higher CSR disclosure scores than developing countries. Overall, mean CSR disclosure score of developed countries is 53.5%, followed by that of the developing countries at 49.4%. Developed countries take lead in CSR disclosure for all the five categories, namely, human resources, community, environment, customer and product and others. The results of independent sample T-test suggest that mean disclosure score of developing nations is significantly different from developed nations.Practical implicationsAs suggested by the results, the gap in the CSR disclosure scores between developing and developed group of countries is not an alarming one. However, developing countries should practice CSR in spirit and not just in letter. Focus should not be on just filling the pages in black and white, rather the essence of CSR should be attained for balanced development of the country. For instance, though developing country like India has high score of CSR disclosure in contrast to each of the developed country taken in the sample, yet the country is still battling with several issues such as poverty, over-population, corruption, poor standard of working conditions for the employees and environmental conservation. Sustenance should focus upon renewable sources of energy; efforts of employees should be acknowledged offering flexible working hours; consumer trust should be built by communicating authentic and accurate information about the product. As developing countries encounter several social and environmental problems, companies must endeavor to build a healthy nation keeping in mind the welfare of all stakeholders by practicing CSR.Originality/valueThis study overcomes the limitations of prior cross-country studies by taking a better representative sample with greater number of countries belonging to identifiable group of “developing” and “developed” nations and thus attempts to improve generalization and authenticity of results.

Corporate social responsibility disclosure and corporate governance: empirical insights on neo-institutional framework from China

This study delves into an interesting nexus of corporate governance mechanism and corporate social responsibility (CSR) disclosure in the Chinese listed firms. This research edifies the prevailing literature by integration of neo-institutional theory and empirical examination of the impact of ownership structure and board characteristics on the “CSR disclosure score” for a longitudinal data of 1166 non-financial firms listed on Chinese stock exchanges for 8 years from 2008 to 2015. The empirical results based on panel data-generalised least squares estimations divulge that state ownership and block ownership are negative predictors of the CSR disclosure, while institutional ownership, board size and board composition positively affect CSR disclosure in Chinese listed firms. The results fail to find a significant impact of CEO duality on CSR disclosure. The empirical findings of this study suggest practical guidelines to policymakers, government and corporations in their drive against the CSR concerns.

Corporate Social Responsibility Report Narratives and Analyst Forecast Accuracy

Standalone corporate social responsibility (CSR) reports vary considerably in the content of information released due to their voluntary nature. In this study, we develop a disclosure score based on the tone, readability, length, and the numerical and horizon content of CSR report narratives, and examine the relationship between the CSR disclosure scores and analyst forecasts. We find that CSR reporters with high disclosure scores are associated with more accurate forecasts, whereas low score CSR reporters are not associated with more accurate forecasts than firms who do not issue CSR reports. The findings are robust to controlling for firm characteristics including CSR activity ratings and financial narratives. The findings are driven by experienced CSR reporters rather than first-time CSR reporters. Together, our findings suggest that the content of CSR reports helps to improve analyst forecast accuracy, and this relationship is more pronounced for CSR reports with more substantial content.

Disclosure of Corporate Social Responsibility and Firm Performance: Evidence from India

Corporate social responsibility (CSR) has emerged as a crucial research domain over the last decade due to the imperative that when CSR activities are communicated in the form of a report, it helps in improving firm performance. Thus, the main purpose of the present study is to analyse CSR disclosure trend in India and to investigate the association between CSR and the performance of the firm from 2008–2009 to 2013–2014. Content analysis is employed using Global Reporting Initiative (GRI) framework as a base to calculate the disclosure score relating to CSR and its components, that is, human related (HR) information, society related (SO) information and product related (PR) information. Firm performance is measured by Market to Book Ratio (MBR). CSR disclosure score is found to be increasing over the study period and regarding the components of CSR, the disclosure score of SO is found to be the highest (nearly 89 per cent) followed by HR (nearly 84 per cent) and PR (nearly 83 per cent). These scores are further utilised to find the influence of CSR (including its components) on firm performance using random generalised least squares (GLS) model. The results of the regression model indicate positive and significant impact of CSR (including its components) on firm performance.

Does It Pay to Disclose CSR Information? Evidence from French Companies

This article looks at how company disclosure of corporate social responsibility (CSR) information affects executive compensation through an empirical study of a sample of French companies listed on the SBF 120 index from 2007 to 2011. The focus is on short-term incentive compensation and total incentive compensation. These two components are not correlated with the total CSR disclosure score (comprising environmental, social, and governance factors). The study reveals that only the environmental disclosure score is correlated with (short term and total) executive incentive compensation. Social and governance disclosure do not have any effect on executive incentive compensation.

International banks’ CSR disclosures after the 2008 crisis

Purpose – The purpose of this paper is to determine the corporate social responsibility (CSR) disclosure level of 35 international banks across the world at the end of 2013 and analyse the changes in their disclosure patterns compared to 2005 from the institutional perspective. Design/methodology/approach – Content analysis of international banks’ web-sites and CSR reports. Findings – As expected, CSR disclosure scores of international banks in 2013 were significantly larger than in 2005. Despite addressing the legitimacy gap after the 2008 crisis, significant room for improvements remained in the context of sustainable products, implementation of environmental management policies and introduction of CSR initiatives (the latter especially for Northern American banks). Although the transnational context had contributed to the gradual convergence of CSR disclosure scores, the existence of differing national and organisational contexts had maintained some of the diversity across banks. Research limitations/implications – Content analysis approach used limits the possibilities to objectively grasp the depth of CSR and the sample remains biased towards larger international banks headquartered in Europe. Practical implications – Stakeholders should remain vary of “window-dressing” attempts and reward only those banks that actually contribute to the society. Social implications – Intergovernmental organisations should continue to develop both new and already existing financial sector CSR initiatives to improve the stability of the global financial sector. Originality/value – Previous studies have not investigated international banks’ CSR disclosures on broader global samples during the post-2008-crisis period and have not considered the institutional context of their CSR.

Determinants of Corporate Social Disclosure: An Empirical Study of BSE-SENSEX Companies in India

Corporate Social Responsibility (CSR) has now gained increased significance in the decisions that are carried out in the ‘board rooms’ of companies in India. Companies have started giving CSR a place in their overall strategies of growth. This paper empirically examines the association of CSR disclosure with corporate attributes, such as size of a firm, its profitability, leverage, ownership structure, nature of the industry and residential status of 25 companies representing major industries of India, drawn from the BSE-30 companies. The annual reports for the financial year 2009–10 are the major sources of data collection. Backward stepwise regression analysis has been used, which shows a significant association between corporate attributes, namely, size of a firm (measured by total assets), profitability, Returns on Assets (ROA), leverage of a company, its ownership structure, nature of the industry and CSR disclosure level. However, no significant association (though positive) was found between CSR disclosure score and residential status of a company. The results of this empirical study would provide a deeper insight to the managers in the corporate sector to review their responsibilities towards their stakeholders. In fact, the results of this study are strongly suggestive of a harsh fact that in the long run, corporates cannot keep their stakeholders blindfolded by merely mentioning the CSR issues in words. They need to transverse the same into action soon, if they really want to utilise it as a strategic tool. The present study would also be of great relevance to the researchers in the same field, as it shows that it is not necessary that blue chip companies definitely indulge in social welfare activities. It would rather motivate them to further explore the same issue, especially in the Indian scenario. The study is no doubt based on the evaluation of representative companies of India chosen from SENSEX. Still, perhaps, a better evaluation can be made if larger sample is taken. Also, a cross-sectional analysis over a period of time or at different points of time could be undertaken to see the progress with respect to CSR parameters.