Corporate Social Responsibility Information Disclosure Research Articles

Can Mandatory Disclosure of CSR Information Drive the Transformation of Firms towards High-Quality Development?

This paper establishes a quasi-natural experiment grounded in the exogenous shock occasioned by the implementation of a compulsory corporate social responsibility (CSR) information disclosure policy. It investigates the ramifications of this mandated CSR information disclosure policy on firms’ total factor productivity (TFP) through the integration of the difference-in-differences (DID) methodology. The investigation reveals that obligatory disclosure of CSR information significantly augments firms’ total factor productivity (TFP) by mitigating agency conflicts and financial constraints. Further analysis elucidates investment efficiency and innovation enhancement as pivotal conduits through which the mandatory CSR information disclosure policy fosters firms’ TFP. The study explores the impact of mandatory CSR information disclosure on firms’ TFP mechanism, which has significant policy value and can provide useful reference for the high-standard development of China’s corporate economic transformation.

Corporate–NGO collaboration and CSR disclosure – the moderating role of corporate profitability

Purpose This research investigates the influence of corporate–NGO collaborations on corporate social responsibility (CSR) disclosure measured in three different ways (i.e. extent, level and quality) in low-income developing economies. Additionally, it examines the moderating effect of corporate profitability in the relationship between corporate–NGO collaborations and CSR disclosure.Design/methodology/approach This research uses multivariate regression analysis based on data collected from 201 non-financial firms listed on the Pakistan Stock Exchange (PSE).Findings The findings reveal that corporations with NGO partnerships are more likely to disclose CSR information and provide high-quality information regarding workers, the environment and community-related issues. Further, corporate profitability positively moderates the corporate–NGO collaborations and CSR disclosure relationship.Research limitations/implications Research limitations are presented in the conclusion section.Practical implications The findings underline the crucial significance of NGOs and their associated normative isomorphism logics for CSR disclosure in low-income countries with weak law enforcement and relatively ineffective state institutions, which were previously believed to lack such institutions.Originality/value While some research has suggested that companies in developing countries perceive significant pressure from NGOs to adopt social disclosure, no study has specifically explored how internally driven corporate–NGO collaboration (as opposed to external NGO activist pressures) promotes CSR disclosure specifically in developing economies.

ESG performance and disclosure quality: does a well-balanced board of directors matter when impression management occurs?

PurposeThis paper explores how the disclosure quality, measured by the abnormal tone of environmental and social report, may determine the environmental, social and corporate governance (ESG) performance of the firm. This study also investigates the impact of the moderator “board of directors” to explore the extent to which a well-balanced board of directors may affect this association within an impression management strategy.Design/methodology/approachThis work uses a sample of 616 firm-year observations using a sample of French firms indexed on SBF120 index from 2010 to 2017. To test the developed hypotheses, the GLS regression is applied and to control for endogeneity issue and sample selection bias, the authors used, respectively, the two stage least square (2SLS) procedure and the Heckman model.FindingsFindings suggest that a well-balanced board of directors moderates the relationship between the ESG performance and the disclosure quality. The positive effect of abnormal tone management on ESG is weakened by the presence of a good structure of the board, attenuating impression management initiatives.Research limitations/implicationsThe research provides evidence of the impact of corporate social responsibility (CSR) reporting quality, in particular disclosure tone management, on the level of ESG performance in the French context. As the board of directors may have a major impact on weakening impression management strategies in particular tone management practices, in order to improve CSR report quality, the authors recommend French companies to ensure a well-balanced board of directors.Originality/valueThis study helps investors to comprehensively evaluate the information disclosed on CSR reports. It unveils that a strong board composition induces better quality of CSR report and brings better ESG performance. Thus, the study results point to the importance of a well-balanced board of directors and the regulation of the narrative disclosure of CSR information.

Employment protection and environmental corporate social responsibility: Evidence from China

The paper examines the influence of employment protection on environmental corporate social responsibility (CSR). Our findings demonstrate that employment protection has a negative effect on environmental CSR and green innovation, particularly for financially constrained firms and those with higher agency costs, providing support for the crowding-out hypothesis. Mechanism tests reveal that employment protection reduces operational flexibility and increases the risk of default for firms. Lastly, employment protection promotes the disclosure of CSR information. These findings indicate that CSR may be influenced by agency issues, and increased employment protection leads firms to reduce unnecessary CSR efforts while focusing on cost-effective CSR information disclosure.

Corporate Social Responsibility Disclosure of Publicly Traded Manufacturing Companies in Bangladesh

This study is aimed at analyzing Corporate Social Responsibility (CSR) disclosure of publicly traded manufacturing companies in Bangladesh based on the Global Reporting Initiative (GRI) standards and the legitimacy theory. The study used a stratified random sampling procedure to select the representative number of manufacturing companies listed in the country’s largest capital market- the Dhaka Stock Exchange Limited (DSE). The study has analyzed the annual reports of 51 companies out of 202 manufacturing companies belonging to 11 different sectors. It has used the content analysis method to identify CSR disclosures made in the corporate annual reports. Content analysis used social and environmental categories of the GRI categorization. The study has used measurement instruments and coding processes for social and environmental disclosures adapted from previous works. Findings show that the selected companies have disclosed some CSR information in their annual reports but the CSR reporting pattern as well as the extent of such reporting is diverse across different company categories. The findings also suggest that the entire manufacturing companies do not follow the GRI standard completely to disclose CSR information and tend to focus on limited aspects only. The nature of disclosure was mostly declarative statements associated with good news or self-laudatory while bad news or neutral news was scant. This self-laudatory pattern of CSR disclosure implies that companies are trying to prove their positive stance toward society and the environment, which is consistent with legitimatizing motives. The study thus provides some support for legitimacy theory to explain current CSR practices. This study recommends that policy planners in Bangladesh make it mandatory for companies to disclose socio-economic-environmental information following international best practices such as the GRI standard categories.

The impact of digital supply chain announcements disclosing corporate social responsibility information on stock market value

PurposeUsing social network theory (SNT), this study empirically examines the impact of digital supply chain announcements disclosing corporate social responsibility (CSR) information on stock market value.Design/methodology/approachBased on 172 digital supply chain announcements disclosing CSR information from Chinese A-share listed companies, this study uses event study method to test the hypotheses.FindingsFirst, digital supply chain announcements disclosing CSR information generate positive and significant market reactions, which is timely. Second, strategic CSR and value-based CSR disclosed in digital supply chain announcements have a more positive impact on stock market, however there is no significant difference when the CSR orientation is either towards internal or external stakeholders. Third, in terms of digital supply chain network characteristics, announcements reflecting higher relationship embeddedness and higher digital breadth and depth lead to more positive increases of stock value.Originality/valueFirst, the authors consider the value of CSR information in digital supply chain announcements, using an event study approach to fill the gap in the related area. This study is the first examination of the joint impact of digital supply chain and CSR on market reactions. Second, compared to the previous studies on the single dimension of digital supply chain technology application, the authors innovatively consider supply chain network relationship and network structure based on social network theory and integrate several factors that may affect the market reaction. This study improves the understanding of the mechanism between digital supply chain announcements disclosing CSR information and stock market, and informs future research.

Role of Board Composition Index in Corporate Social Responsibility (CSR) Disclosure: Evidence From United States

Corporate directors play a crucial role in meeting the Corporate Social Responsibility (CSR) reporting obligation. Thus, how to promote CSR practices through MNCs has attracted the attention of scholars. This study aims to investigate the impact of the board composition index on CSR disclosure in the context of the United States. In addition, the study examines whether board characteristics (board size, board diligence, board duality and board independence) impact CSR disclosure. Panel data for S&P 1500 index firms were collected from the data stream portal. The current study employed a sample of 286 US firms from 2010 to 2020. To achieve the research objectives, the current study develops an index score very first time for board composition. A panel regression model with fixed and random effects was employed to estimate the proposed hypotheses. In addition, the problem of endogeneity was resolved through the dynamic GMM model. The results of the study revealed that the board composition index has a significant impact on the disclosure of CSR information. Moreover, higher board diligence and independence in US corporates enhance CSR disclosure. However, board duality and the size of the board room negatively and significantly impact CSR. US policymakers and legislators make reforms in composition and structure to build stakeholders’ interest. In addition, no study combined such corporate board variables to address CSR in developed countries. The findings of the study are consistent with both institutional and stakeholder theory.

Correction: Li et al. Corporate Social Responsibility Information Disclosure and Financial Performance: Is Green Technology Innovation a Missing Link? Sustainability 2023, 15, 11926

The authors would like to make the following corrections to the published paper [...]

Research on the Influence of Fund Holding on Enterprise Green Innovation

Under the background of global environmental problems and the concept of green development put forward by the government, green innovation of enterprises has become an important path to achieve environmental sustainability. Based on the data of listed companies in Shanghai and Shenzhen from 2010 to 2020, this paper selects the largest fund among institutional investors to study, and explores the influence and mechanism of fund shareholding and enterprise green innovation. Through research, it is found that fund holding shares is helpful to improve the level of green innovation of enterprises. The moderating effect shows that whether there are defects in internal control have moderating effects on green innovation of enterprises. The influence mechanism shows that corporate social responsibility information disclosure can have an intermediary effect on the influence of fund ownership on corporate green innovation. This paper discusses the influence of fund ownership on enterprise green innovation from the perspective of the largest institutional investor, which supplements the literature of institutional investors and green field, and has practical significance for promoting enterprises to realize green transformation, practicing ESG concept and realizing environmental sustainable development.

Mandatory Disclosure of Corporate Social Responsibility and the Quality of Earnings Management

Using the exogenous shock caused by the mandatory corporate social responsibility (CSR) information disclosure policy in 2008, this paper examines the impact of mandatory CSR information disclosure on the earnings management activities of listed firms in China from the perspective of external corporate regulation based on the Difference-in-Differences (DID) method. The results show that mandatory CSR information disclosure can significantly improve the quality of firms’ earnings management. The mechanism analysis shows that the policy’s enhancement of the effectiveness of external regulation by regulators and the media played an important role in curbing firms’ earnings management activities. The heterogeneity analysis shows that the inhibitory effect of mandatory CSR disclosure policy on firms’ earnings management activities is better in firms with lower analyst coverage and lower institutional ownership. The study further extends the mechanism of the impact of mandatory CSR disclosure on firms’ earnings management activities, and provides practical guidance on how to improve the quality of firms’ earnings management and enhance the efficiency of corporate governance.

Does CSR Information Disclosure Improve Investment Efficiency? The Moderating Role of Analyst Attention

Since 2009, the China Securities Regulatory Commission has begun to require listed firms on the specified boards to disclose their corporate social responsibility and encouraged others to report corporate social responsibility voluntarily. Based on the data of domestic A-share listed companies from 2013 to 2019, this paper studies the relationship between corporate social responsibility information disclosure and corporate investment efficiency and the role of analysts in moderating the relationship. The empirical results show that the social responsibility information disclosed under China’s mandatory guidance has a positive effect on alleviating information asymmetry and improving investment efficiency, and this role becomes even more crucial when the external information environment fails to meet market demands. Overall, our findings suggest the important role of corporate social responsibility information disclosure in guiding investment behavior and improving investment efficiency, especially for those companies with low analyst attention. This article expands the research perspective on social responsibility information disclosure and investment efficiency. Furthermore, our research contributes to promoting corporate social responsibility and facilitating sustainable development.

Corporate Social Responsibility Information Disclosure and Financial Performance: Is Green Technology Innovation a Missing Link?

Corporate social responsibility information disclosure integrates environmental and social practices to achieve sustainable development. Some studies have pointed out that promoting green technology innovation is essential for energy-intensive firms. Therefore, exploring the relationship between energy-intensive environmental information disclosure and green technology innovation and financial performance is essential. According to the generalized least squares with fixed model analysis results based on energy-intensive industry firms, the research findings are as follows: firstly, the disclosure information of corporate social responsibility has a significant effect on enterprises’ ROA. Secondly, there is a positive relationship between the shareholder responsibility score and employee responsibility score of information disclosure with financial performance. Thirdly, there is a significant positive correlation between the environmental responsibility score of CSR information disclosure with green technology innovation. Fourthly, green innovation is mediating in energy-intensive enterprises’ CSR information disclosure and financial performance. Lastly, combined with the theoretical and findings, we put forward the management implications and policy suggestions.

Quality of Mandatory Social Responsibility Disclosure and Total Factor Productivity of Enterprises: Evidence from Chinese Listed Companies

This study attempts to determine whether improving the quality of mandatory corporate social responsibility (CSR) information disclosure can have a positive impact on a firm’s development. To this end, an empirical analysis is conducted to establish a relationship between the quality of mandatory CSR information disclosure and a firm’s total factor productivity (TFP), using data from A-share listed companies in China over the period 2009–2020. The results show that: (1) Improving the quality of mandatory CSR disclosure leads to a significant increase in a firm’s TFP. (2) By alleviating a firm’s financing constraints and agency costs, the improved quality of mandatory CSR disclosure effectively enhances the firm’s investment efficiency and innovation capacity, leading to higher TFP. This research extends the influence of CSR disclosure on the economic development outcomes of Chinese firms, and provides theoretical guidance for the development and improvement of CSR disclosure mechanisms in emerging economies.

Comparation of differences in the performance of corporate social responsibility between Chinese and American pharmaceutical enterprises-based on corporate social responsibility report.

Objective: We compared Chinese and American pharmaceutical companies' corporate social responsibility (CSR) reports to determine their differences and to analyze the possible reasons for them. Methods: We took as a model the top 500 pharmaceutical companies from Torreya's (a global investment bank) list of the 1,000 most valuable pharmaceutical companies in the world. We then collected the 2020 corporate social responsibility reports of 97 Chinese and 94 American pharmaceutical companies. These reports were analyzed using software such as ROST Content Mining 6.0 and Gephi 0.92. Results: We formed a high-frequency word list, a semantic network diagram, and a high-frequency word centrality scale for the Chinese and American pharmaceutical corporate social responsibility reports. The Chinese pharmaceutical companies' corporate social responsibility reports formed a layout of "double centers and double themes," and the text paid more attention to the disclosure of environmental protection information. The American pharmaceutical companies formed a report presentation form of "three centers and two themes," focusing on corporate social responsibility information disclosures from the perspective of humanistic care. Discussion: The differences in between Chinese and American pharmaceutical companies' corporate social responsibility reports may be due to different corporate development strategies, regulatory requirements, social demands, and the concept of "corporate citizenship." This study makes recommendations for Chinese pharmaceutical companies to better fulfill their CSR at three levels: policy-making, company management, and society.

Corporate Social Responsibility And Financial Performance: An Empirical Study On Vietnam Commercial Banks

This paper examines corporate social responsibility (CSR) information disclosure and the one-way impact of CSR on financial performance described by the net interest margin (NIM) of the Vietnamese commercial banks between 2012 and 2019. The sample was selected in 29 commercial banks with 232 observations. The generalized method of moments (GMM) was used in this research. The finding shows that the employee responsibility index has the highest disclosure rate, while the environmental responsibility is the lowest. Comparing the level of CSR disclosure among the groups in the sample, the finding also shows that the State group has a higher disclosure rate than the non-State group. Furthermore, the GMM estimation results positively impact NIM's total CSR and environmental responsibility indexes.

Research on the impact of corporate social responsibility information disclosure and corporate innovation in China

China started to implement a new system in 2008, asking fractional companies to make public their corporate social responsibility information disclosure. The financial and corporate governance data of Chinese A-share listed businesses from 2007 to 2016 was gathered in order to determine any potential relationships between the mandated corporate social responsibility disclosure system and company patents. According to the two opposite hypotheses of the information hypothesis and reputation hypothesis, the results show that the number of patents of companies surveyed has increased significantly after the implement of the policy of mandatory CSR disclosure. Additionally, after companys patents are separated into invention type patents and utility models, industrial design (non-invention type) patents, invention type patents significantly increase in comparison. This means that the information hypothesis has been supported more. CSR disclosure can effectively alleviate the information asymmetry existed in the internal of the enterprise, increase shareholders confidence, and reduce the problems of corporate financial restrictions. Several robustness tests have proved that the model and conclusions are both steady. This may provide a reference for the government to improve the mandatory disclosure policy further and help improve the capital market development in China.

Status Quo and Improvement Path of Social Responsibility Information Disclosure in Corporate Development Management

Fundamental is a sound social responsibility information disclosure mechanism to prosper large-scale businesses. This paper dissected the correction between Fosun Pharma s performance of corporate social responsibility and its advances, as corporate social responsibility now has jostled for public attention at home and abroad. Efforts were invested in analyzing the disclosure of social responsibility accounting information by the representative Fosun Pharma on the basis of the theory of corporate social responsibility and stakeholder theory. The company failed to prepare a well-functioning strategic CSR in the process of fulfilling its social responsibility, and showed certain deficiencies such as insufficient disclosure of social responsibility quantitative information, delayed disclose of negative information, onefold disclosure form, and defective control environment, revealed the investigation. Meanwhile, it suggested that progress should be made in cultivating the awareness of corporate social responsibility information disclosure, quantifying indicators as much as possible, enriching information disclosure form, and shaping a good control environment for social responsibility performance. This research not only enriches the research literature on the relationship between CSR and corporate development, but enlarges the variable scope of corporate social responsibility, which is of certain practical significance for corporate development management and the establishment of a sound social responsibility management mechanism.

How can Chinese companies improve the quality of their corporate social responsibility information disclosure? A cross-level confgurational approach

Although more businesses are actively or passively disclosing social responsibility information, few studies have focused on the impact of multifactor combinations on the quality of corporate social responsibility (CSR) information disclosure. Given the causal complexity of CSR information disclosure, a configurational analysis that focused on China's listed companies was investigated using fuzzy-set qualitative comparative analysis (fsQCA). The results show that there are two types of paths to generate high CSR information disclosure quality: “strict context - strong capability” and “strict context - strong capability - high attention”. A crucial factor leading to high-quality disclosure differences in CSR information disclosure quality is the combination of media attention and internal control. Strict government regulation has a higher impact on firms' CSR information disclosure in polluting industries. The research conclusions contribute to exploring paths to improve CSR information disclosure quality from the configuration perspective, as well as the causes of the quality difference of CSR information disclosure. In addition, this study also provides a theoretical basis for the effectiveness of government regulation on the CSR information disclosure of heavily polluting enterprises and provides a direction for the future development of CSR management in China.

The effect of corporate governance elements on corporate social responsibility reporting of listed companies in Vietnam

This paper examines the impact of various corporate governance characteristics on the disclosure of corporate social responsibility (CSR) information in the context of developing markets during the COVID-19 pandemic. We used data from the annual reports of the top 100 companies listed on the Ho Chi Minh Stock Exchange from 2019 to 2021 to investigate the relationship between board independence, board size, CEO duality, foreign ownership, government ownership, and the disclosure level of CSR reporting. We employed a content analysis to measure CSR disclosure level by using the CSR reporting index (CSRRI) with 17 items. The panel regressions including three techniques like the pooled-ordinary least squares (OLS), fixed effects model (FEM), and random effects model (REM), were used to analyze the data, and FEM) shows its best fit to the model. The results suggest that board independence and government ownership correlate positively and significantly with companies’ decisions to disclose CSR information. In contrast, board size, CEO duality, foreign ownership and was found to be insignificant. Our study extends the literature on CSR particularly in developing countries where governments play a significant role in promoting economic development. It also evaluates the CSR disclosure level of the top listed companies in Vietnam. Since then, the paper’s results provide several insights to the policymakers to identify the corporate governance characteristics that will promote CSR reporting in Vietnam’s listed companies.

The Quality of Corporate Social Responsibility Information Disclosure and Enterprise Innovation: Evidence from Chinese Listed Companies

The Chinese government has implemented a series of corporate social responsibility (CSR)-related policies in recent years, aiming to achieve high-quality economic development and transformation. To assess the effectiveness of these CSR policies, this study empirically explores the relationship between the quality of CSR information disclosure and corporate innovation performance using data from A-share listed companies in Shanghai and Shenzhen, China, from 2009 to 2020. The results show that: (1) Improvement in the quality of CSR information can significantly improve corporate innovation performance. (2) Further analysis reveals that the improvement of CSR information quality not only helps to reduce the agency costs and alleviate the financing constraints of enterprises but also reduces the cost of external interpretation of corporate innovation projects and conveys a good corporate image by attracting the attention of analysts and the media, which all contribute to the improvement of corporate innovation performance. This study further refines the mechanism of the impact of CSR disclosure on firms’ innovation performance, which may provide guidance to governments in developing and improving CSR disclosure systems in the future.