Corporate Social Responsibility Reports Research Articles

Russian Business and the Authoritarian Welfare State

Authoritarian regimes widely involve non-state actors in social welfare to increase output legitimacy and regime stability. Despite the volume of corporate social investments, the role of private companies in authoritarian welfare is still poorly understood. This study analyzes the functioning of corporate social programs in the Russian authoritarian welfare state by focusing on corporate grant competitions and corporate volunteering as means of engaging both the local population and the companies’ employees in the regions. Drawing on stakeholder theory, it investigates how companies position themselves as welfare providers and how they legitimize their role with regard to key stakeholders, including state officials, employees, and the local population. The analysis is based on in-depth interviews with company representatives and key stakeholders in four Russian regions: Kemerovo, Khanty-Mansi Autonomous Region, Tiumen′, and Volgograd. In addition, corporate social reports from 2018 and information for beneficiaries were evaluated to identify program guidelines, motivations, and stakeholder assessments. The study argues that companies play an important role as welfare providers through the financial support of social organizations and employee initiatives at the regional and the local level. By providing social investments in geographically defined “territories of presence,” Russian companies pursue a double legitimation strategy, both demonstrating their social responsibility and loyalty toward the regime and strengthening authoritarian welfare provision through private social investments. With a detailed analysis of corporate social programs, this study contributes to our understanding of the specific conditions and mechanisms of social policy in authoritarian regimes and the place that companies occupy within it.

Retrospective and Current in the Conceptual Approach to Financial and Non-financial Reporting

In a context where financial information provided by economic entities is no longer sufficient to illustrate an accurate picture of the factual situation, as well as health crises, climate change, increasing stakeholder interest in non-financial information, all these have led to the progressive development of literature especially in the field of non-financial reporting. However, the quality of financial reporting is also a topic of interest among authors, as international financial reporting standards have been adopted by a wide variety of countries, and other countries are likely to adopt such standards in the near future. The objective of the research is to investigate aspects of financial and non-financial reporting previously addressed in the literature. The current stage of the research is carried out by systematic analysis on publications indexed in the Scopus database, and the period analysed is from 2000 to 2023. The systematic literature review is conducted by following the steps defined in previous studies. Each subsequent adaptation will be explained in the paper. In order to carry out the analysis, the coding procedure is applied. The research will be conducted in a two-dimensional framework, focusing on financial and non-financial literature. The first dimension will consider the direction in which the perimeter of financial and non-financial reporting has developed in recent years. Taking also into account that interest in financial and non-financial reporting has gained more and more ground in most fields in recent years, it is expected that the results will show an increase in the number of relevant articles published in recent years in this area. The second dimension concerns factors that have led to changes in financial and non-financial reporting. In order to achieve this objective, I will carry out a detailed analysis by defining an analytical framework built on criteria previously used in other similar works, and adapted to the current sample of articles. I believe that the paper addresses a topical issue and will be of interest and relevance for future academic research on financial and non-financial reporting.

Framing Diversity in Corporate Communication on Twitter and CSR Reports. A Corpus-Based Study

Abstract Nowadays, companies are required to produce annual reports on Corporate Social Responsibility (CSR) and consider the promotion of diversity as one of their fundamental values, particularly in terms of reputation and image (Fuoli 2018; Maier and Ravazzani 2018). Given its importance, diversity is included in companies’ communication planning (Mundy 2015). The aim of this work is to explore how eleven companies (Amazon, Calvin Klein and Pfizer among others) frame diversity and talk about it on their Twitter (now X) profiles and CSR reports over a timespan of five years (2018-2022), filling a gap in the literature which, to date, has mainly focused on the study of companies’ websites rather than their social media channels. To do this, we analysed a corpus of tweets and reports to identify recurring patterns and phrases related to diversity and inclusion. The findings reveal disparities between the two communication channels, with an overall positive framing of diversity, although the term is mainly used in passive voice constructions which indicate that as a principle and value it is far from being considered established in its own right.

Conceptual foundations for implementing European and international non-financial reporting standards

Throughout the current years, non-financial reporting has undergone rapid development, manifesting both in international frameworks by non-governmental organizations and via national or regional (European) standards. However, internationallystandardised reporting standards play a crucial role in ensuring the efficiency of international capital markets and satisfying users’ needs for data comparability. This article aims to examine the theoretical foundations and principles underlying the implementation of non-financial reporting standards in the EU and at the international level. The study explores the nuances of incorporating sustainable development components into non-financial reporting standards.The significance of materiality is defined for prioritizing information from the financial aspect and ESG concerns. It has been contemplated that the scope of reporting encompasses activities, products, services, and risks extending beyond a company, encouraging the consideration of value creation chains. Emphasis is placed on the potential to present non-financial information at various levels of consolidation, aiming for relevance and compatibility. Types of information subject to disclosure are disclosed.Crucial principles of sustainable reporting are highlighted, considering a focus on essential information and stakeholder orientation. Global policy priorities are noted to expect business contributions towards achieving sustainable development goals and corporate social responsibility. Standards and frameworks are shown to be pivotal in presenting non-financial information related to sustainable development, facilitating its digitization. It has been accentuated that the assessment of materiality defines the content of non-financial reports, yet challenges arise due to the absence of recommendations and stakeholder perspectives. Sustainability information should encompass the company’s value creation chain with guidance for priorities and impact assessment to enhance the effectiveness of actions and reporting. General scientific and special methods are used: analysis and synthesis, theoretical-applied analysis of sources, inductive-deductive approach, generalization and abstraction, ascent from the abstract to the concrete. The contribution of business to the global policy of sustainable development and the role of corporate social responsibility are also considered. It is substantiated that the assessment of materiality determines the content of non-financial reports, but challenges arise due to the lack of recommendations and taking into account the perspective of interested parties. The current research stimulates further scientific developments in the field of NFZ.

Investigating the Nexus Between Energy Transition Reporting Practices and Corporate Efficiency in the European Agri-Food Sector

The research paper investigates the nexus between energy transition reporting practices and corporate efficiency of listed European companies from the agri-food sector. The study relies on key energy-related and financial indicators and logistic regression analysis conducted on 219 EU business entities publishing their financial and non-financial reports between 2004 and 2023. Based on the distribution of financial metrics in the sample, we assumed that entities reporting data on energy transition, either partially or fully, could achieve higher profitability and simultaneously have lower liquidity than non-reporting companies. The panel data model indicated a strong relationship between the reporting status of a business entity, its revenue, and the time variable, demonstrating that the likelihood of providing information on energy transition was associated with the size of a company and increased systemically over time. However, further regression analysis revealed a lack of a persistent, significant relationship between the key financial indicators and the entities’ energy transition reporting status. Considering the substantial changes in the EU regulatory environment associated with introducing CSRD, we conclude that with increasing legal pressure over time, companies will gradually shift towards standardized industry-related reporting practices, resulting in more consistent and transparent evidence of their energy transition strategies.

Corporate Social Responsibility Reports: An Analysis of Dialogicity Across Sectors and Countries

The paper explores Corporate Social Responsibility (CSR) reports in their dialogicity, i.e. as an interactive communication practice taking place between the company and a multifaceted audience of stakeholders. In particular, it investigates the linguistic and discursive resources used by a sample of companies in their CSR disclosures to articulate corporate values and performance, and voice stakeholders’ concerns. The analysis was conducted on a small collection of documents belonging to firms operating in three different sectors: Banking, Food, and Oil and Gas, and headquartered in three European countries: Italy, Switzerland and the UK. With the support of corpus linguistics tools, the CSR reports were examined in a selection of key dialogic elements and their phraseology. The quantitative and qualitative analysis was intended to map out the strategies (dis)similarly adopted by the firms across the sectors and countries to project themselves into the text, establish a connection with stakeholders, and address their needs and expectations.

How Covid-19 Has Changed Safety in the Car Transportation Sector: A Corpus-Assisted Analysis of Non-Financial Reports

The importance of people’s safety during Covid-19 has resulted in greater attention to this aspect in CSR and ESG disclosures, especially in the field of transport. The relevance of this topic is also reflected in the recent publication of linguistic studies that investigate how companies in some sub-sectors communicate their commitment to passengers’ safety (Rossato & Nocella, 2022; Bondi & Nocella, 2023). This paper explores how safety is discursively constructed and communicated in the car rental and ride sharing sectors, both before and during the pandemic. Working along the lines of corpus-assisted discourse studies (Partington et al., 2013), the research analyses a corpus of English CSR and ESG reports published by international American companies in the above-mentioned fields of transport. Findings suggest a great concern for safety issues and a more inclusive approach to both customers’ and employees’ safety during the pandemic. Additionally, car rental companies show more attention to vehicle safety, while ride sharing operators put more emphasis on road safety. Evidence also suggests that the companies largely employ commissive statements and vague linguistic choices that signal a general lack of transparency on the practices and initiatives enacted to ensure customers’ and workers’ safety.

Corporate social and digital responsibility in esports

PurposeThe esports industry has experienced a dynamic growth. In this context, a significant evolution in the logic of corporate social responsibility (CSR) can be observed, particularly in the digital sphere. By extending Carroll’s three-dimensional model to include corporate digital responsibility (CDR), this paper addresses a key research question: How does CSR evolve and develop in the dynamic digital industry of esports?Design/methodology/approachThis study employed a qualitative multiple case study research design. It drew on secondary data from 50 professional esports organisations and key players in CSR development in the global esports industry, such as game publishers, pro-teams, pro-athletes, event organisers, and governing bodies. A content analysis of 50 official websites and 72 public annual, CSR, and environmental reports for the financial years ending in 2021 and 2022 was conducted.FindingsOur empirical findings not only map the territory of esports CSR and CDR but also provide practical insights. These insights are later synthesized to develop an esports CSR/CDR framework that extends Carroll’s three-dimensional model. CSR and CDR domains of esports are theoretically grounded (business performance, responsiveness, social issues, and digital responsibilities), while practical implications for managers and academics are forwarded.Originality/valueThis paper stands out as a pioneering empirical study, filling a significant research gap in the fields of CSR and CDR in esports. To the best of our knowledge, it is the first to illuminate these concepts within the unique ecosystem of esports, thereby contributing to the evolving understanding of CSR in the digital context.

The Signalling Effect of Corporate Social Responsibility Reporting: Evidence From Short Selling

Using exogenous regulatory changes that have gradually removed short‐sale restrictions in China's stock exchanges, we examine how such deregulation influences firms’ corporate social responsibility (CSR) reporting. Our findings indicate a significant improvement in the calibre of CSR reporting among firms designated as qualified for short selling in a deregulation pilot program (pilot firms) compared to non‐pilot firms. Moreover, our empirical evidence shows that the improvement in CSR reporting practices is greater for pilot firms experiencing stronger downward price pressure, negative earning news, higher bankruptcy risk, greater ownership concentration, and those classified as state‐owned enterprises. These results demonstrate that firms susceptible to price declines from short selling utilize CSR reporting as a visible and credible signal to safeguard and enhance corporate reputation, garnering increased stakeholder support.

Corporate responsibility and corporate misbehavior: are CSR reporting firms indeed responsible?

Abstract We investigate whether firms that proclaim a commitment to corporate social responsibility (CSR) by CSR reporting indeed internalize such a commitment and behave more responsibly. We analyze the association of the issuance and quality of voluntary CSR reports with the occurrence, number, and severity of corporate misbehaviors, both preceding and subsequent to CSR reporting. We find a significantly positive association of CSR reporting with our measures of prior and future misbehavior. The results are corroborated by a quasi-natural experiment around the Rana Plaza disaster where we find that the signatories of an accord for better working conditions have significantly higher prior and future misbehavior relative to non-signatories and firms unaffected by the exogenous shock. Our results are in line with legitimacy theory implying that, on average, the firms’ proclaiming commitment to CSR is not a signal of internalized commitment but more likely serves greenwashing and impression management purposes.

Non-financial reporting—A key element in assessing sustainable corporation performance

In the modern economy, non-financial reporting has become an essential tool for evaluating the social performance of companies. This article explores the importance of non-financial reporting as a central element in assessing sustainable performance, focusing on analyzing sustainability reports published by 20 companies listed on the Bucharest Stock Exchange (BVB). The study examines how these companies approach environmental, social, and governance (ESG) aspects in their reports and what is the relationship between these aspects and financial reporting indicators. Through the statistical analysis of the non-financial reports published by companies participating in the study with the help of the Pearson coefficient and the regression equations, the correlation between the financial and non-financial indicators is determined in order to validate the research hypotheses. The results indicate increased attention to transparency and social responsibility, highlighting the correlation between sound reporting practices and cooperative performance by combining social and environmental aspects with financial information. The research also highlights the challenges encountered in the reporting process and the level of compliance with international sustainability standards.

Identifying Financially Material Content in Corporate Social Responsibility Reports

ABSTRACTThis study examines the relationship between financially material content in corporate social responsibility (CSR) reports and the decision usefulness of these reports. Utilizing sustainability disclosure standards and a machine learning topic modeling algorithm, a firm‐specific quantitative measure of financially material content in CSR reports is developed. It is hypothesized that firms providing greater amounts of financially material CSR content enhance their information environment, which enables analysts to make more accurate earnings predictions. The findings confirm a positive relationship between the extent of financially material CSR content disclosed and analyst forecast accuracy. This research demonstrates the effectiveness of using machine learning to identify financially material content within unstructured voluntary disclosures and contributes to the literature on the financial materiality of CSR activities and their related disclosures.

Corporate social responsibility: corporate records related to the effects of climate change

The challenges imposed on organizations, such as accountability for environmental impacts and pressure from stakeholders, raise several questions and create expectations about the social performance of companies. To respond to this demand, some corporations disclose their activities through Corporate Social Responsibility (CSR) reports. In this context, this article aims to examine how CSR information related to climate change is communicated. To this end, a systematic review was conducted using the Methodi Ordinatio, using Mendeley and JabRef software for reference management. The findings suggest that some organizations disclose their socially responsible practices to improve their reputation before society. However, the literature also shows that another portion of companies report their activities voluntarily and genuinely. Specifically, companies with greater visibility and better informed stakeholders are more pressured to adopt responsible behaviors. A gap was also observed regarding the implementation of concrete actions to effectively address the climate crisis, which highlights the need for more proactive strategies and the development of more standardized reporting standards. This review contributes to the literature on CSR reporting in the context of climate change and encourages the exploration of new directions in the research field.

What are the drivers behind Portuguese companies’ reporting on sustainable development goals?

Objective: This study explores how large Portuguese companies have started to integrate the SDGs into their non-financial reporting practices, and analyses some potential drivers of SDG reporting. Methodology: Standalone non-financial reports were collected from 2016 to 2022, resulting in a total of 161 reports from 41 companies. Through a content analysis of the non-financial reports, an index was developed to measure the level of SDG disclosure. Results: The results show that there is an increasing trend of reporting on the SDGs among large Portuguese companies, albeit at a slow and modest pace, mainly through sustainability reports. On average, Portuguese companies disclose on half of the 17 SDGs. In terms of the determinants of SDG reporting, listing, industry, adherence to the GRI framework and external assurance of reports by a Big4 firm were found to be determinants of SDG disclosure in our sample. Contrary to our expectations, ISO certification, sustainability committee and extended reporting are not significantly associated with the level of SDG disclosure by large Portuguese companies. Limitations: Our study has limitations, notably a small sample size. The SDG disclosure index we used only indicates whether information on SDGs is disclosed, without assessing content extent or quality, potentially limiting stakeholder value. Practical implications: Companies aiming to improve SDG disclosure should consider adopting the GRI framework or seeking assurance from a Big 4 firm. Additionally, regulators could use our findings when designing policies aimed at enhancing SDG reporting. Keywords: Sustainable Development Goals, 2030 Agenda, sustainability reporting, SDG reporting, Portugal.

ESG Reporting of Commercial Banks in Poland in the Aspect of the New Requirements of the Directive on Corporate Reporting in the Field of Sustainable Development (CSRD)

For several years, commercial banks in Poland have been reporting activities related to the impact on the environment, society, and corporate governance (ESG). However, only new guidelines, mandatory for many entities, including banks, will allow for comparing these reports, which will be of great importance mainly for investors. The forms of these reports were and still are different, difficult to compare in individual years, and difficult to compare between banks. The article aims to present the banks’ preparation for the new reporting rules based on the latest ESG reports. The research was conducted in four groups of commercial banks operating in Poland. These are the largest companies listed in the WIG Banks sub-index of the Warsaw Stock Exchange. Gaps in the preparation of these banks for non-financial reporting were identified. The non-financial reports of the banks studied have significant information potential that can be used by various stakeholder groups, including investors, customers, employees, regulators, and local communities. However, the comparability of ESG reports is one of the key challenges faced by both reporting banks and users of these reports. The research results can be used both in scientific works and by bank representatives to improve non-financial reports.

Discerning the state of the art in Italy of voluntary disclosure on biodiversity and endemic species

PurposeThis study aims to examine the extent and quality of biodiversity reporting within publicly traded companies in Italy during 2022, amidst growing calls worldwide for enhanced corporate environmental responsibility.Design/methodology/approachThe study proposes a framework derived from existing biodiversity reporting literature and international guidelines on the topic. Using data from companies’ non-financial reports, the voluntary biodiversity disclosure index is quantified on disclosed information. Various quality reporting characteristics are also deepened. Sector-specific analysis is conducted across 11 industries.FindingsApproximately 30% of companies in the sample release information on their biodiversity practices/initiatives regarding biodiversity and extinction loss risks. Quantitative analysis reveals a general commitment to disclosure yet falls short of optimal standards. Qualitative insights suggest a genuine intention towards reporting exists, with notable gaps in future orientation, double materiality and mitigation strategies. The quality analysis underscores that the reporting is mainly generalised, narrative and disaggregated concerning actions to restore habitats and ecosystems.Research limitations/implicationsA limitation of this study is the observation of annual reports during one reporting period. Future studies of longer duration would provide cross-period insights into corporate behaviour.Practical implicationsPolicymakers should implement regulations and guidelines specifically tailored to biodiversity reporting, providing clear frameworks and standards for companies. Collaborative initiatives between governments, businesses and environmental organisations offer potential to develop best practices and facilitate knowledge-sharing in biodiversity reporting.Social implicationsCollaborative initiatives between governments, businesses and environmental organisations offer potential to develop best practices and facilitate knowledge sharing in biodiversity reporting.Originality/valueThe study contributes to future biodiversity disclosure research by introducing a comprehensive framework that fosters stakeholder trust and environmental accountability. It also sheds light on biodiversity stewardship among Italian companies, under EU directives.

The phenomenon of China’s carbon accounting policies and practices

Purpose This study aims to explore China’s carbon accounting policies and practices to enhance its carbon accounting and trading practices and achieve carbon neutrality. Design/methodology/approach This study adopts a phenomenological methodology to explore carbon accounting by setting the scope of the phenomenon, establishing research methods, conducting interviews with 30 participants from 14 emitting entities and four accounting firms and establishing methods for data analysis. Five themes were identified using a five-step coding method. Findings The results show no uniformity in the accounting treatment of carbon trading; however, common characteristics exist, and they have generally adopted simplified and conservative accounting methods under China’s emission trading scheme. Their common characteristics are that the granted allowances are not recognised as assets by most emitting entities, emissions allowance assets are measured using the historical cost method, most emitting entities only conduct accounting when there are actual cash flows or outflows with regard to carbon emissions allowance trading, and only a few emitting entities disclose carbon trading information in their financial statements or corporate social responsibility reports. Originality/value This study highlights accountants’ crucial role in carbon activities by guiding emitting entities’ low-carbon initiatives and culture and transforming managers’ mindsets. It also introduces the China Accounting Standards Committee-based accounting methods for allowances and obligations, aiding carbon disclosure quality and sustainability. These findings also inform the carbon accounting standards that may enhance corporate accountability and address climate change.

Corporate Social Responsibility Effect On Company Value With Financial Performance As A Mediation Variable In Companies In Food And Beverage, Transportation, Accommodation Sector Listed On Idx 2021-2022

Technology can play an important role for a company in opening up new business opportunities and expanding sales coverage. The accounting information system is a process of capturing, storing, processing and communicating information according to professional needs. The use of financial reports alone is not enough to become the basis of information, additional information is needed in determining a strategy to achieve company goals so that many companies are starting to disclose non-financial reports. non-financial reports are one of the important factors in determining which strategy to choose to carry out the objectives that have been set and linked to financial information in designing a performance measurement system. The purpose of this study is to see the effect of Corporate Social Responsibility on Firm Value with Financial Performance as a Moderation Variable. This research for the 2021 and 2022 periods uses secondary data obtained through the company's personal website and the Indonesia Stock Exchange (IDX). The sampling method used was a purposive sample and obtained as many as 39 companies as a sample. Data were analyzed by using PLS SEM software SmartPLS version 4. The research results obtained are that Economic Performance (Profit) has an effect on Firm Value, but Environmental Performance (Planet) and Social Performance (People) has no effect on Firm Value. Financial Performance cannot mediate Economic Performance (Profit), Environmental Performance (Planet), and Social Performance (People) on Firm Value.

Predicting the Intention to Adapt Non-Financial Reporting in Sri Lankan Companies: A Test of the Theory of Planned Behavior

The current society is more concerned about the environment and society due to several issues that arise in these areas. Therefore, they expect more information from organizations other than the information given through their traditional financial reporting. Most organizations around the world adapt to non-financial reporting as a response. However, the true determinants of non-financial reporting in Sri Lankan companies remain unexplored. Therefore, this study aims to answer, “Do attitudes, subjective norms, and behavioral control influence the intention to adopt non-financial reporting in Sri Lankan companies?”. The study was designed as a quantitative study and data was collected using a structured questionnaire that was developed based on the theory of planned behaviour. The managers, and accountants of publicly listed companies, private companies, and state-owned companies were considered as the respondents of the study. The study used 190 responses for the analysis The results of the regression analysis indicated that, even though all three factors positively affect the intention to adapt to non-financial reporting, only subjective norms are the factor that has a significant impact on adaptation to non-financial reporting in the Sri Lankan context. This may be due to the novelty of the practice of non-financial reporting in the Sri Lankan context. Managers and accountants might still be forming their own attitudes that have less impact but feel strong pressure from external forces to adopt them. Therefore, the direction of future studies should align with exploring the reasons for less impact of attitudes and behavioral control on the intention of adaptation to non-financial reporting in Sri Lanka.

A compass for sustainability? Semiconductors, rare earths and CSR: the case of onsemi

AbstractSemiconductors are a rampant ICT sector utilized in everyday life for electronic devices. This industry provides plentiful income to multinational corporations (MNCs) but has been put in the spotlight for its tremendous social, ecological, and political impact. The figures become dramatic in sub-Saharan Africa and developing countries, which have abundant resources but poor working conditions and abrupt environmental degradation. In this interplay, rare earths have become leading assets for companies and governments and are highly debated for their controversial nature; thereby, corporate social responsibility (CSR) and environmental practices turn pivotal. This work aims to connect the bountiful industrial sector of semiconductors with rare earths governance and CSR. To this end, this inquiry critically scrutinizes these three assets, analyzing the case study of onsemi as a business case and launching selected strategic and policy perspectives. This paper reviews these three concepts and conducts a content analysis on onsemi CSR Report and Annual Sustainability Report. The literature review emphasizes the increasing importance of these three topics within the mineral economics and sustainability research. The company analyzed produced cogent reports but supplementary information is needed to better understand its results within the semiconductors and extractive industry. This may help determining key achievements and areas for improvements in the private sector for REE sustainability, CSR and environment, social and governance (ESG) results and disclosure. The availability and governance of rare earths will determine decisive sustainability directions of utmost priority for geopolitical equilibria. The undertaken corporate and institutional strategies will lean toward dramatically diverse scenarios.