Corporate Social Responsibility Reports Research Articles

Metadiscursive nouns in corporate communication: A cross-cultural study of CEO letters in the US and Chinese corporate social responsibility reports

The study of rhetorical devices and how corporate leaders organise the texts and convey attitudes to stakeholders in corporate social responsibility (CSR) reports has become an important research area in recent years. A relatively neglected means of rhetorical expressions, however, is metadiscursive nouns. This study investigates the use of metadiscursive nouns in a 0.5-million-word self-built corpus of the US and Chinese CEO letters in CSR reports to reveal cross-cultural variations. The results show that the interactive metadiscursive nouns are twice as frequent in the US discourse as in the Chinese discourse, demonstrating greater efforts invested in cohesion by the US companies. This difference can be attributed to the writer-responsible rhetoric in the West and the reader-responsible conventions in China. The interactional metadiscursive nouns in the US discourse occur twice as frequently as in the Chinese counterpart, suggesting greater exertion of nominal stance by the US companies. This discrepancy mainly arises from the high- and low-context variations between the US and China. This study sheds new insights on metadiscursive nouns as rhetorical resources in cross-cultural CSR communication and provides implications for ESP practitioners to use them as a means of conceptualising writer–reader interaction in corporate communication.

Answer to whom? A comparative empirical study on institutional drivers for firms’ CSR reporting in China and the United States

While earlier research has mainly focused on the business-centric perspective for corporate social responsibility (CSR) reporting, this study adopts a society-centric perspective and tests institutional drivers. We apply a panel data analysis using 56,532 firm-years from 2006 to 2019, comprising listed firms in China and the United States. The results show that firms exposed to more pressure are more likely to issue CSR reports in both countries. CSR reporting in China tends to be externally driven, as Chinese firms are experiencing more institutional drivers than their US counterparts under similar reporting circumstances. In verifying institutional drivers, those which are shared or differ in two distinct markets are not determined by economic development status, but are rather affected by the orders of institutional logics. This study provides empirical evidence for future research opportunities for an ex-ante view of CSR and practical suggestions for globalised CSR reporting frames.

Non-financial reporting in the industrial sector

Non-financial reporting has become an important aspect of corporate reporting, especially in the industrial sector, providing enhanced information on the social, environmental and ethical aspects of a companyʼs activities. By promo­ting transparency and accountability, non-finan­cial reporting (NFR) can help companies mitigate negative environmental impacts and strengthen their overall sustainability efforts. The aim of the article is to review the regulatory framework and international practice of preparing non-financial reports by industrial enterprises, to identify the specific features of ESG reporting and to provide recommendations on the content of non-financial reports of industrial enterprises in Ukraine. The methods of theoretical generalization and grou­ping of information, induction, analysis, synthesis and logical generalization were applied. It was determined that the unification of regulatory and legal regulation in the field of NFR is an important issue for business entities, including industrial enterprises. Many international organi­zations ha­ve developed a set of their own regulations in the field of non-financial reporting, which reflect public attention to important issues and the actual practice of solving them by enterprises and organi­zations. Based on the international practice of non-financial reporting, the lack of universal approa­ches to the preparation of NFR was revealed. Companies should adapt to certain environmental conditions, take into acco­unt the specifics of their activities, organizational structure and strategic goals. The relevance and benefits of implementing ESG principles are determined. The article highlights the shortco­mings of information disclosure in the NFRs of Ukrainian industrial enterprises. An important result of the study is the provision of recommend­dations on the content of non-financial reports of industrial enterprises in Ukraine. Taking into account the experience of international companies will allow them to improve their approach to business, improve their NFR, and provide a comprehensive and transparent view of their ESG performance.

The drivers of nonfinancial disclosure quality: A systematic literature review analysis

AbstractThis study aims to analyze the current state of research on the determinants of nonfinancial disclosure quality (NFDQ). The systematic literature review analysis applied in the study is based on the systematic literature review principles, and on bibliographic analysis and manual content analysis instruments to highlight the key factors that have been studied for their impact on NFDQ. These factors include firm‐related drivers (i.e., ESG‐related drivers and other firm‐related drivers), the characteristics of nonfinancial reports, (assurance, type of report, and sustainability guidelines) and country level determinants (nonfinancial regulation). In addition to summarizing the current state of knowledge, this study identifies gaps in the existing literature and offers valuable suggestions for future research directions.

Making amends or downplaying? The impact of ESG incidents on boilerplate disclosure of CSR reports in Chinese companies

ABSTRACT This study measures boilerplate disclosure (BD) of Corporate Social Responsibility (CSR) reports published by Chinese companies using natural language processing (NLP) technology, and then investigates the impact of Environmental, Social, and Governance (ESG) incidents on BD of CSR reports. The results indicate that companies experiencing ESG incidents tend to reduce BD to save their reputation. Further analysis shows that more detailed CSR reports are truly helpful for firms to obtain higher ESG ratings.

Institutional isomorphism and quality of gender disclosure. The Italian case

Purpose: Non-financial reporting (NFR), including gender disclosure (GD), is a tool companies use for institutional legitimisation and represents an organisational field that evolves due to regulatory and stakeholder pressure. This research uses the theoretical approach of institutional isomorphism in the context of neo-institutional theory to investigate GD's degree of maturity (quality and homogenei-ty) in a homogeneous institutional context. Design/methodology/approach: This paper adopts a qualitative research meth-odology based on a content analysis of the GD resulting from the NFRs of listed Italian companies in 2016 and 2021. Findings: The results show the degree of institutionalisation achieved through GD after introducing the mandatory NFR. The analysis reveals companies' conver-gence process in terms of isomorphic behaviour and changes in the quality of GD. The findings unfold the institutional pressure that has the most significant impact on the quality of GD, fostering a homogenisation of disclosure at the company level. Originality/value: This is the first study to assess isomorphism and its effects on the quality of GD. This research enriches the literature on institutional theory by analysing the impact of different isomorphic forces on GD. Practical implications: This paper assists policymakers, supervisors, and investors in evaluating the quality of GD and identifying the issues leading to the most critical matters and inefficient or non-transparent behaviours. The findings improve regulatory quality, information control, and assessment of the appropriateness and reliability of the NFR. The implications guide regulators in identifying stand-ards and tools that enhance strategies regarding gender diversity and performance disclosure.

Analysis of the Communication of Social Responsibility by Energy Companies in Romania

Abstract The awareness towards global changes has increased in recent years and has created pressure for energy providers to improve not only their activity but also the way they communicate their actions, initiatives and commitments and how they report them to the general public. Recognizing this imperative, in January 2022, the European Commission proposed the Corporate Sustainability Reporting Directive (CSRD) to revise and strengthen the existing Non-Financial Reporting Directive (NFRD). With the CSRD's help, sustainability reporting is getting a significant improvement. Now, everything is more transparent and matches up better than other reports created before because it was built around transparency first. This means way less guesswork for anyone needing this information whether it is an investor trying not to worry about their next big decision, consumers, or regulatory bodies. We analyzed the top 15 entities in the electrical energy production sector in Romania, based on their turnover reports at the end of their financial activities for 2022, and we wanted to find out how they articulated and showcased their commitment to social responsibility through their websites and non-financial reports. By examining these reports closely, we uncovered layers of commitment across different sectors from ESG pillars (environmental, social, and governance) – how businesses dedicated to sustainable growth and interacted with stakeholders and by looking closely at these reports, the analysis is not only a point of reference for industry practices but also a better understanding of social responsibility in the specific context of the energy sector.

Leveraging Accounting Professional Identity to Pave a Route Toward Sustainable Development with the Role of Inclusive Leadership

This study intends to explore the interconnection between the professional identity of accountants (PIA) and sustainable development performance (SDP). It also aims to delve into the mediation mechanism of nonfinancial reporting (NFR) in the interconnection between PIA and SDP. Outstandingly, it makes many attempts to expand understanding of the moderating function of inclusive leadership (IL) in the proposed model’s postulated constructs. Statistical data from surveys given to the samples of accountants in small and medium-sized enterprises (SMEs) obtained from the two waves of data collection within the different periods, namely the period of lockdown and period of new normal, are used to empirically corroborate the hypothesized model, which is supported by structural equation modeling. The results analyses confirm, in terms of significance and effect size, the existence of positive relationships between the hypothesized dimensions in the suggested model. In addition to serving as a beneficial springboard for further research, the importance of more nuanced insights in this work can help practitioners and policy-makers sense and seize ways to reach sustainable development pathways in an efficient and effective manner.

Corporate social responsibility, CEO characteristics, and earnings management: Evidence from China

AbstractThis study examines the relationship between corporate social responsibility (CSR), earnings management (EM), and the characteristics of chief executive officers (CEOs) within the context of China's economic transformation. Drawing on stakeholder theory and upper echelon theory, this study investigates the influence of CSR on EM and the role of CEO characteristics. The empirical analysis is based on a sample of 1,980 Chinese firm‐year observations from the Shenzhen and Shanghai stock markets, between 2013 and 2017. The findings reveal a negative relationship between CSR performance and discretionary accruals (DA), suggesting that higher CSR is associated with lower EM. Moreover, this relationship is more pronounced among firms with highly educated CEOs (postgraduates) and mature CEOs (approaching retirement age). Notably, the negative CSR–EM relationship is strengthened in firms with mandatory CSR reports. This study expands prior research by exploring the impact of CEO characteristics on the CSR–EM relationship, incorporating CEO attributes alongside ownership structures and governance mechanisms. The findings offer insights for organizations in terms of selecting ethically committed CEOs, as well as guidance for shareholders in understanding CEO selection criteria. Furthermore, this study highlights the importance of mandatory CSR disclosure (CSRD) for policymakers evaluating CSR performance according to the disclosure type.

Corporate Social Responsibility and Sustainable Development in the Indian Dairy Sector: A Comprehensive Analysis

This paper provides a comprehensive analysis of Corporate Social Responsibility (CSR) and sustainable development within the Indian dairy sector. As the world's largest producer of milk, India's dairy industry plays a crucial role in the nation's economy and socio-economic fabric, impacting millions of rural livelihoods. “This study examines the current state of CSR activities in the sector, evaluating their alignment with the United Nations Sustainable Development Goals (SDGs). Through a detailed review of literature, analysis of CSR reports, and case studies of leading dairy companies such as Amul and Mother Dairy, the paper identifies best practices, gaps, and areas for improvement. The findings reveal that while significant efforts are being made towards community development and environmental sustainability, there is considerable scope for enhancing the effectiveness and reach of these initiatives. The paper proposes a robust framework for improving CSR and sustainability practices, focusing on strategic CSR planning, stakeholder engagement, sustainable farming techniques, and rigorous monitoring and evaluation. Recommendations include policy changes to support sustainable practices, increased stakeholder involvement, and the adoption of innovative technologies. This study aims to provide dairy companies, policymakers, and other stakeholders with actionable insights and practical guidelines to foster a more sustainable and socially responsible dairy sector in India”. The proposed framework and recommendations are designed to help align industry practices with global sustainability standards, ensuring long-term benefits for the environment, society, and the economy.

Corporate Social Responsibility (CSR) Website Reporting: Evidence from Sub-Saharan Africa’s Top-Ranked Companies

This study aims to examine how Sub-Saharan Africa’s top ranked companies themselves convey their role as social-economic development partners and/or agents in their corporate communications, and to what extent country- and industry-specific characteristics influence their reporting, i.e., via CSR websites reporting. Using Forbes’ 2,000 world-largest-corporations ranking, based on 2017 ranking list, we select the largest corporations. We then filter our search to select Africa-largest-corporations. A content analysis of the CSR reports and/or Websites of the sample companies was conducted to identify the motives for CSR practices, CSR managerial processes and stakeholder issues addressed in CSR reporting. Several of the “motives underlying CSR practices”, “CSR managerial processes” and “stakeholder issues addressed” in CSR reporting appear to converge around similar themes (or issues), given that all three sample companies operate in the financial services industry within the specificities of South Africa’s context. The findings suggest that the specificities of South Africa’s historical development and/or socio-cultural realities, legislation and industry charters are important factors that influence CSR (or sustainability) practices in the context of Sub-Saharan Africa. Although, studies that mainly focus on the contents of corporate website are uncommon, this study has limitations as we solely relied on publicly accessible CSR reporting, rather than, for example, interviewing employees, customers (or clients) and/or regulators to verify the claims by the sample companies. As this study examines CSR website reporting practices by organisations, it provides a useful insight for competitor benchmarking that can be used by organisations to imrpove their CSR website reporting practices. This study contributes to extant CSR research as its provides empirical evidence of the contextuality of CSR in Sub-Saharan Africa, as well as explores how country- and industry-specific characteristics may influence CSR website reporting.

The politics of corporate social responsibility disclosure: Evidence from China

While businesses fluctuate with politics, firms try to find ways to deal with uncertainty. We investigate how political incentives shape corporate social responsibility (CSR) reporting activities using the setting of China. Based on a sample of non-mandatory CSR disclosure firms, we find that firms experiencing political turnover are more inclined to issue CSR reports voluntarily, supporting the political connection demand hypothesis rather than the political cost hypothesis. Such effects are more prominent when the political turnover is unexpected and successors are non-locals. Meanwhile, non-SOEs, not politically connected enterprises, and firms located in low government efficiency areas are more likely to issue CSR reports. Further analysis shows that these firms disclosed CSR information experiencing political turnover fail to ensure the reporting quality but can obtain resources in the future. Overall, we highlight that CSR disclosure is a way for firms to establish political connections with politicians. Our study sheds light on the determinants of voluntary CSR disclosure from a political perspective.

An analysis of Indian banks' CSR initiatives

A corporation or organization can simply increase their goodwill in the marketplace by engaging in corporate social responsibility (CSR) activities. Upholding moral principles and benefiting society are the overarching goals of corporate social responsibility. CSR takes into account both internal and external elements in addition to the value for their customers. Businesses gain by contributing significantly to corporate social responsibility (CSR) in a number of ways, including enhanced funding availability, new opportunities, employee retention, stakeholder satisfaction, and brand image. As globalization accelerates, banks are becoming increasingly engaged in corporate social responsibility initiatives to broaden their clientele. The corporate social responsibility (CSR) programme of the Indian banking sector focuses on projects like health and medical care, rural area development, and poverty eradication. It also aims to address financial inclusion, provide financial services to support national investment, and promote the socio-economic development of the country. The Bank's corporate social responsibility endeavours are predominantly centred around environmental sustainability, Swachh Bharat Abhiyan, and educational initiatives such as Beti Bachao Beti Padhao Abhiyan, among numerous other projects. This study's goal is to evaluate the CSR programs that the banking sector has implemented. The bank's CSR report is the source of the data.

INTELLECTUAL CAPITAL AS A BASIC COMPONENT IN NON-FINANCIAL REPORTING OF UNIVERSITIES

The article substantiates the place of intellectual capital in non-financial reporting of Russian universities. Its publication demonstrates commitment Russian universities to the principles of sustainable development. The issue remains relevant even in conditions of current unfavorable geopolitical situation. The methodological basis of the study are the works of Russian and foreign scientists on various aspects of intellectual capital; the results of evaluating non-financial reporting of universities obtained by the rating agency RAEX, and the survey of non-financial reports of three leading Russian universities. The article reveals the financial and non-financial benefits received by a university that voluntarily publishes non-financial statements. As a result of comparing international and Russian approaches to assessing the quality of non-financial reporting, a conclusion is made about their methodological unity, while, unlike international practice, the RAEX rating agency does not expect Russian universities to disclose information about their business models and risks. The analysis of non-financial reports of Russian universities shows the dominant role of information on intellectual capital in them, which can be accumulated only in the university's management accounting system, as well as about the incompatibility of reports that differ both in the content of the information provided and in the quality of its disclosure. In order to bring the Russian practice closer to the international one, we adapt the definition of “business model” to the specifics of the universities' activities. We propose to supplement the non-financial reporting of universities with a “financial model of the university”, which discloses information about how the types of capital consumed through educational, scientific and international activities are transformed into educational and scientific products. We have developed a template for presenting the financial model of the university. The results of the work contribute to further development of theory and practice of non-financial reporting by Russian universities, which will increase their competitiveness and sustainability of development.

Exploring Talent Management Practices and Corporate Social Responsibility in Finnish Companies

AbstractThe contemporary work landscape is characterized by rapid change and many evolving challenges. Therefore, companies are in increasing need for acquiring fresh knowledge and skills and human capital is acknowledged being a crucial asset for success in business world. The challenge persists in attracting, retaining and managing skilled employees. Though, the importance of corporate social responsibility (CSR) in talent management has been recognized, still there remains a gap in understanding how talent management is integrated into CSR of companies, particularly at the multilevel investigation level. A directed content analysis method was employed on CSR reports of 25 major Finnish companies to explore key talent management practices at normative, strategic, and operational levels, as well as the integration of talent management components into CSR reports. Normative values such as diversity, equity, and inclusion were consistently emphasized in the reports. However, the translation of these values into practical implementation often yielded abstract strategic principles rather than clearly defined operational practices. The companies have placed over reliance on standardized reporting methods rather than providing comprehensive insights into talent management practices.

Embracing certainty in uncertain times: Macroeconomic uncertainty, third‐party assurance, and CSR performance

AbstractOur study investigates whether macro‐level uncertainty on the future economic prospects, referred to as macroeconomic uncertainty, affects corporate social responsibility (CSR) performance. Two competing theories, namely, the real options theory and the risk management theory, offer different perspectives on whether firms would increase or decrease their CSR performance in response to macroeconomic uncertainty. Existing literature documents inconclusive empirical evidence about this matter. Employing a novel and unbiased measure of macroeconomic uncertainty and drawing upon data from U.S. firms between 2006 and 2017, we find that CSR performance is negatively associated with macroeconomic uncertainty. We also document that the negative association between macro uncertainty and CSR performance is attenuated for firms that have their CSR reports independently assured by third‐party experts. The results are robust to controlling for firm characteristics, an alternative measure of macroeconomic uncertainty, and an alternative sample period excluding the 2008–2009 Financial Crisis.

Can Crisis Periods Affect the ESG Reporting Scope? The Portuguese Euronext Entities Case

Portuguese companies are increasingly responding to the demand of stakeholders for transparent information about companies’ environmental, social, and governance (ESG) performance by issuing non-financial reports (NFRs). While the number of NFRs published annually has been increasing over the last two decades, their quality and companies’ ESG performance have been questioned, especially in times of crisis. To address these concerns, several jurisdictions have introduced mandatory NFR rules, such as the European Directive 2014/95/EU. Employing an institutional theory lens, this paper’s research objective is to evaluate whether the last decade’s crises and whether the fact that NFRs became mandatory for certain entities positively affected companies’ activities covered in the ESG reporting scope. We used panel data regression models on 45 listed companies in Portugal during the period 2008–2021. Our results show that the ESG reporting scope is not positively influenced by the transition from NFRs to a mandatory and global financial crisis (GFC). However, the COVID-19 crisis positively affected NFR quality. These results have major implications for practitioners, reflecting the importance of promoting these tools in an organization to improve non-financial performance and companies’ sustainability.

The implications of COVID-19 on ESG performance and financial reporting quality in Egypt

Purpose This examine the impact of environmental, social and governance (ESG) performance on financial reporting quality (FRQ) before and during COVID-19 in the Egyptian market. Design/methodology/approach This study uses quarterly data from 2017 to 2021 to draw conclusions, with a sample consisting of 486 firm-year observations for 27 Egyptian companies listed on the Standard and Poor’s/Egyptian Stock Exchange ESG index. This study uses both firms’ ESG scores and the Beneish Model, an earnings detection model, as proxies for FRQ. COVID-19 effects on ESG performance and FRQ were examined by using Pearson’s correlation coefficient and two-stage least squares. Findings COVID-19 has a significant impact on the link between ESG and FRQ. This implies that corporations with high ESG performance are less likely to manipulate earnings (having a low M-score) and thus provide high FRQ during the COVID-19 pandemic. Moreover, there is a significant positive relationship between firm size, leverage and M-Score, indicating that large firms typically present a high FRQ. Research limitations/implications The sample size and data availability are the main research limitations. Additionally, this study only considers the effects of firms’ ESG performance on FRQ during the COVID-19 pandemic. Thus, future research should consider other factors associated with investors’ corporate social responsibility (CSR). Practical implications This research has practical implications for market regulators seeking to establish a legislative framework and enhance guidance to mandate managers to provide ESG data and CSR reports appropriate for Egypt and other developing economies in times of crisis. Social implications Promoting the adoption of ESG practices in business, particularly during crises, has the potential to effectively provide high-quality and reliable financial reporting required for investment. Originality/value This study aspires to address notable deficiencies in the pertinent literature concerning the relationship between ESG performance and FRQ during COVID-19. To the best of the authors’ knowledge, little is known about how ESG performance changes in response to pandemics in emerging markets. To address this gap, this study examines the effects of COVID-19 on the relationship between ESG performance and FRQ in Egyptian-listed firms from 2017 to 2021.

Sustainable development goals disclosure and analyst forecast quality

PurposeThis study aims to investigate the relationship between corporate sustainable development goals (SDGs) disclosure and analyst forecast quality.Design/methodology/approachThe study focuses on a sample of 95 Italian-listed companies preparing the mandatory non-financial declaration (NFD) according to the Global Reporting Initiative (GRI) standards over a five-year period (2017–2021), corresponding to an unbalanced sample of 438 observations. Analyst forecast quality was proxied by earnings forecast accuracy (FA) and earnings forecast dispersion (FD), built on data retrieved from the Refinitiv database. A manual content analysis was performed on NFDs to derive an SDG disclosure score (SDGD) for each sampled company.FindingsThis study provides empirical evidence suggesting that voluntary SDG disclosure matters to the capital market in that it helps enhance the information environment of companies, evidenced by improved analyst forecast quality. In particular, this study highlighted that SDG disclosure positively influences analyst FA while negatively affecting analyst FD.Research limitations/implicationsThis study focuses on the Italian context, which has idiosyncratic characteristics regarding the structure of the financial market, the composition of corporate ownership and experience in non-financial reporting practices.Practical implicationsThis study indicates to corporate managers that following GRI standards may represent the right way to better integrate SDG disclosure in corporate non-financial reports and increase the relevance of such information for investors and other capital market participants.Originality/valueTo the best of the authors’ knowledge, this is the first study that empirically examines the association between SDG disclosure and analyst forecast quality.

EU regulations on reporting sustainable development as a determinant of limiting the environmental pressure of chemical enterprises in Poland

The period of validity of Directive 2014/95/EU, which imposed on enterprises the obligation to present non-financial information in separate non-financial reports, the so-called ESG was aimed to check its effects, complementary regulations and actual actions in the environmental area. Numerous works have analysed various aspects of non-financial reporting in the context of the directive, including several on ESG reporting in relation to air pollution emissions. However, it has not been examined yet whether there is a relationship between the level of reporting and the effects of pro-environmental activities in the context of the impact of regulations on it. A research gap in this area was identified, and therefore, the aim of the paper is to examine how selected chemical companies in Poland adapt to the EU guidelines on ESG reporting in the environmental dimension and whether it has an impact on reducing their pressure on the environment. The research period is 2010-2022, and the three-stage study used a quantitative-qualitative methodological approach. In the first and third stages, descriptive statistics and time series analysis methods were used. The second one includes methods such as content analysis, case analysis, GES Risk Rating, and expert analysis. The research carried out made it possible to conclude on the impact of non-financial reporting regulations on the environmental pressure.