CSR Reports Research Articles

Revised guidelines for sustainability reporting: readability and assurance

PurposeIn 2015, Bursa Malaysia Berhad (BMB) issued the first edition of the Sustainability Reporting Guide (SRG 1.0) to aid Malaysian public listed companies (PLCs) in preparing corporate social responsibility reporting (CSRR). After receiving users' commentaries, BMB issued the second edition of SRG (SRG 2.0) in 2018. Given the major amendments in CSRR regulatory guidelines, there is a need to analyze the readability of CSRR in light of the new guide and to investigate the combined effects of SRG 2.0 and the assurance of CSR information on the readability of CSRR.Design/methodology/approachThis study employs two readability indices to compare the readability of CSRR ex-ante and ex-post the implementation of SRG 2.0 across a sample of Malaysian PLCs that maintained their market capitalization among the top 100 companies.FindingsThe practical findings of the multivariate regression revealed that the readability of CSRR is reduced after the introduction of SRG 2.0. Meanwhile, the readability of CSRR is positively influenced by combining the effect of SRG 2.0 and CSRR assurance.Practical implicationsThis study provides empirical evidence that the amendment to CSRR has made CSR reports more challenging to read and thus reduces their communicative value. Therefore, in their quest to mandate more CSRR information from companies, regulators might need to consider advocating that such data is reported in a readable manner. This study also shows the influential role of CSR information assurance in enhancing the readability of CSRR.Originality/valueThis study helps assess the readability of CSRR among Malaysian companies after the adoption of SRG 2.0. It also contributes to the literature on CSRR, as the readability of such reporting within the context of Malaysia has not been widely examined in previous studies.

Development of Non-financial Reporting: the Case of Estonian Listed Companies

Non-financial reporting as "the way to disclose how companies operate and manage social and environmental challenges" is gaining popularity during last decade and is constantly changing field of study. Being non-mandatory for most companies the non-financial information is disclosed in the form of Environmental reports, CSR reports, Social activity reports, SDG and ESG reporting.
 During recent five years a growing body of literature has been discussing how the EU member states are ratifying non-financial reporting Directive 2014/95/EU (NFRD) (Camilleri, 2017), its impact on the quality of the non-financial reporting (Ottenstein et al., 2021, Schroder, 2022, Lippai-Makra et al., 2022).) and the importance for investors (Amel-Zadeh & Serafeim,2018). This directive requires large public interest entities with over 500 employees (listed companies, banks, and insurance companies) to disclose certain non-financial information. These changes seem to be challenging and require companies to review their compliance with the latest requirements.
 The aim of this study is to determine whether the Estonian listed companies have implemented the requirements of the NFRD and what are the major changes related to its enforcement as well as the preferred way of disclosing non-financial information. Authors have conducted a qualitative content analysis of non-financial information of companies in the period of 2015-2020. The sample of the survey includes thirteen companies listed on the main list of the Nasdaq Tallinn Stock Exchange as of 31.12.2021 as. Authors analysed non-financial information disclosed in the 78 reports of companies by selected areas on the basis of a unified valuation model. The main focus is on the content of the reports and on the changes that have taken place during the research period.
 The main findings revealed that in general companies have successfully complied with the requirements stipulated by the NFRD. The relevance, consistency and comparability of the information disclosed have improved over the years.
 In general, it can be concluded that mandatory requirements for the harmonization of non- financial information are important and contribute to the measurement and monitoring of the activities of companies and their impact on society and environment.

Corporate Social-Environmental Reporting and Firm Performance of Listed Firms in Nigeria

Financial performance and reporting of company social and environmental expenses were examined. Researchers and businesses throughout the world are increasingly interested in understanding the effect of corporate social and environmental spending on bottom line results. The analysis relied on information from the listed companies' financial statements from 2010 to 2019. Linear regression was used for the analysis in this study. Based on the statistics presented, it appears that CSR reports have a negative effect on the ROI that was originally targeted. Corporate social environmental spending reporting also has a detrimental effect on the mandated return on assets and earnings per share. According to the findings, Nigerian investors are less interested in firms that use their profits to benefit society than they are in those that generate a high return on investment and perhaps offer a sizable dividend. More education and awareness on the topic of corporate social and environmental performance of the firms was recommended in the study rather than focusing on the shareholder group that is more inclined towards the profit motive of the firm. This is because it could change the perspectives of investors to place a high value on firms that consider the needs of all stakeholders, especially the society and environment where they operate.

Assessing sustainability focus across global banks

Global banks play intermediary and even direct roles in achievement of the UN Sustainable Development Goals (SDGs). However, developmental progress is complex to measure due to siloed, varied and even non-transparent, ambiguous, non-standardized ways of calibration and reporting. This research explores public disclosures (sustainability, CSR, and annual reports, press releases, website, and others) of fifty banks across nine geo-segments over five calendar years (2018–2023). Inductive methods, co-word assessments, content analysis are deployed to develop qualitative commentaries indicating geo-specific performances of the banks. The research findings indicate goal-specific attribution and discovery of motives and initiatives. This validates how motives in embracing the SDGs vary and relate to achievement of – (A) core business objectives; (B) support and financing of other industries, organizations, and governments in sustainable initiatives; and (C) corporate citizenship, altruistic and ethical considerations. Methodological approaches to calibrate findings across seventeen SDGs help identify benchmark practices, understand complementary actions, and required focus for banks and other industries. This is relevant to geo-specific sustainability challenges, trade-offs, and requirements. The findings can guide public policies and regulations, empower banks and other institutions to accelerate awareness and evaluate effectiveness towards sustainable developments.

Presentation of social responsibility reports and the stock price crash risk

This study explores the relationship between the presentation forms of CSR reports and the stock price crash risk. It is found that the higher the proportion of image area and richer the color of CSR reports, the higher the future stock price crash risk. CSR reports presentation form affects the stock price crash risk through stock liquidity and investors' expectations of the company's future performance. These results indicate that presentation format in social responsibility information disclosure is mainly one of the tools used to build a positive corporate image.

Can the Sustainable Development Goals support nexus thinking in companies? The case of water

AbstractMany initiatives and targets have been developed to address the unsustainable consumption of resources that consider the interconnected impacts and trade‐offs that exist between different resources that are critical for the functioning of human societies and economies. Despite efforts to engage with the business sector to achieve these aims, there lacks sufficient integration of globally agreed targets (such as the United Nations Sustainable Development Goals) into business operations, and even less is understood on how these goals translate into management processes. Using a case study of water, and a consideration of the Water‐Energy‐Food‐Ecosystem (WEFE) nexus, this paper looks at the public communications made by FTSE 100 companies via their annual and CSR reports, identifying that where present, water management disclosures remain in silo and are not explicitly linked to global sustainable development goals.

Evaluation Study on the Level of Social Responsibility Accounting Disclosure of Huaxi Biologicals

Enterprises in the development process should not only be committed to the development of business activities, but also must take up the huge impact on the social economy and nature produced with the development and growth of the company, and assume responsibility for society. This paper takes Huaxi Biological as the research object, analyzes the form and content of the disclosure of corporate social responsibility information in the medical industry based on the table of corporate social responsibility information scoring system of the medical industry, and finds that there are problems such as the lack of indicators, unbalanced disclosure, and incompleteness of Huaxi Biological's CSR report, etc. Finally, this paper puts forward suggestions from the three levels of the disclosure system, indicators, and regulation with the aim of promoting China's medical industry social responsibility disclosure's overall sustainable development.

Corporate Social Responsibility and Enterprise Performance: The Chain Mediating Effect Test Based on Corporate Reputation and Brand Value

Corporate social responsibility (hereinafter referred to as “CSR”) sometimes does not directly affect enterprise performance but through some mediator variable. Corporate reputation and brand value have chain-mediating effects in the influence mechanism of CSR on enterprise performance. Theoretically, this paper broadens the scope of study on CSR and enterprise performance, deeply explores the internal mechanism between them, and opens the “black box” in the process of transforming CSR into enterprise performance. Practically, it can encourage Chinese enterprises to actively undertake CSR, strengthen reputation management, enhance brand value, and finally promote the sustainable development of enterprises. A-share listed companies (listed companies in the Chinese A stock market) in Shanghai and Shenzhen stock exchanges from 2008 to 2020 in “China’s 500 Most Valuable Brands List” by World Brand Lab are studied in this paper. The results of the empirical study based on relevant data show a significant positive relationship between CSR and enterprise performance. It investigates the mediating chain effects of corporate reputation and brand value in the influence of CSR on enterprise performance. Listed companies must disclose the annual CSR report. CSR reports as an effective supplement to corporate financial information, which provides an important communication channel for the enterprise and stakeholders. Stakeholders can timely understand their rights and interests through the CSR information and have a more comprehensive and deeper understanding of enterprises. In turn, the enterprise can also win a good reputation, establish a good brand image, and get sustainable development.

Non-Financial Disclosure Policies and Their Influence on the Investor Behavior in NYSE-Listed Financial Firms

A country’s accounting and disclosure system is part of its financial system and more generally its institutional infrastructure. Economic theory suggests that, in well-functioning economies, the elements of the institutional infrastructure evolve to fit and reinforce each other. Thus, the accounting system is likely to be geared towards the informational and contracting needs of the key parties in the economy. Due to the existence of private information channels, financial statements are less important in terms of monitoring economic performance and assume other roles, such as determining dividends. However, for this reason, arm’s length or outside investors relying primarily on public disclosures are not as well informed in the German system as they are in Anglo-American economies. Since 2005, listed German groups have been required to prepare their consolidated accounts under International Financial Reporting Standards, IFRSs. The study was a literature based which sought to empirically assess the effect of voluntary non-financial disclosure on performance of financial firms listed on NYSE, United States. The study established that Non-financial reporting by German companies has long been a voluntary matter. As of fiscal year 2017, the CSR Directive Implementation Act makes it mandatory for some 500 large German companies. Non-financial reporting by German companies has long been a voluntary matter. Since the early 2000s, German companies have published non-financial information mostly as CSR or sustainability reports. Publishing comprehensive non-financial information will be mandatory as of fiscal year 2017 for some large German companies as a result of the CSR Directive Implementation Act. The CSR Directive Implementation Act obliges large companies of public interest, in particular, capital market-oriented companies, credit institutions, and insurance companies to publish non-financial information. The study concluded that since stock volatility is linked to information asymmetries and to a higher risk of a company, this analysis implies certain practical implications for both managers and regulators regarding the importance of specific disclosure strategy in capital markets. The study also concluded that the level of disclosed information, the interpretation and the effectiveness of forward-looking information depends on the reputation of a company. Companies disclosing nonfinancial information through sustainability reporting practices provide markets with data on their social, environmental, and governance performance. The study recommended that there is need to have a proper execution of regulatory framework which in turn increases the proper governance disclosures leading to an effective management system. Keywords: Voluntary, non-financial disclosure, performance, financial firms, listed NYSE, United States.

Managers’ aspirations and quality of CSR reports: evidence from China

This study aims to investigate the potential impact of peer firms on the quality of CSR reports produced by the focal firm. By combining insights from the behavioral theory of the firm and existing literature on aspirations, this paper proposes that the aspiration levels of managers regarding CSR reporting play a crucial role in determining the quality of CSR reports. Specifically, it is suggested that the quality of CSR reports is likely to improved when the current level falls short of managers’ aspirations for CSR reporting. Conversely, when the current quality of CSR reports surpasses managers’ aspirations, it is expected to decline. Additionally, this paper proposes that this effect will be stronger when the owner of the firm is government or the firm’s visibility is high. Using a comprehensive panel dataset covering Chinese listed firms with A‐shares from 2012 to 2018, the empirical findings strongly support these arguments.

The Evolution of the Sustainability Story: Strategic Sustainability Communication as Niche Construction

ABSTRACT In this article, the evolutionary perspective is applied as a heuristic to explore strategic sustainability communication as communicative niche construction at the intersection of organizations and their environment over the past decades. Within the sustainability story and frames that organize the narratives, corporates as ‘species’ not only adapt to their constantly changing environment (communicative cultivation of new values within the organization) but also impact their environment, change cultural patterns, and co-construct their own socio-ecological niche (niche construction through communication). The evolution of the strategic sustainability story can be observed in the development of corporate non-financial reporting over the past three decades. This article utilizes a mixed-methodologically designed content analysis of a sample of (n =) 250 “Environment(al) Reports” from the 1990s, later entitled as “CSR Reports” (2000–2015), and today as “Sustainability Reports”. The sample has been taken from 15 internationally operating energy corporates within a time span of 30 years. After the theoretical conceptualization, the methodology and the findings of the study are presented along with a discussion of the limitations of the analysis. Finally, future potential of the evolutionary psychology approach to study and conceptualize strategic communication and of transposing the framework of biological niches to the corporate world, is discussed.

Prosperity with Sugar: A Strategy for Sustainable Livelihoods for Coconut Sap Farmers in the Pendekar CSR Program

This article aimed to describe the sustainable livelihood strategy of coconut sap farmers in the PT Pertamina Patra Niaga Fuel Terminal Maos CSR Program of Karangsari Sap Tappers /Penderes Badeg Karangsari (Pendekar) in Karangsari Village, Adipala District, Cilacap Regency. The method employed in this study was qualitative with a theoretical approach to CSR, empowerment, and sustainable livelihoods. Informants in this study were determined by purposive sampling, which included 5 farmers and members of the Nira Cahaya Sejahtera Cooperative. The primary data was gathered through observation and interviews. while secondary data were obtained from CSR reports, related journals, and mass media which were then reduced and categorized based on certain themes and validated through triangulation. The results of this study indicate that 1) Coconut sap farmers in Karangsari Village already have the basic capital to survive by utilizing natural resources, specifically coconut trees which grow abundantly in Karangsari Village with a total area of 20 hectares. 2) The company provides assistance with five assets, including natural capital, human capital, financial capital, social capital, and physical capital in the coconut sap farmer empowerment Pendekar Program. 3) the SROI value for the Pendekar Program received by the company was 1: 2.33.

Does stringent environmental regulation render greener CSR reports?

ABSTRACT This study examines the effects of stringent environmental regulations on the greenness of social responsibility reports. Based on China’s thirteenth Five-Year Plan, we find that firms are inclined to use more green keywords in their CSR reports when being subject to more stringent emission reduction policies. This effect is more pronounced among state-owned and strictly monitored companies. Nevertheless, firms are less engaged in taking substantive environmental actions, highlighting the inconsistency between words and actions.

Corpus analysis of evaluative language and framework implementation for pharmaceutical industryCSRreports

AbstractCorporate social responsibility (CSR) is a concept, where organizations can store and maintain environmental, economic and social issues by including social or environmental concerns. This research intends to map out the features of evaluative language used by pharmaceutical industry CSR reports and figure out how evaluative meaning assists companies in communicating with stakeholders and narrowing the legitimacy gap, to be in a status congruent with societal expectation. An integrated analytical framework and the Three‐Domain Model of CSR is created to fulfill the research objectives. This study primarily examines the characteristics of evaluative language with the use of two sets of self‐built corpora that include CSR reports from pharmaceutical companies that must maintain and repair their legitimacy; the study reveals that report authors usually use more resources with a positive attitude to evaluate themselves whereas negative resources are only adopted to characterize others. Statistics demonstrate a considerable difference in the utilization of affect resources, although CSR reports in both organizations embrace appreciation resources as the primary means of maintaining or repairing their legitimacy. Finally, by borrowing the Three‐Domain Model of CSR, the results also show “ethical” responsibility as the focused area in pharmaceutical industry CSR reports.

Untangling the Meaning of Photos in Corporate Social Responsibility Reporting

This study aims to identify and analyze the meaning of photos in sustainability reports. Visual content analysis was used to determine the motives for using 1823 photos contained in 19 sustainability reports and 24 annual reports of mining companies. Mining companies are vulnerable to conflict because of the environmental pollution they cause; consequently, their legitimacy is threatened. The findings show that 32.58% of the total photos are community-related. Most photos depict the company's relationship with surrounding community groups. In addition, the company's CSR reports include several photos related to the environment, such as unpolluted nature. This is done in an effort to increase the company's legitimacy. Regarding employment practices and decent work, more photos of men than women are displayed, indicating that the mining industry is male-dominated. These findings provide a framework for informing and persuading stakeholders to appreciate the information presented in photographs.

ESG, R&D and Brand Value: Taking the Chinese Listed Companies of 3C Equipment Manufacturing Industry

Taking the listed 3C industries as research samples, this paper discusses the impact of corporate R&D investment on brand value and further explores the moderating role of corporate social responsibility in the relationship between the two. The results show that 1) Except for the companies with low brand value, R&D investment, and ESG performance have positive and significant effects on overall brand value, while the intersection of innovation performance and ESG has no significant effect on brand value. 2) CSR performance and active disclosure of CSR reports are beneficial to brand value at the early stage of brand value building.in terms of overall brand value, the input and output of corporate innovation activities and ESG performance have a significant positive correlation with brand value, but ESG performance has no moderating effect between corporate innovation and brand value. For sample companies with low brand value, R&D investment has no significant impact on brand value. Based on the above research results, this paper also puts forward corresponding suggestions.

Mission Accomplished? Balancing Market Growth and Moral Legitimation in the Fair Trade Moral Market

Mission Accomplished? Balancing Market Growth and Moral Legitimation in the Fair Trade Moral Market

Corporate Social Responsibility Practices in the Energy Industry — Trends of Change

ABSTRACT The purpose of the article is to analyse and evaluate corporate social responsibility practices as a response of companies to the expectations of a wide range of stakeholders. In the article, the authors perceive CSR practices as a way of conducting market activities in accordance with the expectations of stakeholders, with those not being a one-time act but a continuous effort to improve the areas of the company’s environment requiring support and the entity selected for analysis-which is a Polish energy industry capital group-Energa Group. It is a large entity whose activities can significantly and, in many ways, affect the environment. The analysis was based on secondary sources, including, in particular, the cyclical CSR reports and non-financial reports of the Energa Group. The research results show the trends of changes in CSR practices in the analysed company over the last 10 years (2011–2021), which can be used in the formulation of subsequent CSR programmes of the Energa Group and provide inspiration for other entities.

Multinational corporations and sustainable development goals: an interventionist approach toward quality tertiary education in Nigeria’s case study (Etisalat)

The central argument of this paper was to examine the intervention of Multinational Corporations toward improving tertiary education. Tertiary education in Nigeria is undoubtedly challenged; among these issues are inadequate funding and mismanagement of funds, infrastructural problem, and ongoing strike by university lecturers. A qualitative method of data collection and analysis was used for the study. Interviews were conducted, and NVivo software was utilized in the transcription, coding, and analysis of data from the interview. This was supported by the secondary data, including journals, relevant books, periodicals, newspaper reports, internet sources, government releases, and CSR reports. The findings reveal that per Sustainable Development Goals for education (SDG 4: Quality Education), Etisalat has considerably improved Nigeria’s Tertiary education. This includes the Etisalat telecommunications engineering postgraduate program. The scholarship was also provided for university lecturers to improve their capacity. It has empowered the local lecturers to learn cutting-edge competence in telecommunication engineering. Since its inception, the merit scholarship award has improved the knowledge of STEM among Nigeria’s tertiary institutions. This study adds to the literature on the role of non-state actors, especially Multinational Corporations, in developing the education sector in Nigeria and achieving sustainable development goals around the globe.

Earnings management and CSR report tone: Evidence from China

AbstractThis study explores whether and how the management manipulates the tone of CSR reports to greenwash earnings management. Using the dataset of Chinese A‐share companies that published CSR reports over period 2007–2017, we discover that corporates with higher abnormal discretionary accruals and those with zero or slightly positive earnings changes are likely to release CSR reports with a more optimistic tone. Additional analyses show that this greenwash behavior is stronger when the management manages earnings upward than downward. Furthermore, the supplementary association between CSR report tone and earnings management is reduced in firms with assured CSR reports, lower financing demands and equity issue, higher accounting conservatism, as well as a better information disclosure environment, whereas the relationship is not correlated with the manner of the reporting disclosure. This study reveals that managers strategically employ CSR report tone to hide earnings management and shape stakeholders' expectations, and provides insights into both qualitative and quantitative disclosure literature.