Corporate Social Responsibility Disclosure Research Articles

CSR disclosure, financial performance, and ownership: evidence from China

PurposeThis study investigates the relationship between corporate social responsibility (CSR) disclosure and financial performance (FP), and ascertains whether ownership structure (OS) moderates the CSR disclosure–FP nexus.Design/methodology/approachWe distinctly employed the well-established approach of panel data analysis to examine the comprehensive dataset of Shanghai A-share listed firms from 2008 to 2017 with 20,236-full sample and 4,190-disclosed sample firm-year observations. To test the hypotheses, the study used panel regression analysis. The study used CSR disclosure as an explanatory variable and accounting-based performance measures: return on equity (ROE) and earning per share (EPS) as dependent variables. In addition, we used CSR score to determine the extent of disclosure by each firm and employed matched pair sample analysis to check for the robustness of the earlier obtained results.FindingsThe findings indicate significant positive association among CSR disclosure and CSR score with ROE and EPS. Further, the CSR disclosure–FP nexus is more pronounced when the OS moderates it.Research limitations/implicationsThe results of this study lack generalizability due to its unique setting. A limitation of this paper is that our sample period only covers 2008–2017. Future studies can extend our research to a more recent period to test whether our findings remain valid in other periods.Practical implicationsOur findings suggest stronger CSR disclosure measures to enhance the image of businesses in the eyes of stakeholders. The study findings are consistent and confirm the theoretical basis (stakeholder theory) that Chinese listed firms can be more beneficial from disclosing CSR related information, and they should put more emphasis on the improvement of CSR disclosure.Originality/valueThis research offers empirical evidence that sheds light on the importance of OS as the moderating effect on the nexus of CSR disclosure–FP measures. In doing so, this study’s findings contribute to the literature significantly, along with the regulators and shareholders.

The mediator effect of financial performance on the relationship between board of directors’ size and corporate social responsibility disclosure: a case study of Palestinian listed companies

The mediator effect of financial performance on the relationship between board of directors’ size and corporate social responsibility disclosure: a case study of Palestinian listed companies

Factors affecting the quality of accounting disclosures provided in the annual reports for Jordanian firms

AbstractThis study aims to cover the factors that affect Jordanian companies’ annual reports’ accounting disclosures within the country's regulatory framework. This study analyses the qualitative content of accounting disclosures in Jordanian service and manufacturing companies to ascertain whether Jordanian law affects the company's capacity to provide adequate disclosures to stakeholders and whether industry type affects disclosure quality. The content analysis results indicated that Jordanian firms are aware of the laws and regulations governing the preparation of annual reports. Still, corporate governance rules are insufficient. Furthermore, the results revealed that annual report preparers are committed to mandatory and voluntary but provide inadequate CSR disclosures. The findings showed that service firms outperform manufacturing companies in terms of paying attention to narrating events and taking action to reduce their impact. Multiple factors influence the quality of accounting disclosures in Jordan. As for a limitation, content analysis inherently involves some level of subjectivity in interpreting and coding data, which could introduce bias into the analysis. Nevertheless, conducting targeted studies on particular sectors within Jordan could yield valuable information regarding industry‐specific disclosure procedures and obstacles, which could be a future study.

Investigating the Disclosure of Corporate Social Responsibility in International Hotel Chains

This paper examines how international hotels communicate Corporate Social Responsibility (CSR) on their websites. In particular, this study employs a corpus-based discourse approach to investigate the content and language included in the CSR reports of two international hotel chains, Marriott and Hilton. The aim is to understand the type of information reported as well as the discursive strategies employed to promote CSR performance with regards to economic, social, and environmental issues. The findings reveal several common themes in Marriott and Hilton’s CSR reports, highlighting their commitment to sustainability, ethical behavior, and community involvement. The importance of diversity and inclusion, organizational supervision, and responsibility is emphasized in the reports. Both hotel chains prioritize supporting local communities and upholding social responsibility through charitable efforts and leadership development programs. Environmental sustainability is a key focus, with efforts to adopt sustainable practices in an attempt to achieve long-term environmental goals. Further research will include a wider range of international hotel chains and incorporate social media analysis to provide a more comprehensive understanding of CSR practices in the hospitality and tourism industry.

Do gender diversity and foreign investor affect sustainability disclosure

AbstractWe examine the effect of female board members and foreign institutional investors on corporate social responsibility (sustainability) disclosure in Indonesian listed firms from 2015 to 2017. Our final sample comprised 1192 firm‐year observations. We apply ordinary least squares pool regression to estimate the associations and address the endogeneity problem using the two‐stage least squares model, generalized method of moments, and lagged variables. While previous studies have focused on the impact of female board members and foreign institutional investors on financial outcomes, we extend the literature by investigating the association between both female board members and foreign investors and sustainable disclosure in Indonesia, where the participation of women is nominal, especially at the top management level, and the level of foreign ownership is high. Our findings propose a proportion of women as board members for listed firms and promote attractive policies to increase the number of foreign investors investing in Indonesia. It also contributes to conflicting results regarding the relationship between corporate governance and corporate social responsibility (CSR) commitment. Our results were robust after testing for endogeneity and adding more control variables. Overall, the findings have practical implications for policymakers and investors regarding corporate disclosure and governance in Indonesia.

What is the Impact of Economic Welfare on Social Responsibility Disclosure in Indonesian Manufacturing Companies?

This research was conducted to prove that the economic welfare of the community is related to and has an influence on the existence of corporate social responsibility activities. The findings in this study assume the existence of the Covid-19 as a period that has an impact on the global crisis. The effects of the global crisis caused companies to experience a decline in net sales, and policies on corporate social activities changed. This study tries to link the variables of public ownership and net sales of companies to disclosure of social responsibility and the economic welfare of the community. The sampling design in this study uses a list of manufacture companies included in the Kompas 100 index list for two consecutive years, namely 2020 and 2021, which is the period when the health crisis in Indonesia began. The results of this study are that the variables of public ownership structure and net sales index have a significant relationship with social responsibility disclosure. However, the disclosure of social responsibility is not significant to economic welfare. Public ownership brings the company more attention from the surrounding community. Meanwhile, sales growth is used as a company measure to satisfy company owners and benefit the community. With company policies that benefit the community, supporting the government improves economic welfare. Keywords: CSR disclosure, public ownership, net sales, economic well-being

Pengaruh Corporate Social Responsibility Terhadap Kinerja Keuangan Dengan Reputasi Sebagai Intervening

CSR performance will be better if the company has a good reputation, which basically has a positive relationship with the company's financial performance. The aim of this research is to determine the effect of CSR on financial performance and the company's reputation as an intervening agent. The method used is quantitative. Total observation in this study were 88. Datas were obtained from annual reports and were analyzed with IBM SPSS Statistics 26. The results of this research are (1) CSR disclosure has an influence on the company's financial performance. (2) CSR disclosure has no influence on the company's reputation. (3) Company reputation has a positive effect on financial performance

Moderating Effect Of Profitability In Disclosure Of Corporate Social Responsibility, Leverage, And Firm Size: Effect On Share Price

This research aims to examine the effect of Corporate Social Responsibility (CSR), leverage, and firm size on share prices in companies listed on the LQ45 index of the Indonesia Stock Exchange (IDX), with profitability as a moderating variable. This research uses a quantitative approach with a sample size of 20 companies over 7 years, namely 140 research samples obtained using a purposive sampling technique. This research uses secondary data collected through documentation method. The data analysis technique used is Partial Least Square Structural Equation Modeling (PLS-SEM) using SmartPLS 3.0 software. The test stages using PLS-SEM are divided into 3 stages, namely measurement model analysis (outer model), structural model analysis (inner model), and hypothesis testing. The results of the analysis in this study indicate that CSR disclosure, leverage, firm size and profitability influence the share prices of LQ45 index companies. Apart from that, profitability is unable to moderate the influence of CSR and leverage on the share prices of LQ45 index companies. However, profitability is able to moderate the influence of firm size on the share prices of LQ45 index companies.

Įmonių socialinės atsakomybės atskleidimo vertinimas didžiausiuose Lietuvos bankuose

The article examines the importance and regulation of corporate social responsibility disclosure. Based on the GRI standards and the recommendations of the Bank of Lithuania, the paper develops a methodology for calculating the corporate social responsibility index and a model for assessing its quality. The paper presents the results of an empirical study conducted to assess the disclosure of corporate social responsibility in the financial statements of the largest Lithuanian banks in the period 2018-2022. The results show that Lithuanian banks tend to disclose more than 91% of the recommended socially responsible information, while the quality of the reports, according to the selected criteria, reaches 64-82%. Nevertheless, it was noted that some banks do not produce CSR reports and publish group reports in languages other than Lithuanian. Some reports show signs of poor quality: the objectives are not specific and measurable and the textual information is repetitive throughout the study period.

Pengaruh corporate social responsibility disclosure terhadap kinerja keuangan dengan reputasi sebagai variabel moderasi

This study aims to determine the effect of corporate social responsibility disclosure (CSRD) on firm financial performance with corporate reputation as a moderation variable. It focuses on primary and secondary sector companies listed on the IDX in 2014-2022. The dependent variable is firm financial performance, measured using return on assets (ROA). The independent variable, corporate social responsibility disclosure, is measured using the GRI G4. The corporate reputation as moderation variable is measured using the number of awards obtained by the company. The control variables used are company size, leverage, and cash flow. The sampling technique used purposive sampling and obtained as many as 143 companies. This research uses quantitative data, and the method used is regression analysis using the STATA application. The results of this study show that CSRD has a significant positive effect on firm financial performance. These findings provide practical guidelines for companies, stating that it is essential for a company to implement CSRD practices and have a good impact on the company's financial performance, thereby guiding companies in their CSR initiatives.

How Corporate Governance Practices Influence the CSR in the Non-financial Sector of Pakistan An Empirical Study of Pakistan Stock Exchange

In the course of this research the variables such as Women Directors, Board Size, Board Independences, Ownership structure and Audit committee are taken into consideration and how these factors influence Corporate Social Responsibility (CSR) disclosures. The analysis is based on data taken from the Pakistan Stock Exchange (PSX) for the period 2010-17. The analysis technique such as Fixed Effect Regression model is used which is based on Hausman diagnostic test results. Where the result reflects a positive significant effect of AUDIT, BIND and WDIR on CSR disclosure, however the relationship between BS and OWN on CSR disclosure has not been established. Control Variables such as Profitability (PRFT), Firm Size (FS) and Leverage (LEV) are investigated in this study. Using fixed effect model correlation matrix, regression analysis and descriptive statistics are examined. Considering the non-financial sectors of Pakistan, the study determines that AUDIT, BIND and WDIR plays pivotal role while promoting CSR related activities. Furthermore, the insights gained from the present study explored the importance of Corporate Governance (CG) strategies to promote CSR, the outcome of the study can be a helping hand for the policy makers and corporate decision makers while devising effective governance strategies. The control variables such as FS, PRFT and LEV provide depth of understanding regarding the factors influencing CSR disclosure. In a broad sense, the current research enhances the scholarly discourse on CSR disclosure. The findings of the study give a roadmap for future research studies to fill the identified gaps and further improve CSR disclosure practices in non-financial sector of Pakistan.

Pengaruh Corporate Social Responsibility Disclosure Terhadap Financial Performance dengan Good Corporate Governance sebagai Variabel Moderasi

This research aims to analyze and obtain empirical evidence on the influence of corporate social responsibility (CSR) disclosure on financial performance in non-financial companies listed on the Indonesia Stock Exchange during the period 2018-2022, with corporate governance as a moderating variable. Corporate governance (CG) is measured using indicators of audit quality and the composition of independent board commissioners. This research utilizes secondary data from 859 non-financial companies listed on the Indonesia Stock Exchange during the period 2018-2022. The sampling method employed is purposive sampling, resulting in a total sample of 38 non-financial companies selected based on predefined criteria. The analytical method used is Moderated Regression Analysis (MRA). The findings indicate that CSR has a negative impact on ROE, while CSR does not affect EPS. Audit quality as an indicator of CG does not moderate the relationship between CSR and financial performance. However, the indicator of the composition of independent board commissioners moderates the relationship between CSR and financial performance measured by ROE, though it does not significantly affect financial performance measured by EPS

The Quality of CSR Disclosure: Effect of Environmental Performance, Slack Resources, and Sensitivity Classification

This study aims to analyze the influence of slack resources, environmental performance, and industry sensitivity on the quality of Corporate Social Responsibility Disclosure (CSRD) in Energy and Basic Materials sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2017 to 2023. Using a quantitative approach and explanatory research design, data was collected from annual reports, sustainability reports, and PROPER ratings from the Ministry of Environment. The results show that slack resources have a positive and significant effect on the quality of CSRD. Companies with higher slack resources tend to have better quality CSR disclosures. Environmental performance also has a positive effect on CSRD quality, where companies that achieve higher PROPER ratings show better CSR reporting. In addition, industry sensitivity has a positive effect on CSRD quality, which suggests that firms in environmentally sensitive industries tend to provide higher quality CSR disclosures to maintain legitimacy and reputation. Control variables Institutional Ownership and Company Size are not able to control the influence of the relationship between Environmental Performance, Slack Resources and Industry Sensitivity on the quality of Corporate Social Responsibility Disclosure (CSRD). These findings provide empirical evidence on the importance of slack resources, environmental performance, and industry sensitivity in improving the quality of CSRD, and offer valuable insights for corporate management and policy makers.

The Effect of GCG, CSR Disclosure, and Investment Decisions on Firm Value

Investors' opinion of a company's competence in resource management is known as firm value. Demand and supply factors in the stock market determine the firm's value, reflected in its stock price. According to investor opinions, a company's high worth is represented in both its present success and its prospects for the future. In general, a number of elements, including the stock market price, net income per share, the cost of capital, and assets and liabilities, define a company's worth. This research proposes examining the impact of managerial ownership, audit committee size, corporate social responsibility disclosure, and investment decisions on firm value. This is a quantitative descriptive study made applying purposive sampling. A total of 171 observations of property and real estate firms listed on IDX during three observation periods of 2020-2022. The data was analyzed using multiple linear regression. The study found that managerial ownership contributes positively to firm value, whereas investment decisions, corporate social responsibility disclosure, and audit committee size does not influence on firm value. This study emphasizes the importance of management ownership in efforts to raise a company's value by giving empirical data to support the application of the theory of agency and the theory of signaling in this research. It will also be expected to serve as input for the companies under review.

How and Why does a Business-to-Business Firm's Corporate Social Responsibility Disclosure Impact its Dependence on its Major Customers and Major Suppliers?

Prior research has documented that a firm's disclosure of corporate social responsibility (CSR) makes it a more attractive business partner, boosting its sales. The authors extend this finding to business-to-business (B2B) firms. Using a regulatory change in China as a quasi-natural experiment, they demonstrate that a firm's disclosure of its CSR lowers by 2.1% the firm's dependence (for sales revenue) on its major customers but raises by 3.7% its dependence (for purchases) on its major suppliers. They further show that the firm's production efficiency (marketing efficiency) is a mechanism underlying the effect of CSR disclosure on dependence on major customers (suppliers). Next, they demonstrate that the CSR report's emphasis on the firm's supply chain partners weakens (strengthens) the effect on dependence on major customers (suppliers). The findings contribute to the multidisciplinary evidence on the B2B value of CSR disclosure, and the operations and marketing literature streams on determinants of supply-chain dependence.

ESG and Environmental Performance: Multiple Mediation Models of Green Accounting and CSR Disclosure

Sustainability is a major theme in current academic research due to various issues such as the energy crisis, global warming, and environmental damage. This sustainability issue led to an increase in the role of environmental, social, and governance (ESG) in improving the quality of environmental management by companies. However, research on this topic is still limited with inconsistent findings. This study aims to examine the effect of ESG on environmental performance by using the mediating variables of green accounting and corporate social responsibility (CSR) disclosure. This study contributes by developing a multiple mediating model. The sample consisted of 114 firms-years observations of mining and manufacturing companies in Indonesia during the 2017-2022 period. The results show that ESG has a positive effect on the application of green accounting and CSR disclosure. Both mediation variables can improve environmental performance. In addition, ESG can also have a positive effect directly on environmental performance. These results provide empirical evidence of the importance of ESG implementation in the context of sustainability. The results of mediation testing show that CSR disclosure can act as a partial mediator so as to show support for signaling theory and the dominant role of impression management in environmental performance ranking.

CSR disclosure quantity to CSR disclosure quality – in pursuit of a disclosure quality index

PurposeStudies in corporate social responsibility (CSR) disclosure were initially focused more on disclosure “Quantity” than “Quality” and while they have started to explore “Disclosure Quality”, their assessment mechanisms are found to be immature. Thus, while a number of papers have sought to assess the quality of CSR disclosure, this paper aims to suggest an approach tied closely to both expectations in assessing “quality” derived from the Conceptual Framework for Financial Reporting (revised 2018) and the global reporting initiative. The outcome is to offer a best practice approach to assessing CSR disclosure quality.Design/methodology/approachIn this paper, prior literature is reviewed, qualitative characteristics from the Conceptual Framework for Financial Reporting (revised 2018) and globally recognised guidelines such as the GRI are reviewed. The framework for a “CSR disclosure quality index” as an assessment tool to assess CSR disclosure quality is developed from qualitative characteristics and criteria identified.FindingsThe proposed CSR disclosure quality index is developed in stages from the qualitative characteristics identified in the Conceptual Framework for Financial Reporting (revised 2018) and criteria identified from the guidelines discussed. A table was then developed linking the qualitative characteristics to criteria providing a Likert scale approach to assessing the disclosures made by companies to make an assessment of the quality of the companies’ reports. It is argued this provides a robust assessment, being a direct and comprehensive measure of disclosure quality.Research limitations/implicationsAs with most qualitative work, there are alternative approaches to establishing an index, but the authors believe this is an approach offering links (and, therefore, credibility) to globally recognised guidelines in the assessment of CSR disclosure quality. Future work could enhance the alignment of this index with the sustainable development goals (SDGs), building on the preliminary connections established in this study.Practical implicationsAt a practical level this index offers an approach to reviewing the quality of CSR disclosures which could prove useful to policymakers and in the future development and expansion of this framework offering greater objectivity to assessments and justification for proposed improvement in reporting practice. Also, this index serves as a benchmarking tool for companies to meet the disclosure expectations of stakeholders.Social implicationsThis approach has the potential to substantially fulfil stakeholder expectations by addressing the growing demand for transparency in this area, while avoiding practices that could be perceived as superficial or misleading (greenwashing). Focusing on social issues enables stronger connections between companies and their stakeholders. Furthermore, the index helps companies link their CSR efforts with SDGs and show their commitment to long-term social value building in discussion of governance factors to show accountability expectations are being met.Originality/valueThis paper contributes to CSR disclosure quality literature and provides a reliable method of assessing the quality of CSR disclosures. Opportunities for further and broader developments can be envisaged while offering a credible and reliable approach.

Determinants of Corporate Social Responsibility Disclosure: The Influence of Non-Financial Factors in Indonesian Energy and Pulp & Paper Industries

Determinants of Corporate Social Responsibility Disclosure: The Influence of Non-Financial Factors in Indonesian Energy and Pulp & Paper Industries

Faktor-Faktor yang Mempengaruhi Kinerja Keuangan dengan Moderasi Pengungkapan CSR pada Perusahaan di Industri Pertambangan Indonesia

The study aims for empirical evidence about the effect of managerial ownership, institutional ownership, and leverage as independent variables on dependent variable as financial performance with a moderating variable in the form of CSR disclosure in the mining industry listed on the Indonesia Stock Exchange for 2018-2022. Managerial ownership in this study is measured by dividing the number of managers who own shares in the company by number of ordinary shares outstanding. Institutional ownership in this research is measured dividing the number of institutions that own shares in the company by number of ordinary shares outstanding. Leverage in this study is measured by the Debt to Assets Ratio (DAR) which is calculated by dividing total liabilities by total assets. CSR Disclosure in this study is measured by dividing the number of CSR disclosed by total number of CSR. Financial performance in this study is measured by the Return on Assets Ratio (ROA) which is calculated by dividing net income by total assets. The total sample for this research was 10 companies, where the sample was selected using a purposive sampling method. This research data was analyzed using multiple linear regression analysis techniques processed with SPSS 23.0. The results of this research show that institutional ownership has a significant positive influence on financial performance and CSR disclosure is able to moderate the negative influence of institutional ownership and leverage on the company's financial performance, while managerial ownership and leverage do not have a significant influence and CSR disclosure is unable to moderate the influence of managerial ownership on financial performance.

Investigating the Factors Affecting Corporate Social Responsibility Disclosure in Islamic Banking Evidence from Egyptian and Kuwaiti Islamic Banks

Investigating the Factors Affecting Corporate Social Responsibility Disclosure in Islamic Banking Evidence from Egyptian and Kuwaiti Islamic Banks