Corporate Social Responsibility Information Research Articles

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.

Closed-loop supply chain decision making and coordination considering channel power structure and information symmetry

China is currently undergoing a phase of high-quality development, with increasing emphasis on the circular economy, energy conservation, and environmental protection by both the government and enterprises. This paper examines a secondary supply chain comprising manufacturers and retailers, focusing on three supply chain decision-making models: one where the manufacturer is the channel leader, one where the retailer is the channel leader, and one where both parties have equal power. The study investigates the impact of manufacturers misrepresenting their Corporate Social Responsibility (CSR) information and the challenges associated with recycling efforts on the optimal performance of the supply chain. The findings reveal that when manufacturers lead the supply chain, they do not misrepresent their private information. However, when retailers dominate, manufacturers tend to underreport their CSR levels and the difficulty of recycling efforts. In scenarios where manufacturers and retailers have equal power, manufacturers do not misreport the difficulty of recycling but do underreport their CSR levels. This misreporting benefits the manufacturers at the expense of retailers and overall supply chain profitability, while also discouraging the recycling of used products. Across all three power structures, the study shows that retailers’ marketing efforts decrease as the misrepresentation of recycling difficulty increases, and increase as the misrepresentation of CSR levels increases. To mitigate the effects of manufacturers’ misreporting under information asymmetry, the paper proposes revenue-sharing contracts and two-part pricing contracts to coordinate the closed-loop supply chain under different power structures. Both contracts are shown to achieve Pareto improvements within the supply chain. This research provides valuable insights for enterprises operating within closed-loop supply chains, highlighting the importance of enhancing communication and cooperation to bridge information gaps and ensuring the coordina.

Can enhanced CSR quality reduce the cost of debt capital? An empirical analysis of CEO expertise and non-financial reporting practices in China

This study aims to investigate whether stockholders and creditors place a positive value on corporate social responsibility (CSR) information disclosure when making decisions about providing financing to firms, thereby influencing their investment choices. Utilizing data from the China Stock Market & Accounting Research Database (CSMAR) and HEXUN, the study analyzes CSR disclosures and financial data of 7,123 firm-year observations of A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2012 to 2020. A comprehensive methodology involving regression analysis was applied to assess the relationship between CSR quality and the cost of debt capital. Various robustness tests, including different model specifications and alternative variable measurements, were conducted to ensure the reliability and validity of the findings. The results obtained indicate that higher CSR quality significantly correlates with a lower cost of debt capital, supporting the hypothesis that improved CSR disclosure reduces perceived credit risk. However, CEO financial expertise shows a significantly positive relationship with the cost of debt capital. Furthermore, the study reveals that CSR assurance and engagement with Big 4 accounting firms do not noticeably affect the price of debt capital, whereas mandatory CSR reporting does. The findings underscore the importance of CSR quality in financial decision-making, offering valuable insights. AcknowledgmentThis paper is co-funded by the European Union through the European Education and Culture Executive Agency (EACEA) within the project “EU Best Practice of Life Cycle Assessment, Social, Environmental Accounting and Sustainability Reporting” – 101047667-ERASMUS-JMO-2021-MODULE https://jm.snau.edu.ua/en/eu-best-practice-of-life-cycle-assessment-social-environmental-accounting-and-sustainability-reporting/ Oleh Pasko expresses sincere gratitude for the support from the Kirkland Research Program, generously provided by the Leaders of Change Foundation established by the Polish-American Freedom Foundation.

Mulheres no Conselho de Administração e a divulgação de gênero à luz da Teoria do Tokenismo

The study examined the impact of minority representation, specifically women on corporate boards, on disclosing gender-related Corporate Social Responsibility (CSR) information. Data from 2,199 companies across 52 countries during 2010-2017 were analyzed. Using the Tukey-Kramer Post-Hoc test and pooled OLS regressions, the study revealed that a significant female presence positively influences gender-related CSR disclosure when it reaches a certain threshold. Conversely, in boards with low female representation, CSR disclosure is limited. The study contributes by discussing the importance of the presence of minority groups on the board of directors, relying on the Tokenism Theory. Furthermore, it supports the improvement of public policies for minorities and encourages conduct that seeks equal representation of women on boards.

The impact of earnings opacity on corporate social responsibility: insights from Vietnamese listed firms

PurposeThis paper studies the association between earnings opacity and corporate social responsibility disclosures of firms listed on the Vietnamese Stock Exchange.Design/methodology/approachWe utilize a dataset comprising a sample of all listed Vietnamese firms for the period of 2014–2022. Data regarding corporate social responsibility information are gathered manually. Following Dechow et al. (1995), Kothari et al. (2005) and Bhattacharya et al. (2003), earnings opacity is measured by using three proxies, including abnormal accruals, earnings smoothing and loss avoidance. Our hypothesis was tested via ordinary least squares (OLS) regressions. To address endogeneity problems, we use the two-stage instrumental variable method (IV-2SLS) as well as the generalized method of moments (GMM) to ensure the robustness of our results.FindingsWe find that earnings opacity is positively related to corporate social responsibility disclosures. Cross-sectional analyses indicate that managers of firms disguise their opportunistic behaviour by disclosing more information about corporate social responsibility. The evidence also shows that firms experience long-run underperformance when having higher earnings opacity and greater sustainability disclosures. Our results remain robust even after correcting for endogeneity using the IV approach and the GMM method.Practical implicationsEvidence from this study can serve as a warning signal to the investment community, highlighting that some methods aimed at enhancing a firm’s corporate social responsibility disclosures might be used to obstruct other unethical activities. Moreover, the results of this study can help regulators gain a better comprehension of firms' reporting patterns concerning corporate social responsibility initiatives. It should not only reform the corporate social responsibility regulation but also impose stronger litigation for firms to enhance the quality of corporate social responsibility disclosures.Originality/valueWe are the first to present evidence regarding the relationship between earnings opacity and corporate social responsibility disclosure in Vietnam.

STRUCTURAL ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY REPORTING: THE CASE OF MOROCCAN FIRMS

In business landscape, companies attempt to meet stakeholders’ expectations by publishing their corporate social responsibility (CSR) information in specific reports. In fact, CSR reports encompass a set of information related to companies’ sustainable actions, approaches, and motivations. CSR reporting readability is an important issue to handle at the corporate level in order to leverage companies’ sustainable disclosure. This article investigates CSR reporting to identify specific categorizations and structures related to published CSR information of listed stocks. Mixed research methods are applied to a sample of 58 Moroccan companies that have the CSR label. First, content analysis was conducted for each organization’s CSR annual report. Second, multiple correspondence analysis was conducted to detect specific associations and structures in CSR reporting. Our findings highlight that companies communicate more concisely and completely when they perform social actions based on a value creation approach and under normative motivations. The results shed light on companies’ awareness of integrating CSR dimensions into their corporate disclosure. This study contributes to the literature by highlighting the extent to which CSR reporting structures could be used as indicators of the complexity and readability quality of companies’ sustainability reporting. It could serve as a tool to assess companies’ social and environmental engagement and reputation.

Corporate Social Responsibility Disclosure Quality and Firms’ Investment Efficiency: Evidence from Chinese Listed Companies

In China, where the corporate social responsibility (CSR) process is relatively underdeveloped, the government has promulgated a series of laws and regulations on CSR disclosure in recent years to promote the sustainable transformation of the economy. Using data from A-share listed Chinese firms from 2009 to 2021, this study empirically examines the relationship between CSR disclosure quality and firm investment efficiency in China. The results indicate that (1) improvements in CSR disclosure quality significantly mitigate firms’ underinvestment and overinvestment, thereby enhancing investment efficiency. (2) Further analysis shows that high-quality CSR information also promotes investment efficiency by reducing agency costs and financing constraints and improving media evaluations of firms. (3) A heterogeneity analysis suggests that the positive effect of CSR disclosure on investment efficiency is stronger for firms with lower equity incentives, more severe financing constraints, and higher media attention. Our study extends the understanding of the mechanisms through which CSR disclosure affects firms’ investment efficiency, potentially providing insights for research in related fields and guiding future CSR disclosure practices in other developing countries.

The Influence of Financial Self-efficacy on Financial Inclusion in Tanzania

This study investigates how Corporate Social Responsibility (CSR) information is communicated on the websites of tourism firms in Tanzania. Specifically, the study assesses the quantity, prominence and style of presentation of CSR information on the websites. Data was collected through a content analysis of the websites of the member firms of the Hotel Association of Tanzania (HAT) and Tanzania Association of Tour Operators (TATO). The findings reveal that about 50% of tourism firms disclose their CSR information on their websites. Also, about 57% of tourism firms disclose a minimal amount of CSR information (1 to 2 pages), 31% place their CSR information prominently on the homepage, 54% present their CSR information using textual format only and 38% of websites allow interaction with stakeholders for inquiries and feedbacks. Moreover, the study highlights that hotels are more effective in utilizing websites for CSR communication than their tour operators, suggesting that firm size and industry subsectors influence variations in CSR communication practices. The findings imply that tourism firms in Tanzania recognize the crucial role of websites in corporate communication including CSR communication. However, tourism firms need to improve their CSR web communication by enhancing the volume, prominence, multimedia-rich content and interactivity of web-based CSR communications. Further research focusing on specific subsectors and exploring strategies for enhancing CSR communication on tourism websites could provide valuable insights.

Corporate Social Responsibility Communication on the Websites of Tourism Firms in Tanzania

This study investigates how Corporate Social Responsibility (CSR) information is communicated on the websites of tourism firms in Tanzania. Specifically, the study assesses the quantity, prominence and style of presentation of CSR information on the websites. Data was collected through a content analysis of the websites of the member firms of the Hotel Association of Tanzania (HAT) and Tanzania Association of Tour Operators (TATO). The findings reveal that about 50% of tourism firms disclose their CSR information on their websites. Also, about 57% of tourism firms disclose a minimal amount of CSR information (1 to 2 pages), 31% place their CSR information prominently on the homepage, 54% present their CSR information using textual format only and 38% of websites allow interaction with stakeholders for inquiries and feedbacks. Moreover, the study highlights that hotels are more effective in utilizing websites for CSR communication than their tour operators, suggesting that firm size and industry subsectors influence variations in CSR communication practices. The findings imply that tourism firms in Tanzania recognize the crucial role of websites in corporate communication including CSR communication. However, tourism firms need to improve their CSR web communication by enhancing the volume, prominence, multimedia-rich content and interactivity of web-based CSR communications. Further research focusing on specific subsectors and exploring strategies for enhancing CSR communication on tourism websites could provide valuable insights.

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.

Corporate Social Responsibility and Financial Information Quality

Corporate social responsibility has gained increasing popularity among managers and investors. Many firms commit significant resources and consider CSR as a part of their long-term strategic plan. Whether corporate social responsibility affects corporate financial information quality has been an important question. Using a big sample of corporations in the U.S., I study the relationship between corporate social responsibility (CSR) and corporate financial information quality. I find a significant and positive relationship between CSR and financial information quality. This relationship is robust to potential endogeneity concerns. These findings have important implications for financial disclosure, CSR, and corporate strategy.

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

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

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

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

The Impact of Company Field Trips and Representative Image on Students’ CSR Knowledge Sharing Intentions

This study examines the effect of company field trips on Vietnamese university students’ corporate social responsibility (CSR) awareness and their intentions to share CSR-related content. Utilizing pre- and postvisit surveys among 136 students, the research reveals that these trips significantly enhance students’ understanding of CSR, particularly its ethical dimensions, and encourage them to share CSR information through social media and word-of-mouth. The research also finds that the perceived image of the company representative plays a critical role in shaping students’ intentions to disseminate CSR information, with complex interactions affecting their overall CSR perceptions. These findings underscore the importance of field trips in CSR education and suggest that both companies and educational institutions should focus on ethical and legal aspects of CSR communication to maximize its impact.

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

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

Sustainable threads: analyzing the impact of corporate social performance, CSR message authenticity and information transparency on purchase intentions

With the deepening exploration of the study on corporate social responsibility (CSR), CSR has progressively gained significance for enterprises. This study aims to analyze the impact of fashion companies’ information disclosure on the intention of Chinese consumers who purchase clothing by providing information related to the environment, suppliers, manufacturing processes, and pricing. An experimental study was conducted using stimuli on 412 consumers in Shandong Province, China. The research results are as follows. First, it was found that consumers’ perception of Corporate Social Performance (CSP) has a positive effect on the authenticity of Corporate Social Responsibility (CSR) message and consumers’ subjective norms. Second, CSR message authenticity and consumer subjective norms mediate the perception of CSP in the process of leading to purchasing activities. Third, consumers perceive the authenticity of a company’s CSR activities according to the degree of transparent information disclosure of the cost and manufacturing process of its products. This study shows that the CSR information provided by the company is authentic depending on the degree of CSR information transparency of the company, and that it leads to a purchase intention when consumers judge that the company’s CSR activities are authentic. Accordingly, it is suggested that many fashion companies’ CSR activities lead to product purchases when they are continuously conducted on environmental, social problems, and transparency in the production process.

Firm Characteristics and Corporate Governance Mechanisms as Drivers of Corporate Social Responsibility Disclosure in Zimbabwe

This study extends the literature on the determinants of voluntary disclosure of corporate social responsibility (CSR) in a sample of 61 annual reports from the Zimbabwe Stock Exchange for the year ended 31 December 2020. The purpose of the study is to determine why firms voluntarily disclose CSR and whether corporate governance mechanisms have an impact on firms’ disclosure policy. An unweighted disclosure index consisting of 30 corporate social responsibility attributes was developed; using content analysis to determine the level of corporate social responsibility disclosure. The results show that corporate social responsibility disclosure is low, with the most corporate social responsibility information disclosed being community involvement disclosure (40%), followed by environmental disclosure (30%), products and consumer information disclosure (29%), and human resources disclosure (28%). In addition, using multiple regression analysis and after accounting for size, leverage, profitability and industry, the findings indicate that board independence and board of directors’ qualifications have a significant positive influence on corporate social responsibility disclosure whereas ownership concentration was found to be insignificant. With the exception of profitability, all other firm characteristics, leverage, firm size and industry sector were positive and significant in explaining the variation in corporate social responsibility disclosure. It appears that profitable firms are not motivated to increase corporate social responsibility disclosure. This may be consistent with the shareholder wealth maximization approach which renders corporate social responsibility disclosures as less important. Financial markets in Zimbabwe may not be sufficiently efficient in penalizing firms for incomplete corporate social responsibility disclosure and that regulators may need to mandate such disclosures if information asymmetry is to be reduced and market efficiency enhanced.

Toward a library corporate social responsibility model: An empirical study

The purpose of this study is to develop a model for corporate social responsibility (CSR) in libraries. This study seeks to fill the gap in the literature regarding empirical studies on the factors influencing the social responsibility of public and academic libraries in the United Arab Emirates (UAE). A quantitative study was conducted to examine the intention to adopt CSR in UAE libraries using the Partial Least Squares Structural Equation Modeling Path Model Assessment. The process included an assessment of the measurement model and an assessment of the structural model. An online survey was conducted using a questionnaire, and data were gathered from 237 valid responses to validate the structural model of this study. The relationships among the variables and the most influential factors were determined using Importance-Performance Matrix Analysis. The results support significant relationships between activities and events, outreach, professional ethics, employees’ relationship, health and safety, partnerships, user issues, and reporting and library corporate social responsibility (LCSR). The study found that the most important factors in LCSR are employees’ relationships and professional ethics. The proposed model can help libraries to apply social responsibility that fits the nature of libraries. The theoretical framework and methodology used in this study could be useful for researchers in the fields of CSR and library and information science.

Employment protection and environmental corporate social responsibility: Evidence from China

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

A comparison of analysts’ and investors’ information efficiency of corporate social responsibility activities

Purpose This paper aims to examine the extent to which sell-side analysts efficiently incorporate firms’ corporate social responsibility (CSR) activities into their earnings forecasts. In addition, this paper also investigate the CSR information efficiency of analysts vis-à-vis that of investors. Design/methodology/approach This paper measures CSR activities by using CSR strength and CSR concern scores from the Morgan Stanley Capital International Environmental, Social and Governance database. This paper uses analysts’ earnings forecast errors and dispersion as proxies for their information efficiency. To compare the CSR information efficiency of analysts to that of investors, this paper uses the Vt/Pt ratio, which is the equity value estimates inferred from analysts’ earnings forecasts (a proxy for analysts’ CSR information efficiency) to the stock price of the focal company (a proxy for investors’ CSR information efficiency). Findings The regression analysis indicates that analysts’ earnings forecasts are optimistically biased and more dispersed for firms with positive CSR activities. The paper also finds that analysts’ forecasts are more optimistically biased than investors in interpreting CSR activities. Practical implications The lack of standardized protocols in CSR reporting and activities has raised the risk of mispricing by analysts, threatening the stability of sustainable investments. This paper suggests that regulators and standard-setters should establish a uniform framework governing firms’ CSR activities, along with their reporting and measurement, to ensure more consistent and reliable evaluations of CSR practices. Social implications Analysts’ mispricing of CSR activities may distort sustainable investing, as it can overly focus on the positive impacts of stakeholder theory, overlooking agency theory’s warnings about managerial self-interest. Investors need to assess CSR efforts with a dual perspective, acknowledging their societal value but also examining their alignment with shareholder interests. Originality/value To the best of the authors’ knowledge, this research is the first to assess the efficiency of analysts versus investors in processing CSR information amidst growing sustainable investment interests. Furthermore, building on Dhaliwal et al. (2012), which found that voluntary CSR disclosures correlate with more accurate analyst forecasts, this research provides fresh perspectives on the evolving nature of how analysts assimilate CSR information over time.