Level Of Corporate Social Responsibility Disclosure Research Articles

The Impact of Audit Committee Characteristics on CSR Disclosure: An Analysis of Australian Firms

AbstractThis study examines the influence of audit committee (AC) characteristics on voluntary corporate social responsibility (CSR) disclosure in the corporate annual reports of Australian listed firms. It develops hypotheses about the relationship between voluntary CSR disclosure and AC characteristics such as size, frequency of meetings, independence, independent chair, financial expertise and gender diversity. Using multiple regression analysis on data collected from the corporate annual reports of 300 listed firms, the study finds that AC characteristics such as size, frequency of meetings, committee independence and gender diversity have a significant positive influence on the level of CSR disclosure. However, there is no evidence that AC characteristics such as independent chair and members’ financial expertise affect CSR disclosure in Australian firms. Based on an additional analysis, the study also sheds some light on the effect of AC characteristics on environmental disclosure. The findings of this study may be of particular interest to regulators, shareholders, investment analysts and managers in assessing CSR disclosure in annual reports, and in strengthening the monitoring and oversight role of ACs.

CSR Inflections: An Overview of CSR Practices on Financial Performance by Public Listed Companies in Malaysia

Of late, there has been growing demand for companies to intensify its corporate social responsibility (CSR). It is no longer one of the responsibilities of the companies but has become the responsibility of companies to give back to the society in which it has been operating and making huge profit. Unfortunately there appears to be a wide gap between the level of CSR awareness between companies from developed countries and those from the developing companies. Companies from developed countries have higher CSR level of awareness and faced no difficulty in disclosing their CSR activities relatively to the companies in the developing countries (including Malaysia). Thus, the aim of this paper is to examine the level of CSR disclosure of consumer products and trading and services industries from Malaysia. In addition, the study also would like to ascertain if the level of CSR disclosure influences the performance of the company in terms of its return on asset (ROA) and firm value (Tobin’s Q). The study starts with the development of CSR disclosure index and using the index to determine if company’s performance is related to its contribution to the society. Panel data is used to achieve the second objective. Findings of the study provide positive, negative and insignificant results between CSR activities on the company performance.

A Comparative Review on Company Specific Determinants for Sustainability Reporting in United Kingdom (UK) and Malaysia

This study aims to comparatively assess the effects of company-specific variables on the level of corporate social responsibility (CSR) information disclosed in publicly-traded companies from United Kingdom (UK) and Malaysia. Content analysis was applied to sampled reports from the FTSE 100 Index and FTSE Bursa KLCI against inferred meanings from the Global Reporting Initiative (GRI)-derived coding base to identify similarities and/or differences in CSR disclosure practices. The Spearman’s correlation coefficients and multiple linear regressions (MLR) analyses further gauged the associations between the variables and total quantity of CSR disclosure (TQCSR ); and, determined the predictive determinants on sustainability reporting.The Spearman’s correlation has identified a negative association on leverage with TQCSR for UK companies. In contrast, the TQCSR in the Malaysian sample was positively associated with directors’ CSR-related experiences and profitability but negatively associated with company size. Results from MLR analyses presented company size as a significant determinant on sustainability reporting in the UK model, while directors’ experiences were indicated as the crucial determinant in the Malaysian model. This first, direct cross-market sustainability reporting study highlights the importance of board of directors’ CSR-relevant experience in influencing the level of CSR disclosures in publicly-traded companies.

Board diversity and corporate social responsibility in Jordan

Purpose This study aims to investigate the impact of board diversity characteristics, namely, independence, gender, age and nationality of directors on the level of corporate social responsibility (CSR) disclosures. Design/methodology/approach Content analysis was used to determine CSR disclosure. This study used panel data analysis to investigate the influence of board diversity characteristics on CSR disclosures. Findings Panel data analysis show that the level of CSR disclosure has increased over the period of study. Results also reveal a positive and significant association between the level of CSR disclosure and board diversity variables. Research limitations/implications This study examined only companies listed on Amman Stock Exchange. Therefore, the generalisation of the results might be limited to the listed companies only. Practical implications Findings are relevant to policymakers, professional organisations and practitioners in Jordan and in other Arab countries. Social implications The role of women in the boardroom is important to ensure more CSR activities by the listed companies. Jordan being a Muslim country should take the initiative to introduce laws to increase the number of women to the board. Originality/value This study offers significant contributions to existing CSR literature in Jordan and in other Arab countries by introducing female directors. Findings are important to policymakers. They should implement quotas for women in the boardroom, and adopting such a policy will increase the participation of women in the decision-making process of the companies and reduce gender bias.

Online corporate social responsibility (CSR) disclosure in the banking industry

Purpose – The purpose of this paper is twofold: first, this study analyzes the extent to which banks report online their corporate social responsibility (CSR) practices; second, it determines the impact of size, ownership structure, multiple exchange listing, and the internationalization of banks on the level of their online CSR reporting. Design/methodology/approach – This study examines the Turkish banking industry’s online CSR communications by performing a content analysis of banks’ online reporting of their CSR practices in four sub-dimensions, namely, environment and energy, human resources, products and customers, and community involvement. A sample of 25 banks in Turkey was grouped according to the criteria of size, ownership structure (listed or unlisted on stock exchanges), multiple exchange listing (listing on home and foreign exchanges), and internationality (local or foreign). This study employs a nonparametric Kruskal-Wallis test to determine the significance of the differences among these groups. Findings – The results of the study demonstrate that the most disclosed dimension on the websites of the banks is products and customers. In particular, there is a lack of disclosure on items of environment and energy. Further, the findings of the research show that size, ownership structure, and multiple exchange listing are significant in explaining online CSR disclosure level. Originality/value – Several previous studies have focussed less on the CSR disclosure practices of companies in industries with little direct environmental impact, such as banking and finance. This study extends the previous studies of CSR reporting by gathering data from the banks’ websites rather than their annual reports. This study contributes to the literature by examining the online CSR disclosure practices of banks from an emerging market context and, specifically, that of Turkey.

The Effect of Board Capital and CEO Power on Corporate Social Responsibility Disclosures

This study examines the effect of directors’ human and social capital (i.e. board capital) on the level of corporate social responsibility (CSR) disclosures by drawing on insights from a resource-based view. It also investigates the effect of chief executive officer (CEO) power on this relationship. Data were obtained from annual reports of companies listed on the Dhaka Stock Exchange in Bangladesh from 2005 to 2013. We employ outside directors’ experiences and expertise as a proxy for board capital and measure CEO power using a ‘power index’ that comprises CEO duality, ownership, tenure and family CEO status. Results show that board capital is positively associated with CSR disclosure levels; however, CEO power is negatively associated with CSR disclosures and reduces the effect of board capital on CSR disclosures. Thus, we conclude that although board capital can improve CSR practices, CEO power can also inhibit these practices.

Corporate Social Responsibility Disclosure Practices in Papua New Guinea

This study examines the Corporate Social Responsibility Disclosures (CSRD) among the companies listed on Port Moresby Stock Exchange (POMSoX), in Papua New Guinea (PNG) analysing annual reports published during the three year period of 2011 - 2013. The study revealed that 60% of the total CRS items expected to disclose by PNG companies have not been disclosed. Further analysis shows that out of the disclosures only 30% are detailed and comprehensive with verifiable and quantifiable evidences whereas other disclosures are loose statements. It was also found that most of the companies place higher emphasis on corporate governance disclosures than other components of Corporate Social Responsibility (CSR). Further, it was found that disclosures in respect of consumer responsibility are poor in all the companies irrespective of the industry type. The findings of the study suggest that company size, profitability, industry type and listing nature influence the level of CSRD in PNG companies. The findings also suggest room for improvement of CRS practices and CRSD in PNG companies if they are encouraged with proper guidance.

Corporate Social Responsibility Disclosure and Corporate Financial Performance in Automotive Sector:A Study of Select Companies

The upsurge of the corporations has shaped and continues to produce many social problems. A corporate cannot afford to ignore the problems of the environment in which it functions. The organizations are expected to act conscientiously and assume responsibility for addressing these problems. It is no longer an easy task to be sustainable, i.e., meet the needs of the present generation without compromising the ability of the next generations to meet their own needs. Therefore, the organizations are now being called upon to take responsibility for the ways their operations impact societies and the natural environment. Corporate social responsibility disclosures are still not an obligation in most of the countries but the concept has evolved in scope from purely financial accounting and reporting in the past to sustainability reporting today, incorporating reporting on economic, environmental and social issues. The literature scripts that the most studied aspect of Corporate Social Responsibility (CSR) has been its link to Corporate Financial Performance (CFP). A considerable amount of studies, theoretical insights and empirical findings have focused on understanding the relationship. The present research conducts a study to understand the relation between the corporate social responsibility disclosure (economic, environmental and social) of companies with the corporate financial performance (return on equity, return on assets, profit after tax and debt on equity). The automotive companies listed in SENSEX constitute the sample and to examine the corporate social responsibility disclosure level, the reports of companies published in the five years commencing from 2009-10 to 2013-14 were considered. The findings of this research suggested no relationship between the CSR disclosure and debt on equity and the CSR disclosure (economic information) and profit after tax. However, a positive relationship between CFP variables (return on assets and return on equity) and CSR disclosure exists. The positive relationship between profit after tax and CSR disclosure (environmental and social information) of the companies is also highlighted in the study.

Board characteristics and corporate social responsibility disclosure in the Jordanian banks

This paper aims to examine the impact of board characteristics on the level of corporate social responsibility disclosure (CSRD) in the Jordanian banking sector for a sample of 147 banks/years during a period of 10 years (2004-2013). A checklist consisting of 100 items is developed to measure the disclosure level and the result indicates a relatively low level of disclosure in Jordanian banks. Multiple regression analysis is employed to examine the developed hypotheses. The results indicated that the larger board size and higher level of disclosure are correlated. However, low level of disclosure is associated to higher proportion of independent directors and institutional directors. In addition, female director is found to negatively affect the level of disclosure. This study has filled some of the previous studies’ gaps; the study is conducted in a new business environment. Besides, previous CSRD’s studies have not considered some of the board characteristics such as institutional directors. Thus this study investigates their impacts on the level of CSRD. In addition, this study provides some guidelines for the future works. Furthermore, the findings of this study might be interested to several groups of shareholders and stakeholders such as government, regulators, potential investors and CSR agencies.

Corporate social responsibility, country-level predispositions, and the consequences of choosing a level of disclosure

We study the different levels of corporate social responsibility (CSR) disclosures of the largest European firms. We find that firms are more predisposed to disclose more CSR information in countries with better investor protection, higher levels of democracy, more effective government services, higher quality regulations, more press freedom, and a lower commitment to environmental policies. Our analysis of the association of different levels of CSR disclosure with share prices indicates that a high level of CSR disclosure is associated with higher share prices, whereas a low level of CSR disclosure in sensitive industries is associated with lower share prices (compared to no disclosure). These results are also present when we analyse changes in CSR disclosure and are robust to the inclusion of an accounting quality measure in our model. The overall effect of the association of higher levels of CSR disclosure with higher share prices is stronger in countries with more democracy, more government effectiveness, better regulatory quality, and more press freedom. Therefore, market participants find CSR disclosures more informative in countries where investors are in a better position to voice their concerns and where there is better regulation and more effective government implementation of regulations.

Hubungan Tingkat Pengungkapan dan Kinerja Corporate Social Responsibility Serta Manajemen Laba: Pengujian Teori Ekonomi dan Sosio-Politis

The objective of this research is to examine the relationship among corporate social responsibility (CSR) performance, CSR disclosure, and earnings management. Using purposive sampling technique, this research obtain 143 observation as research sample which are PROPER participants for 2009-2013 observations period. Hypotheses testing was conducted using SEM Partial Least Squares (PLS). The results of this research show consistent findings that CSR performance affects positively CSR disclosure. This finding indicate a support for economic-based theory especially signalling theory. The result also shows that companies that have higher level of CSR disclosure tend to have lower practice of earnings management. There is no an empirical evidence for relationship between CSR performance and earnings management.

Liquidity Implications of Corporate Social Responsibility Disclosures: Malaysian Evidence

ABSTRACT The study examines the association between the different types of blockholdings, the levels of corporate social responsibility (CSR) disclosure, and liquidity of shares traded in Malaysian public listed companies (PLCs) on Bursa Malaysia. The sample consists of 194 most actively traded PLCs for the year 2009. A CSR index was constructed using the criteria used by a leading newspaper that provides an annual CSR award. We suggest that such CSR awards help legitimize the business activities of PLCs in the eyes of a government promoting sustainable business practices. The study finds that while insider blockholdings increases the trading friction and reduces liquidity, the nongovernmental institutional blockholdings improve the liquidity of shares traded on Bursa Malaysia. Moreover, the government institutional blockholdings interacts with the CSR disclosure levels to affect the liquidity of the shares traded. These findings make important contributions to emerging capital markets where government regulations incentivize CSR disclosures and the involvement of institutional investors in the governance of PLCs are the norm. Data Availability: The authors are willing to share the data for use by others in extending or replicating results reported in their articles (send request to Ms. Dhoraisingham at: shymala.dhoraisingam@monash.edu).

The influence of corporate social responsibility disclosure on share prices

Purpose – The purpose of this paper is to examine the association between share prices and the level of corporate social responsibility (CSR) disclosure of large UK companies, using CSR data from an independent firm and a time period and setting (the UK) that coincides with increased legislation and increased public awareness of corporate social and environmental issues. Against a background of increased interest by investors in CSR disclosure, prior mixed results on the association between CSR disclosure and share prices suggest the need for further research that overcome some of the identified limitations of the extant literature. Design/methodology/approach – A modified Ohlson (1995) model is used to examine the relationship between CSR disclosure and share prices among the 100 largest UK companies. Three different measures of CSR disclosure are used to ensure robustness of results. Findings – The paper finds that higher levels of CSR disclosure are associated with higher share prices. Furthermore, the paper provides evidence that CSR disclosure by companies operating in environmentally sensitive industries show a stronger association with share prices than CSR disclosure by companies operating in other industries. The paper concludes that CSR disclosure provides incremental value-relevant information to investors beyond financial accounting information. Originality/value – To the best of our knowledge, this is the first paper to provide evidence of the incremental value of CSR disclosure to share price determination in the UK, a country where CSR disclosure is high on the agenda. Our findings provide evidence that CSR disclosures by companies and, in particular, disclosures following the global reporting initiative(GRI) guidelines, are useful to investors and shareholders, as it is related to share price information.

The disclosure of corporate social responsibility which is presented in the financial information on the internet

Development of Corporate social responsibility (CSR) companies tend to disclose CSR information in annual, environmental protection, social responsibility reports and website. In Lithuania presentation of CSR is not necessary, but every year more companies disclose social information. One of CSR disclosure ways is the Internet.
 Purpose of this article - to investigate the level of CSR disclosure which is presented in the financial information on the Internet.
 Results show that firms in High-Profile environmentally sensitive industries tend to disclose more CSR information than those in Low-Profile environmentally sensitive industries. The results also indicated that the content, level disclosed on the internet are quite different. Only the little number of companies disclose their information of CSR on the internet.

Corporate Social Responsibility Disclosure Level, External Assurance and Cost of Equity Capital

This study analyzes whether corporate social responsibility (CSR) report characteristics, including CSR disclosure level and the external assurance of CSR disclosures, explain variation in cost of equity capital for CSR disclosers. Using firms’ CSR disclosure levels as declared in accordance with the Global Reporting Initiative’s Sustainability Reporting Guidelines, I find that firms with the highest CSR disclosure levels have significantly lower cost of equity capital than firms with the lowest CSR disclosure levels. I also find that firms that opt to obtain external assurance of their CSR disclosures have significantly lower cost of equity capital than firms that do not. Further, I find some evidence that a large increase (decrease) in CSR disclosure level is associated with a subsequent decrease (increase) in cost of equity capital.

Corporate Social Responsibility: Country-Level Predispositions and the Consequences of Choosing a Level of Disclosure

We study the different levels of corporate social responsibility (CSR) disclosures of the largest European firms. We find that firms are more predisposed to disclose more CSR information in countries with: better investor protection, higher levels of democracy, more effective government services, higher quality regulations, more press freedom, and a lower commitment to environmental policies. Our analysis of the association of different levels of CSR disclosure with share prices indicates that a high level of CSR disclosure is associated with higher share prices, whereas a low level of CSR disclosure in sensitive industries is associated with lower share prices (compared to no disclosure). These results are also present when we analyse changes in CSR disclosure, and are robust to the inclusion of an accounting quality measure in our model. The overall effect of the association of higher levels of CSR disclosure with higher share prices is stronger in countries with more democracy, more government effectiveness, better regulatory quality, and more press freedom. Therefore, market participants find CSR disclosures more informative in countries where investors are in a better position to voice their concerns and where there is better regulation and more effective government implementation of regulations.

Customer Value Creation through Corporate Disclosure on Society-oriented Activities. Do CEO’s Characteristics Influence the Scope of Disclosure?

Customer value creation (CVC) in contemporary companies is a complex process. It embraces customer service, physical evidence, and image associated with the company. The image of a company is now partially created by corporate society-oriented activities. The process of CVC and corporate social responsibility (CSR) fulfillment is conducted by a wide range of company employees. The aim of the paper is to answer the question whether management board characteristics influence the scope of CSR reporting, as a tool of the customer value creation process. In the current research, the authors examine CSR reports and websites of 20 companies in Poland, using two research methods, content analysis and hierarchical cluster analysis, and measuring the level of disclosure on the websites and CSR reports with the index of disclosure. The research reveals that the level of CSR disclosure depends on the characteristics of management boards (age and experience of a chairman/-person). At the same time, few companies disclose information about the impact of CSR activities on customer value creation. DOI: http://dx.doi.org/10.5755/j01.ss.81.3.5797

Sustainability Performance and CSR Disclosure

Sustainability disclosure is a topic of great interest among academics and practitioners. As a key means of disclosing an organization’s sustainability information, the corporate social responsibility (CSR) report is adopted by most organizations nowadays. It also becomes an important information source for stakeholders. However, there is a concern that many stakeholders perceive CSR reports are reflections of the sustainability performance of organizations. This misunderstanding could lead to undesired outcomes (e.g., lower the expected risks than actual risks). In this study, the authors explore the relationship between organizations’ CSR disclosure and their sustainability performance. Their result shows that there is a significant relationship between an organizations’ sustainability performance and its sustainability disclosure level. At the same time, they observe many organizations that have inconsistent levels of sustainability performance and disclosure (e.g., good sustainability performance but low level of CSR disclosure). In order to a have comprehensive view of all possible scenarios, the authors propose four archetypes that categorize organizations according to their CSR disclosure levels and sustainability performances. Underpinning theories and rationales are discussed for each archetype.

Determinants of Corporate Social Disclosure: An Empirical Study of BSE-SENSEX Companies in India

Corporate Social Responsibility (CSR) has now gained increased significance in the decisions that are carried out in the ‘board rooms’ of companies in India. Companies have started giving CSR a place in their overall strategies of growth. This paper empirically examines the association of CSR disclosure with corporate attributes, such as size of a firm, its profitability, leverage, ownership structure, nature of the industry and residential status of 25 companies representing major industries of India, drawn from the BSE-30 companies. The annual reports for the financial year 2009–10 are the major sources of data collection. Backward stepwise regression analysis has been used, which shows a significant association between corporate attributes, namely, size of a firm (measured by total assets), profitability, Returns on Assets (ROA), leverage of a company, its ownership structure, nature of the industry and CSR disclosure level. However, no significant association (though positive) was found between CSR disclosure score and residential status of a company. The results of this empirical study would provide a deeper insight to the managers in the corporate sector to review their responsibilities towards their stakeholders. In fact, the results of this study are strongly suggestive of a harsh fact that in the long run, corporates cannot keep their stakeholders blindfolded by merely mentioning the CSR issues in words. They need to transverse the same into action soon, if they really want to utilise it as a strategic tool. The present study would also be of great relevance to the researchers in the same field, as it shows that it is not necessary that blue chip companies definitely indulge in social welfare activities. It would rather motivate them to further explore the same issue, especially in the Indian scenario. The study is no doubt based on the evaluation of representative companies of India chosen from SENSEX. Still, perhaps, a better evaluation can be made if larger sample is taken. Also, a cross-sectional analysis over a period of time or at different points of time could be undertaken to see the progress with respect to CSR parameters.

Current Context of Disclosure of Corporate Social Responsibility in Sri Lanka

Disclosure of Corporate Social Responsibility (CSR) is one of the ethical responsibilities of a corporate. It is the mean of aware stakeholders regarding company's engagement on social responsibility. The study focused to find out the current context of disclosure of CSR in Sri Lanka. GRI guidelines used to measure the level of disclosure. Findings of the study revealed that the overall level of CSR disclosure is at a low level and there is a need of much improvement in governance, economical, social and environmental disclosures which are the major components of sustainability. It is observed that there are deviations in the level of disclosure among different industry sectors. However, that the trend of the level of disclosure is slight increasing and it signaling high level of CSR disclosures in future.