Corporate Social Responsibility Reports Research Articles

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.

Transport-Related Emissions and Transition Strategies for Sustainability—A Case Study of the Fast Fashion Industry

The fast fashion industry significantly impacts the environment at every stage of a product’s life cycle. The transport of products to wholesalers and stores, as one of the stages of the product life cycle, is often overlooked during the analysis of their carbon footprint. Therefore, research is needed on the impact of fast fashion on the environment through its logistics and transport, especially in relation to air emissions. This article attempts to determine how extensively fast fashion companies disclose the impact of their transport operations on their overall corporate carbon footprint, determine the proportion of total emissions attributed to transport, and evaluate the effectiveness of companies’ efforts to mitigate their transport-related environmental impact. This research used a case study method on selected brands (H&M Group, Inditex, Shein), using secondary data available in non-financial reports for 2023. As a result of the analysis of their non-financial reports on transport emissions, several key findings have been presented. Companies predominantly rely on external frameworks and standards, particularly the Global Reporting Initiative. However, the level of detail of the data presented varies. The priority for the surveyed companies is to reduce emissions from significant sources, such as production processes. The data disclosed in the reports (scope 1, 2, 3) must be clearly formulated and can be used to calculate the level of their CO2 emission reduction or increase. Companies should improve their environmental reporting by including indicators of their transport-related emissions. This approach provides a comprehensive view of their environmental impact, highlighting absolute values and efficiency metrics.

Updated trends in disability, diversity, and corporate social responsibility

BACKGROUND: Disability holds a unique position in employment, including corporate social responsibility (CSR) and diversity, equity and inclusion efforts. Furthermore, contextual shifts in employment, such as the COVID-19 pandemic, make it critical to explore how disability is considered within company strategies. OBJECTIVE: Authors reviewed 2020/2021 CSR reports to observe organizational disability inclusion practices and shifts in company approaches to workplace and community initiatives. This analysis helps illuminate what disability inclusion strategies businesses publicize and prioritize, contributing to the growing knowledge of disability inclusion. METHODS: Building from a previous analysis completed in 2018 (Gould et al., 2020), the current review involved content analysis of 129 CSR reports from companies recognized for their disability inclusion efforts. RESULTS: Results showed a substantial increase in organizations that participated in disability inclusion activities and illuminated potential contextual changes. Additional findings highlight primary disability inclusion strategies as well as emerging practices. CONCLUSION: Although there is an increasing interest in including disability within business efforts, there continues to be distinct challenges to advancing disability inclusion overall. By providing insights into disability inclusion approaches, the current study sets a foundation for future research to explore the efficacy and long-term impacts of inclusive practices to enhance disability employment outcomes.

Carbon footprint reporting example on WIG30 Index companies for 2021-2022

The purpose of the article is to present the results of the authors' research on the reporting of carbon footprint and carbon emission levels of 30 companies included in the WIG30 index of the Warsaw Stock Exchange for the period 2021-2022. The methodology was based on a literature review on the subject, legal acts and own research, which used non-financial reports of listed companies on information on carbon footprint and emission levels. According to the authors, the article adds value to the literature on the subject, particularly in the collection of source material and its discussion. The topics of the article can form the basis for further detailed empirical research on carbon footprint reporting.

Роль звітування щодо соціальних аспектів ведення бізнесу у зміцненні КСВ-практик

The publication of non-financial statements by companies is an important element of the mechanism of complex solution of global social problems, which are generally inherent in modern society, regardless of the individual parameters of the economic and social development of individual countries. By publicly reporting on the impact of social and environmental aspects of its economic activity on individual social groups and society as a whole, the company forms an important primary source of information regarding its mission as a subject of corporate social responsibility (CSR), tasks, tools for their achievement and the results obtained in this field and demonstrates respect for norms and rules that are not defined by law, but for the observance of which there are requests from the public. The relevance of the article is due to the importance of non-financial reporting in the information provision of the CSR phenomenon and support of stakeholders’ trust in social business initiatives. The purpose of the article is to assess the relationship between the level of stakeholders' trust in companies' disclosure of information on the social aspects of doing business in non-financial reporting and the improvement of the results of the implementation of CSR practices. The evolution of non-financial reporting from voluntary preparation to the obligation to submit it by companies that are of public interest has not yet reached the stage where the expression of an independent assessment of the reliability of the reported indicators is a necessary prerequisite for its publication and use by stakeholders. In this regard, the issue of relevance and reliability of information contained in non-financial reporting as a source of information for decision-making and assessment of compliance of the company's actions with the goals of CSR and sustainable development remains open. The lack of trust on the part of stakeholders reduces the importance of non-financial reporting and prevents its use, while accusing companies of deliberately filling such reporting with insignificant information and distorting indicators reduces the prospects for further development of this system in general. Since non-financial reporting is an important tool for informing society about the extent to which business meets its expectations in solving social problems, especially through the use of effective CSR practices, and what role the state plays in this, there is an urgent need for scientific and practical substantiation of a set of measures with elimination of existing weak points of non-financial reporting, namely: content and comparability of its indicators. It has been established that at the current stage of CSR development, high-quality non-financial reporting effectively represents the socially responsible behaviour of the company, and increasing the trust of stakeholders is ensured by expanding the opportunities for comparative analysis of the content of non-financial reports. The paper type – research paper.

The conjoint effects of corporate social responsibility performance and report tone on financial constraints: Evidence from China

Using corporate social responsibility (CSR) disclosure data from Chinese A-share listed firms between 2008 and 2022, we examine the conjoint impact of CSR performance and the tone of CSR reports on financial constraints. The research reveals a significant negative correlation between CSR performance and financial constraints, indicating that the better a firm's CSR performance, the fewer financial constraints it faces. The tone of CSR reports is also negatively correlated with financial constraints. It has a synergy effect with CSR performance, enhancing the alleviating effect of CSR performance on financial constraints. After conducting a series of robustness tests, such as addressing endogeneity and substituting variables, the main results remain robust. Furthermore, relative importance analysis shows that the impact of CSR performance on financial constraints is significantly greater than the impact of the tone of CSR reports. In additional analysis, we also examine the effects of corporate disclosure of creditor protection information, the presence of deficiencies in information, and firm transparency. Against the backdrop of heightened economic volatility and escalating risks, our findings offer valuable guidance on how firms can strategically utilize social responsibility measures to mitigate financial constraints.

Implications Related To Regulation On Corporate Social Responsibility In Indonesia (Study on Law No. 40 of 2007 on Limited Liability Company and Law No. 25 of 2007 on capital investment)

Good corporate governance has 5 main principles: openness, accountability, accountability, independence, and equality. Although Law Number 40 of 2007 concerning Limited Liability Companies does not explicitly regulate it, the values of the principle are contained in it. One important principle is accountability, which includes corporate social responsibility (CSR). CSR is the company's commitment to contribute to sustainable economic development by paying attention to economic, social, and environmental aspects. Law No. 40 of 2007 and Law No. 25 of 2007 require the implementation of CSR for companies, but there are vagueness and differences in the definition and scope regulated. This raises problems related to discrimination and potential violations of private property rights of companies. In general, CSR arrangements in Indonesia are still not detailed and clear, especially related to intersections with regional interests and social responsibility to the community. Clarity of arrangements is needed so that CSR can be implemented properly and provide benefits to companies, local governments, and surrounding communities. The problem in this study is the implications caused related to the Regulation on Corporate Social Responsibility in Indonesia and how the form of social responsibility and the form of Corporate responsibility in Indonesia related to the Regulation on Corporate Social Responsibility in Indonesia. This type of research is Normative legal research. The method of approach uses legislative and conceptual approaches. Data sources come from primary and secondary legal subers. The results of this study show that the implications arising related to the regulation on Corporate Social Responsibility in Indonesia, in the UUPT regulation on Corporate Social Responsibility are unclear and overlap with other related laws and regulations. Not all companies related to natural resources carry out social and environmental responsibility, because there is still a perception that the allocation of Corporate Social Responsibility is not mandatory, and in its implementation there is no good control from the government, and there are no firm sanctions for companies that do not channel Corporate Social Responsibility. The form of social responsibility and the form of Corporate responsibility in Indonesia related to the Regulation on Corporate Social Responsibility in Indonesia can vary, depending on the needs and priorities of the company and the surrounding community. Corporate Accountability that implements CSR is needed to hold stakeholders accountable. The form of accountability can be: CSR report: a report that explains the CSR activities that have been carried out by the company, the impact that has been achieved, and the obstacles faced. CSR audit: an independent audit to ensure that CSR activities have been carried out in accordance with established standards and policies. Dialogue with stakeholders: open dialogue with stakeholders to obtain input and suggestions related to CSR implementation.

Retailers’ social impact perspective–discrepancies between theory and practice

In recent years, the issue of social impact and its associated measurement methodologies has attracted considerable scholarly attention. This paper makes a contribution to the ongoing debate surrounding the dissonance between the theoretical conceptualization of social impact and the practical understanding of it held by business managers and consumers. To elucidate the discrepancies between theory and practice, as well as among the knowledge, attitudes and behaviors of stakeholders targeted by social impact initiatives, a qualitative research approach was employed. This paper has two main objectives. The first is to elucidate the concept of social impact within the framework of Corporate Social Responsibility (CSR). The second is to examine the understanding of social impact as depicted in CSR reports of retailers and its reception by consumers, particularly in the context of social activities undertaken by retail chains. The findings highlight significant discrepancies in the perception of social impact. Among enterprises, social impact is often associated with engagement in various activities. However, the resulting outcomes of these endeavors are frequently not quantified. Despite this absence of empirical data, managers often draw inferences regarding the presence of such impact. Conversely, consumers predominantly interpret social impact through changes in their purchasing behavior, prioritizing this aspect over heightened product knowledge, brand perception or corporate image enhancement.

The Attitude of Public Sector Accountants Towards Nonfinancial Reporting

The role of accounting in the public sector is to provide the information necessary for decision-making and accountability. In response to the changes in the public sector, a new form of reporting is emerging, namely nonfinancial reporting. It is expected that accountants involved in financial reporting will also be involved in the preparation of nonfinancial reports. This paper aims to investigate how accountants perceive nonfinancial reporting and whether they believe that they should be involved in the process of preparing nonfinancial reports. The research in this paper was conducted using a questionnaire sent to public sector accountants in Croatia from February to April 2022. The results of the study show that accountants are not overly positive about nonfinancial reporting, i.e. apart from believing that nonfinancial reporting will become more important in the future, they disagree or are quite undecided about the current need to prepare nonfinancial reports. Although accountants believe that they are in the best position to assess financial sustainability, they do not believe that they should be involved in the process of preparing nonfinancial reports. Our study contributes to the literature on nonfinancial reporting in the public sector and to the literature on public sector accountants’ attitudes towards nonfinancial reporting.

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.

Legitimacy and anti-corruption disclosures: insights into the early effects of the European Non-Financial Reporting Directive

Purpose This study aims to investigate corporate anti-corruption disclosure (ACD) strategies during the regulative debate surrounding the European Directive 2014/95/EU which for the first time regulated ACD in Europe. By using a legitimacy framework, it assesses whether companies improved proactively their voluntary ACD during the transposition phase to address potential regulatory changes. Moreover, it investigates how organizational and institutional factors influence companies’ reaction. Design/methodology/approach This paper hand-collected ACD data (quantity, scope, quality and transparency) from non-financial reports for the years 2010–2015 for a set of 56 (28 EU and 28 non-EU) companies (336 firm-years observations). The study applies difference-in-difference analysis to assess the effects of the debate. Moreover, it tests the association of ACD with organizational and institutional attributes. Findings The study shows that EU-companies are proactively changing their disclosures. The response is positively influenced by industry exposure to corruption-risks and by lower government corruption, while self-reported negative disclosure impacts negatively. Further, lower government corruption increases the effects of industry exposure to corruption-risks. However, the impacts vary with the disclosure metric. Originality/value Besides reinforcing legitimacy as a driving-force in shaping ACD during the transition phase to a regulated context, the paper integrates traditional legitimacy arguments with insights related to the institutional context. This contributes to improving the understanding of the empirical setting where the production of regulation occurs and can support future regulative processes.

Does information content of a corporate social responsibility report matter for stock mispricing? Evidence from China

We examine the impact of the information content of a firm's corporate social responsibility (CSR) report on stock mispricing using a sample of Chinese firms from 2007 to 2021. By leveraging the recent advances in textual analysis, we apply the Word2Vec technique to detect the information content of a focal firm's CSR report. Our findings suggest that the degree of a focal firm's stock mispricing decreases with increased information content of its CSR report. The results remain robust after considering a variety of sensitivity tests. Mechanism analyses reveal that the information content of a CSR report mitigates stock mispricing by reducing information asymmetry and alleviating investor irrational behavior. Heterogeneity analysis shows that the effect is more salient when firms face higher degree of uncertainty, both at the macroeconomic and industrial levels. Additionally, we document that a higher degree of information content of a CSR report contributes to a higher firm value.

The impact of energy companies on the environment and local communities - disclosures in non-financial reports of companies

The impact of energy companies on the environment and local communities - disclosures in non-financial reports of companies

Narrative disclosure and earnings quality: what is the nexus? Evidence from emerging countries

PurposeNarrative disclosures offer further elucidation of a company's financial performance beyond what is presented in numerical format. This can assist stakeholders in gaining a deeper comprehension of the elements that impact reported earnings, thereby improving the quality of financial information. The current research explores the impact of narrative disclosure on the earnings quality of firms listed on the Amman Stock Exchange (ASE).Design/methodology/approachAppropriating an index to measure the narrative disclosure level in the research sample firms, the research utilizes an analysis of the textual content of nonfinancial reports and statements issued by the management of the ASE-listed nonfinancial firms between 2013 and 2022. The financial statements issued in the annual financial reports are also adopted to extract data on earnings quality and the controlling variables. The analysis of the data and attainment of the findings necessitate using the panel data.FindingsIt is indicated that narrative disclosure affects earnings quality. To be precise, the greater the narrative disclosure, the lower the absolute value of the voluntary discretionary accruals and thus the higher the quality of accounting earnings.Research limitations/implicationsThe findings contribute to new research on disclosure issues, particularly narrative disclosure, which enhances reader confidence in financial and nonfinancial reports and prevents misleading and manipulated information.Originality/valueThis research helps decision-makers understand the relationship between reports, statements and earnings quality in a firm. It's unique in exploring this relationship, especially in developing countries. The study is the first of its kind in Jordan, known for its economic stability and strategic location in the Middle East, making its findings applicable to similar environments.

Food waste reduction, corporate responsibility and national policies: evidence from Europe

PurposeThis paper investigates strategies for addressing the global challenge of food loss and waste (FLW) within the food industry. It examines the relationship between corporate social responsibility (CSR) initiatives and state regulatory interventions for reducing FLW.Design/methodology/approachThis mixed method study utilizes a unique panel dataset which includes the 150 largest food industry companies in Italy, Norway and the UK. It combines quantitative data analysis with qualitative insights derived from corporate strategies and corporate communications.FindingsThe analysis reveals that food companies with an established CSR strategy and in particular companies whose CSR reports highlight their environmental and social achievements are more likely to achieve in effective FLW reduction. Additionally, national-level regulatory interventions guided by European Union waste strategies act as pivotal benchmarks and encourage stricter corporate food waste management policies.Practical implicationsThis research underscores the significance of CSR strategies and effective state regulation in the fight against FLW and offers policymakers and businesses valuable insights enabling development of robust strategies.Social implicationsBy emphasizing the interplay between CSR and regulatory intervention, this research contributes to the achievement of a more sustainable and efficient global food system that addresses both economic and ethical concerns and could have far-reaching societal and environmental implications.Originality/valueThe paper sheds light on the interplay between CSR initiatives and regulatory interventions for tackling FLW and emphasizes their synergistic impact on sustainable practices within the food industry.

Environmental performance and trends of the world's semiconductor foundry industry

AbstractThe semiconductor foundry industry faces the challenge of reducing its high environmental impact, mainly due to its energy‐ and water‐intensive processes and significant generation of waste. To date, no other study has focused on the assessment of the environmental performance and related historical trends of this industry as a whole. Methodologically, the first step was to analyze and process a large quantity of economic, production, and environmental data, available in the Corporate Social Responsibility reports of a companies’ sample, highly representative of the entire world's foundry industry (about 70% of the global revenue of the related sector). It was thus possible to calculate, using a common manufacturing index (MI) and after appropriate data processing, some key performance indicators, along a significant decade (2012–2021), marked by deep political, economic, and health crises. Some of the main findings of this study are that, over this 10‐year period, the increases in technological capacity (patents), wafer production, and revenue (400%, 183%, and 172%, respectively) are matched by a significant increase in hazardous waste generation per MI (20%; 239% in absolute value) and a much larger increase in general waste generation per MI (135%; 568% in absolute value). The indicators of energy, water, and revenue per MI are substantially unchanged. A substantial decrease occurs in GHG1&2 emissions per MI (−32%), mainly due to significant investments in renewable energy sources. The findings of this research could help and guide upcoming sustainability policy decisions and encourage business‐to‐business collaboration and the adoption of better environmental production practices.

Safeguarding our roots: natural resources accounting and reporting in the public sector

PurposeThis study aims to explore natural resources from a public sector accounting perspective, focusing on their definitions, classifications, recognition criteria and disclosure requirements provided by different standard-setters and regulators at both international and national levels.Design/methodology/approachBy reviewing accounting frameworks for natural resources, this study extrapolates accounting dilemmas around the debate on natural resource accounting, using the dialogic accounting perspective as a theoretical framework.FindingsNatural resources cannot be defined as a single category. Various categories have different characteristics, requiring different standards to recognize multiple orientations. This avoids monetary reductionism. Furthermore, uncertainty, both in existence and measurement, may disqualify some of these resources from being considered assets. Perhaps, concentrating on the flow of services derived from natural resources is better than focusing on their valuation. This may lead to a split-asset approach (flows and underlying assets) for certain resources. This study’s findings indicate that public-sector entities should consider preparing a separate non-financial report regarding the management of natural resources with the objective of maintaining inter-generational equity.Originality/valueThis study contributes to the debate on natural resources from an accounting and reporting perspective, highlighting the importance of holding public-sector entities accountable for the use of natural resources.

How does family business affect the association between corporate social responsibility disclosure and cost of debt in Indonesia?

AbstractThis study examines how corporate social responsibility (CSR) disclosure and family firms affect the cost of debt (COD) using a sample of companies listed on the Indonesia Stock Exchange between 2017 and 2020. Ordinary least square regression was applied to investigate this association. This study also addresses the endogeneity problem using the generalized method of moments (GMM). This study finds that CSR lowers a company's COD. Firms with more CSR reporting minimize information asymmetry and improve their reputation. Next, we investigate whether family ownership can moderate the relationship between CSR and the COD. These findings support the hypothesis that family ownership moderates the relationship between CSR and COD. It is possible that family businesses use CSR to maintain a good reputation among their stakeholders, thus producing more CSR reports. The findings contribute to the literature by providing empirical evidence on how CSR and family firms experience a lower COD capital in the emerging economy context of Indonesia. Furthermore, this study provides academic implications by investigating whether family ownership can be a moderator variable in the association between CSR and COD. The study also has practical implications for practitioners and regulators in creating policies that promote better CSR initiatives and corporate governance systems.

Approaches to Defining the Boundaries of Non-Financial Reporting

Approaches to Defining the Boundaries of Non-Financial Reporting

Determinan Return Saham dengan Analisis Profitabilitas dan Sustainability Report

Stock returns are one of the important factors that investors pay attention to before investing. One sector that investors are interested in is the banking sector because this sector produces a large profit. Before investing, investors usually need information contained in financial reports and non-financial reports to calculate the stock return that investors will get in the future. This study aims to determine The Effect of Profitability and Sustainability Report on Stock Return. The sample selection technique in this study used a purposive sampling method and obtained 11 banking sub-sector companies listed on the Indonesia Stock Exchange for the 2018-2022 period. The data analysis method used in this study is multiple linear regression analysis using the SPSS program version 22. Based on the results of this study, it can be concluded that profitability and sustainability report on environmental performance have a positive and significant effect on stock return, while sustainability report on economic performance and sustainability report on social performance have no effect on stock return.