Social Responsibility Disclosure Research Articles

CSR Disclosure and Bank’s Financial Performance Nexus: Evidence from Pakistan.

Present research intends to evaluate the nexus among the corporate social responsibility (CSR) disclosure and financial effectiveness of banking industry in Pakistan. This investigation applies a quantitative research approach using panel data from a sample of Pakistan’s commercial banking institutions over timeframe limited from 2009 to 2020. The outcomes of mixed effect model visualize that there is inverse significant association among CSR disclosure ROE. Whereas no statistically significant linked in the context of short-term financial performance, by using a proxy of ROA. The results suggesting that the focus on CSR events and initiatives may have a detrimental effect on financial effectiveness. It is generally acknowledged that CSR offers numerous non-financial benefits, such as enhancing social media campaigns and luring ethical investors from both domestic and foreign markets. In developing countries context (i.e., Pakistan), we can conclude that the “cost of the CSR initiatives” and “shift of focus view” can affect the performance of banking industry. The lack of a positive correlation among corporate social responsibility (CSR) and financial performance in the Pakistani financial services sector can be attributed to a lack of interest and engagement in socially conscious investing. These findings indicate that the adoption of socially responsible investment has not gained significant cultural traction in Pakistan. The results emphasize the importance of banks, regulators, and stakeholders reassessing the balance between social responsibility and financial performance, considering the possible negative consequences of revealing CSR initiatives.

Oil Price and Corporate Social Responsibility Disclosure (CSRD): Evidence from Indonesian Energy Companies

This study aims to examine the effect of world oil prices and other fundamental factors, which consist of the exchange rate, inflation, return on assets (ROA), debt to equity ratio (DER), and current ratio (CR) to the disclosure of corporate social responsibility (CSRD). The research sample is seven mining sector companies listed on the Indonesia Stock Exchange during 2017-2022. The estimation method and data analysis used a panel data regression model. The study's empirical findings show that world oil prices, exchange rates, inflation, and ROA positively affect CSRD, while DER and CR have the opposite effect. Macroeconomic variables, including world oil prices, exchange rates, and inflation, significantly encourage mining sector companies to disclose CSR more broadly. The increasing liquidity causes limited CSRD and leverages financial performance, while the profitability of the impact is different.

Performance gap and the timing of corporate social responsibility disclosure‐A trust repair perspective

AbstractBased on the theory of firm behavior, we explain the voluntary corporate social responsibility (CSR) disclosure behavior of firms from the perspective of trust repair and regard the process of firms' response to the CSR institution as an important way to trust repair for firms' management. We adopt an event history approach with a sample of Chinese firms listed on the A‐share market from 2008 to 2020 and find that faster engagement in CSR disclosure is one of the important trust repair methods for management when firms face performance gaps, and performance gaps positively incentivize firms to voluntarily engage in CSR disclosure. In addition, managers consider the total costs, risks, and benefits of different trust repair methods, there is a substitution effect between different trust repair methods, and the disclosure of internal audit reports and philanthropic donations negatively moderates the relationship between performance gap and CSR disclosure. Our study has important implications for understanding how firm performance affects CSR strategic decisions.

Corporate Social Responsibility Disclosures & Delegated Investment Decisions: The Role of Religiosity

This study is intended to test the conditional effect of corporate social responsibility disclosures on the performance of investment professionals in Pakistan with the intervening effects of religiosity and decisions of investment professionals. The proposed relationship has been tested over a sample of 248 investment professionals analyzed through the application of structured equation modelling by using Smart PLS 4. The study discovered the significant mediating effects of religiosity and investment decisions in between the causal relationship of CSR disclosures and the performance of investment professionals in Pakistan. Moreover all direct effects developed in the conceptual model have been found to be significant. This means that the extent of religiosity of investment professionals affects their investment decisions being made for their clients on the basis of the CSR disclosures. The positive direction of mediation reveal that CSR disclosures of religious investment professionals positively affect their decisions and performance related to the investments they make for their clients. This is the first time, to the best of our knowledge, that both direct and indirect/conditional effects of corporate social responsibility disclosures on the performance of investment professionals have been tested in the perspective of delegated investments.

Agresivitas Pajak, Environmental Performance, Leverage dan Likuiditas, terhadap Corporate Social Responsibility Disclosure dengan Profitabilitas sebagai Pemoderasi

The focus of this study is the company's lack of attention and awareness of social responsibility, which results in conflicts between companies and communities regarding the impact of company operations. This shows that there are multiple factors that influence corporate social responsibility. The purpose of this research is to find out how tax aggressiveness, environmental protection, leverage, and liquidity affect the disclosure of corporate social responsibility, with profitability as a moderator. This research was conducted on 19 consumer non-cyclic companies listed on the Indonesia Stock Exchange during the 2017-2021 period, using a purposive sampling technique. Data were analyzed using panel data regression using E-Views 12.0. The results show that tax aggressiveness has a significant negative effect on CSR disclosure, while leverage has a positive effect on CSR disclosure. Environmental protection and salary have no effect on CSR disclosure. Profitability cannot reduce tax aggressiveness, level of environmental protection, and disclosure of corporate social responsibility, but can strengthen or reduce the effect of liquidity on social responsibility. Keywords: Corporate Social Responsibility Disclosure, Tax Aggressiveness, Environmental Performance, Leverage, Liquidity, Profitability.

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.

Evaluating Mandatory Corporate Social Responsibility Disclosure Policies and Sustainability Development Goals Achievement in Indonesia

<div class="WordSection1"><p><em>The enactment of the 2007 Company Law confirms Indonesia’s requirement for mandatory disclosure of Corporate Social Responsibility (CSR). However, there has not been any research specifically examining CSR activities from the report disclosed. Only a few studies have examined the mandatory disclosure of CSR for companies whose core business does not directly include natural resources but whose activities significantly impact the environment. Therefore, this research aimed to evaluate and analyse the mandatory disclosure of CSR through company annual  reports,  taking  a  sample  of  listed  textile  businesses in Indonesia and the correlation with the achievement of Sustainability Development Goals (SDGs). The findings showed that  the  mandatory  disclosure  regulations  in  2007  Company Law and Financial Service Authority Regulation Number 51/ POJK.03/2017 failed to improve optimal CSR implementation by textile companies in Indonesia. Various textile companies focused more on community development while paying little attention to environmental concerns. Additionally, detailed and explicit provisions were lacking in achieving the SDGs target. Reformulation of CSR disclosure policies was necessary to regulate reporting procedures, content, and criteria for environmental aspects of the programs in annual reports while correlating with </em><em>the targets of the 2030 SDGs policy.</em></p></div>

Comprehensive Board of Commissioner Diversity and Corporate Social Responsibility Disclosure in Indonesia

This study examines the effect of comprehensive board of commissioner diversity (BOC_DIV) and corporate responsibility (CSR) disclosure for listed companies in Indonesia from 2019 – 2020. The implementation of CSR is growing in emerging markets, including Indonesia. In the context of the dual board system in Indonesia, the role of the board of commissioner is vital to address the growing CSR issue through their monitoring and supervising functions. We based our study on Indonesian-listed firms across industries. However, we exclude the financial sector due to different policies. Multiple Regression is employed to investigate the relationship, and the Generalized Method of Moment (GMM) model is executed to identify whether our model falls into the endogeneity problem. The results showed that several Board of Commissioner characteristics (such as size, independence, and gender) are positively associated with CSR disclosure. After testing for the endogeneity problem, the findings remain similar. We examine several dimensions of the board of commissioner diversity on non-financial outcomes, especially CSR disclosure, in the context of developing countries where a dual board system is implemented.

Dampak Rasio Keuangan terhadap Nilai Perusahaan dengan Pemoderasi Pengungkapan Corporate Social Responsibility pada Perusahaan Pertambangan Batu Bara

This study investigates the relationship between profitability parameters and company size and firm value moderated by disclosure of corporate social responsibility in the coal mining sub-sector which is traded on the Indonesia Stock Exchange. The results of the study found that firm value increases with profitability, decreases significantly with firm size, profitability moderated by disclosure of corporate social responsibility has a significant negative effect on firm value, and firm size moderated by disclosure of corporate social responsibility cannot contribute to firm value. Moderate regression analysis used for data analysis in this study is Moderated Regression Analysis (MRA).

Corporate social responsibility disclosure and corporate social irresponsibility in emerging economies: Does institutional quality matter?

AbstractThe Panama Papers (2016), Paradise Leaks (2017), and Pandora Papers (2021) have revealed the extensive practice of corporate tax avoidance. Yet, the tax behavior of companies claiming to be “socially responsible” has been less examined. This study examines the association between corporate social responsibility disclosure (CSRD) and tax avoidance, particularly in developing economies, focusing on Sub‐Saharan Africa (SSA). By analyzing data from 600 firm‐year observations across 13 SSA countries using panel quantile regression, we found a negative relationship between CSRD, which includes ethical, social, and environmental dimensions, and tax avoidance. This aligns with legitimacy theory, indicating that firms are increasingly adopting CSR transparency to meet societal expectations and gain stakeholder trust, avoiding socially irresponsible behaviors. Furthermore, the quality of national governance significantly moderates the CSRD–tax avoidance relationship, supporting the concept of institutional isomorphism. This evidence is valuable for professionals and policymakers and encourages further research to deepen and broaden these findings.

Disclosure of corporate social responsibility in Baltic public companies: choices of reporting and its determinants

ABSTRACT This article investigates the choices of CSR reporting and its determinants in Baltic public companies. We assess the overall CSR disclosure situation and reveal the disclosure format and measurement content for social, environmental, and governance components. Then we explore the determinants of choices of reporting. Logit and Tobit regression models for balanced panel data sets are applied from 2017 to 2021. Our findings showed that mandatory disclosure dominates among Baltic public companies. Size and some performance indicators such as ROA, EPS, ROE, and capital intensity are important for CSR disclosure. Larger companies choose to present the separate CSR report, while smaller firms disclose CSR in annual reports. Larger companies also choose quantitative disclosure measures instead of only qualitative ones.

Does internal audit matter? Audit committee, its attributes, and corporate social responsibility reporting quality

This study explores the nexus between internal audit, audit committee attributes, and Corporate Social Responsibility (CSR) disclosure quality in A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2010 to 2019. Utilizing refined samples and robust datasets, this investigation reveals critical insights that a robust internal control system significantly correlates with higher-quality CSR disclosure, underscoring its pivotal role in safeguarding non-financial reporting integrity and enhancing transparency in CSR disclosures. Larger audit committees are positively associated with improved CSR disclosure quality. This highlights the strategic advantage of a diverse and expansive audit committee in navigating the complexities of CSR reporting. Contrary to expectations, the proportion of independent directors on the audit committee and the frequency of audit committee meetings do not show a significant positive relationship with CSR disclosure. Companies benefit from strategic investments in internal control systems, crucial for non-financial reporting integrity and fortified CSR disclosure practices. In conclusion, this study provides concise insights into critical factors influencing CSR disclosure quality in Chinese companies, offering actionable implications for corporate practices and regulatory frameworks. 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.

PENGARUH GOOD CORPORATE GOVERNANCE DAN KEPEMILIKAN SAHAM PUBLIK TERHADAP TINGKAT PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY

Companies prioritize CSR out of awareness of social and environmental impacts, as well as to meet societal expectations, reduce reputational risks, and strengthen relationships with stakeholders. However, decisions related to CSR can be influenced by public share ownership, because public shareholders have different preferences from institutional or majority shareholders. This research aims to determine the influence of GCG practices and public share ownership on CSR disclosure. The research method used is quantitative using a survey approach. Data collection was carried out through purposive sampling, from 82 mining companies listed on the Indonesia Stock Exchange in 2021 and 2022, 76 companies were sampled. Multiple linear regression tests and simple linear regression tests are used as data analysis methods. Linear regression analysis shows that there is a positive and significant influence of audit committee size and ownership on all types of CSR, while the composition of public ownership has a significant negative influence. The composition of the independent board of commissioners and institutional ownership do not have a significant effect. These results indicate the need to consider GCG structure and share ownership in an effort to increase Corporate Social Responsibility disclosure.

Examining the Nexus of Governance, Firm’s Characteristics and CSR Disclosure in Highly Polluted Industries

This study seeks to examine the effect of corporate governance and firm’s characteristics on corporate social responsibility disclosure (CSRD) of highly polluted industries. The sample of this study consisted of 250 data from 125 companies of basic material, chemicals, and energy sectors listed in the Indonesia Stock Exchange from 2020-2021. The result shows that ownership concentration has a negative effect on CSR disclosure. Audit committee and firm’s size positively affect corporate social responsibility disclosure. Meanwhile, the board size and leverage do not affect CSR disclosure. This study provides policy implications to identify governance systems and firm’s characteristics at increasing CSR awareness. The paper highlights the research context of the highly polluted industry, indicating a specific sector with unique challenges and implications for CSR. By focusing on these industries, the research aims to provide insights into opportunities associated with CSR disclosure in highly polluting sectors.

International diversification and corporate social responsibility disclosure quality: Employee versus environmental dimensions

AbstractMultinational enterprises (MNEs) face increasing institutional complexity as they expand internationally, which has a significant effect on their corporate social responsibility (CSR) strategy. In this study, we investigate an under‐explored difference between MNEs' employee and environmental CSR disclosure quality concerning the extent to which CSR reports are indicative of substantive activities. We propose that as international diversification increases institutional complexity, MNEs lower the disclosure quality of environmental CSR yet improve the disclosure quality of employee CSR due to their different institutional implications. In addition, we examine the effect of MNEs' home country cultural differences regarding uncertainty avoidance on the relationship between international diversification and employee and environmental disclosure quality. Based on a sample of 335 global MNEs from 31 countries, we found general support for our hypotheses.

The Determinant of Corporate Social Responsibility (CSR): The Role of Green Accounting as Moderating Variable in Indonesia

This study aims to determine the role of Green Accounting in the relationship between environmental performance and Disclosure of Corporate Social Responsibility (CSR) in JII 70 Companies for the 2018-2020 period. This research is a type of quantitative research and the data in this research is secondary data in the form of panel data sampling technique with purposive sampling technique. The samples used were 24 companies registered on JII 70 for the 2018-2020 period. The data collection method is carried out by accessing financial reports and annual reports which can be accessed through the website www.idx.co.id. The data is processed using the Eviews10 analytical tool. The analytical method used is a descriptive test, stationarity test, regression model test, classical assumption test, t-test, F test, and MRA test. The results showed that the environmental performance variable has a positive and significant effect on the disclosure of Corporate Social Responsibility. The green accounting variable has a positive and insignificant effect on the disclosure of Corporate Social Responsibility. After conducting the MRA test it shows that the green accounting variable cannot moderate the effect of Environmental Performance on Disclosure of Corporate Social Responsibility.

CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE, INSTITUTIONAL OWNERSHIP, AND ASSET GROWTH TO IMPROVE FIRM VALUE

Firm value is investors' perception of the company's success in managing its resources which is reflected in the share price. Several factors that influence company value include the company's ability to carry out social responsibility which is related to the public value of the company. Apart from that, Good Corporate Governance can also influence the size of the company's value. However, internal factors, namely asset growth, can also have an impact on company value. This research aims to analyze the influence of Corporate Social Responsibility Disclosure, Institutional Ownership and Asset Growth on company value in companies listed on the Indonesia Stock Exchange. The sample companies are consumer goods companies with data analysis methods using descriptive and verification analysis. The results showed that partially Corporate Social Responsibility Disclosure had a negative and insignificant effect on firm value but Institutional Ownership and Asset Growth had a positive and significant effect on firm value.

Effect of the national business system on the disclosure of greenhouse gases emissions: multi-country evidence

Methodology: Institutional Theory and the National Business System approach were used to propose the research hypotheses. The work evaluated 1,072 companies from the 10 largest economies in the world, using econometric models and statistical analysis.Purpose: Investigate the effect of the national business system on the disclosure of greenhouse gases by companies from the largest economies in the world.Findings: The results indicate that institutional factors, such as the political, financial and cultural systems affect the disclosure of greenhouse gases. Thus, institutional pressure from countries can determine the environmental performance of their firms. However, the results showed that the country’s level of development is not an explanatory variable for the disclosure of atmospheric emissions.Practical implications: The research presents the impact of formal and informal institutions on the disclosure practices of companies, suggesting that policy makers could influence it by strengthening certain institutional aspects. Originality/Value: Although there is an increasing volume of research on the disclosure of corporate social responsibility, few studies are dedicated to comparing the disclosure of greenhouse gases in the light of the national business system.

Corporate Social Responsibility Disclosure Issues in Indonesia

The high number of work accidents in Indonesia indicates that companies have not paid attention to occupational safety and health. The purpose of the study is to impartially analyze the impact of Company Growth, Leverage, and Company Size on Occupational Safety and Health Disclosure. This is important because it directly improves the company's reputation and ensures long-term sustainability. The quantitative research used in this study relies on secondary data taken from the annual reports of mining and infrastructure companies listed on the Indonesia Stock Exchange (IDX) throughout the period 2019 to 2021. Purposive sampling was used as a sample technique, resulting in a total of 78 samples. Data processing uses descriptive statistics, panel data regression, and independent sample t test. This study uses 10 items of the Occupational Safety and Health Disclosure index obtained from the GRI index. The findings of this study provide factual evidence that company development, leverage, and company size have a positive impact on the dissemination of occupational health and safety information.

The role of environmental performance in mediating the relationship between green accounting and corporate social responsibility

The problems of pollution, global warming, and environmental damage are currently relevant and vital challenges for corporations, governments, and society. The implementation of green accounting is one of the responses of corporations to overcome sustainability issues. This study aims to examine the impact of green accounting on the level of environmental performance and the impact of environmental performance on corporate social responsibility (CSR) disclosure. This study also tests the role of environmental performance as a mediating variable in the relationship between green accounting and CSR disclosure. The sample consists of 95 listed Indonesian firms during the period 2017–2021. The results show that the adoption of green accounting positively affects environmental performance (coefficient is 0.291 and p-value < 0.01). Meanwhile, environmental performance positively affects CSR disclosure with a coefficient of 0.296 and a p-value < 0.01. The empirical evidence also shows that environmental performance has a critical role as a mediating variable in the effect of green accounting on CSR disclosure.