Mandatory corporate social responsibility assurance practices

2015 ◽  
Vol 28 (4) ◽  
pp. 515-550 ◽  
Author(s):  
Barry Ackers ◽  
Neil Stuart Eccles
Keyword(s):  
South Africa ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
South African ◽  
Listed Companies ◽  
Annual Reports ◽  
Content Type ◽  
Mandatory Requirement ◽  
Corporate Social ◽  
The Impact

Purpose – Despite its voluntary nature, the Johannesburg stock exchange (JSE) requires all listed companies to apply the King III principles, including providing independent CSR assurance. King III has accordingly made independent CSR assurance a de facto mandatory requirement, albeit on an “apply or explain” basis. The purpose of this paper is to examine the impact mandatory corporate social responsibility (CSR) assurance practices in South Africa, within a King III context. Design/methodology/approach – To understand the impact of King III on South African CSR assurance practices, a longitudinal study covering reporting periods both before and after King III implementation. The first stage reviewed the annual reports of the 200 largest JSE-listed companies to establish the frequency of CSR assurance provision. The second stage involved performing a content analysis on the CSR assurance reports. Findings – King III is driving the institutionalisation of CSR assurance practices in South Africa, as evidenced by the growth in CSR assurance since the implementation of King III. The study also found that the audit profession’s dominance was being eroded by specialist CSR assurors providing higher levels of assurance, despite concerns about the rigour of their assurance methodologies. Voluntary CSR assurance practices have resulted in the inconsistent application of CSR assurance practices, impairing the ability of stakeholders to understand the nature and scope of CSR assurance engagements. It is argued that this deficiency may be overcome through the imposition of a mandatory CSR assurance regime. Originality/value – The pervasive impact of the King Code of Governance on South African organisations makes it appropriate to examine its impact on South African CSR assurance practices. As such, this paper represents one of the first studies to specifically consider the impact of a mandatory regulatory requirement for independent CSR assurance and suggests a future direction for global CSR assurance practices.

scholarly journals The impact of web marketing on corporate social responsibility (CSR) and firms' performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammed Muneerali Thottoli ◽  
K.V. Thomas
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Listed Companies ◽  
Annual Reports ◽  
Content Type ◽  
Web Marketing ◽  
Corporate Social ◽  
Google Search ◽  
The Impact

PurposeThe current study seeks to examine the impact of web marketing (through the company's website) on corporate social responsibility (CSR) and firms' performance across companies listed in the Muscat Stock Exchange (MSX), Oman.Design/methodology/approachThis research analyses qualitative and exploratory data taken from companies' website, annual reports (the financial year 2019), Google search and CSR report from 69 out of total 117 listed companies in the MSX to analyze the impact of web marketing on CSR and firms' performance proxied by return of assets (ROA), return of equity (ROE) and Tobin's Q (TQ).FindingsWeb marketing on CSR positively affects firms' performance. Especially, the positive effect of web marketing on firms' performance is stronger for listed companies. Web marketing enhances financial performance proxied by ROA, ROE and TQ.Practical implicationsThe research findings provide new insights that are able to enlighten governing bodies in Oman to make standardized compulsory CSR spending (say, 0.5% on profit after tax) by listed companies in MSX.Originality/valueThis research presents evidence that web marketing on CSR can increase firms' performance and brand image among stakeholders. This is the first study to examine the impact of web marketing on CSR and firms' performance using empirical data in Oman.

The impact of the integrated reporting framework on corporate social responsibility (CSR) disclosures – the case of South African mining companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Barry Ackers ◽  
Susanna Elizabeth Grobbelaar
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
South African ◽  
Mining Industry ◽  
Integrated Reporting ◽  
Content Type ◽  
Stakeholder Orientation ◽  
Mining Companies ◽  
Corporate Social ◽  
The Impact

Purpose Despite initially being lauded as a revolutionary approach for companies to account to all stakeholders, the shareholder orientation of the international integrated reporting (<IR>) framework gave rise to questions about whether integrated reports would still sufficiently disclose pertinent corporate social responsibility (CSR) information. This paper aims to investigate the extent to which the <IR> framework has impacted the CSR disclosures contained in integrated reports of South African mining companies. Design/methodology/approach The study deployed a mixed methods research approach, involving thematic content analysis of the CSR disclosures contained in the integrated reports of mining companies with primary listings on the Johannesburg Stock Exchange. The resultant qualitative data were subsequently analysed using a T-test of difference. Findings The study observes that the release of the <IR> framework appears to have had a limited impact on the CSR disclosures in the integrated reports of most companies included in the study. However, where significant differences were identified, the CSR disclosures of some companies were positively impacted after the release of the <IR> framework, whilst others were negatively impacted. Research limitations/implications As South Africa is acknowledged as a leader in the global <IR> movement, the paper’s observations have global relevance and suggest that the fundamental principles of <IR> should be reconsidered to improve the alignment with stakeholders’ information needs, as originally conceived. Originality/value Despite the shareholder orientation of the <IR> framework, the global mining industry is acknowledged as being at the forefront of implementing CSR interventions to mitigate the adverse impacts of their operations on stakeholders, supporting a stakeholder orientation. As the adoption of <IR> continues to gain traction around the world, this paper’s contribution is that it represents one of the few papers to use the global reporting initiative G4 indicators to specifically examine the impact of <IR> framework on the CSR disclosures on the South African mining industry, where both <IR> and CSR reporting are quasi-mandatory disclosure requirements.

scholarly journals Empirically examining the impact of corporate social responsibility on financial performance: evidence from Indian steel industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nripinder Kaur ◽  
Vikramjit Singh
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Steel Industry ◽  
Positive Impact ◽  
Value Added ◽  
Annual Reports ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

PurposeThis paper aims to examine the impact of corporate social responsibility (CSR) on financial performance (FP) of Indian steel industry in terms of value-added (VAM), profitability (PM), market (MM) and growth measures (GM).Design/methodology/approachIt is an empirical study using secondary data of 40 companies for 14 years collected from CSR/annual reports/official websites of the companies and Prowess database. The panel regression analysis, MANOVA and univariate ANOVA have been conducted to examine the impact of CSR on FP.FindingsThe result indicates a positive impact of CSR on FP in terms of VAM, PM and GM, thereby indicating that more investments in CSR will generate wealth for shareholders, enhance profitability and sales. Moreover, this study shows no noticeable relationship between CSR and MM.Social implicationsThis study contributes to the literature on the CSR–FP relationship and also has implications for managers, investors and other stakeholders. Companies with higher CSR rating create a brand image, attract proficient employees, get greater profit, loyal customers and have less possibility of bribery and corruption. This study may result in being influential to companies confined not only to this sector but also reaching to the others, thus inspiring them to contribute their share of profit for the welfare of society.Originality/valueTo the best of the authors' knowledge, it is the first comprehensive study to examine the impact of CSR on FP of Indian steel industry by considering four dimensions for measuring FP. It provides evidence about the relationship between CSR and FP.

Corporate social responsibility in South Africa: quo vadis?

2015 ◽  
Vol 6 (4) ◽  
pp. 466-478 ◽  
Author(s):  
David Alastair Lindsay Coldwell ◽  
Tasneem Joosub
Keyword(s):  
South Africa ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
South African ◽  
Business Leaders ◽  
Measuring Instruments ◽  
Shared Value ◽  
Content Type ◽  
Corporate Social ◽  
Insight Into

Purpose – Strategies and policies aimed at alleviating poverty in Sub-Saharan African countries usually depend on capitalistically driven economic growth. However, the view that capitalism needs to reinvent itself to survive the crisis of confidence brought about by the recent global financial collapse depends on the extent to which such a shared value oriented, sustainable capitalist reinvention is embraced by emergent business leaders. A sustainable system of capitalism driven by business and community shared value can only take root if the hearts and minds of future business leaders are convinced of their cogency and appropriateness. The paper aims to discuss these issues. Design/methodology/approach – This paper reports the findings of an empirical study utilizing a Likert-type scale designed to measure corporate shared value (CSV) and corporate social responsibility (CSR) among a sample of fourth year accountancy students at a leading South African university. Findings – Preliminary findings suggest that perceptions of this group of emergent leaders generally regard CSR rather than CSV as the “correct” business model for companies to follow. Although the sample is limited to one South African university and is relatively small, it contributes to the literature by offering insight into emergent business leaders’ perceptions and their view of the direction of CSR in South Africa should take. Research limitations/implications – Implications of the paper are that by offering insight into emergent business leaders’ perceptions of South African society and specifically their view of the direction South African CSR should take, the paper suggests prescriptive remedial steps in policy that educational and other learning institutions could take to engender appropriate social values in learners. Originality/value – The study contributes to the literature by offering devised and tested measuring instruments for CSR and CSV in the South African context and gives insight into emergent business leaders’ perceptions and their view of the direction of CSR in South Africa should take.

Analyzing the impact of corporate social responsibility on corporate financial performance: evidence from top Indian firms

2019 ◽  
Vol 20 (1) ◽  
pp. 143-157 ◽  
Author(s):  
Amritjot Kaur Sekhon ◽  
Lalit Mohan Kathuria
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Negative Influence ◽  
Annual Reports ◽  
Content Type ◽  
Research Instrument ◽  
Indian Context ◽  
Corporate Social ◽  
The Impact

Purpose Despite continuous research efforts, the literature is still inconclusive about the relationship between corporate social responsibility (CSR) and financial performance. With an aim to address this problem, this study aims to analyze the impact of CSR on financial performance in the Indian context. Design/methodology/approach Using a panel of top 137 companies from CNX-500 for 10 years (2008-2017), the impact of CSR on three indicators of financial performance, namely, Return on Assets (ROA), Return on Equity (ROE) and Net Profit Margin (NPM), is evaluated using the panel data regression analysis. The technique of content analysis is used to collect data on CSR from the annual reports of selected companies. Findings The study finds that the impact of CSR on financial performance may be neutral (with ROA and NPM) or negative (with ROE). The negative influence of CSR on ROE of firms supports the theory by Friedman (1970) that the only responsibility of business is to maximize profits and returns for its shareholders. Originality/value After amendments in Companies Act, 2013, there is limited literature addressing this scientific inquiry in the Indian context. The study period (2008-2017) includes CSR disclosures from both periods, before reforms and after reforms, which adds to the uniqueness of this research study. In addition, this study uses a research instrument consisting of a total of 178 CSR activities divided across 46 themes for collecting data from annual reports of the companies. The utilization of such a comprehensive research instrument, for the study, also adds to its peculiarity.

scholarly journals Factors Influencing Corporate Social Responsibility Disclosure and Its Impact on Financial Performance: The Case of Vietnam

2021 ◽  
Vol 13 (15) ◽  
pp. 8197
Author(s):  
Thanh Hung Nguyen ◽  
Quang Trong Vu ◽  
Duc Minh Nguyen ◽  
Hoang Long Le
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Information Disclosure ◽  
Listed Companies ◽  
Annual Reports ◽  
Government Ownership ◽  
Corporate Social Responsibility Disclosure ◽  
Corporate Social ◽  
The Impact

The study examines the impact of company size, industry sensitivity, government ownership, liquidity and company age on Corporate Social Responsibility Disclosure (CSRD) in 2019 annual reports of listed companies on the Vietnam stock market. We also consider the relationship between CSRD and the financial performance measured by return on assets (ROA) and return on equity (ROE). This study uses descriptive statistics and regression methods to test research hypotheses. The empirical findings show that company characteristics, including firm size, liquidity, government ownership and environmental industry sensitivity, are positively associated with firms’ CSRD level. Firm age does not influence the CSRD of listed companies. The CSRD significantly affects both ROA and ROE. Our study provides several suggestions to promote the CSR information disclosure of listed companies and enhance their social responsibility for sustainable development.

Does CSR disclosure enhance corporate brand performance in emerging economy? Evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Soumya Sarkar ◽  
Manali Chatterjee ◽  
Titas Bhattacharjee
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Annual Reports ◽  
Brand Performance ◽  
Corporate Brand ◽  
Content Type ◽  
Csr Reporting ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

Purpose This study aims to delve into the influence of corporate social responsibility on the corporate brand performance of Indian business-to-business (B2B) companies. Design/methodology/approach The corporate social responsibility (CSR) practices have been measured through CSR disclosure index (CDI), generated by surveying annual reports/CSR reports/websites of 131 Indian B2B firms. The same was mapped to corporate brand performance of these firms, measured as customer-based corporate brand equity, which was measured through a questionnaire-survey of purchasing managers and users working in firms that are customers to the above-mentioned firms. Findings The result reveals the positive influence of CSR practices in shoring up corporate brand performance. Research limitations/implications CDI has been developed based on CSR reporting across the stakeholder groups. However, the impact has been mapped onto one stakeholder category, the customer. The sample period was only one year, and the data is cross-sectional. Future studies may investigate the long-term effect of CSR using longitudinal data on larger data sets. Practical implications This study will encourage Indian B2B firms to practice CSR not only for conforming to the regulatory requirements but also as a strategic tool in strengthening the competitive advantage. Originality/value It is the first study of its kind to evaluate the imprint of corporate social responsibility, measured based on CSR reporting by firms, on corporate brand performance. It looks into the return earned by firms from the resources invested in CSR activities.

Does CFO accounting expertise matter to corporate social responsibility disclosure in 10-Ks?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jun Guo ◽  
Sungsoo Kim ◽  
Yang Yu ◽  
Jung Yeun (June) Kim
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Annual Reports ◽  
Personal Attributes ◽  
Policy Makers ◽  
Content Type ◽  
Accounting Expertise ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

PurposeThe study aims to understand the role of accountant in corporate social responsibility (CSR) practice.Design/methodology/approachIn this study, the authors examine whether and how chief financial officer (CFO) accounting expertise and previous work experience influence voluntary CSR disclosure, using textual analysis and natural language processing (NLP) techniques. The authors find that firms' CFOs with accounting expertise disclose more CSR issues in their 10-K reports. Overall, this study provides evidence of the impact of CFOs' professional and personal attributes on voluntary CSR disclosure in corporate annual reports. This study has important implications to investors and policy makers in the context of CSR disclosure regulations in annual reports.FindingsOverall, this study provides evidence of the impact of CFOs' professional and personal attributes on voluntary CSR disclosure in corporate annual reports. This study has important implications to practitioners and policy makers in the context of CSR disclosure regulations in annual reports.Research limitations/implicationsThere is an inherent limitation of textual analysis as the tool tries to read key words from the text.Practical implicationsThis finding is useful for policy maker and investors as CSR is known to have impact on the share price.Originality/valueThis paper is the first attempt to find out accountants' role in CSR activities, which has not been examined in the prior literature.

The effect of corporate governance practices on corporate social responsibility disclosure

2019 ◽  
Vol 10 (2) ◽  
pp. 134-160 ◽  
Author(s):  
Mohammad A.A. Zaid ◽  
Man Wang ◽  
Sara T.F. Abuhijleh
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Empirical Evidence ◽  
Listed Companies ◽  
Annual Reports ◽  
Content Type ◽  
Csr Reporting ◽  
Csr Disclosure ◽  
Corporate Social

Purpose The purpose of this study is to empirically examine the deeply rooted relationships between corporate governance (CG) and corporate social responsibility (CSR) disclosure as two complementary mechanisms used by companies to reinforce the link with stakeholders and whether the extent of CSR disclosures made by Palestinian non-financial-listed companies during the period from 2013 to 2016 is associated with CG practices. Design/methodology/approach Content analysis technique was used to extract and measure CSR information from annual reports of 33 companies listed on the Palestine Stock Exchange (PEX). Therefore, CSR disclosure index was constructed using 32 items divided into four categories as a measure of the extent of CSR disclosure in the firm’s annual reports. OLS regression was performed to test the association between CG and the extent of CSR disclosure in this longitudinal study. Findings Panel data reveal that the level of CSR reporting has slightly increased over the study period. Further, the results also show that the level of CSR disclosure is positively and significantly affected by board size and independence, while gender diversity has a positive but statistically insignificant influence. Additionally, CEO duality is negatively and significantly correlated with CSR disclosures. Research limitations/implications The study designs are limited to the Palestinian non-financial-listed firms. Furthermore, the generalisation of the findings might be restricted solely to the listed companies working in similar socioeconomic status. Practical implications The findings of this study can draw policy-makers’ attention in developing countries, particularly in the Arab world, to meet the increasing need for updating the regulatory and institutional framework in the vein of CG reform and the related regulatory policies to promote the efficiency of CSR practices. Social implications More efforts should be made to strengthen the awareness of the Palestinian listed companies of the advantages of CSR reporting on social reality. Thus, from a management perspective, companies have to take equally into account the financial and social outcomes of CSR activities. Originality/value Empirical evidence on the nexus between CG and CSR disclosure from countries affected by socio-political instability is extremely limited. This study bridges this research gap and contributes theoretically and practically to the CSR literature by providing empirical evidence from a developing country with a unique business environment.

Mandatory corporate social responsibility in India: reporting reality, issues and way forward

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pawan Taneja ◽  
Ameeta Jain ◽  
Mahesh Joshi ◽  
Monika Kansal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Mandatory Reporting ◽  
Content Type ◽  
Csr Reporting ◽  
Reporting Requirements ◽  
Expectation Gap ◽  
The Government ◽  
Corporate Social ◽  
The Impact

Purpose Since 2013, the Indian Companies Act Section 135 has mandated corporate social responsibility (CSR) reporting by Indian central public sector enterprises (CPSEs). CSR reporting is regulated by multiple Government of India ministerial agencies, each requiring different formats and often different data. This study aims to understand the impact of these multiple regulatory bodies on CSR reporting by Indian CPSEs; evaluate the expectation gap between regulators and the regulated; and investigate the compliance burden on CPSEs. Design/methodology/approach An interview-based approach was adopted to evaluate the perspectives of both regulators and regulated CPSEs on the impact of the new regulations on CSR reporting quality. The authors use the lens of institutional theory to analyse the findings. Findings Driven by coercive institutional pressures, CPSEs are overburdened with myriad reporting requirements, which significantly negatively impact CPSEs’ financial and human resources and the quality of CSR activity and reports. It is difficult for CPSEs to assess the actual impact of their CSR activities due to overlapping with activities of the government/other institutions. The perceptions of regulators and the regulated are divergent: the regulators expect CPSEs to select more impactful CSR projects to comply with mandatory reporting requirements. Originality/value The findings of this study emphasise the need for meaningful dialogue between regulators and the regulated to reduce the expectation gap and establish a single regulatory authority that will ensure that the letter and spirit of the law are followed in practice and not just according to a tick-box approach.

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