Purpose
This paper aims to examine and compare the nature and extent of corporate social responsibility (CSR) reporting practices of companies in developing (BRICS [Brazil, Russia, India, China and South Africa]) and developed (the USA and the UK) countries.
Design/methodology/approach
Content analysis is conducted on the annual reports and websites of 325 companies listed on stock exchanges of developing markets and of developed markets (Brazil – IBrX 100, 46 companies; Russia – Broad Market Index, 50 companies; India – BSE 100, 50 companies; China – SSE 180, 29 companies; South Africa – FTSE/JSE All Share index, 50 companies; the USA – NYSE 100, 50 companies; the UK – FTSE 100, 50 companies). Descriptives are used to calculate company wise and item wise scores. T-test analysis is applied to check for significant differences between mean scores of developing and developed countries.
Findings
The findings of the study reflect that developed countries have higher CSR disclosure scores than developing countries. Overall, mean CSR disclosure score of developed countries is 53.5%, followed by that of the developing countries at 49.4%. Developed countries take lead in CSR disclosure for all the five categories, namely, human resources, community, environment, customer and product and others. The results of independent sample T-test suggest that mean disclosure score of developing nations is significantly different from developed nations.
Practical implications
As suggested by the results, the gap in the CSR disclosure scores between developing and developed group of countries is not an alarming one. However, developing countries should practice CSR in spirit and not just in letter. Focus should not be on just filling the pages in black and white, rather the essence of CSR should be attained for balanced development of the country. For instance, though developing country like India has high score of CSR disclosure in contrast to each of the developed country taken in the sample, yet the country is still battling with several issues such as poverty, over-population, corruption, poor standard of working conditions for the employees and environmental conservation. Sustenance should focus upon renewable sources of energy; efforts of employees should be acknowledged offering flexible working hours; consumer trust should be built by communicating authentic and accurate information about the product. As developing countries encounter several social and environmental problems, companies must endeavor to build a healthy nation keeping in mind the welfare of all stakeholders by practicing CSR.
Originality/value
This study overcomes the limitations of prior cross-country studies by taking a better representative sample with greater number of countries belonging to identifiable group of “developing” and “developed” nations and thus attempts to improve generalization and authenticity of results.
