The explanatory effect of CSR committee and assurance services on the adoption of the IFC performance standards, as a means of enhancing corporate transparency

2019 ◽  
Vol 10 (5) ◽  
pp. 773-797 ◽  
Author(s):  
Isabel María García-Sánchez ◽  
María-Elena Gómez-Miranda ◽  
Fátima David ◽  
Lázaro Rodríguez-Ariza
Keyword(s):  
Corporate Governance ◽  
Good Practice ◽  
Performance Standards ◽  
Communication Strategy ◽  
Content Type ◽  
Reporting Practices ◽  
Csr Reporting ◽  
Corporate Transparency ◽  
Assurance Services ◽  
Csr Disclosure

Purpose In view of the significant deficiencies that have been observed in corporate social responsibility (CSR) reporting practices, some companies have undertaken a new communication strategy based on a combination of the GRI guidelines and the IFC Performance Standards (termed the GRI-IFC strategy). This paper aims to analyse the role of the CSR committee and of assurance services in promoting this novel practice. Design/methodology/approach The authors use an unbalanced sample of 750 international companies that operate in emerging markets for the years 2011-2016, in which logistic and ordinal regressions are applied to the panel data to test the research hypotheses. Findings The results show that the existence of a CSR committee facilitates adoption of the GRI-IFC strategy, thus promoting sustainable management policies and systems and enhancing communication with stakeholders. In addition, these specialised committees often commission assurance for sustainability reports, to reinforce strategies aimed at improving corporate transparency. Research limitations/implications The analysis of mediation shows that diverse characteristics of corporate governance mechanisms interact in improving sustainability and business transparency. Practical implications There is an evident need for greater commitment by institutions to sustainability, for example by requiring greater specialisation of the members of the CSR committee in social and environmental issues. In addition, consideration should be given to including the creation of a CSR committee as a good practice, within the code of corporate governance and to establishing a specific framework for the committee’s actions. Social implications The previously cited impacts of this paper all contribute indirectly to a greater social welfare by generating higher levels of transparency, ethics and corporate performance. Specifically, higher quality verification services will have an impact on the improved functioning of the financial and capital markets, as well as in decision-making by internal and external stakeholders with more reliable information that will favour the implementation of more sustainable processes that in the short and long term will mean more companies who are responsible towards the environment and society. Originality/value This novel study explains why companies adopt voluntary strategies in compliance with GRI guidelines, seeking to provide better CSR disclosure.

Is corporate governance relevant to the quality of corporate social responsibility disclosure in large European companies?

2019 ◽  
Vol 27 (2) ◽  
pp. 301-332 ◽  
Author(s):  
Christine Adel ◽  
Mostaq M. Hussain ◽  
Ehab K.A. Mohamed ◽  
Mohamed A.K. Basuony
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
European Countries ◽  
Social Implications ◽  
Content Type ◽  
Csr Reporting ◽  
Csr Disclosure ◽  
Corporate Social

Purpose This paper aims to report on the quality of corporate social responsibility (CSR) disclosure in S&P Europe 350 companies. The paper also examines the impact of corporate governance structure and other firm-specific characteristics on the quality of CSR disclosure in European companies. Design/methodology/approach The paper uses a disclosure index adopted from Jizi et al. (2014). Moreover, the paper contributes to the CSR disclosure literature by developing a new index that includes all the aspects introduced by the Global Reporting Initiative version 4.The data of CSR reporting are manually collected from the firms’ reports. The population and sample of this study are related to 350 companies operating in 16 European countries. Tobit regression analysis is used to test the hypotheses. Findings The results reveal that directors’ ownership, the presence of a CSR committee and firm size positively affect the quality of CSR reporting. Further testing of the independent variables on each CSR sub-category is made. The CSR sub-categories used are, namely, community involvement, employees, environment, social product and service quality, supply chain sustainability and business ethics. The presence of a sustainability committee inside the company is the only factor that shows a strong positive effect on the disclosure of every CSR sub-category and the CSR inclusive index. Research limitations/implications The limitations of this research are that it focuses exclusively on the effect of the internal corporate mechanisms on the quality of CSR reporting; disregarding the economic, institutional, political and cultural factors that can play a role in influencing sustainability reporting of the companies. Practical implications Better CSR disclosure leads to the firm having a better image in the society; this, in turn, has implications on firm performance, attracting funds, as well as recruiting and retaining high profile employees. Stakeholders are placing cumulative significance to corporate transparency particularly in the area of CSR. Managers should exert more efforts into not only improving the disclosure of the various facts of CSR but also into using the various media available for disclosure. Companies should take the initiative of establishing a CSR committee to ensure effective formation and implementation of CSR policies and disclosure of CSR activities. Social implications The CRS research itself bears the merit of social implications. Moreover, the findings of this research pave the way for future researches to examine the effect of the adoption of global CSR initiatives and frameworks on the quality of CSR reporting. Originality/value This paper contributes to the CSR disclosure literature by developing a new index that includes all the aspects of CSR and exploring the relation between the rarely explored “presence of sustainability committee” and CSR disclosure, as well as testing a vast number of CSR sub-categories that is not extensively covered in previous studies. Moreover, the paper covers a large sample of companies across 16 European countries, in terms of their stand-alone sustainability reports, dedicated chapters of CSR in annual reports, integrated reports, website CSR information and any attachments/links provided on the websites for further CSR documents, brochures or data sheets.

The effect of award on CSR disclosures in annual reports of Malaysian PLCs

2015 ◽  
Vol 11 (4) ◽  
pp. 831-852 ◽  
Author(s):  
Abdirahman Anas ◽  
Hafiz Majdi Abdul Rashid ◽  
Hairul Azlan Annuar
Keyword(s):  
Climate Change ◽  
Annual Reports ◽  
Content Type ◽  
Reporting Practices ◽  
Csr Reporting ◽  
The Moment ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Practical Implications

Purpose – The paper aims to examine the determinants of corporate social responsibility (CSR) disclosures in the annual reports of Malaysian public listed companies (PLCs). In 2006, Bursa Malaysia Berhad (BMB) launched its CSR Framework (effective in 2007) which is supposed to guide the Malaysian PLCs’ CSR disclosures. It is believed that this CSR framework may influence CSR disclosures to be more systematic, yet there is no evidence whether this framework influences the extent and quality of CSR disclosures. Thus, this study examines this area of research. The study also tests the influence of award on CSR disclosures. Design/methodology/approach – CSR disclosure checklist was developed to analyse the extent and quality of CSR information disclosures in the year 2008 annual reports of the Malaysian PLCs. Findings – Malaysian PLCs disclose more CSR information related to community and environment than workplace and marketplace CSR themes. On the other hand, the quality of disclosure practices was minimal when it is compared to the extent of disclosure practices. Finally, the study also found that the award’s variable has a significant positive relationship with both the extent and quality of CSR disclosure practices of the Malaysian PLCs. Research limitations/implications – The recently developed BMB’s CSR framework seems to have impact on the level and systematic CSR reporting practices of Malaysian PLCs. However, the quality of CSR disclosures is considered minimal. Practical implications – The results of the study bring some practical implications to the regulators, particularly Bursa Malaysia. First, it is good to observe that most companies have practiced specific disclosure in a separate statement with regard to CSR. However, the format of presentation and the extent of disclosure vary among the firms. Second, further guidelines need to be developed to provide a clearer framework of disclosure for CSR information. At the moment, Bursa Malaysia only listed down general principles of CSR themes. In addition, the regulators should also look into the evolving issues in CSR, such as the issue of climate change reporting. For example, the Climate Disclosure Standards Board has issued a voluntary Climate Change Reporting Framework. Originality/value – This study examined both the traditional (i.e. firm size and profitability) and non-traditional (i.e. award) factors influencing management’s decision to disclose CSR information in the annual reports of the Malaysian PLCs. Furthermore, the study reported how Malaysian PLCs comply with the recently implemented CSR framework issued by BMB.

Diversity, corporate governance and CSR reporting

2019 ◽  
Vol 30 (1) ◽  
pp. 116-136 ◽  
Author(s):  
Dina El-Bassiouny ◽  
Noha El-Bassiouny
Keyword(s):  
Corporate Governance ◽  
Institutional Theory ◽  
Governance Structure ◽  
Developed Countries ◽  
Organizational Level ◽  
Content Type ◽  
Explanatory Variables ◽  
Reporting Practices ◽  
Csr Reporting ◽  
The Usa

PurposeTaken from an institutional theory perspective, the purpose of this paper is to explore the effects of organizational-level factors, specifically diversity and corporate governance structure, on the corporate social responsibility (CSR) reporting practices of corporations operating in developing and developed country contexts, namely, Egypt, Germany and the USA. Since developed countries are exposed to different settings, the paper argues that there is likely to be a difference in the organizational-level drivers of CSR reporting in developed vs developing countries.Design/methodology/approachThe sample consists of companies listed on the Egyptian EGX 30 index, the German DAX 30 index and the US Dow Jones 30 index. Governance- and diversity-related data are gathered from multiple sources including the BoardEx and Orbis databases. Content analysis is used to analyze the CSR information of sample companies using the software package MAXQDA. To examine the relationship between the explanatory variables of the study and CSR disclosures, multiple regression analysis is used.FindingsThe results are mostly consistent with institutional theory where the effects of diversity and governance structure, observed mainly by foreign BOD, board independence and institutional ownership, are found to be significant on the CSR disclosure levels of sample Egyptian companies only. On the other hand, no significant influence of tested factors was observed on the level of CSR reporting in the USA and Germany. The results thus indicate that the influence of organizational-level factors on CSR is highly dependent on the institutional context where companies operate.Originality/valueThe influence of diversity and corporate governance on CSR has been separately studied in the management literature. Yet, the potential effects of both variables on CSR have received limited attention. In addition, no study combining such explanatory variables of CSR was carried out in the specific context of developing Middle Eastern countries. Also, illustrating how institutional contexts can influence the dynamics of interaction between organizational-level variables and CSR is still understudied. This kind of multi-level research can help broaden the understanding of the drivers and practices of CSR in developing vs developed countries that have distinct institutional environments.

The influence of corporate governance practices on corporate social responsibility reporting

2018 ◽  
Vol 14 (1) ◽  
pp. 20-39 ◽  
Author(s):  
Afzalur Rashid
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Environmental Reporting ◽  
Content Type ◽  
Csr Reporting ◽  
Governance Practices ◽  
Csr Disclosure ◽  
Social And Environmental Reporting ◽  
Corporate Social

Purpose This study aims to investigate if “corporate governance practices” have any influence on firm corporate social responsibility (CSR) reporting by listed firms in Bangladesh. Design/methodology/approach This study uses a content analysis to examine specific corporate social responsibility (CSR)-related attributes from 101 publicly listed non-financial firms in Bangladesh. Using various attributes of social and environmental reporting, a disclosure index is also constructed. Findings The finding of this study is that corporate governance practices do not have any influence on firm CSR reporting. The findings, in particular, show that CSR disclosure by firms is not responsive to new corporate governance regulations. Research limitations/implications This study is subject to some limitations, such as the subjectivity or judgement associated in the coding process. Practical implications The implication of this study is that firm CSR practices are legitimization exercises and firms will not make increased disclosure due to regulator’s quest for institutionalisation of corporate governance practices. Originality/value This study contributes to the literature on the practices of CSR reporting in the context of developing countries following regulator’s quest for institutionalisation of corporate governance practices.

The impact of corporate governance characteristics on banks’ corporate social responsibility disclosure

2019 ◽  
Vol 9 (1) ◽  
pp. 75-102 ◽  
Author(s):  
Łukasz Matuszak ◽  
Ewa Różańska ◽  
Małgorzata Macuda
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Positive Influence ◽  
Content Type ◽  
Csr Reporting ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Majority Shareholder

Purpose The purpose of this paper is to investigate the extent and trend of corporate social responsibility (CSR) reporting in commercial banks in Poland and examine the link between corporate governance characteristics, namely size of the bank, ownership, boards size, board diversity and CSR disclosures in the banks. Design/methodology/approach The annual reports and CSR reports of the banks were examined between 2008 and 2015 using content analysis and panel data analysis. Findings The results indicate that banks improved their CSR reporting practices during examined period. There are statistically significant differences in the level of CSR disclosures between banks with a different ownership structure. Both foreign majority shareholder group as well as state majority shareholder group have a positive influence on CSR as compared with Polish majority shareholder (PMS) group (excluding State). Moreover, being listed on stock exchange has a positive influence on CSR as compared with not being listed. Further, the results also revealed that there is a significant positive effect of almost all variables related to the management board, namely, size, female board leadership and foreign board members on CSR disclosure, whereas all supervisory board variables and all considered ownership variables have no statistically significant impact on CSR disclosure. Originality/value This research contributes to the existing literature because the banking sector is often excluded from CSR studies due to its specific legal regulations and seemingly little environmental impact. Moreover, there are only few studies analysing the effect of boards characteristics on the banks CSR disclosure, especially in emerging countries. This study is also the first of this kind focusing on the two-tier system. Furthermore, the study provides the instrument to measure CSR in the banking industry. Finally, the research stresses the crucial implications for banking sector, shareholders and regulatory bodies.

scholarly journals DOES THE INSTITUTIONAL ENVIRONMENT AFFECT CSR DISCLOSURE? THE ROLE OF GOVERNANCE

2016 ◽  
Vol 56 (6) ◽  
pp. 641-654 ◽  
Author(s):  
MARÍA DEL MAR MIRAS RODRÍGUEZ ◽  
BERNABÉ ESCOBAR PÉREZ
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Institutional Environment ◽  
Rule Based ◽  
Reporting Practices ◽  
Csr Reporting ◽  
Different Types ◽  
Csr Disclosure ◽  
Corporate Social

ABSTRACT The aim of this article is to analyze whether the institutional environment has a direct effect on Corporate Social Responsibility (CSR) reporting practices or if this effect is explained by the influence of the institutional environment on Corporate Governance (CG) mechanisms. To conduct our study, we focused on two countries that reflect different types of institutional environment: relation-based (Brazil) and rule-based (Spain). Based on our results, we can affirm that the institutional environment influences CG mechanisms (Board Size and Reference Shareholder) as well as companies' CSR disclosure. Additionally, the CG mechanisms affected by the institutional environment also help to explain differences in CSR reporting practices. As relation-based societies evolve into rules-based environments, the information disclosed about CSR becomes more complex due to a strengthening of CG mechanisms.

scholarly journals Which Corporate Governance Mechanisms Drive CSR Disclosure Practices in Emerging Countries?

2018 ◽  
Vol 11 (1) ◽  
pp. 61 ◽  
Author(s):  
María Miras-Rodríguez ◽  
Domingo Martínez-Martínez ◽  
Bernabé Escobar-Pérez
Keyword(s):  
Corporate Governance ◽  
Institutional Environment ◽  
Emerging Countries ◽  
Governance Mechanisms ◽  
Firm Level ◽  
Reporting Practices ◽  
Csr Reporting ◽  
Corporate Governance Mechanisms ◽  
Csr Disclosure ◽  
Different Levels

Although several studies have analyzed the role that specific corporate governance mechanisms have on Corporate Social Responsibility (CSR) reporting practices, their findings have not been conclusive and the evidence from developing countries is scarce. The theoretical support for this relationship in the previous literature is found in Stakeholder, Agency, Legitimacy, and Good Management theories. Undoubtedly, as the institutional environment has an important impact on CSR reporting practices, it would be relevant for this field of research to analyze this relationship in companies from emerging countries. It is suggested for the sake of convenience to consider different levels of corporate governance mechanisms together due to the high interdependence among them. Consequently, the aim of this paper is to analyze whether different levels of corporate governance mechanisms (at the institutional, group, and firm level) are determinant factors of the CSR reporting practices in BRICS countries (Brazil, Russia, India, China, and South Africa). The final sample was composed of 281 companies. On the basis of our results, we conclude that institutional corporate governance mechanisms influence the company’s CSR reporting strategy and that both CSR disclosure practices analyzed are affected by group-level corporate governance mechanisms in companies from family-based societies. Our findings support the appropriateness of separately analyzing this issue in emerging countries.

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.

scholarly journals Board and corporate social responsibility disclosure of multinational corporations

2019 ◽  
Vol 27 (1) ◽  
pp. 77-98 ◽  
Author(s):  
Hanh Thi Song Pham ◽  
Hien Thi Tran
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Multinational Corporations ◽  
Board Independence ◽  
Content Type ◽  
Csr Reporting ◽  
The One ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

Purpose This paper aims to investigate the effects of board model and board independence on corporate social responsibility (CSR) disclosure of multinational corporations (MNCs). Design/methodology/approach The authors developed an empirical model in which CSR disclosure is the dependent variable and board model (two-tier vs one-tier), board independence (a proportion of independent directors on a board) and the interaction variable of board model and board independence together with several variables conventionally used as control variables are independent variables. The authors collated the panel dataset of 244 Fortune World’s Most Admired (FWMA) corporations from 2005 to 2011 of which 117 MNCs use the one-tier board model, and 127 MNCs use the two-tier board model from 20 countries. They used the random-effect regression method to estimate the empirical models with the data they collated and also ran regressions on the alternative models for robustness check. Findings The authors found a significantly positive effect of a board model on CSR disclosure by MNCs. Two-tier MNCs tend to reveal more CSR information than one-tier MNCs. The results also confirm the significant moderating impact of board model on the effect of board independence on CSR disclosure. The effect of board independence on CSR disclosure in the two-tier board MNCs tends to be higher than that in the one-tier board MNCs. The results do not support the effect of board independence on CSR disclosure in general for all types of firms (one-tier and two-tier board). The impact of board independence on CSR disclosure is only significant in two-tier board MNCs and insignificant in one-tier board MNCs. Practical implications The authors advise the MNCs who wish to improve CSR reporting and transparency to consider the usage of two-tier board model and use a higher number of outside directors on board. They note that once a firm uses one-tier model, number of IDs on a board does not matter to the level of CSR disclosure. They advise regulators to enforce an application of two-tier board model to improve CSR reporting and transparency in MNCs. The authors also recommend regulators to continue mandating publicly traded companies to include more external members on their boards, especially for the two-tier board MNCs. Originality/value This paper is the first that investigates the role of board model on CSR disclosure of MNCs.

Board diversity and CSR reporting: an Australian study

2016 ◽  
Vol 24 (2) ◽  
pp. 182-210 ◽  
Author(s):  
Kathyayini Rao ◽  
Carol Tilt
Keyword(s):  
Regression Analysis ◽  
Developed Countries ◽  
Annual Reports ◽  
Board Diversity ◽  
Content Type ◽  
Csr Reporting ◽  
Diversity Measure ◽  
Multiple Directorships ◽  
Csr Disclosure ◽  
The Relationship

Purpose This paper aims to examine the relationship between corporate governance, in particular board diversity, and corporate social responsibility (CSR) reporting among the top 150 listed companies in Australia over a three-year period. Design/methodology/approach The quantitative analysis involving a longitudinal study is used where content analysis is undertaken to analyse the extent of CSR disclosures in annual reports. Regression analysis using panel data is used to analyse the potential association between CSR disclosure and five important board diversity measures, specifically independence, tenure, gender, multiple directorships and overall diversity measure. Findings The results based on the regression analysis reveal that three of the board diversity attributes (gender, tenure and multiple directorships) and the overall diversity measure have the potential to influence CSR reporting. The relationship between independent/non-executive directors and CSR disclosure however is unclear. In addition, three of the control variables (firm size, industry and CEO duality) are found to have some influence on CSR disclosure, whereas board size and profitability are found to be insignificant. The results also indicate the existence of some possible interaction effects between gender and multiple directorships. Originality/value The paper has implications for companies, for policymakers and for the professional development needs of board members. Australian companies should consider identifying board attributes that enhance CSR disclosures, as it has been shown in previous studies that CSR disclosure in Australia is low when compared to other developed countries. Moreover, given that there is such limited research linking board diversity and CSR disclosure, the results of this paper provide scope for further research. Moreover the paper contributes to the existing literature on board composition and CSR disclosure by extending the literature to board diversity and provides preliminary evidence of the influence of board diversity on CSR disclosure in Australia.

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