scholarly journals Social responsibility as the dominant driver of the evolution of reporting from financial to non-financial: theory and methodology

2021 ◽  
Vol 9 (1) ◽  
pp. 135-145
Author(s):  
Svetlana Bychkova ◽  
Svetlana Karelskaia ◽  
Elena Abdalova ◽  
Elena Zhidkova
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Basic Concept ◽  
Task Force ◽  
Theory And Practice ◽  
Integrated Reporting ◽  
Corporate Reporting ◽  
Corporate Social ◽  
The Impact

Introduction. For over half a century, corporate social responsibility has been in the center of scientific discourse. Its basic concept has become part of strategic management, changing the content of financial reporting and leading to new forms of corporate reporting. Study objects and methods. The article substantiated the importance of studying corporate social responsibility (CSR) concepts and national models. The study covered the CSR basic concept, targets and paradigms. The evolution of CSR was considered in terms of its impact on the formation of non-financial reporting. Results and discussion. The authors identified two stages of non-financial reporting development and two directions for the convergence of financial and non-financial reporting. They proposed an assessment matrix to measure facts, actions, and resources in the past, present, and future. This matrix can help companies to generate information for integrated reporting by showing the impact of each type of capital (financial, production, human, intellectual, social, and environmental) on their value creation. Within a promising direction for developing non-financial reporting in conjunction with financial reporting, the authors set requirements to reflect the impact of climate risks on the company’s activities in accordance with the recommendations of the Task Force on Climate-Related Financial Disclosures. The authors discussed both standardized and their own approaches to CSR indicators. Finally, they addressed the problem of reliability of non-financial reporting, discussed various forms of its verification (taking evidence from food industry enterprises), and set specific principles to control non-financial reporting indicators. Conclusion. The authors identified further promising areas of research in the theory and practice of CSR. Their findings can be used in scientific debates on CSR and in the practice of corporate reporting.

scholarly journals Social Media for Corporate Reporting and Performance

2019 ◽  
Vol 8 (3) ◽  
pp. 8636-8642
Keyword(s):  
Social Media ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Social Media Platform ◽  
Corporate Reporting ◽  
Media Platform ◽  
And Performance ◽  
Corporate Social ◽  
The Impact

Social media are web-based communication tools that enable people to interact with each other by both sharing and consuming information. They refer to a group of Internet-based application which is used to create and exchange user-generated content. A recent definition of social media suggests that it is a channel that allows users to opportunistically interact and selectively self-present, either in real-time or asynchronously, with both broad and narrow audiences. Corporate reporting refers to the process of communicating both financial and non-financial information about the resources and performance of a company. Corporate reporting includes the integrated reporting, financial reporting, corporate governance, executive remuneration, corporate social responsibility and narrative reporting. This study is carried out to examine the adoption of social media among Malaysian companies by industry type; and the impact of social media adoption on company’s performance. This study used Top 100 companies in Malaysia as the sample selected based on their market capitalization. These companies are considered to be leading companies that drive the Malaysian economy. It is expected that companies may use multiple forms of social media since users utilize different types of social media platform for different purposes. Therefore, this study considered various types of social media that are commonly used by companies. By using content analysis, the uses of social media were classified into 11 categories including investor relations, corporate social responsibility and financial reporting. The companies are categorized into four quartiles in order to determine whether there are differences in social media adoption by company size or growth opportunity. Statistical model is developed in examining the impact of social media adoption on company’s performance. The data of this study were collected within a period of 3 months and the social media platforms selected were Facebook, YouTube, Twitter, Instagram, blogs, Google+ and LinkedIn since these platforms were regarded as common among users. The analyzed results suggest that companies from trading or services industry used social media more frequently as compared to the other industries. It is also reported that the highest group of companies that use social media platform comes from those companies that are having the total sales between RM589 million and RM1,245 million. However, there is no notable difference in the adoption of social media in terms of growth opportunities measured by market to book value among Malaysian companies. It is also discovered that the use of social media has positive and significant association with companies’ performance after controlling for size of the company and its leverage. The findings of this study contribute to the body of knowledge in relation to a new dimension of corporate reporting as well as to the management of the companies

Corporate Social Responsibility in der Unternehmensberichterstattung

2012 ◽  
Vol 53 (4) ◽  
pp. 10-14 ◽  
Author(s):  
Bettina Lis ◽  
Christian Neßler
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Performance Indicators ◽  
Theoretical Foundation ◽  
Economic Importance ◽  
Corporate Reporting ◽  
Reporting Practice ◽  
Corporate Social ◽  
The Impact

Der Beitrag soll auf die wachsende ökonomische Relevanz von Corporate Social Responsibility (CSR) im Rahmen der Unternehmensberichterstattung (UB) Bezug nehmen. Es soll ein Überblick über das CSR-Konzept und dessen Einfluss hinsichtlich der qualitativen Anforderungen an die UB dargestellt werden. In diesem Sinn wird der Bedeutungszuwachs nichtfinanzieller Leistungsindikatoren skizziert und Grenzen der traditionellen UB aufgezeigt. Die Arbeit soll daher zur theoretischen Fundierung von qualitativen Berichterstattungspraktiken beitragen. The paper reviews the growing economic importance of corporate social responsibility (CSR) in financial reporting and overviews the concepts of CSR management. The impact of CSR regarding the qualitative requirements of corporate reporting is exhibited. In this sense the growing relevance of extra-financial performance indicators is demonstrated and the limitations of reporting get outlined. The paper contributes to a theoretical foundation of qualitative reporting practice. Keywords: shareholder value ansatz, publizitätsgrundsatz, nicht monetäre berichterstattung, csr

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 Market Responsiveness to Corporate Social Responsibility

2019 ◽  
Vol 8 (4) ◽  
pp. 114
Author(s):  
Zev Fried
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Perceived Quality ◽  
Financial Information ◽  
Factors Affecting ◽  
Earnings Response Coefficients ◽  
Corporate Social ◽  
The Impact

Market reaction to surprises in earnings announcements has long been used to measure the quality of the information content of the announcement, and studies have explored various factors affecting the response. This study adds to this body of research by factoring in the level of corporate social responsibility (CSR) exhibited by the firm and employs a relatively new measure of a company’s level of CSR, rankings published by JUST Capital. I hypothesize that financial information reported by higher ranked companies is weighed more heavily by investors than those reported by non-ranked or lower-ranked companies. Using earnings response coefficients as a measure of the perceived quality of the financial information reported by the firms, my results provide direct support of the hypothesis, indicating that the market reacts more strongly to earnings surprises for firms with high JUST rankings than for unranked firms or firms with lower rankings. This result contributes new insights into the impact of a firm’s CSR in terms of the perceived quality of a firm’s financial reporting.

Accounting challenges for sustainability and innovations

2021 ◽  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Research And Development ◽  
Financial Reporting ◽  
Socially Responsible Investing ◽  
Integrated Reporting ◽  
Socially Responsible ◽  
Responsible Investing ◽  
Socially Responsible Investments ◽  
Corporate Social

The aim of this e-book is to present the most important aspects related to sustainability, corporate social responsibility and innovation from an accounting perspective. The book contains parts that deal with accounting aspects of sustainability and innovations. The book consists of ten chapters devoted to relevant and topical issues of sustainability and innovations. Chapter 1 Sustainability and Corporate Social Responsibility in Accounting is an introduction to further considerations and deals with the essence of sustainable development, corporate social responsibility and their recognition in accounting. Chapter 2 Social Responsibility Reporting Standards presents the most important reporting guidance such as GRI, OECD, United Nations Global Compact, International Organization for Standardization. Chapter 3 Narrative reporting focuses on descriptions and explanations in accounting reports. The chapter presents the links between accounting and language, the development of accounting narratives and the factors determining the use of narratives. Chapter 4 Integrated reporting discusses the motivations, objectives and the process of preparing an integrated report. Integrated reporting can prove to be an effective tool for businesses looking to shift their reporting focus from annual financial performance to long-term shareholder value creation. Chapter 5 Non-financial reporting in selected European countries presents the experience of Croatia, the Czech Republic and Poland in the field of preparing non-financial reports. A significant contribution to promoting the importance of sustainability reporting was made by the Non-Financial Reporting Directive (2014/95/EU). Chapter 6, Socially Responsible Investments discusses the essence of socially responsible investing and socially responsible investment. Socially responsible investing (SRI) is a decision making process concerning the allocation of free financial resources, where the investor aims at maximization of profit and minimization of risk on one part and includes the socio-ethical and environmental-ecological considerations on the other. Chapter 7 External costs – accounting perspective describes costs connected with using goods such as air, soil, water, silence or the aesthetics of the surroundings. One of the biggest problems for accounting in the future will be measuring the volume of using these goods or measuring the size of reduction in the quality of public goods suffered and assigning the decrease to particular companies. Chapter 8 Derivatives in accounting is devoted to financial instruments and presents two different approaches to accounting of derivatives: general model and hedge accounting. Derivatives are used to protect the enterprise against financial risk related to changes in prices on the markets, changes in the exchange rate or changes in interest rates, as well as for commercial purposes. Chapter 9 Costs of Research and Development shows the company's activity in the field of research and development and the related costs. R&D constitute an increasingly important element of the functioning of enterprises. Chapter 10 Cryptoassets – Nature, Valuation and Disclosures in Accounting focuses on cryptocurrencies (e.g. Bitcoin, Ethereum etc.) and digital tokens which are specific rights or values representatives. As a result of the transformation on the financial market, we are currently dealing with cryptoassets, which are a creation of blockchain technologies and the changing habits of the digital society. One of areas that there are a lot of doubts regarding these new technological solutions is accounting.

scholarly journals The Relationsip Between Corporate Social Responsibility Through Financial Reporting Quality

2022 ◽  
Vol 2 (3) ◽  
pp. 134-143
Author(s):  
Rizalnur FIRDAUS ◽  
Tio Arriela DOLOKSARIBU ◽  
Nova Dwi HERNANIK
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Significant Relationship ◽  
Value Relevance ◽  
Reporting Quality ◽  
Manufacturing Companies ◽  
Corporate Social ◽  
The Impact

This study aims to examine the impact of Corporate Social Responsibility on the Quality of Financial Reporting in manufacturing companies in Indonesia. The research sample consisted of 75 manufacturing companies that were observed from 2017 to 2019. This study uses a regression data panel to test the effect of Corporate Social Responsibility (CSR) which is calculated by using a dummy variable on the Quality of Financial Reporting (FRQ) which uses a measure consisting of value relevance (VR), acrual quality (AQ) and earning persistence (EP). The results of research on manufacturing companies in Indonesia indicate that there is a positive and significant relationship between Corporate Social Responsibility and value relevance. The results of research on manufacturing companies in Indonesia indicate that there is a positive and significant relationship between Corporate Social Responsibility and accrual quality. The results of research on manufacturing companies in Indonesia show that there is a positive and significant relationship between Corporate Social Responsibility and earning persistence.

The business strategy/corporate social responsibility “mash‐up”

2008 ◽  
Vol 27 (10) ◽  
pp. 1066-1085 ◽  
Author(s):  
Tom McManus
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Business Strategy ◽  
Design Methodology ◽  
Theory And Practice ◽  
Management Innovation ◽  
Corporate Value ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

PurposeThe purpose of this paper is to explore the “mash‐up” of business strategy and corporate social responsibility (CSR). In popular music, a mash‐up is a file of digitally combined musical sources. Song A is played simultaneously with Song B, and in various other combinations. There are often elements of dissonance, and even cacophony, to the form – but the sum of the parts often surpasses the originals. CSR is a management innovation like the idea of business strategy itself. Each is also a metaphor representing alternative visions and approaches to corporate value creation. Business strategists are talking, writing, and meeting about CSR, and CSR is increasingly intersecting, integrating, converging, with business strategy. The trend is described within as a “mash‐up”. But what is the significance of this trend? How serious should companies be about it? Is CSR going to become a part of standard business theory and practice? How long will it take? What should organizations do to respond and participate?Design/methodology/approachThis paper examines two propositions. First, that CSR is more than a set of ideas and processes; it is a metaphor for a different approach to business. Second, CSR is a management innovation like strategic planning itself. The paper concludes that the impact the two ideas will have on each other and society is fundamentally unpredictable, but it is likely that eventually the current CSR mania will subside and disillusionment will set in.FindingsCSR is a highly significant trend, and well‐managed companies are already taking it very seriously. CSR may become a part of standard business theory and practice, but not without evolving through adoption patterns that will necessarily involve some disillusionment. Leaders will guide their company through this period by focusing on how to make CSR “real” for their organization by embracing the business strategy/CSR mash‐up and driving growth and innovation within the new parameters.Originality/valueFamiliarizes business strategists with CSR and CSR practitioners with points of connection and overlap with business strategy.

The impact of corporate social responsibility on brand equity

2019 ◽  
Vol 37 (1) ◽  
pp. 2-17 ◽  
Author(s):  
Jing Yang ◽  
Kelly Basile
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Brand Equity ◽  
Theory And Practice ◽  
The Other ◽  
Content Type ◽  
Interaction Terms ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Purpose Despite the significant investment in research on corporate social responsibility (CSR), there still exists a lack of clarity in terms of how different types of CSR activities lead to the outcomes a firm desires with their investment in CSR. The purpose of this paper is to provide greater insight on the relationship between types of CSR activities and brand equity (BE). The authors develop and test a conceptual framework, which examines the unique relationship between each CSR dimension and BE, as well as the interaction of product-related CSR activities and employee-related CSR activities with CSR activities across the other dimensions. Design/methodology/approach The authors collected data from multiple secondary sources, including Kinder, Lydenberg and Domini (KLD) Research and Analytics Inc., Interbrand, Compustat and CMR. The authors used random-effect estimations to estimate panel regressions of BE as a function of the different dimensions of a firm’s CSR, interaction terms between CSR dimensions and product quality and interaction terms between employee relations and other CSR dimensions, as well as a set of control variables and Year dummy variables. Findings Based upon a large-scale panel data set including 78 firms for the period of 2000–2014, the results show that diversity- and governance-related CSR have a positive effect on BE, employee-related CSR has a negative effect on BE and both product and employee dimensions play important roles in the relationships between other CSR dimensions and BE. These results have important implications for both theory and practice. Originality/value This study makes several contributions to extant literature on CSR and brand strength. First, this study examines the impact of CSR on BE vs alternative measures of brand-related outcomes. This study uses the KLD database to determine scores for firm CSR activity. It is the first to use the extensive KLD database to examine the relationship between types of CSR activities and BE. Last, this study seeks to better understand some of the organizational factors which influence the success of CSR outcomes. Specifically, the research will examine the interaction of product-related and employee-related CSR activities with CSR activities across the other dimensions.

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