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International Journal of Law and Management: Stage of development of a country and CSR disclosure – the latent driving forces
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Abstract
Purpose – The purpose of this paper is to investigate the impact of various determinants at the
country level, the industry level, the firm level and the corporate governance (CG) level on the extent
of corporate social responsibility (CSR) disclosure in the group of developing and developed nations.
Design/methodology/approach – The data set comprises 310 companies listed on stock exchanges of
developing and developed markets (Brazil – IBrX 100, 42 companies; Russia – Broad Market Index; 48
companies; India – Bombay Stock Exchange (BSE) 100, 50 companies; China – Shanghai Stock Exchange
(SSE) 180, 27 companies; South Africa – The Financial Times Stock Exchange (FTSE)/Johannesburg Stock
Exchange (JSE) All Share index, 49 companies; the USA – New York Stock Exchange (NYSE) 100, 47
companies; and the UK – London Stock Exchange (LSE) 100, 47 companies). CSR disclosure is measured
through CSR disclosure index. Five separate regression models are run to investigate the impact of the factors
that affect the extent of CSR disclosure.
Findings – The findings reveal that CSR disclosure is influenced by factors both at micro and macro levels.
Governance environment, globalization and income inequality are found to be significant determinants of
CSR disclosure for developing countries. International listing significantly influences CSR disclosure in the
developed countries. The results also exhibit that board with large proportion of independent directors, high
presence of CSR committee and environmental sensitive industries are more likely to engage in CSR
disclosure practices in developing as well as in developed nations.
Research limitations/implications – This study implicates that varied factors – at country level,
industry level, firm level and CG level – need assessment to know their impact differently in countries at
different stages of economic development. However, longitudinal study covering longer period would lead to
better generalization of results.
Practical implications – The findings of this present study implicate that managers must evaluate
country’s political, social and economic forces and not just rely on company-level indicators affecting
disclosure. Policymakers in emerging nations must emphasize on improving country governance
features to enhance CSR disclosure of companies. Developing countries must respect and conform to
rules and regulations while going global. More endeavors should be made to raise awareness about the
benefits of CSR disclosure on reducing income inequality among companies listed on stock exchanges of
developing countries. Emerging nations should follow developed nations in assuming responsibility
toward stakeholders in foreign markets. This study also recommends regulatory bodies in both
developing and developed countries to frame stringent policies regarding CG for improving CSR
disclosure by companies.
Originality/value – This study overcomes the limitations of prior literature by considering both countryand company-specific determinants in prominent group of developing (Brazil, Russia, India, China and South
Africa) and developed (the USA and the UK) countries.
NONE
Text
ENGLISH
EMERALD INSIGHT
2020
ENGLAND
JURNAL ILMU HUKUM
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APA Citation
Aparna Bhatia. (2020).International Journal of Law and Management:
Stage of development of a country
and CSR disclosure – the latent
driving forces.(Electronic Thesis or Dissertation). Retrieved from https://localhost/etd