The Relationship between Social Visibility and CSR Disclosure
Abstract
:1. Introduction
2. CSR Disclosure about Developing Countries
3. Theoretical Framework
CSR Disclosure
Social Visibility
Hypotheses
Company’s Size
Company’s Profitability
Industry’s Sensitivity
Multinational Companies Subsidiaries
Control Variable
4. Materials and Methods
Research Method
Sample
Measurement of Dependent and Independent Variables
CSR Disclosure
Data Analysis Technique
- CS: Company Size
- CP: Corporate Profitability
- ES: Environmental sensitivity
- MNNs: Multinationals Subsidiaries
- t = 2008 and 2011
- i = 1, 2, 3… 253.
5. Results
Descriptive Results
Regression Analysis Assumptions
Regression Analysis Results
Robustness of Results
6. Discussion and Conclusions
Author Contributions
Conflicts of Interest
Appendix A
Company’s Name: | Company’s Sector: | ||
Company’s Products: | |||
Company’s Code: | Total Score: | ||
Coder’s Name: | □ □ |
Disclosure Themes and Indicators | Where to locate information | Identification of indicator | Score |
A. ENVIRONMENTAL DISCLOSURE: 1. Environmental Pollution: AIMS/INTENTIONS:
| Vi/Mii/CViii/SEiv |
| |
ACTIONS:
| DRvi/CSRSvii/ES viii |
| |
PERFORMANCE:
| DR/CSRS/ES |
| |
2. Conservation of Natural Resourcesix: AIMS/INTENTIONS:
| V/M/CV/SE |
| |
ACTIONS:
| CSRS/ES |
| |
PERFORMANCE:
| DR/C SRS/ES |
| |
3. Energy: AIMS/INTENTIONS:
| V/M/CV/SE |
| |
ACTIONS:
| DR/CSRS/ES |
| |
PERFORMANCE:
| DR/CSRS/ES |
| |
4. Aesthetics: AIMS/INTENTIONS:
| V/M/CV/SE |
| |
ACTIONS:
| DR/CSRS/ES |
| |
PERFORMANCE:
| DR/CSRS/ES |
| |
5. Environment Other: AIMS/INTENTIONS:
| V/M/CV/SE/CSRS |
| |
ACTIONS:
| DR/CSRS/ES |
| |
PERFORMANCE:
| DR/CSRS/ES |
| |
B. HUMAN RESOURCE DISCLOSURE: 1. Training and Staff Development: AIMS/INTENTIONS:
| V/M/CV/SE |
| |
ACTIONS:
| DR/CSRS/EmpSx |
| |
PERFORMANCE:
| DR/EmpS/CNxi |
| |
2. Pay and Benefits:xii AIMS/INTENTIONS:
| V/M/CV/SE |
| |
ACTIONS:
| DR/EmpS POSxiii NTFSxiv |
| |
PERFORMANCE:
| DR/CSRS/EmpS/CN NTFS |
| |
3. Participation and Staff Involvement: AIMS/INTENTIONS:
| V/M/CV/SE |
| |
ACTIONS:
| DR/CSRS/EmpS/CN |
| |
PERFORMANCE:
| DR/CSRS/EmpS |
| |
4. Health and Safety and Individual Well-being: AIMS/INTENTIONS:
| V/M/CV/SE |
| |
ACTIONS:
| DR/CSRS/EmpS |
| |
PERFORMANCE:
| DR/CSRS/EmpS/CN |
| |
5. Measurement of Policies: AIMS/INTENTIONS:
| V/M/CV/SE |
| |
PERFORMANCE:
| DR/CSRS/EmpS |
| |
6. Employment Policy: AIMS/INTENTIONS:
| V/M/CV/SE |
| |
ACTIONS:
| DR/CSRS/EmpS |
| |
PERFORMANCE:
| DR/CSRS/EmpS |
| |
7. Equal Opportunities: AIMS/INTENTIONS:
| V/M/CV/SE |
| |
ACTIONS:
| DR/CSRS/EmpS |
| |
PERFORMANCE:
| DR/CSRS/EmpS |
| |
8. Work–life Balance: AIMS/INTENTIONS:
| V/M/CV/SE/CSRS |
| |
ACTIONS:
| DR/CSRS/EmpS |
| |
PERFORMANCE:
| DR/CSRS/EmpS |
| |
C. PRODUCTS AND CONSUMERS DISCLOSURE: 1. Product Developments: AIMS/INTENTIONS:
| CSRS |
| |
ACTIONS:
| DR/CSR/PSxvii |
| |
PERFORMANCE:
| DR/CSRS/PS |
| |
2. Product Safety: AIMS/INTENTIONS:
| V/M/CV/SE/CSRS |
| |
ACTIONS:
| DR/CSRS/PS |
| |
PERFORMANCE:
| DR/CSRS/PS |
| |
3. Product Quality: AIMS/INTENTIONS:
| V/M/CV/SE/CSRS |
| |
ACTIONS:
| DR/CSRS/PS/Awards section |
| |
PERFORMANCE:
| DR/CSRS/PS/Awards section |
| |
4. Consumers’ Relations**: AIMS/INTENTIONS:
| V/M/CV/SE/CSRS |
| |
ACTIONS:
| DR/CSRS/PS |
| |
PERFORMANCE:
| DR/CSRS/PS |
| |
D. COMMUNITY INVOLVEMENT DISCLOSURE: 1. Support for Education/training ***: AIMS/INTENTIONS:
| V/M/CV/SE/CSRS |
| |
ACTIONS:
| DR/CSRS/CRxviii |
| |
PERFORMANCE:
| DR/CSRS/CR |
| |
2. Support for Art and Culture: AIMS/INTENTIONS:
| V/M/CV/SE/CSRS |
| |
ACTIONS:
| DR/CSRS/CR |
| |
PERFORMANCE:
| DR/CSRS/CR |
| |
3. Support for Public Health ***: AIMS/INTENTIONS:
| V/M/CV/SE/CSRS |
| |
ACTIONS:
| DR/CSRS/CR |
| |
PERFORMANCE:
| DR/CSRS/CR |
| |
4. Sponsoring Sporting or Recreational Projects ***: AIMS/INTENTIONS:
| V/M/CV/SE/CSRS |
| |
ACTIONS:
| DR/CSRS/CR |
| |
PERFORMANCE:
| DR/CSRS/CR |
| |
5. Other Community Activities ***: AIMS/INTENTIONS:
| V/M/CV/SE/CSRS |
| |
ACTIONS:
| DR/CSRS/CR |
| |
PERFORMANCE:
| DR/CSRS/CR NTFSxix |
| |
E. GENERAL DISCLOSURE: Includes disclosure which will not be covered by above CSR disclosure categories: environment, human resource, products and consumers, and community involvement disclosure. For example: Vendors/partners training and education.
|
| ||
ACTIONS:
|
| ||
PERFORMANCE:
|
| ||
SOCIAL VISIBILITY VARIABLES: | |||
Total Assets (0,000): ………………………………………… Total Debts (0,000):…………………………………………. Net Income (Net profit after taxes) (0,000): ……………………………………… Industry Sensitivity (If a company is operating in industry having SIC code 28XX excluding 283X, 22XX, 26XX, and 2911) Whether the company is a subsidiary of Multinationals □ Yes No □ |
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Social Visibility Variables | |
Variables | Measurement (References) |
Company Size | Total assets [30,67,87,95] |
Corporate Profitability | Return on assets [1,3,5,11,83] |
Industry sensitivity: | 1—A company operating in an industry having SIC code 06XX, 12XX, 10XX, 13XX, 19XX, 17XX, 20XX,21XX, 22XX, 23XX, 24XX, 29XX, 27XX, 35Xx, 41XX, 51XX, 49XX, and 50XX 0—Otherwise [1,82,96] |
Multinational Subsidiaries | 1 is assigned to company which is a subsidiary of a multinational and 0 if otherwise [82] |
Control Variables | |
Leverage | Total debts divided by total assets [1,67,83] |
Variables | Minimum | Maximum | Mean | Std. Deviation |
---|---|---|---|---|
CSR disclosure (extent)-CSRD | 00 | 672 | 45.03 | 73.90 |
Profitability (ROA) | −45.25% | 44.25% | 3.30% | 10.27% |
Company Size (0.000)-CS | 11,263.00 | 1,153,480,100 | 30,682,678.420 | 1.0399E8 |
Dummy Variables | %age | |||
Environmental Sensitivity-ES | 0.00 | 1.00 | 34.8% | |
Multinational Subsidiary-MNSs | 0.00 | 1.00 | 14.2% | |
N = 253 |
NTCSRDQn | NCS | NROA | ES | MNNs | NC | Dummy | |
---|---|---|---|---|---|---|---|
NTCSRDQn | 1.000 | ||||||
NCS | 0.339 ** | 1.000 | |||||
NROA | 0.229 ** | −0.026 | 1.000 | ||||
ES | 0.355 ** | 0.208 ** | 0.147 * | 1.000 | |||
MNNs | 0.331 ** | 0.219 ** | 0.203 ** | 0.215 ** | 1.000 | ||
NC | 0.058 | 0.269 ** | −0.315 ** | −0.039 | −0.075 | 1.000 | |
Dummy | −0.005 | 0.001 | −0.007 | 0.000 | −0.012 | −0.003 |
Variables | Prediction | Model 1 Experimental Model | Model 2 Control Model | Model 3 Full Model | Decision |
---|---|---|---|---|---|
Social Visibility Variables | |||||
NCS | +Ve | 0.255 *** (0.052) | 0.233 *** (0.054) | Accepted | |
NROA | +Ve | 0.161 *** (0.052) | 0.182 *** (0.054) | Accepted | |
ES | +Ve | 0.246 *** (0.108) | 0.246 *** (0.108) | Accepted | |
MNNs | +Ve | 0.225 *** (0.147) | 0.230 *** (0.147) | Accepted | |
Control Variables | |||||
NC | 0.074 (0.061) | 0.081 (0.056) | |||
Dummy | 0.008 (0.117) | 0.013 (0.099) | |||
(Constant) | −0.234 *** (0.083) | 0.027 (0.085) | −0.236 *** (0.083) | ||
N | 253 | 253 | 253 | ||
F-Value (Sig. Value) | 20.969 (0.000) | 0.694 (0.500) | 17.878 (0.000) | ||
Adjusted R2 | 28.7% | 0.6% | 28.7% | ||
Tolerance Values | 0.913–0.999 | 1.000–1.000 | 0.870–0.999 | ||
VIF Values | 1.001–1.095 | 1.000–1.000 | 1.001–1.149 | ||
Durbin-Watson | 2.179 | 2.144 | 2.146 |
Prediction | Model 1 Experimental Model | Model 2 Control Model | Model 3 Full Model | Decision | |
---|---|---|---|---|---|
Social Visibility Variables | |||||
NCS | +Ve | 0.193 ** (0.078) | 0.168 ** (0.080) | Accepted | |
NROA | +Ve | 0.190 ** (0.080) | 0.203 ** (0.080) | Accepted | |
ES | +Ve | 0.246 *** (0.162) | 0.253 *** (0.162) | Accepted | |
MNNs | +Ve | 0.799 (0.218) | 0.217 (0.218) | ||
Control Variable | |||||
NC | 0.082 (0.088) | 0.107 (0.079) | |||
(Constant) | −0.226 ** (0.096) | 0.027 (0.085) | −0.233 ** (0.095) | ||
N | 119 | 119 | 119 | ||
F-Value (Sig. Value) | 10.857 (0.000) | 0.799 (0.373) | 9.075 (0.000) | ||
Adjusted R2 | 25% | 0.7% | 25.5% | ||
Tolerance Values | 0.892–0.942 | 1.000 | 0.887–0.931 | ||
VIF Values | 1.062–1.121 | 1.000 | 1.074–1.127 | ||
Durbin-Watson | 2.106 | 2.180 | 2.076 |
Variables | Prediction | Model 1 Experimental Model | Model 2 Control Model | Model 3 Full Model | Decision |
---|---|---|---|---|---|
Social Visibility Variables | |||||
NCS | +Ve | 0.308 *** (0.071) | 0.295 *** (0.075) | Accepted | |
NROA | +Ve | 0.142 * (0.069) | 0.159 * (0.076) | Accepted | |
ES | +Ve | 0.244 *** (0.147) | 0.242 *** (0.147) | Accepted | |
MNNs | +Ve | 0.238 *** (0.202) | 0.241 *** (0.203) | Accepted | |
Control Variable | |||||
NL | 0.066 (0.086) | 0.043 (0.083) | |||
(Constant) | −0.218 ** (0.086) | 0.043 (0.080) | −0.217 ** (0.086) | ||
N | 134 | 134 | 134 | ||
F-Value (Sig. Value) | 15.587 (0.000) | 0.582 (0.447) | 12.452(0.000) | ||
Adjusted R2 | 30.5% | 0.3% | 31.1% | ||
Tolerance Values | 0.918–0.963 | 1.000 | 0.752–0.933 | ||
VIF Values | 1.039–1.090 | 1.000 | 1.072–1.330 | ||
Durbin-Watson | 2.209 | 2.113 | 2.190 |
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Share and Cite
Ali, W.; Faisal Alsayegh, M.; Ahmad, Z.; Mahmood, Z.; Iqbal, J. The Relationship between Social Visibility and CSR Disclosure. Sustainability 2018, 10, 866. https://doi.org/10.3390/su10030866
Ali W, Faisal Alsayegh M, Ahmad Z, Mahmood Z, Iqbal J. The Relationship between Social Visibility and CSR Disclosure. Sustainability. 2018; 10(3):866. https://doi.org/10.3390/su10030866
Chicago/Turabian StyleAli, Waris, Maha Faisal Alsayegh, Zubair Ahmad, Zeeshan Mahmood, and Javed Iqbal. 2018. "The Relationship between Social Visibility and CSR Disclosure" Sustainability 10, no. 3: 866. https://doi.org/10.3390/su10030866
APA StyleAli, W., Faisal Alsayegh, M., Ahmad, Z., Mahmood, Z., & Iqbal, J. (2018). The Relationship between Social Visibility and CSR Disclosure. Sustainability, 10(3), 866. https://doi.org/10.3390/su10030866