Search Results (198)

Social washing refers to the strategic exaggeration or misrepresentation of an organisation’s commitment to social responsibility, ethical governance, or social impact without corresponding substantive action. It typically operates through selective disclosure, symbolic initiatives, or performative communication that aligns the organisation with socially desirable values—such as equity, human rights, community development, or inclusion—while underlying practices remain unchanged, weakly evidenced, or contradictory. The concept belongs to the wider family of “washing” phenomena associated with corporate social responsibility (CSR) and environmental, social, and governance (ESG) frameworks, especially the difficult-to-measure social (“S”) pillar. By contrast, authentic accountability refers to governance and reporting practices that connect institutional commitments to verifiable social outcomes and discernible improvements in human well-being. The institutionalisation of ESG frameworks has raised expectations of corporate responsibility while also enlarging the scope for reputational manipulation. Within this setting, social washing has become relevant not only to social policy and sustainable development debates, but also to corporate governance, ESG evaluation, and cross-sector partnership practice. This entry examines how organisations construct narratives of social responsibility that do not necessarily correspond to substantive social outcomes. It also argues that such distortions matter both for welfare systems and civil-society actors and for ESG assessment, reputational signalling, and the interpretation of social performance in market settings. Full article

This study examines whether the board of commissioners’ monitoring intensity (BOCM) moderates the relationship between corporate social responsibility disclosure (CSRD) and the cost of debt (COD). Using an unbalanced panel dataset of 1516 firm-year observations from companies listed on the Indonesia Stock Exchange during 2018–2023, this study applies Moderated Regression Analysis (MRA) to test the proposed relationships. The results show that CSRD is negatively associated with COD, indicating that greater CSR transparency reduces borrowing costs. More importantly, BOCM significantly moderates this relationship. The interaction between BOCM and CSRD suggests that stronger board of commissioner monitoring weakens the marginal effect of CSRD on COD, implying that intensive monitoring may partly substitute for the risk-reducing role of CSR disclosure in determining COD. In addition, BOCM has a direct negative effect on COD, suggesting that creditors value the active board of commissioners’ monitoring as an internal governance mechanism that lowers perceived financing risk. These findings extend the literature by demonstrating that the effectiveness of CSRD in reducing COD depends on the strength of BOCM. This study offers practical implications for regulators and firms seeking to enhance governance quality, improve disclosure credibility, and reduce financing costs. Full article

The role of Corporate Social Responsibility (CSR) in advancing economic, social, and environmental well-being has been increasingly acknowledged in the broader context of the United Nations Sustainable Development Goals. For instance, CSR in Saudi Arabia is increasingly framed as a mechanism to support Vision 2030—a national strategy aimed at transforming Saudi Arabia to a sustainable economy. However, evidence on how financial institutions disclose and prioritize CSR at the country level remains fragmented. This study examines the extent and patterns of CSR disclosure across the Saudi banking sector by analyzing publicly available documents, e.g., annual reports and ESG/CSR reports (n = 36) from 10 banks (4 Islamic and 6 commercial). Findings indicate that CSR disclosures were primarily clustered into four macro themes—society, economic contribution, internal stakeholders, and environment—with a strong thematic emphasis on philanthropic activities, financial donations, disability support, and financing for Small and Medium Enterprises (SMEs). Environmental initiatives were disclosed less frequently and were generally narrower in scope, focusing on resource efficiency, recycling, and selective green financing. In addition, a comparative analysis between Commercial and Islamic banks revealed that the latter focused on values-based CSR, while commercial ones emphasized governance-oriented CSR. Full article

The topic of sustainability reporting by SMEs is gaining significant importance in European contexts such as Italy. However, recent regulations, constantly evolving in terms of legal requirements and practical standards, do not yet provide solid foundations to guide small and medium-sized enterprises. This study aims to examine how Italian listed SMEs address sustainability issues in terms of Sustainable Development Goals (SDGs) in their sustainability reports, in light of the recent requirements set out in European directives (i.e., Directive 2022/2464/EU—Corporate Sustainability Reporting Directive (CSRD) and Directive 2025/794/EU—Stop the Clock). The analysis is based on a content review of 17 sustainability reports published in 2023 by Italian SMEs listed on Euronext Growth Milan of Borsa Italiana. The research protocol was structured around the key SDG themes found in the reports, using Python 3.14.2 libraries including Pandas, NumPy, NLTK, and Matplotlib. The findings highlight heterogeneous approaches to sustainability. Most firms adopt symbolic approaches based on formal narrative disclosures without addressing sustainability reporting’s substantive dimensions. They overlook both the principle of double materiality, actually recommended by the CSR Directive, and the provision of assurance statements on reports. Although mandatory sustainability reporting is not imminent, particularly in light of the “Stop the Clock” measure, this research offers significant insights into both theoretical and practical implications. From a theoretical standpoint, it contributes to the growing body of literature on sustainability practices among SMEs. From a managerial standpoint, it underscores the importance of designing tailored reporting practices for SMEs that avoid administrative costs and overload issues, at the same time fostering a substantive approach to disclosure able to convey meaningful information to stakeholders. Full article

The increasing recognition of biodiversity loss as a critical environmental and financial risk has heightened calls for greater emphasis on corporate information disclosures. However, limited understanding remains as to how corporate biodiversity information disclosure affects institutional investors’ willingness to engage in corporate social responsibility (CSR) investments. To address this gap, this study utilizes a sample of 426 valid data points from institutional investors in China and employs SEM for empirical analysis. The results indicate that (1) corporate biodiversity information disclosure (CB) positively influences institutional investors’ CSR investment willingness; (2) CB fosters the development of institutional investors’ intergenerational responsibility, which, in turn, enhances their CSR investment willingness; (3) institutional investors’ intergenerational responsibility significantly mediates the relationship between CB and their CSR investment willingness; and (4) corporate environmental risk management positive moderates the relationship between CB and institutional investors’ intergenerational responsibility. Theoretically, this study contributes to the CSR literature by providing insights into the interconnections between biodiversity disclosure, intergenerational responsibility, and environmental risk management from a risk-oriented perspective. Practically, it underscores the importance of strategically utilizing biodiversity disclosure and environmental risk management to attract responsible institutional investments, offering valuable guidance for corporate managers, policymakers, and investors, particularly in emerging markets. Full article

The effect of corporate social responsibility (CSR) disclosure on zero-leverage policies is examined for listed firms at the Pakistan Stock Exchange (PSX) from 2010 to 2021. Binary logistic regression models show a statistically significant positive relationship between CSR disclosure and zero leverage. Increased CSR disclosure raises the propensity of firms to have zero leverage. Moreover, the negative effect of CSR disclosure on debt ratios further confirms these findings. Results show that highly disclosed CSR firms face less information asymmetry and prefer equity financing over bank debt. Regulators should develop incentive programs to increase their CSR disclosure and strengthen stakeholders’ relationships. Full article

This study investigates whether Corporate Social Responsibility Disclosure (CSRD) serves as a risk-mitigating or cost-inducing signal for firms’ market value in an emerging market. Utilising a panel dataset of 120 companies listed on the Tehran Stock Exchange (2015–2023) and employing content analysis alongside panel regression and System GMM models, we find that disclosure quality in social, employee, and environmental dimensions is positively associated with market value, while customer-related disclosure is not. The role of family ownership is nuanced: baseline specifications suggest no broad moderating influence, yet robust dynamic modelling reveals that family ownership significantly enhances the positive market valuation of environmental disclosure. The primary contribution is a nuanced, dimension-specific analysis of CSRD’s value relevance, challenging blanket assumptions about family firm behaviour and offering granular, methodologically informed insights for stakeholders in institutionally complex environments. Full article

This study examines the influence of stakeholder engagement with corporate social responsibility (CSR) disclosures on social media and corporate financial performance, grounded in legitimacy theory and stakeholder theory. Using a panel dataset of 388 firm-year observations of Indonesian listed companies over the period 2019–2022, we investigate how stakeholder interactions across four social media platforms—Facebook, Twitter, Instagram, and YouTube—relate to firm performance measured by Return on Assets (ROA) and Return on Equity (ROE). Panel data regression results reveal that stakeholder engagement on visual-based platforms plays a significant role in enhancing financial performance. In particular, Instagram likes and YouTube likes are positively associated with ROA (β = 0.0004, p < 0.05; β = 0.0002, p < 0.05), while Instagram comments, YouTube likes, and YouTube views show a significant positive relationship with ROE (β = 0.011, p < 0.01; β = 0.0006, p < 0.01; β = 0.000249, p < 0.01). In contrast, engagement metrics on Facebook and Twitter do not exhibit a statistically significant association with firm performance. These findings suggest that stakeholder engagement with CSR disclosures through high-engagement, visual-oriented social media platforms can strengthen corporate legitimacy and stakeholder relationships, ultimately contributing to improved financial outcomes. The study highlights the strategic importance of platform-specific digital communication in enhancing firm performance. Full article

This study examines how corporate social responsibility (CSR) influences sustainable finance outcomes (SFO) in the Ethiopian Insurance industry through environmental, social, and governance (ESG) practices and institutional challenges (IC). Using covariance-based structural equation modelling (CB-SEM) with data collected from a primary survey, the results show that CSR has both a direct and an indirect positive effect on SFO through ESG. However, the adoption of ESG practices also tends to increase institutional challenges, which in turn negatively influences SFO. This interaction produces a competitive partial mediation effect. The serial mediation path CSR–ESG–IC–SFO is found to be negative, suggesting that enabling and constraining forces operate simultaneously. From a theoretical point of view, the study combines stakeholder, legitimacy, and institutional theories to explain this competitive mediation within a less-studied Sub-Saharan African (SSA) frontier market. On the practical side, the findings highlight the importance of establishing ESG disclosure standards, investing in capacity building, and strengthening governance systems to reduce institutional frictions and make CSR a stronger driver of sustainable finance. Full article

This study explores the multifactorial synergistic effects and configurational pathways for enhancing corporate social responsibility (CSR) performance among Chinese professional sports clubs. Drawing on 188 valid questionnaires from Chinese professional football and basketball clubs, the research employs fuzzy-set qualitative comparative analysis to examine the influence of seven antecedent conditions, commercial environment, government regulation, expectancy pressure, economic interests, internal emotional traits, moral quality, and information disclosure, on CSR performance. The findings reveal that CSR performance results from the interplay of multiple factors, identifying two equivalent pathways for enhancement: the coupling of government pressure with internal autonomy, and the coordination of commercial environment with internal moral qualities. These insights clarify the complex causal mechanisms underlying CSR implementation in professional sports clubs and propose two strategic approaches for promoting CSR: optimizing external institutional frameworks and activating internal endogenous motivation. The study offers configurationally grounded pathway options and managerial implications for improving CSR practices in Chinese professional sports clubs. Full article

This study examines sustainability reporting practices (2010–2023) of emerging markets’ companies cross-listed in London as Global Depositary Receipts (GDRs). Despite the voluntary nature of sustainability reporting, all examined companies issued a corporate social responsibility (CSR) report. Additionally, 90 percent of companies hired an external auditor to provide assurance for CSR disclosure. Further, 99 percent of examined GDRs relied on the Global Reporting Initiative guidelines when preparing CSR reports, and 90 percent had a sustainability committee. Overall, cross-listed companies demonstrated an impressive level of CSR reporting. However, the gender diversity or independence of the board of directors is unrelated to the extent of CSR disclosure. Next, sustainability reporting scores are associated with lower liquidity position and are negatively related to reported earnings. This evidence supports the agency theory perspective in that executives of GDR cross-listed companies may use enhanced CSR reporting practices to divert attention from poor financial performance. The findings stand in contrast to previously documented results for New York cross-listed firms and have implications for regulators and global investors of European stock exchanges. Full article

Previous survey research has documented that consumers place value on socially responsible firms. This support includes the intention to be more loyal to these firms and also the willingness to pay higher prices for their products. Our study connects the customer intentions documented in survey research with actual measures of financial performance from published financial statements. The study uses gross profits scaled by total assets as a proxy for customers’ willingness to pay higher prices and sales increases as a proxy for loyalty. Additionally, the study examines differences in the aforementioned measures between customers in the business-to-business (B2B) and business-to-consumer (B2C) segments. These differences have been documented in studies that suggest customers in these segments value different characteristics of suppliers when making their purchases. Finally, customers must be made aware of a firm’s sustainability practices; therefore, the study looks at three different approaches firms use to communicate the quality of their sustainability practices. These approaches include external assurance of the social responsibility report, the auditor’s review of the firm’s internal controls, and the firm’s advertising intensity. Data used in this study includes financial performance measures of North American firms and corporate social responsibility data from disclosures collected by the Global Reporting Initiative. Using ordinary least squares, the results suggest that customers require some sort of assurance of a company’s socially responsible disclosures when making decisions about whether to support the company. Full article

Purpose: This study examines how tone management in board reports influences corporate social responsibility (CSR) performance in emerging markets, focusing on the Tehran Stock Exchange. It addresses the underexplored qualitative aspects of CSR disclosures, particularly how abnormal tone signals transparency or concealment in sustainability reporting. Design/methodology/approach: This paper is based on a postgraduate study completed in 2022. Using a dataset of 987 firm-year observations (2016–2022), we measure abnormal tone through textual analysis of board reports and assess its impact on six CSR dimensions. The methodology combines vocabulary-based tone detection with regression analysis, controlling for firm-specific factors. Findings: The results reveal a significant negative relationship between abnormal tone and CSR performance, particularly in environmental and energy dimensions. The adverse effects persist into subsequent years, highlighting the long-term consequences of tone manipulation. Originality/value: This study contributes to the social and environmental accounting literature by analysing tone management in an emerging market context. It introduces vocabulary combinations as a novel approach to detecting nuanced tone variations, offering practical insights for regulators and firms aiming to enhance CSR transparency. Full article

This study explores the influence of governance structures board diversity, public shareholding, and managerial ownership on CSR disclosure among LQ45 companies in Indonesia during 2021–2023. Using panel data regression analysis, the research identifies significant relationships between these governance variables and CSR practices. The study highlights the critical role of board diversity in fostering inclusivity and aligning corporate strategies with societal expectations, supported by stakeholder and legitimacy theories. Public shareholding and managerial ownership also play pivotal roles in enhancing transparency and aligning managerial incentives with organizational goals. The integration of advanced technologies, such as blockchain and AI, is discussed as a means to improve CSR practices through enhanced transparency and efficiency. These findings provide actionable insights for policymakers, corporate leaders, and investors, emphasizing the need for inclusive governance and technological innovation to advance sustainable business practices. Full article

This study explores how firms’ strategic orientations—operational efficiency, customer intimacy, and product innovation—along with corporate social responsibility (CSR) disclosure, influence investment efficiency in emerging markets. Using 1594 firm-year observations from companies listed on the Tehran Stock Exchange (TSE) between 2015 and 2024, we combine quantitative analysis with textual evidence from Management Discussion and Analysis (MD&A) reports. The findings show that operational efficiency and customer intimacy are generally linked to lower investment efficiency, reflecting possible resource misallocation and short-term priorities. In contrast, product innovation has a more nuanced impact: it improves investment efficiency in R&D-intensive sectors and during stable economic periods. CSR disclosure is also negatively associated with investment efficiency, suggesting that while CSR reporting enhances legitimacy and stakeholder trust, it may shift managerial attention and resources away from core investments. Robustness checks—including firm fixed effects, alternative keyword dictionaries, placebo tests, and endogeneity controls—support these results. Additional sub-sample analyses indicate that strategic orientations and CSR disclosure also function as channels of financial innovation: operational efficiency fosters disciplined resource allocation, product innovation supports sustainable growth, and customer intimacy strengthens transparency and stakeholder engagement. Full article