A Nexus between Corporate Social Responsibility Disclosure and its Determinants in Energy Enterprises

Abstract

Energy enterprises are strongly encouraged to address social issues – such as environmental degradation, scarce resources, unemployment etc. CSR is a requirement for energy enterprises as different stakeholders deem environmental and social responsibility as the duty. This study aims to explore the determinants that affect the corporate social responsibility in Energy Enterprises. Studies conducted on developed economies remain major contributors in CSR related literature as compare to developing economies, like Pakistan. The energy sector is important in terms of environmental, economic and social terms therefore 30 listed energy companies from Pakistan stock exchange are selected from 2015 to 2019. A comprehensive CSR Disclosure index is developed by using seven themes, i.e., environment, employees, energy, emissions, product, community development, and other CSR related activities. Random effect model of regression is used on the sample of data. The finding of the study reveals that profitability, financial leverage, Board size and being a multinational subsidiary has a significant relationship with the level of CSR disclosure. The implication of this study can help policymakers and policytakers of the energy sector to improve their knowledge of CSR to adapt disclosure practices relevant to energy enterprises.