Effect of Corporate Social Responsibility Disclosure on Financial Performance

Abstract

Corporate social responsibility is the commitment by business to contribute to sustainable development through the balance of three factors which are economic, social and environmental factor. Enterprises carry out corporate social responsibility through specific activities such as controlling environmental pollution, natural resource conservation, energy conservation, employment safety, especially supporting and developing community. Corporate social responsibility disclosure plays an important role in implementation of corporate social responsibility, promotion of business's image and creation of good impression to stakeholders. This study was conducted using a two-step Generalized Method of Moment (GMM) technique with instrumental variables for balanced panel data through the annual reports and sustainable development reports of 43 enterprises listed on the Vietnam stock market from 2006 to 2016 (473 observations). The results showed that the level of corporate social responsibility disclosure has a positive effect on return on assets. This study has important implications for enterprises in terms of investing activities and corporate social responsibility disclosure.

Influence of profitability on responsibility accounting disclosure – Empirical study of Vietnamese listed commercial banks

“…It is a warning issue about CSR in Vietnam. Business managers are concerned about profitability and economic growth, but do not pay much attention to CSR (Ta & Bui, 2018, Nguyen et al, 2020. Recently, in order to maintain CSR, Vietnam has revised the legal provisions on the Law on Environmental Protection related to environmental, community, and social issues (National Assembly of Vietnam, 2014).…”

Các nhân tố ảnh hưởng đến sự minh bạch trách nhiệm xã hội của các công ty niêm yết Việt Nam

“…Ngoài ra, khả năng tiếp cận số liệu minh bạch CSR của phương pháp này là khả thi với chi phí khá thấp. Chính vì vậy, phương pháp này được sử dụng phổ biến ở nhiều nghiên cứu về minh bạch CSR kể cả tại các thị trường phát triển và đang phát triển bao gồm Việt Nam (Suteja, Gunardi, & Mirawati, 2016;Ta & Bui, 2018).…”

Compliance of corporate responsibility information at Vietnamese listed enterprises

“…ROA is a financial ratio used to measure the profitability of the enterprise assets. The indicator has an important meaning to help managers consider the economic efficiency of the enterprise investment assets (Ta & Bui, 2018). It is also the basis for assessing the level of exploitation and use of the enterprise assets.…”

“…However, managers of the enterprises set their own profit-oriented goals with little regard for the goals of the community. They have not yet recognized the importance of CRI to have a sustainable strategy and direction in the future (Ta & Bui, 2018). Some leaders of listed banks are also not aware of the importance of CRI implementation (Tran, 2021).…”