How and When Does Mandatory CSR Disclosure Affects Firms’ CSR Disclosure Strategy?

Abstract

Research on corporate social responsibility (CSR) disclosure recognizes the importance of the government and examines how firms respond to government CSR regulations. However, little attention is given to how government regulations affect firms’ disclosure strategy in multiple fields of CSR. Based on institutional theory, this study proposes that mandatory CSR disclosure increases the legitimacy management cost for firms, and thus firms disclose more CSR scope to gain legitimacy and less CSR emphasis to reduce costs. Using data from Chinese A-share listed firms in 2008–2018, this study finds that mandatory CSR disclosure is positively related to CSR scope but negatively related to CSR emphasis. In addition, firm visibility strengthens the aforementioned positive and negative relations, whereas market competition weakens the relation between mandatory CSR disclosure and CSR emphasis. This study contributes to the literature on CSR disclosure and studies on organizational responses to the government mandate.

Relationship between Occupational Pension, Corporate Social Responsibility (CSR), and Organizational Resilience: A Study on Listed Chinese Companies

“…This choice is predicated on the rationale that social insurance, while closely associated with occupational pensions insurance, does not have a direct impact on CSR. Similarly, we selected administrative costs as the instrumental variable for strategic CSR (SCSR), given its significant correlation with SCSR and negligible direct effect on resilience (Zhang et al 2023). From a stakeholder viewpoint, both administrative costs and SCSR share a substantial connection with the stakeholders of the firm's primary operations.…”