The credibility of corporate social responsibility reports: evidence from the energy sector in emerging markets

Abstract

Purpose This study aims to explore the underlying motivation of companies in the energy sector for publishing corporate social responsibility (CSR) reports; is it to inform about their strong corporate social performances (CSP) or to seem as committed to CSR matters although they are not? Design/methodology/approach The panel data of the energy and energy utility companies from the Brazil, Russia, India and China (BRIC) countries were analysed by panel logistic and panel ordered logistic regression methods. Findings The main results based on the panel data analyses of the energy and energy utility companies from the BRIC countries reveal that publishing a CSR report as per an international framework, Global Reporting Initiative framework for this study, is a signal for a strong CSP. The results also show that the quality of CSR reports is positively associated with the CSP of the companies. Practical implications The positive correlation between the existence and quality of CSR reports and CSP identified in this study provides evidence for the credibility of CSR reports and hence forms the basis for the suggestion of the usage of CSR report as a reliable tool to assess the sustainability of the energy sector and emerging markets as well. Originality/value This study contributes to the limited literature on the nexus between CSR reporting and CSP for environmentally sensitive industries in emerging markets and enriches the knowledge by investigating overall CSP as well as its three pillars, namely, environmental, social and governance performance.

Debt, Profitability, and Corporate Social Responsibility – A Political Economic Theory Analysis

“…Following Ates [35], we measure CSRD (CSRD) based on the Global Reporting Initiative standard (GRI) indicators. GRI indicators use three aspects of performance as CSRD measurement: economic (ECO_CSRD), environmental (INV_CSRD), and social disclosure (SOC_CSRD).…”

Examining the Interplay between CEPSA’s ESG Performance and Financial Performance: An Overview of the Energy Sector Transformation

“…Stakeholder theory, which is central to the ESG theme, emphasises that a company's ability to create sustainable wealth depends on its relationships with various stakeholders [36,37]. Therefore, companies should disclose as much ESG information as possible to reduce information asymmetry for the public and increase investor confidence [38,39]. However, the trade-off theory suggests that too much ESG input will increase firms' costs and affect the efficiency of resource utilisation, which will inevitably affect shareholders' wealth [40].…”

Evolution and assessment of corporate social performance through the lens of top category journals: a theoretical structural analysis

“…Corporate social responsibility (CSR) has become an important goal for companies (Filios, 1984; Ates, 2023) because sustainable development is getting a lot of attention around the world. In fact, with the tightening of rating standards, performance pressure, lack of trust among stakeholders for business operations, etc., companies are engaging in CSR activities and reporting such activities to generate social impact and reputation (Awan et al ., 2021).…”

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