The Role of Corporate Social Responsibility (CSR) Information in Supply-Chain Contracting: Evidence from the Expansion of CSR Rating Coverage

Darendeli, Alper; Fiechter, Peter; Hitz, Joerg-Markus; Lehmann, Nico

doi:10.2139/ssrn.3806236

Cited by 3 publications

(4 citation statements)

References 70 publications

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“…Ways to incentivize employees include tying CSR goals to management compensation (Mio et al 2015 ) or integrating CSR goals into the existing management control system (e.g., Collison et al 2009 ; Arjaliès and Mundy 2013 ). CSR reporting could also serve as a disciplining tool for the supply chain (e.g., Spence and Rinaldi 2014 ; Dai et al 2020 ; Darendeli et al 2021 ). 37 Moreover, Gao et al ( 2014 ) find that managers from CSR-conscious firms engage less in self-serving insider trading and, if they do engage, reap lower benefits from these trades.…”

Section: Potential Stakeholder Effects Of Mandatory Csr Reporting Standardsmentioning

confidence: 99%

“…Ways to incentivize employees include tying CSR goals to management compensation (Mio et al 2015) or integrating CSR goals into the existing management control system (e.g., Collison et al 2009;Arjaliès and Mundy 2013). CSR reporting could also serve as a disciplining tool for the supply chain (e.g., Spence and Rinaldi 2014;Dai et al 2020;Darendeli et al 2021). 37 Moreover, Gao et al (2014) find that managers from CSR-conscious firms engage less in self-serving insider trading 37 For instance, Darendeli et al (2021) exploit the expansion of CSR ratings coverage from the Russell 1000 index to the Russel 2000 firms and find that newly covered supplier firms with low CSR ratings experience a reduction in the numbers of corporate customers and supply-chain contracts.…”

Section: Employees and Managementmentioning

confidence: 99%

“… 37 For instance, Darendeli et al ( 2021 ) exploit the expansion of CSR ratings coverage from the Russell 1000 index to the Russel 2000 firms and find that newly covered supplier firms with low CSR ratings experience reductions in corporate customers and supply-chain contracts. …”

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confidence: 99%

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Mandatory CSR and sustainability reporting: economic analysis and literature review

2021

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This study collates potential economic effects of mandated disclosure and reporting standards for corporate social responsibility (CSR) and sustainability topics. We first outline key features of CSR reporting. Next, we draw on relevant academic literatures in accounting, finance, economics, and management to discuss and evaluate the potential economic consequences of a requirement for CSR and sustainability reporting for U.S. firms, including effects in capital markets, on stakeholders other than investors, and on firm behavior. We also discuss issues related to the implementation and enforcement of CSR and sustainability reporting standards as well as two approaches to sustainability reporting that differ in their overarching goals and materiality standards. Our analysis yields a number of insights that are relevant for the current debate on mandatory CSR and sustainability reporting. It also points scholars to avenues for future research.

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Section: Potential Stakeholder Effects Of Mandatory Csr Reporting Standardsmentioning

confidence: 99%

“…Ways to incentivize employees include tying CSR goals to management compensation (Mio et al 2015) or integrating CSR goals into the existing management control system (e.g., Collison et al 2009;Arjaliès and Mundy 2013). CSR reporting could also serve as a disciplining tool for the supply chain (e.g., Spence and Rinaldi 2014;Dai et al 2020;Darendeli et al 2021). 37 Moreover, Gao et al (2014) find that managers from CSR-conscious firms engage less in self-serving insider trading 37 For instance, Darendeli et al (2021) exploit the expansion of CSR ratings coverage from the Russell 1000 index to the Russel 2000 firms and find that newly covered supplier firms with low CSR ratings experience a reduction in the numbers of corporate customers and supply-chain contracts.…”

Section: Employees and Managementmentioning

confidence: 99%

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Mandatory CSR and sustainability reporting: economic analysis and literature review

2021

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“…Examples of stakeholder pressure include public shaming by the press (Dyck, Volchkova, and Zingales [2008]), adverse product demand by consumers (Jin and Leslie [2003]), or reduced contracting by corporate customers (Darendeli et al. [2021]). Affected firms may respond to stakeholder pressure by adjusting their CSR activities.…”

Section: Discussionmentioning

confidence: 99%

Real Effects of a Widespread CSR Reporting Mandate: Evidence from the European Union's CSR Directive

Fiechter

Hitz

Lehmann

2022

J of Accounting Research

Self Cite

172

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We investigate real effects of a widespread corporate social responsibility (CSR) reporting mandate. In 2014, the European Union (EU) passed Directive 2014/95 (hereafter, "CSR Directive"), mandating large listed EU firms to prepare annual nonfinancial reports beginning from fiscal year 2017 onward. We document that firms within the scope of the directive respond by increasing their CSR activities and that they start doing so before the entry-into-force of the directive. These real effects are concentrated in firms that are plausibly more strongly affected by the directive, that is, those with previously low levels of both CSR reporting and CSR activities. Using various alternative outcome variables (e.g., new CSR initiatives, improvements in CSR

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Adoption of CSR and Sustainability Reporting Standards: Economic Analysis and Review

2019

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The Role of Corporate Social Responsibility (CSR) Information in Supply-Chain Contracting: Evidence from the Expansion of CSR Rating Coverage

Cited by 3 publications

References 70 publications

Mandatory CSR and sustainability reporting: economic analysis and literature review

Mandatory CSR and sustainability reporting: economic analysis and literature review

Real Effects of a Widespread CSR Reporting Mandate: Evidence from the European Union's CSR Directive

Adoption of CSR and Sustainability Reporting Standards: Economic Analysis and Review

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