Defining CSR disclosure quality: a review and synthesis of the accounting literature

Abstract

PurposeThis paper aims to review and synthesize the corporate social responsibility (CSR) disclosure literature in order to (1) develop a comprehensive definition of disclosure quality; (2) review the evolution of disclosure quality proxies used by accounting researchers; (3) describe the antecedents to disclosure quality; (4) describe the outcomes of disclosure quality; and (5) identify gaps in the current literature and offer suggestions for future research.Design/methodology/approachThis study conducted a systematic review capturing articles examining CSR disclosure quality. The researchers first searched EBSCO, identifying all relevant articles by searching for “corporate social responsibility,” “CSR,” “ESG” and “sustainability reporting” anywhere in the article. Then, the results were filtered to focus on 23 of the most prominent accounting journals. The search resulted in 592 articles which were individually reviewed for relevance to the authors’ review. This study includes all articles that examine disclosure and provide insight into elements that influence disclosure quality or provide evidence of the effects of disclosure quality on user decision-making.FindingsIt is found that a comprehensive definition of CSR disclosure quality has yet to be developed and that proxies for CSR disclosure quality have evolved over time. This study synthesizes the literature on the antecedents of CSR disclosure quality, and how CSR disclosure quality affects users' decision-making and related outcomes. Overall, the review of this study suggests that assurance and a number of corporate features have important effects on disclosure quality. Also, high-quality disclosures are positively associated with many benefits to market participants.Originality/valueThis study complements Huang and Watson's (2015) CSR literature review by comprehensively reviewing and synthesizing the CSR disclosure quality literature that was only emerging when their review was published. Importantly, this study contributes to the CSR disclosure literature by developing a comprehensive definition of CSR disclosure quality that is grounded in the accounting literature and aligned with current frameworks.

Intellectual capital and human dynamic capabilities in decarbonization processes for net-zero business models: an in-depth examination through a systematic literature review

“…However, financial statements do not sufficiently represent all Journal of Intellectual Capital the relevant human resources-related information (Salvi et al, 2022). Existing literature highlights that non-financial disclosure (NFD) highly influences firms' value creation (Hail, 2013;Der Zahn, 2022) and is associated with high stakeholder engagement (Stuart et al, 2023). Sustainability depends on firms' transparency regarding the integration of social and environmental concerns into their strategies (Ostir, 2023).…”

“…Recognising this, local governments are designing short-and long-term decarbonization practice policies at local levels (Linton et al, 2020). This is because countries that focus on adopting sustainability practices have high disclosure quality (Stuart et al, 2023). In fact, decarbonization depends on the complete transformation of society in terms of net-zero business models (n-ZBMs), sustainability goals, social equity and climate change mitigation (Linton et al, 2020).…”

“…, 2020). This is because countries that focus on adopting sustainability practices have high disclosure quality (Stuart et al. , 2023).…”

Peran Pengungkapan Lingkungan Dalam Meningkatkan Harga Saham

“…Lebih lanjut diungkapkan oleh Jarboui & Moalla (2022) bahwa pengungkapan lingkungan yang baik berdampak pada value added perusahaan. Stuart et al, (2023) menjelaskan bahwa perusahaan yang melakukan investasi pada keberlanjutan dinilai tinggi oleh investor dengan tingginya harga saham. Berbeda ditunjukkan oleh Husnaini & Khusnah (2020) bahwa aktivitas corporate social responsibility (CSR) yang dilakukan oleh perusahaan-perusahaan di Indonesia menurunkan kinerja perusahaan ditahun berikutnya.…”

Shareholder election of CSR committee members and its effects on CSR performance

“…Second, the board of directors is considered responsible for CSR‐related issues (Kassinis & Vafeas, 2002; Rao & Tilt, 2016). Indeed, some boards amend their CSR agenda to acknowledge their responsibilities to different groups of stakeholders with diverse interests (Berthelot & Magnan, 2003; Jones & Wicks, 1999). Furthermore, a growing number of boards have established a CSR committee as a key component of their governance mechanisms to address sustainability opportunities and risks (Lublin, 2008; Michals, 2009; Montagnon, 2016; Spitzeck, 2009).…”