Effect of the Disclosure of Corporate Social Responsibility on Business Profitability. A Dimensional Analysis in the Spanish Stock Market

Abstract

In recent decades, the novel fact of considering corporate social responsibility (CSR) as part of the corporate strategy of companies has resulted in interest groups demanding the disclosure of such information. Likewise, considering their importance of transparency and governance today, it is necessary to make an approximation on the study of the divulgation of CSR information on companies listed on the Spanish stock market. The aim of this work is to determine whether the disclosure of the measures taken by the companies on CSR influences business profitability. Applying PLS-SEM on the information extracted from the sustainability reports of 103 companies listed on the Spanish continuous market, it is found that the disclosure of CSR measures improves business profitability in its social and economic dimensions, with no effect being found between the disclosure CSR in its environmental dimension on business profitability.

The effect of total quality management-enabling factors on corporate social responsibility and business performance: evidence from Vietnamese coffee firms

“…Nonetheless, depending on each research's circumstance, the impact of CSR activities will also have a positive or a negative impact on enterprise performance. Based on the CSR data collected from Spanish enterprises, Escamilla-Solano et al (2019) stated that only the economic and social dimensions have a positive impact on enhancing business profitability. Meanwhile, the hypothesis in terms of the environmental aspect being the factor impacting on increasing profitability for enterprises is rejected (Escamilla-Solano et al, 2019).…”

“…Current literature on CSR has witnessed a dramatic increase in CSR studies, but there is still no consensus on the concept of CSR (Huang et al, 2019). In general, all CSR concepts guide enterprises to achieve their business goals through simultaneous integration of three aspects: social, environmental and economical into blueprints toward business sustainability (Escamilla-Solano et al, 2019;Guzman et al, 2016;Sidhoum and Serra, 2017). Defining CSR depends on the specific context; thus, most scholars have attempted to explain CSR's concept based on the relationship between CSR initiatives and corporate performance.…”

Disclosure of gender policies: do they affect business performance?

“…Several investigations ( Navarro et al., 2010 ; Escamilla-Solano et al., 2016 , 2019 ; Cucari et al., 2017 ; Furlotti et al., 2019 ) establish that companies within their exercise of transparency and commitment should disclose all information, both financial and non-financial, to their different stakeholders, in such a way that it will allow investors to have all the information to know where to put their money. If in addition to this, we include the scandals experienced in recent years in terms of transparency and governance, and society's demand for companies to be more sustainable, efficient and transparent in their management, this resulted in the Union approving Directive 95/2014/EU regarding disclosure of non-financial information and information on diversity by specific large companies and groups, whose aim is to regulate the information that companies disclose about CSR actions and diversity management that they carry out.…”

“…However, they find a positive effect on the reduction of wastewater and sulphur dioxide. Escamilla-Solano et al. (2019) examine whether CSR disclosure influences the company's profitability.…”

Tüketiciler Sosyal Medyadaki Kurumsal Sosyal Sorumluluk Mesajlarını Gerçekten Önemsiyor mu? Türk Telekomünikasyon Şirketleri Üzerine Bir Araştırma

“…Today's increasingly competitive milieu forces companies to invest in social responsibility events to enhance their reputation and legitimacy (Escamilla-Solano et al, 2019). They make their corporate social responsibility (CSR) initiatives visible through various media tools admitting CSR communication (Luo -Bhattacharya, 2006).…”