Institutional drivers for corporate social responsibility in the utilities sector

Abstract

PurposeThe purpose of this study is to examine the influence of characteristics of the institutional environment on the disclosure of corporate social responsibility (CSR).Design/methodology/approachThis is a quantitative and descriptive research. The dependent variables used were environmental dimension (ED) and social dimension (SD) that together compose the corporate social performance (CSP). The independent variables that will be used are the characteristics of the institutional environments of Brazil and the UK. Thus, for this end, variables of the national business system of both countries will be used: corruption transparency, access to credit by countries, quality of the education system and labor relations. After their collection, the data were submitted to descriptive and inferential statistics and hierarchical regression.FindingsData show that UK companies make more disclosure in CSR than Brazilian companies. Through linear regression, it can be seen that the institutional environment affects disclosure in CSR. In the UK, a country with better educational, labor, political and financial indicators than Brazil, it presented better CSR practices. The findings reveal that the better an institutional environment, the more firms act in CSR. The findings of the research confirm the premise of institutional theory: different institutional fields can modify business performance.Research limitations/implicationsThe study analyzed only the disclosure practices of companies in the public sector. Thus, the results should be carefully analyzed, without generalizations for all industry sectors. Therefore, it is suggested that future research looks at other industry sectors as well as other institutional contexts, i.e. other countries.Practical implicationsMultinational companies may have different CSR practices according to the institutional environment in which they operate. For example, companies in developed countries, such as the UK, have greater stakeholder pressure. Given this, managers must adapt their environmental strategies according to the institutional environment in which they operate.Originality/valueThis research contributes to CSR studies in various institutional contexts. There is a consensus in the literature that institutional environments affect firms' CSR practices. However, few empirical studies show results between the national business system and CSR. Thus, the present study intends to fill this research gap.

Examine the level of environmental, social and governance disclosure in sustainability report – a study of the Indian banking sector

“…Banks must, therefore, prioritize financial value combined with environmental and social value if they want to thrive (Alsayegh et al , 2020). Despite the fact that researchers give sustainability a lot of attention, few studies specifically address sustainability reporting in the banking and financial services industry (Bandeira Pinheiro et al , 2021; Kumar and Prakash, 2019). Several theories highlight why banks, in particular, are interested in sustainability disclosure.…”

“…CSR increases a firm’s competitive edge from an innovation standpoint by cutting costs, generating value for stakeholders and building internal capabilities like becoming an industry pioneer (Maqbool and Zameer, 2018). The three main ways that CSR influences a company’s ability to compete are through collaboration with various stakeholders, the creation of new business opportunities through the resolution of pressing societal issues and the improvement of working conditions, which boosts employee morale and demonstrates greater regard for employees (Bandeira Pinheiro et al , 2021; Camilleri, 2017; Coupland, 2006; Murè et al , 2021). Consequently, by making investments in excellent social responsibility, a company increases its reputational capital and, as a result, improves its financial performance.…”

“…Consequently, by making investments in excellent social responsibility, a company increases its reputational capital and, as a result, improves its financial performance. Moreover, CSR aids in fostering positive relationships with clients, retaining enthusiastic staff, reducing business risk and generating great word-of-mouth that could otherwise come at a cost (Bandeira Pinheiro et al , 2021; Birindelli et al , 2018; Camilleri, 2017; Di Tommaso and Thornton, 2020). Several studies mentioned that CSR and the performance of the bank both financial and nonfinancial shows an affirmative association (Belasri et al , 2020; Maqbool and Zameer, 2018; Matuszak and Różańska, 2017; Nizam et al , 2019).…”

Revisitando a relação entre desempenho financeiro e divulgação ambiental: uma análise comparativa entre Brasil e Holanda

“…As empresas passaram a demonstrar maior atenção às questões ambientais devido a pressões do governo, dos ambientalistas e à medida que a sociedade estava se tornando mais consciente dos efeitos decorrentes das atividades empresariais (Bandeira Pinheiro et al, 2021;Bandeira Pinheiro et al, 2022). Desse modo, as organizações estão atentas a divulgar suas informações ambientais de forma voluntária, a fim de melhorar sua imagem e evitar conflitos com os stakeholders.…”

Effect of the Cultural System on Corporate Social Responsibility Disclosure in the Energy Sector

“…Thus, according to Sarkis, Gonzalez-Torre and Adenso-Diaz (2010), stakeholder engagement is important for companies to establish social legitimacy. In addition, society's environmental education stimulates greater pressure for companies to reduce their environmental impacts (Pinheiro, Silva Filho & Moreira, 2021).…”