Multidimensional corporate social responsibility disclosure and financial performance: A meta‐analytical review

Abstract

The emergence of various Corporate Social Responsibility (CSR) disclosure laws around the globe, in the past decade, indicates the significance of CSR for a country as well as for an organization. Organization belief CSR as a strategic tool for enhancing value, still evidence on how CSR disclosure affects financial performance has been inconclusive. To resolve the ambiguity presence in the literature, this study carried out a meta-analytic investigation based on 168 effect sizes from 73 empirical studies. This study employs a multivariate framework to explore the potential moderators that leads to conflicting results among the focal relationship of the study. The study discovers that if CSR disclosure strategy and measurement technique are adequately addressed with the help of econometric tools, then the true effect of CSR can be observed. Moreover, implications are drawn for academicians and practitioners interested in exploring the relationship between CSR disclosure and financial performance.

Revisiting the influence of corporate sustainability practices on corporate financial performance: An evidence from the global energy sector

“…This inverted U‐shaped relationship between the CSPR and CFP signifies that a firm performs well when there is moderate pressure from civil society and regulators (Gupta & Das, 2022). And their performance exacerbates when there is no pressure or too much pressure from various stakeholders.…”

“…The need to establish a robust relationship between CSPR and CFP is not new, and there is a long‐held belief that the relationship between these two constructs exists (Gupta & Das, 2022; Magrizos et al, 2021; Nyeadi et al, 2018; Palmer et al, 1995). Some scholars establish a positive association between CSPR and CFP (Chen & Wang, 2011; Liu, 2020; Reverte et al, 2016), and some demonstrate negative or mixed (Fahad & Busru, 2021; Kao et al, 2018; Kasseeah, 2020) or not so significant association (Barnett & Salomon, 2012).…”

“…The main reasons for the inconclusiveness of the literature findings are due to different conceptualizations and operationalizations of CSPR and CFP (Orlitzky et al, 2003; Wang et al, 2016). Furthermore, in a study, Gupta and Das (2022) identified various institutional factors such as industries' CSPR strategy (e.g., as conceptualization factor of CSPR) and economic conditions (e.g., as operationalization factor of CFP) behind these contradictory results in a meta‐analysis review.…”

Wheat and chaff: the degree to which strategic management principles are integrated within corporate social responsibility reporting among large Canadian firms

“…Accordingly, there are no guarantees of consistency regarding the frequency of reporting, the structure and format of the disclosure, and the consistency of the information shared. Methodologically, content analysis remains a frequent method of choice for qualitative studies in CSR (Fifka, 2013 ; Gupta & Das, 2022 ; Wolfe, 1991 ), though inconsistencies in disclosure at the firm level and differences in regulatory regimes at the industry, sub-state, and national levels make more difficult the longitudinal studies of individual firms, sectoral studies within industries, and cross-national comparisons. Although the rise in ESG data sets and “eXtensible Business Reporting Language” (XBRL) information has facilitated the use of statistical analysis (DesJardine et al, 2021 ; Roohani et al, 2009 ; Waddock & Graves, 1997 ), the aforementioned problems of voluntary reporting, structural reporting differences, and self disclosure variability have made quantitative approaches to the field more burdensome.…”

Do foreign banks disclose corporate social responsibility practices more than their local counterparts? Empirical evidence of an emerging market context

“…Many scholars have delved into the study of CSR disclosure (CSRD) practices to advance the understanding of social and environmental reporting levels in the current time. Literally, CSRD is a manifestation of CSR (Isnalita & Narsa, 2017) and is an important initiative to help the stakeholders in evaluating social and environmental roles played by firms, as well as the fulfilment of CSR's legal requirements enforced in certain countries where the firms operate (Gupta & Das, 2022).…”