Corporate Social Disclosure (CSD) and its motivations : a local survey

Abstract

Purpose: This study seeks to analyse the current local scenario vis-à-vis the communication of Corporate Social Responsibility (CSR) information, known as Corporate Social Disclosure (CSD). Special attention is devoted to the understanding and importance attached to the concept of CSR, the mediums chosen to convey related information to stakeholders and the reasons that encourage such disclosures. Design: The objectives of this study were achieved through the distribution of a questionnaire to a sample of local enterprises. The study focuses on entities employing 25 or more persons, due to the significant challenges that smaller firms face with regards to the disclosure of CSR information. Findings: The study shows that there has been a significant increase in communications of CSR information over the past few years, such that it now appears that the majority of local enterprises engage in some form of CSD. The practice of disclosing such information seems to be more widespread in professional service industries, especially financial services. Nonetheless, formal CSR reporting remains very uncommon, with most entities preferring to disclose selected information on corporate websites and in-house magazines. Conclusions: CSR is still not considered an integral business issue by most organisations, while the perception that CSR just has to do with donations, sponsorships and taking care of the environment, remains prevalent. Furthermore, with regards to CSD, improving transparency seems to be the least of local entities? iii concerns, with improving relations with stakeholders and enhancing brand image and sales being greater motives for disclosure. Value: It is genuinely hoped that this study will encourage further research into this area, which is still evolving, as well as inspire more local firms to wholeheartedly adopt CSR and CSD practices. In addition, it is hoped that local stakeholders, including the government and the general public, start taking a more active interest in CSR matters, as this is the only way that its benefits can be fully realised.