Corporate social responsibility : the applicability of CSR reporting in Maltese public companies and its standardisation : an assessment

Abstract

Purpose: CSR and the reporting of CSR-related activities are identified as two important means for rebuilding the confidence and trust in the capital markets damaged as a result of the notorious corporate scandals and for legitimising activities undertaken by the reporting companies. The objectives of this study are to determine the key perceptions of the concept of CSR within selected Maltese public limited companies (plcs), to establish the practice of CSR reporting in Malta and to assess the practical implementation of the concept of CSR by Maltese plcs by considering workplace practices, environment issues and marketplace policies. Design: The above purpose was achieved by means of an empirical study undertaken through a combination of a self-administered questionnaire distributed amongst Maltese plcs and face-to-face semi-structured interviews. Moreover, a review was conducted of the Maltese regulatory regime which is of specific relevance to CSR and in this respect two interviews were held with the Malta Financial Services Authority. Findings: The results showed that, on a general level, CSR, CSR communication and reporting is gaining prominence in the context of Maltese plcs. Moreover, the study points towards the idea that CSR is predominantly associated with charity and philanthropic initiatives. Value: It is hoped that this study is contributory to the sphere of CSR reporting amongst Maltese plcs. This study provides recommendations of the possible avenues which may be taken to increase the value of CSR and CSR reporting in Malta. Amongst its recommendations, this study proposes the adoption by Maltese plcs of internationally recognised CSR reporting standards on the CSR aspects contained in their reports so as to increase the value of such reporting. Alternatively, the development of ad hoc minimum reporting standards was recommended.