How Does Corporate Information Environment Influence CSR?

Authors:
Open Access
Publisher website
Google Scholar
Abstract
This study investigates the impact of outsiders’ demand for more information (or transparency) on corporate social responsibility (CSR) initiatives. Drawing on a dataset of U.S. companies from 2010 to 2023, CSR performance is measured using ASSET4 ratings, while CSR disclosure levels are captured through the number of words and sentences in reports. Utilizing within-industry and -firm OLS regressions, our analyses reveal a positive relationship between the demand for more information and future CSR investments, showing that firms with higher demand for information not only enhance their CSR performance but also expand the length of their CSR reports. These results suggest that increased pressures for information encourage organizations to engage more deeply with social responsibility, resulting in more robust CSR activities and more comprehensive reporting practices. This study contributes to the existing literature by highlighting the strong predictive role of outsiders’ demand for more information in promoting CSR investment and disclosure, and by offering important insights for policymakers and practitioners on fostering corporate responsibility through enhanced transparency.

This publication has 83 references indexed in Scilit: