Academic Master


Disclosure and Corporate Social Responsibility

Executive Summary

With the advent of social accounting, and more transparency being inculcated into business practices, it has become imperative for organizations to make sure that they are more robust in terms of the way information disclosure is carried out.  What it means that they have to be efficient not only when it comes to setting up the goals but also to ensure better long-term strategic alignment of the organization.


When one talks about business in the global space, the key thing that can be observed at the moment is the fact that how the companies that are operating these days have to make sure that they observe corporate social responsibility (Wanderley et al. 2014, p.369). The idea is to make sure that the businesses work towards creating a lasting impression (Darus et al. 2015, p.123). A lasting impression is needed to be put on the consumer as well as the relevant stakeholders (Darus et al. 2015, p.123).  Recent research regarding corporate social responsibility has pointed out the fact that how companies need to be more socially aware when it comes to making sure that they are taking enough initiatives (Darus et al. 2015, p.123). One of the key aspects of CSR is to make sure that the disclosure policies of the company must be satisfactory (ZHOU et al. 2013, p.022).  In this paper, some of the best practices are going to be looked at in terms of disclosure (Darus et al. 2015, p.123).

Setting the Measurable Goals

One of the key goals for the business has always been to make sure that they are setting measurable goals (Darus et al. 2015, p.123). The goals are especially important if one talks about the fact that how they can be materialized in the long run (Darus et al. 2015, p.123).  Thus to ensure that the CSR policy can be measured, there is a need to ensure that the smaller changes are needed to be brought at the level of the business (Waller and Lanis, 2015, p.109).  There are simple steps such as making sure that the waste management is being looked after in the right manner as well as supporting the sustainability policies go a long way toward making sure that the disclosure strategy is chalked in the right manner (Darus et al. 2015, p.123).

Increasing the Stakeholder Engagement

At times, there is a big mistake that is made by the companies is that they do not develop enough consensus among the stakeholders. Instead, they try to take all the decisions on their own (Darus et al. 2015, p.123). When that happens, that green and social initiatives are not going to work.  It is a big part of the disclosure started to make sure that the stakeholders must be aware of all the decision-making possibilities that are carried out by the business (Darus et al. 2015, p.123). The key aspect is to make sure that the value, mission, and long-term orientation of the whole thing are needed to be kept in mind (Darus et al. 2015, p.123).

Corporate Social Responsibility and the Social Accounting

In recent days, there is a pheromone has been introduced which is about making sure that the social context and consideration are being made part of the accounting process. It goes a long way in ensuring better decision-making (Darus et al. 2015, p.123).  Social accounting talks about the fact that what are some of the methods and the rationales that are being used during the course of the accounting process that was related to the broader themes that are witnessed in society (Darus et al. 2015, p.123).

Discretionary Policies

The researchers and the practitioners have given considerable time to the way company’s policies are being formulated (Rodríguez and LeMaster, 2017, p.370). Disclosure is one of the key aspects of the way corporations can make sure that they are looking after the corporate social responsibility. The key thing that is seen most of the time is that the firms increase demand for debt and have equity issues (Darus et al. 2015, p.123).  When that happens, their overall cost of capital goes down. So if the informative disclosures are carried out by the organizations in the right manner, they would go a long way in making sure that sound and rational decision-making would be carried out by the organization (Darus et al. 2015, p.123).

The incentive for the Companies and Disclosure

Most of the time, companies have a decent incentive when they are engaging in stakeholder management (Darus et al. 2015, p.123). The way they can do that is by making sure that they are taking socially responsible actions as well as providing extensive disclosures during each of the practice sessions (Darus et al. 2015, p.123).  As a matter of fact, the firms that are socially responsible are more likely to be measured in their expression of corporate social responsibility if they are sound in their judgment related to corporate governance (Darus et al. 2015, p.123).

Provision Of Information By The Companies

At the moment, the way organizations are moving forward, they most of the time spend a great deal of effort towards making sure that the CSR and disclosures are carried out in an appropriate manner (Dhaliwal et al. 2015, p.759). The idea is to make sure that the provision of the information is carried out in a manner that the gives a fair perspective about the way environmental and social performance is managed in the long run. From the perspective of economic policymaking, the disclosure of the information goes a long way in making sure that the potential political costs can be avoided for the given time period. As per the political cost theory, the shareholder structure and the stakeholder management is positively related to the level of disclosure (Dhaliwal et al. 2015, p.45).   There is another very important aspect of corporate disclosure and it is the size and the industry of the organizations that are involved in the due process (Hughey and Sulkowski, 2013, p.24).  If it is an industry where corporate disclosure is a norm, then most of the time it means that the costs that are associated with the profit-making ability are going to be on the higher side (Gray et al. 2015, p.47). On the other hand, there are industries where the extent of corporate disclosure is on the lower side. In some ways, corporate governance and the trend is set up by the market forces (Fernandez et al, 2012, p.1).

Conclusion and Recommendation

One of the key things that one gets to see related to corporate disclosure is to make sure that the organizations are robust and quick to realize what are some of the things that are needed to be done by them to make sure that the whole thing is managed in the right manner (Garcia et al. 2016, p.15).  Corporate governance and corporate social responsibility go a long way though. The level of transparency that one gets to see across the organizations and how it is related to corporate governance goes a long way in determining the course of action that is taken by the business at each and every level (Fuente et al. 2017, p.750).


Darus, F., Arshad, R., Othman, S. and Jusoff, K., 2015. Influence of institutional pressure and ownership structure on corporate social responsibility disclosure. Interdisciplinary Journal of contemporary research in business, 1(5), pp.123-150.

Dhaliwal, D.S., Li, O.Z., Tsang, A. and Yang, Y.G., 2015. Voluntary nonfinancial disclosure and the cost of equity capital: The initiation of corporate social responsibility reporting. The accounting review, 86(1), pp.59-100.

Dhaliwal, D.S., Radhakrishnan, S., Tsang, A. and Yang, Y.G., 2012. Nonfinancial disclosure and analyst forecast accuracy: International evidence on corporate social responsibility disclosure. The Accounting Review, 87(3), pp.723-759.

Fernandez-Feijoo, B., Romero, S. and Ruiz, S., 2012. Does board gender composition affect corporate social responsibility reporting? 1. International Journal of Business and Social Science, 3(1).

Fuente, J.A., García-Sánchez, I.M. and Lozano, M.B., 2017. The role of the board of directors in the adoption of GRI guidelines for the disclosure of CSR information. Journal of Cleaner Production, 141, pp.737-750.

Garcia-Sanchez, I.M., Cuadrado-Ballesteros, B. and Frias-Aceituno, J.V., 2016. Impact of the institutional macro context on the voluntary disclosure of CSR information. Long Range Planning, 49(1), pp.15-35.

Gray, R., Kouhy, R. and Lavers, S., 2015. Corporate social and environmental reporting: a review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing & Accountability Journal, 8(2), pp.47-77.

Hughey, C.J. and Sulkowski, A.J., 2013. More disclosure= better CSR reputation? An examination of CSR reputation leaders and laggards in the global oil & gas industry. Journal of Academy of Business and Economics, 12(2), pp.24-34.

Rodríguez, L.C. and LeMaster, J., 2017. Voluntary corporate social responsibility disclosure: SEC “CSR Seal of Approval”. Business & Society, 46(3), pp.370-384.

Waller, D.S. and Lanis, R., 2015. Corporate social responsibility (CSR) disclosure of advertising agencies: an exploratory analysis of six holding companies’ annual reports. Journal of Advertising, 38(1), pp.109-122.

Wanderley, L.S.O., Lucian, R., Farache, F. and de Sousa Filho, J.M., 2014. CSR information disclosure on the web: a context-based approach analysing the influence of country of origin and industry sector. Journal of business ethics, 82(2), pp.369-378.

ZHOU, Z.C., WANG, X. and WEI, J.Y., 2013. Disclosure of CSR Information in China: Current Situation and Suggestions [J]. Soft Science, 4, p.022.



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