Determinants of voluntary CSR reporting reliability – evidence from Canada

Abstract

Purpose The purpose of this study is twofold: to examine the reliability of voluntary corporate social responsibility reporting (CSRR) to determine whether users can rely on the information released by corporations and to examine the determinants of CSRR reliability in a voluntary context. Design/methodology/approach This study analyses the information included in a sample of 190 standalone corporate social responsibility (CSR) reports issued by Canadian corporations listed on the Toronto Stock Exchange S&P/TSX Composite Index from 2016 to 2018. Findings The results of this study show that CSR reports lack reliability. The determinants identified (image, corporate governance and financialisation) partially explain the quality of the information disclosed. As well, the results suggest that corporations may attempt to manipulate users’ perception through their disclosures. Practical implications TThis study provides a greater understanding of the current state of CSRR in a voluntary context. It offers further insights into the strategies corporations use to manage impressions through CSR disclosures. Social implications This study provides further empirical data as to current shortcomings of voluntary CSRR and the potential benefits of further regulation. Originality/value Few studies have specifically focused on the reliability of CSRR and its determinants in a voluntary context.