This chapter provides a comprehensive analysis of corporate social responsibility (CSR) practices and reporting. It begins with an overview of the history and evolution of CSR and presents different approaches to CSR. The theoretical foundations of CSR, including stakeholder, social contract, legitimacy, and resource dependence theories, are then discussed. This chapter explores the importance of CSR reporting and the different perspectives on CSR, including social accounting and social responsibility disclosure. Additionally, the impact of CSR practices and reporting on an organization's performance and reputation is examined, along with the determinants of non-financial information reporting. The roles and challenges of accounting, finance, management, and auditing professionals in CSR practices and reporting are discussed, including challenges for professionals.
TopIntroduction
Corporate Social Responsibility (CSR) has gained significant attention in recent years as organizations strive to create a positive impact on society and the environment. CSR refers to organizations’ voluntary actions to address the social and environmental impacts of their operations (Battisti, Nirino, Leonidou, & Thrassou, 2022). As stakeholder expectations and concerns continue to evolve, CSR practices and reporting are becoming increasingly important. CSR practices and reporting are becoming increasingly important, as organizations strive to meet stakeholders’ expectations and create a positive impact on society (Carroll, 2021). CSR practices include initiatives such as energy efficiency, community engagement, diversity, and inclusion. These practices are intended not only to minimize negative impacts but also to create positive contributions to society and the environment (Yasir et al., 2021).
CSR has emerged as a focal point of attention in both the academic and business spheres, prompting extensive discussions and debates to unravel its scope and implications (Ahsan, 2023; Swanson, 2021; Wesselink & Osagie, 2020; Yasir et al., 2021). The evolving nature of CSR and its multifaceted dimensions pose a formidable challenge to establishing a universally accepted definition. Scholars and experts from diverse fields have proposed various definitions of CSR, reflecting the dynamic and contextual nature of the concept (Matten & Moon, 2020; Zhao, Yang, Wang, & Michelson, 2023).
Defining CSR constitutes a significant conundrum in the literature because it encompasses the economic, social, and environmental aspects. Attempts to confine CSR within rigid frameworks have proven challenging because their essence transcends traditional boundaries (Du & Xie, 2021). Scholars have sought to capture the essence of CSR through various lenses, resulting in a plethora of perspectives (Dwivedi et al., 2022).
For some researchers, CSR embodies the voluntary actions that organizations undertake to address social and environmental impacts that surpass their legal obligations (Carroll, 1979; Szőcs & Schlegelmilch, 2020). This perspective emphasizes that responsible organizations proactively engage in initiatives that extend beyond legal mandates, reflecting their commitment to societal and environmental well-being. However, (Lu et al., 2021); Moon (2007) underscores the significance of CSR in contributing to broader societal welfare and sustainable development. In this view, CSR is not merely a reactive response, but an integral part of a company's mission to create positive impacts on society and the environment.
Moreover, the CSR literature transcends geographical boundaries and presents contextual variations across different industries and regions. The diverse array of definitions underscores that CSR's meaning is not fixed, but rather influenced by the socio-cultural, economic, and environmental contexts within which organizations operate. Understanding how difficult it is to define CSR is vital to advancing the field and fostering a comprehensive understanding of its significance.
This chapter provides a conceptual analysis of CSR practices and reporting and explores the history and evolution of CSR, different CSR approaches, and the significance of CSR reporting. The theoretical foundations of CSR, including stakeholder, social contract, legitimacy, and resource dependence theories, are discussed to provide a comprehensive understanding of the conceptual framework of CSR.
Furthermore, this chapter addresses CSR adoption between developed and developing countries. Additionally, this chapter examines perspectives on CSR reporting, including social accounting and social responsibility disclosure, and the impact of CSR practices and reporting on an organization's performance and reputation. Determinants of non-financial information reporting, the role and challenges of accounting, finance, management, and auditing professionals in CSR practices and reporting, and challenges for professionals are also discussed.