Description
The chapter aims to examine the extent and determinants of corporate social responsibility (CSR) disclosure with the stance of both legitimacy and stakeholder theory. The study used annual reports of 100 sample manufacturing corporations selected based on the market capitalization method. The extent of CSR disclosure was evaluated through the ten principles of the United Nations Global Compact. Ordinary least square regression was conducted to analyze data. The study findings indicate that only 11% of sample corporations disclose more than eight principles through the lens of both legitimacy and stakeholder theory. The study also finds that board size, corporate size, and operating risk management have a significant, positive association with CSR disclosure. Findings are only based on manufacturing corporations and the principles of the United Nations Global Compact, so the generalization of findings on financial corporations and comparison with other voluntary standards should not be prudent. Findings also support policymakers and industry practitioners to develop a methodological guideline along with improving the instruments of social value system for enhancing CSR disclosure. The study empirically tested the positions of both legitimacy and stakeholder theory for CSR disclosure in the emerging economies like Bangladesh for which the findings provide new insight into the literature. In addition, the findings regarding the role of independent directors and operating risk management for CSR disclosure in the emerging economies will keep a significant appeal to policymakers.
