Determinants of corporate social reporting in india

Abstract

Corporate Social Reporting (CSR), which stems from the root of Corporate Social Responsibility of a corporation, is gaining importance across nations. As a research theme, CSR has attracted the attention of many researchers who have explored the concept from different perspectives. The present paper examines the extent of corporate social reporting and the variables that determine it. Based on market capitalization, the top 100 companies included in BSE 200 of Bombay Stock Exchange, India, have been included in the study. Data required have been obtained from the annual reports of the companies for the period from 2007-08 to 2011-12. Content analysis reveals that companies report extensively on ‘community involvement’. The determinants of corporate social reporting have been identified through multiple regression analysis. The variables that have been tested are size, age, nationality, industry type, ownership, liquidity, leverage, profit, dividend, reserves, and gross fixed assets. Corporate Social Reporting Index—constructed based on the number of CSR components a company reports—has been regressed on the select variables. The results indicate that Size, Nationality, Industry Type, Ownership and Leverage determine the level of corporate social reporting of Indian companies.