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Obfuscation versus enhancement as corporate social responsibility disclosure strategies

Author

Listed:
  • Jennifer Martínez‐Ferrero
  • Oscar Suárez‐Fernández
  • Isabel‐María García‐Sánchez

Abstract

Building upon impression management, the objective of this paper is to analyse the enhancement or obfuscation strategies of reporting corporate social responsibility (CSR) information. Concretely, this paper aims to examine the association between the CSR performance of the firm and the socially responsible disclosure strategy adopted by managers to obtain insights into the factors associated with balance, accuracy, clarity, comparability, and reliability of information. A sample of 273 international companies from the year 2007 to 2014 was used to develop our models of analysis. The results show that, according to an obfuscation disclosure strategy, firms with the worst CSR performance disclose information that is less balanced, accurate, and clear; moreover, these reports incorporate more optimistic, longer, and less readable information. Within the realm of impression‐management strategy, firms use thematic content and verbal tone manipulation as well as quantity and syntactical reading as impression‐management tools.

Suggested Citation

  • Jennifer Martínez‐Ferrero & Oscar Suárez‐Fernández & Isabel‐María García‐Sánchez, 2019. "Obfuscation versus enhancement as corporate social responsibility disclosure strategies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(2), pages 468-480, March.
    • Handle: RePEc:wly:corsem:v:26:y:2019:i:2:p:468-480
    DOI: 10.1002/csr.1697
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    Cited by:

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    2. Karaman, Abdullah S. & Orazalin, Nurlan & Uyar, Ali & Shahbaz, Muhammad, 2021. "CSR achievement, reporting, and assurance in the energy sector: Does economic development matter?," Energy Policy, Elsevier, vol. 149(C).
    3. Camélia Radu & Nadia Smaili, 2022. "Alignment Versus Monitoring: An Examination of the Effect of the CSR Committee and CSR-Linked Executive Compensation on CSR Performance," Journal of Business Ethics, Springer, vol. 180(1), pages 145-163, September.
    4. María‐Florencia Amorelli & Isabel‐María García‐Sánchez, 2020. "Critical mass of female directors, human capital, and stakeholder engagement by corporate social reporting," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 204-221, January.
    5. Ibrahem Alshbili & Ahmed A. Elamer & Maha W. Moustafa, 2021. "Social and environmental reporting, sustainable development and institutional voids: Evidence from a developing country," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 881-895, March.
    6. Isabel‐María García‐Sánchez & Marcelle Colares Oliveira & Jennifer Martínez‐Ferrero, 2020. "Female directors and gender issues reporting: The impact of stakeholder engagement at country level," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 369-382, January.
    7. David Talbot & Guillaume Barbat, 2020. "Water disclosure in the mining sector: An assessment of the credibility of sustainability reports," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1241-1251, May.

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