The influence of stakeholder power on corporate social responsibility: evidence from a relationship-based economy

Rashid, Afzalur (2015) The influence of stakeholder power on corporate social responsibility: evidence from a relationship-based economy. Social Responsibility Journal, 11 (2). pp. 270-289. ISSN 1747-1117


Abstract

Purpose – This study aims to examine whether lenders’ power and other attributes influence corporate social responsibility (CSR) reporting in Bangladesh.

Design/methodology/approach – This study uses content analysis to examine specific CSR-related attributes from 115 publicly listed firms in Bangladesh. By using various attributes of social and environmental reporting a disclosure index is also constructed. This study uses an Ordinary Lease Square Regression analysis to examine the relationship between stakeholders’ power and CSR reporting.

Findings – The finding is that lenders’ power, or the extent of borrowing, does not influence CSR exposure. However, lenders’ cost of monitoring and ability to monitor significantly and positively influence CSR exposure.

Research limitations/implications – This study is subject to some limitations, such as the subjectivity or judgement associated in the coding process.

Practical implications – The implication of this study is that, when multiple borrowing creates 'claim-dilution' problems, lenders are found to influence CSR activity.

Originality/value – This study also supports the stakeholder theory and contributes to the literature on the practices of CSR reporting in the context of developing countries.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce (1 July 2013 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce (1 July 2013 -)
Date Deposited: 17 Mar 2020 03:04
Last Modified: 17 Mar 2020 04:58
Uncontrolled Keywords: Bangladesh, power, stakeholders, corporate social responsibility, lender
Fields of Research : 15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150106 Sustainability Accounting and Reporting
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970105 Expanding Knowledge in the Environmental Sciences
Identification Number or DOI: 10.1108/SRJ-09-2013-0109
URI: http://eprints.usq.edu.au/id/eprint/37850

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