A Multi‐level Perspective of <scp>CSR</scp> Reporting: The Implications of National Institutions and Industry Risk Characteristics

Abstract

Abstract Manuscript Type Empirical Research Question/Issue This study seeks to capture the influence of national institutions and industry characteristics on CSR reporting. To explore national institutions, the paper compares CSR reporting in F rance and A ustralia characterized respectively as state‐led market economies ( SLMEs ) and liberal market economies ( LMEs ). Comparisons are also made between high‐risk and low‐risk industries. The interaction between the two main variables is also analyzed. Research Findings/Insights Using corporate published data from a sample of 220 A ustralian and F rench companies in 2009, the research finds that CSR reporting is stronger and CSR practices more transparent in F rance compared to A ustralia. CSR reporting is also stronger in high‐risk industries than in low‐risk industries. It also found that industry characteristics override the influence of national institutions in high‐risk industries. However, these conclusions vary depending on the sub‐categories of CSR reporting and the implicit versus explicit form of this type of communication. Theoretical/Academic Implications This study develops a new model of CSR reporting using 99 items. It provides empirical support for the institutional perspective for understanding differences in reporting whilst demonstrating the interaction between industry risk characteristics and national institutions. Practitioner/Policy Implications The study offers insights to policy makers interested in promoting CSR accountability and transparency. It especially raises the importance of regulation to develop corporate reporting practices. It also provides insights to managers to identify relevant CSR practices within their country/industries and the different communication strategies that they can adopt in responding to institutional pressures.