A nexus between corporate social responsibility disclosure and its determinants in energy enterprises

Abstract

Purpose Corporate social responsibility (CSR) is a requirement for energy enterprises as different stakeholders deem environmental and social responsibility the duty. This study aims to explore the determinants that affect CSR disclosure in energy enterprises of developing nations. Design/methodology/approach Panel data of energy companies is used that are listed on Pakistan Stock Exchange. A comprehensive CSR disclosure index is developed using seven themes, i.e. environment, employees, energy, emissions, product, community development and other CSR-related activities. A random effect model of regression is used on the sample of data. Findings The finding of the study reveals that profitability, financial leverage, board size and being a multinational subsidiary has a significant relationship with CSR disclosure level. Research limitations/implications The sample is confined to a certain number of years and publicly traded energy companies. Further studies can explore the relationship of CSR among different groups of firms, such as SMEs, non-listed companies and state-run enterprises to document whether the findings are significant or not. The opinions and ideas of external stakeholders could also be explored using various qualitative methods such as interviews. Originality/value To the best of the authors’ knowledge, it is the first study of its kind whose only focus is energy sector enterprises. A comprehensive scale is used to measure CSR practices. It is helpful for upcoming studies to examine the various aspects of CSR research and figure sound outcome.