Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Corporate Social Responsibility Disclosures and Corporate Performence: Evidence from the Listed Companies in Bangladesh

Author(s): Mofijul Hoq Masum, Md. Mohan Uddin, Hasnan Ahmed, Md. Helal Uddin

Corporate Social Responsibility (CSR) research becomes a burning issue to the academics in the last three decades both in developed and developing countries. This study aims at examining the possible effect of Corporate Social Responsibility Disclosures (CSRD) on corporate performances based on five key dimensions of CSR, among the public listed companies in Bangladesh. We have considered the Return on Equity (ROE) and leverage ratio as the proxy of dependent variable-corporate performance. Five dimensions of the CSR practices namely, environment, employee, social and community services, product and customer are considered as the proxy of independent variable - CSRD. To determine the CSRD practices of the listed company a three scale content analysis having fifty seven items has been used. To conduct the study, a sample of 196 Dhaka Stock Exchange (DSE) listed companies from seventeen industries has been scrutinized. In our study, we have found significant relationship between the proxy variables of corporate performances and key dimensions of the CSR practices. We have found that the listed companies disclose more information concerning to the employee related CSRD and less information on environment related CSRD. Out of five proxy variables of CSRD, the employee related CSRD and the environment related CSRD has positive impact on corporate performance while the social and community service related CSRD, product related CSRD and customer related CSRD has no significant relationship on corporate performance. The findings of the study show that CSR practices are value relevant in developing countries like Bangladesh. The findings of the study contribute to the literature of CSR in the way that more CSR disclosing companies are performing well in recent days. These findings will encourage the corporate people to involve in more CSR activities as it ensures the sustainability of corporate performances.

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