Corporate-NGO Collaboration and CSR Disclosure – The Moderating Role of Corporate Profitability

Ali, Waris; Frynas, J. George and Wilson, Jeffrey (2024). Corporate-NGO Collaboration and CSR Disclosure – The Moderating Role of Corporate Profitability. Journal of Applied Accounting Research (Early Access).

DOI: https://doi.org/10.1108/JAAR-08-2023-0238

Abstract

Purpose: This research investigates the influence of corporate-NGO collaborations on corporate social responsibility (CSR) disclosure measured in three different ways (i.e., extent, level and quality) in low-income developing economies. Additionally, it examines the moderating effect of corporate profitability in the relationship between corporate-NGO collaborations and CSR disclosure.

Design: This research uses multivariate regression analysis based on data collected from 201 non-financial firms listed on the Pakistan Stock Exchange (PSE).

Findings: The findings reveal that corporations with NGO partnerships are more likely to disclose CSR information, and provide high-quality information regarding workers, the environment, and community-related issues. Further, corporate profitability positively moderates the corporate-NGO collaborations and CSR disclosure relationship.

Research limitations: Research limitations are presented in the conclusion section.

Practical implications: The findings underline the crucial significance of NGOs and their associated normative isomorphism logics for CSR disclosure in low-income countries with weak law enforcement and relatively ineffective state institutions, which were previously believed to lack such institutions.

Originality: While some research has suggested that companies in developing countries perceive a significant pressure from NGOs to adopt social disclosure, no study has specifically explored how internally driven corporate-NGO collaboration (as opposed to external NGO activist pressures) promotes CSR disclosure specifically in developing economies.

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