The Influence of Corporate Governance on Corporate Social Responsibility Disclosure: A Focus on Accountability

Haslinda Yusoff, Zunaidah Ahma

Abstract

The purpose of this study is to examine the extent of the accountability-related to CSRD and the influence of the corporate governance on CSRD practices. This study used the Modified Koppell’s Model in understanding the accountability-related to CSRD, which consists of four dimensions, namely; transparency, liability, responsibility and responsiveness. The corporate governance characteristics studied are board size, board independence, board meetings, and female directors on board, which are used as the predictors of company’s accountability on CSRD. Annual reports of 100 public listed companies in Malaysia were analysed using the content analysis of two years observations i.e. 2015 and 2016. Descriptive analyses were conducted and it has been discovered that the percentages of accountability-related CSRD amongst Malaysian companies are mostly low. The study also provides empirical evidence that only board size has a significant relationship with the accountability-related CSRD. In general, this study put forward some insights about Malaysian CSRD practices from the perspective of accountability as well as governance related strategy in enhancing companies’ accountability in reporting CSR information. The study also signifies the need to strategically establish a relevant CSRD-accountability model towards an enhanced ethical-accountability based reporting.

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