The Evolution in CSR Reporting: A Longitudinal Study of Canadian Firms

Abstract

Our paper explores the evolution in the reporting of Corporate Social Responsibility (CSR) for 115 Canadian firms (51 cross-listed on U.S. stock exchanges) throughout the seven year period of 1999–2006, which was the period before and after SOX and Bill 198 were enacted, resulting in a period of increasing pressure for CSR and CSR disclosure (Ballou, Heitger, & Landes, 2006). We examined CSR scores for Canadian firms listed only on Canadian stock exchanges and for Canadian firms cross-listed on U.S. exchanges. During this period, our analysis shows an overall decrease in CSR scores for all Canadian firms in our sample, and for both our subsamples of firms: Canadian firms cross-listed on U.S. stock exchanges and Canadian firms listed only on Canadian exchanges. Our analysis suggests that as a result of increased scrutiny facilitated by the regulatory changes, CSR disclosures become more transparent and comprehensive: CSR Strengths and CSR Weaknesses Scores both declined after 2002 resulting in an overall decline in Total CSR scores. Implications for research and practice are discussed.

Citation

Mahoney, L.S. and Thorne, L. (2014), "The Evolution in CSR Reporting: A Longitudinal Study of Canadian Firms", Research on Professional Responsibility and Ethics in Accounting (Research on Professional Responsibility and Ethics in Accounting, Vol. 17), Emerald Group Publishing Limited, Leeds, pp. 79-96. https://doi.org/10.1108/S1574-0765(2013)000017006