Digitalizing corporate whistleblowing systems: the role of country peers in the adoption of substantive CSR initiatives
Sustainability Accounting, Management and Policy Journal
ISSN: 2040-8021
Article publication date: 19 November 2024
Abstract
Purpose
This study aims to examine whether companies adopt digital platforms for corporate whistleblowing systems (CWSs), as more substantive corporate social responsibility (CSR) initiatives, by following the existing practices of their industry peers (competitive pressure) and/or geographical location peers (legitimacy pressure).
Design/methodology/approach
This study identifies 446 focal companies in the European Economic Area that introduced new CWSs during 2017–2021. Then, the peers are defined as companies with existing CWS practices that are similar in size to each focal company. Using a quantitative approach, this study uses a logistic regression model.
Findings
This study finds that companies are more likely to adopt digital CWS if their country peers (not, industry peers) have done so, especially the ones operated in countries where governments build CSR partnerships with companies through cooperative consensus. However, the role of country peers is less prominent when companies have CSR committees.
Practical implications
This study shows the importance of country norms over competitive pressure in CSR. Nevertheless, the results offer additional insights for policy-makers by showing that country regulations mandating CWSs are not significant in promoting the adoption of digital CWS nor reducing the role of country peers.
Social implications
Providing CWSs with digital platforms may show corporate commitment to better preventing social misconduct and improving social responsibility.
Originality/value
While most literature focuses on the role of industry peers and/or community peers in a single-country setting, this study examines the role of country peers specifically on digitalization regarding CSR and governance.
Keywords
Acknowledgements
The author would like to thank Jan Marton, Niuosha Samani and Christina Dargenidou for their helpful suggestions on an earlier version of this article. Appreciation is also extended to SAMPJ editors and anonymous reviewers for their constructive feedback, which has contributed to improving the quality of this work.
Citation
Rahmatdi, R. (2024), "Digitalizing corporate whistleblowing systems: the role of country peers in the adoption of substantive CSR initiatives", Sustainability Accounting, Management and Policy Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SAMPJ-03-2024-0303
Publisher
:Emerald Publishing Limited
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