Identify and rank the components of social responsibility disclosure and provide an indigenous model

Subject Areas : Financial Markets and Institutions

Hadi Javanshir ¹ , Jamadoordi Gorganli davaji ² , Parviz Saeedi ³ , Arash Naderian ⁴

1 - Department of Accounting, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katul, Iran.
2 - Department of Accounting, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katul, Iran.
3 - Department of Accounting, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katul, Iran.
4 - Department of Accounting, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katul, Iran.

Received: 2022-09-28 Accepted : 2024-03-30 Published : 2024-05-04

Keywords: Corporate Social Responsibility, Evaluation Disclosure Level, Iranian Companies, Social Dimension Components and Indicators,

Abstract :

Objective: The necessity of accountability and attention to other social groups, along with the environmental impacts of corporate activities, has introduced the concept of social responsibility disclosure in accounting theory. The increasing demand from stakeholders for companies to accept social responsibilities has encouraged them to engage in environmental and social responsibilities. Considering this necessity, the present study aims to identify and rank the components of social responsibility disclosure and provide a localized model. Research Methodology: Utilizing Delphi forecasting methods, hierarchical analysis, and questionnaires, the study presents and analyzes within a comprehensive framework. Additionally, the current status and the level of social disclosure in companies were determined through content analysis of the reports from the boards of directors of Iranian companies. Findings: The findings indicate that the most critical social dimension components, in order of priority, are the customer factor with a relative weight of 0.220 in the first rank, followed by the community responsibility factor with a relative weight of 0.174 in the second rank, environmental issues with a relative weight of 0.140 in the third rank, products and services with a relative weight of 0.128 in the fourth rank, energy with a relative weight of 0.117 in the fifth rank, economic factor with a relative weight of 0.112 in the sixth rank, and human resources with a relative weight of 0.108 in the seventh rank. Overall, the low level of social disclosure in Iranian companies indicates a significant gap between the current status and societal expectations, necessitating appropriate regulations, requirements, and standards in corporate reporting and disclosure to meet stakeholder and societal expectations. Originality/Scientific Contribution: The results of path analysis and favorable model fit indices demonstrate the significance and appropriate explanation and justification of all components for the disclosure of the social dimension of corporate responsibility. This facilitates the reduction of the gap between the expectations of economic units and society as industries and various business units grow and develop, impacting the community and their lack of social reporting.

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