The effect of social responsibility disclosure components on company value creation

Javanshir, Hadi; Gorganli Davaji, Jamadori; Saeedi, Parviz; Naderian, Arash

doi:10.22075/ijnaa.2022.29407.4155

The effect of social responsibility disclosure components on company value creation

Document Type : Research Paper

Authors

Hadi Javanshir

Jamadori Gorganli Davaji

Parviz Saeedi

Arash Naderian

Department of Accounting, Islamic Azad University, Aliabad Katul Branch, Aliabad Katul, Iran

10.22075/ijnaa.2022.29407.4155

Abstract

Social responsibility is a commitment causing managers of private sector business organizations to consider the whole community's well-being in their profit-making decisions. Organizations' performance evaluation criteria have evolved, and social and environmental responsibilities have become necessary for the long-term activities of organizations. This research uses Delphi forecasting methods, AHP ranking, questionnaires, and PLS through a comprehensive framework to analyze the effect of social responsibility disclosure components on company value creation. A content analysis was performed on the board reports of Iranian companies to examine the current status and the social dimension disclosure level in Iranian companies. To this purpose, a sample of active and large companies of the Tehran Stock Exchange, including about 106 cases from the energy, refining, and petrochemical industries, have been used. The results obtained from the path analysis and the desired indicators of the structural model fit supported the significance, explanation, and proper justification of corporate responsibility's social dimension disclosure components. In addition, a significant relationship was found between social responsibility disclosure and value creation.

Keywords

corporate social responsibility

social dimension components and indicators

disclosure level assessment

corporate value creation

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